Document:

Prepared by MERRILL CORPORATION

Exhibit 10.1

EMPLOYMENT

AGREEMENT

EMPLOYMENT AGREEMENT (this "Agreement")

made as of the 10th day of September, 2001 (the "Effective Date")

by and between Leo S. Horey and AvalonBay Communities, Inc., a Maryland

corporation (the "Company").

WHEREAS, Executive has been performing services

for the Company; and

WHEREAS, Executive and the Company desire to

enter into an employment agreement, effective as of the date of execution of

this Agreement.

NOW, THEREFORE, the parties hereto do hereby

agree as follows.

1.             Term.  The Company hereby agrees to employ

Executive, and Executive hereby agrees to remain in the employ of the Company

subject to the terms and conditions of this Agreement for the period commencing

on the Effective Date and terminating on December 24, 2003 (the "Original

Term"), unless earlier terminated as provided in Section 7. The

Original Term shall be extended automatically for additional one year periods

measured from December 25, 2003 (each a "Renewal Term"),

unless notice that this Agreement will not be extended is given by either party

to the other at least 90 days prior to the expiration of the Original Term or

any Renewal Term.  Notwithstanding the

foregoing, upon a Change in Control, the Employment Period shall be extended

automatically to three years from the date of such Change in Control. (The

period of Executive's employment hereunder within the Original Term and any

Renewal Terms is herein referred to as the "Employment Period.")

2.             Employment Duties.

(a)           During the Employment Period, Executive

shall be employed in the business of the Company and its affiliates.  Executive shall serve as a corporate officer

of the Company with the title of Senior Vice

President – Property Operations. 

In the performance of his duties, Executive shall be subject to the

direction of the Board of Directors of the Company (the "Board"),

including any committee of the Board designated by the Board, if any, and the

Company’s Chief Operating Officer and any officer senior to the Chief Operating

Officer ("CEO", which term refers to the Chief Operating

Officer and any officer senior to the Chief Operating Officer (such as the

President, Chief Executive Officer and Executive Chairman), each with authority

acting alone to give direction hereunder in the event that more than one person

holds these positions) and shall not be required to take direction from or

report to any other person.  Executive

will report directly to the Chief Operating Officer of the Company.  Executive's

duties and authority shall be commensurate with Executive's title and position

with the Company, and shall not be materially diminished from, or materially

inconsistent with, Executive's duties and responsibilities with the Company

immediately prior to the date of this Agreement, provided,

however, that it will not be a violation of this Section 2(a), or

otherwise be a breach by the Company under any term of this Agreement, if either

(x) or (y) immediately below are true:

(x)

The Company modifies Executive's title or duties, provided that all of

the following conditions are met:

(i)

Executive remains on the Management Investment Committee, or a similar

successor committee of management that considers and approves investment

proposals developed by management; and

(ii)

Executive's title is Senior Vice President or a higher ranking title; and

(iii)

Executive reports directly to the CEO (which term, as noted above, includes the

Chief Operating Officer); and

(iv)

Executive either

(I)

remains as the most senior officer (other than the CEO) in charge of at least

one "current national principal business function" (which is defined

to mean any business function which is headed by a senior vice president or

higher ranking officer of the Company as of the date hereof -- i.e., finance,

human resources, property operations, development or construction) or,

(II)

if the Company's management structure is reorganized to give effect to two or

more major geographic regions, Executive is put in charge of at least three

"major business functions" for a major geographic region of the

Company.  "Major business

functions" means any of the five "current national principal business

functions" cited above plus, as a sixth major business function,

acquisitions and dispositions.  By way

of example only, titles in such a case could include President of the West

Coast Division or Senior Vice President of Construction, Development and

Acquistions and Dispositions of the West Coast Division; and

(v)

Executive's targeted total compensation is not less than what it would have

been had Executive remained in the position of Senior Vice President - Property

Operations for AvalonBay Communities (e.g., in determining total compensation

in accordance with Section 3(j), Executive's targeted total compensation will

not be reduced because, for example, it is determined by the Company to be

appropriate for a "Senior Vice President of Construction, Development and

Property Operations of the West Coast Division" to receive less

compensation than the Senior Vice President of Property Operations of a national

company).

 (y) The Executive's duties are modified from

time to time as Executive and Company mutually reasonably agree.

(b)           Executive agrees to his employment as

described in this Section 2 and agrees to devote substantially all of his

working time and efforts to the performance of his duties under this Agreement;

provided that nothing in this Section 2(b) shall be interpreted to preclude

Executive from (i) participating with the prior written consent of the Board as

an officer or director of, or advisor to, any other entity or organization that

is not a customer or material service provider to the Company or a Competing

Enterprise, as defined in Section 8, so long as such participation does not

interfere with the performance of Executive’s duties hereunder, whether or not

such entity or organization is engaged in religious, charitable or other

community or non–profit activities, (ii) investing in any entity or

organization which is not a customer or material service provider to the

Company or a Competing Enterprise, so long as such investment does not

interfere with the performance of Executive’s duties hereunder, or (iii)

delivering lectures or fulfilling speaking engagements so long as such lectures

or engagements do not interfere with the performance of Executive’s duties

hereunder.

(c)           In performing his duties hereunder,

Executive shall be available for reasonable travel as the needs of the business

require.  Executive shall be based in

Alexandria, Virginia (or otherwise in the Washington, Baltimore, DC-MD-VA-WV

Consolidated Metropolitan Statistical Area as defined by the U.S. Census Bureau

(the "Metropolitan Area")).

(d)           Breach by either party of any of his

or its respective obligations under this Section 2 shall be deemed a material

breach of that party’s obligations hereunder.

3.             Compensation/Benefits.  In consideration of Executive’s services

hereunder, the Company shall provide Executive the following:  

(a)           Base Salary.  During the Employment Period, the Executive

shall receive an annual rate of base salary ("Base Salary") in

an amount not less than $285,000. 

Executive’s Base Salary will be reviewed by the Company annually and may

be adjusted upward (but not downward) at such time.  Base Salary shall be payable in accordance with the Company’s normal

business practices, but in no event less frequently than monthly.

(b)           Bonuses.  Commencing at the close of each fiscal year

during the Employment Period, the Company shall review the performance of the

Company and of Executive during the prior fiscal year, and the Company may

provide Executive with additional compensation in the form of a cash bonus

("Cash Bonus") and/or in the form of long term equity

incentives such as stock options and restricted stock grants ("LT

Equity Bonus") if the Board, or any compensation committee thereof, in

its discretion, determines that the performance of the Company and Executive’s

contribution to the Company warrants such additional payment and the Company’s

anticipated financial performance of the present period permits such

payment.  Any Cash Bonuses hereunder

shall be paid as a lump sum not later than 75 days after the end of the

Company’s preceding fiscal year.

(c)           Medical and Disability

Insurance/Physical.  During the

Employment Period, the Company shall provide to Executive and Executive’s

immediate family a comprehensive policy of health insurance in accordance with

the Company’s general practice applicable to officers (including payment of all

or a portion of the premiums due thereon) and shall provide to Executive a

disability policy in accordance with the Company's general practice applicable

to officers (including payment of all or a portion of the premiums due

thereon).  During the Employment Period,

Executive shall be entitled to a comprehensive annual physical performed, at

the expense of the Company (but not including any related travel expense), by

the physician or medical group of Executive’s choosing.

(d)           Split Dollar Life Insurance.

During the Employment Period, the Company shall keep in force and pay the

premiums on the split–dollar life insurance policy referenced in the

Split Dollar Insurance Agreement between the Company and Executive, subject to

reimbursement by Executive as provided in such Split Dollar Insurance

Agreement.  Executive agrees to submit

to such medical examinations as may be required in order to maintain such

policy of insurance.

(e)           Vacations.  Executive shall be entitled to reasonable

paid vacations during the Employment Period in accordance with the then regular

procedures of the Company governing officers.

(f)            Office/Secretary, etc.  During the Employment Period, Executive

shall be entitled to secretarial services and a private office commensurate

with his title and duties.

(g)           Annual Allowance.  The Company will provide the Executive with

an annual allowance of up to $5,000 per year (the "Allowance").  The Executive may draw on the Allowance for

expenses incurred in his discretion for items such as country club membership,

financial counseling or tax preparation. 

Payment of the Allowance shall be subject to substantiation of expenses

in accordance with the Company’s policies in effect from time to time for

executive officers of the Company. 

Unused portions of the Allowance shall not be carried over from year to

year.  For purposes of this Section

3(g), a new year shall be deemed to commence on each January 1.  For the 2001 calendar year, Executive will

receive the full, unprorated $5,000 Allowance.

(h)           Automobile.  The Company shall provide Executive with a

monthly car allowance during the Employment Period in accordance with the

Company’s current practices but in no event less than Executive's current

monthly car allowance.

(i)            Other Benefits.  During the Employment Period, the Company

shall provide to Executive such other benefits, excluding severance benefits,

but including the right to participate in such retirement or pension plans, as

are made generally available to officers of the Company from time to time.

Executive shall be given credit for purposes of eligibility and vesting of

employee benefits and benefit accrual for service prior to the Effective Date

with Avalon Properties, Inc. and its affiliates ("Avalon"),

and Trammell Crow Residential ("TCR") under each benefit plan

of the Company and its subsidiaries to the extent such service had been

credited under employee benefit plans of Avalon or TCR, provided that no such

crediting of service results in duplication of benefits.

(j)            Total Compensation.  The Company acknowledges that the

Executive’s Cash Bonus and LT Equity Bonus awarded to the Executive by the

Board or Compensation Committee of the Board in its discretion from

time-to-time, are a material part of total compensation for the Executive.   The Company will endeavor to provide

Executive with a reasonable Cash Bonus and/or reasonable LT Equity Bonus on an

annual basis such that the Executive’s total compensation, in light of the

Company’s performance and his performance in his role as provided in this

Agreement, is reasonable under the circumstances and reasonable relative to the

Cash Bonuses and LT Equity Bonuses awarded other officers of the Company.  The Company shall not be in breach of this

provision unless it can be demonstrated that the Company acted in bad faith in

determining whether to award (or the size of an award of) a Cash Bonus or LT

Equity Bonus, which determination of bad faith shall specifically be made with

reference to the target awards set for other officers and the actual awards

paid other officers.

4.             Expenses/Indemnification.

(a)           During the Employment Period, the

Company shall reimburse Executive for the reasonable business expenses incurred

by Executive in the course of performing his duties for the Company hereunder,

upon submission of invoices, vouchers or other appropriate documentation, as may

be required in accordance with the policies in effect from time to time for

executive employees of the Company.

(b)           To the fullest extent permitted by

law, the Company shall indemnify Executive with respect to any actions

commenced against Executive in his capacity as an officer or director or former

officer or director of the Company, or any affiliate thereof for which he may

render service in such capacity, whether by or on behalf of the Company, its

shareholders or third parties, and the Company shall advance to Executive on a

timely basis an amount equal to the reasonable fees and expenses incurred in

defending such actions, after receipt of an itemized request for such advance,

and an undertaking from Executive to repay the amount of such advance, with

interest at a reasonable rate from the date of the request, as determined by

the Company, if it shall ultimately be determined that he is not entitled to be

indemnified against such expenses. 

Notwithstanding the foregoing, the Company shall not indemnify Executive

with respect to any acts or omissions attributable, directly or indirectly, to

Executive’s gross negligence, willful misconduct or material breach of this

Agreement.   The Company agrees that it

shall use reasonable best efforts to secure and maintain officers' and

directors' liability insurance that shall include coverage with respect to

Executive.

5.             Employer’s Authority/Policies.

(a)           General.  Executive agrees to observe and comply with

the rules and regulations of the Company as adopted by its Board respecting the

performance of his duties and to carry out and perform orders, directions and

policies communicated to him from time to time by the Board or the CEO.

(b)           Ethics Policies.  Executive agrees to comply with and be bound

by the Ethics Policies of the Company, as reflected in the attachment at Annex

A hereto and made a part hereof. 

Executive agrees to comply with and be bound by the Company’s insider

trading policies and procedures that are generally applicable to employees

and/or senior officers.

6.             Records/Nondisclosure/Company

Policies.

(a)           General.  All records, manuals, financial statements

and similar documents obtained, reviewed or compiled by Executive in the course

of the performance by him of services for the Company, whether or not

confidential information or trade secrets, shall be the exclusive property of

the Company.  Executive shall have no

rights in such documents upon any termination of this Agreement.

(b)           Nondisclosure Agreement.  Without limitation of the Company’s rights

under Section 6(a), Executive agrees to abide by and be bound by the

Nondisclosure Agreement of the Company executed by Executive and the Company as

reflected in the attachment at Annex B and made a part hereof.

7.             Termination; Severance and

Related Matters.

(a)           At–Will Employment.  Executive’s employment hereunder is "at

will" and, therefore, may be terminated at any time, with or without

Cause, at the option of the Company, subject only to the severance obligations

under this Section 7.  Upon any termination

hereunder, the Employment Period shall expire.

(b)           Definitions.  For purposes of this Section 7, the

following terms shall have the indicated definitions:

(1)           Cause.  "Cause" shall mean:

(i)            Executive is convicted of or enters

a plea of nolo contendere to an act which is defined as a felony under any

federal, state or local law, not based upon a traffic violation, which

conviction or plea has or can be expected to have, in the good faith opinion of

the Board, a material adverse impact on the business or reputation of the

Company;

(ii)           any one or more acts of theft,

larceny, embezzlement, fraud or material intentional misappropriation from or

with respect to the Company;

(iii)          a breach by Executive of his fiduciary

duties under Maryland law as an officer; or material breach by Executive of any

rule, regulation, policy or procedure, the Company (including, without

limitation, as described in Section 5 hereof);

(iv)          Executive’s commission of any one or

more acts of gross negligence or willful misconduct which in the good faith

opinion of the Board has resulted in material harm to the business or

reputation of the Company; or

(v)           default by Executive in the

performance of his material duties under this Agreement, without correction of

such action within 15 days of written notice thereof.

                Notwithstanding the foregoing,

no termination of Executive’s employment by the Company shall be treated as for

Cause or be effective until and unless all of the steps described in

subparagraphs (A) through (C) below have been complied with:

(A)          Notice of intention to terminate for

Cause has been given by the Company within 120 days after the Board learns of

the act, failure or event (or latest in a series of acts, failures or events)

constituting "Cause";

(B)           The Board has voted (at a meeting of

the Board duly called and held as to which termination of Executive is an

agenda item) to terminate Executive for Cause after Executive has been given

notice of the particular acts or circumstances which are the basis for the

termination for Cause and has been afforded at least 20 days notice of the

meeting and an opportunity to present his position in writing; and

(C)           The Board has given a Notice of

Termination to Executive within 20 days after such Board meeting.

                The Company may suspend Executive with pay at any

time during the period commencing with the giving of notice to Executive under

clause (A) above until final Notice of Termination is given under clause (C)

above.  Upon the giving of notice as

provided in clause (C) above, no further payments shall be due Executive except

as provided in Section 7(c)(vii).

(2)           Change in Control.  A "Change in Control" shall mean

the occurrence of any one or more of the following events following the

Effective Date:

(i)            Any individual, entity or group (a

"Person") within the meaning of Sections 13(d) and 14(d) of the

Securities Exchange Act of 1934 (the "Act") (other than the Company,

any corporation, partnership, trust or other entity controlled by the Company

(a "Subsidiary"), or any trustee, fiduciary or other person or entity

holding securities under any employee benefit plan or trust of the Company or

any of its Subsidiaries), together with all "affiliates" and

"associates" (as such terms are defined in Rule 12b–2 under the

Act) of such Person, shall become the "beneficial owner" (as such

term is defined in Rule 13d–3 under the Act) of securities of the Company

representing 30% or more of the combined voting power of the Company’s then

outstanding securities having the right to vote generally in an election of the

Company’s Board of Directors ("Voting Securities"), other than as a

result of (A) an acquisition of securities directly from the Company or any

Subsidiary or (B) an acquisition by any corporation pursuant to a reorganization,

consolidation or merger if, following such reorganization, consolidation or

merger the conditions described in clauses (A), (B) and (C) of subparagraph

(iii) of this Section 7(b)(2) are satisfied; or

(ii)           Individuals who, as of the Effective

Date, constitute the Company’s Board (the "Incumbent Directors")

cease for any reason to constitute at least a majority of the Board, provided,

however, that any individual becoming a director of the Company subsequent to

the date hereof (excluding, for this purpose, (A) any such individual whose

initial assumption of office is in connection with an actual or threatened

election contest relating to the election of members of the Board or other

actual or threatened solicitation of proxies or consents by or on behalf of a

Person other than the Board, including by reason of agreement intended to avoid

or settle any such actual or threatened contest or solicitation, and (B) any

individual whose initial assumption of office is in connection with a

reorganization, merger or consolidation, involving an unrelated entity and

occurring during the Employment Period), whose election or nomination for

election by the Company’s shareholders was approved by a vote of at least a

majority of the persons then comprising Incumbent Directors shall for purposes

of this Agreement be considered an Incumbent Director; or

(iii)          Consummation of a reorganization,

merger or consolidation of the Company, unless, following such reorganization,

merger or consolidation, (A) more than 50% of, respectively, the then

outstanding shares of common stock of the corporation resulting from such

reorganization, merger or consolidation and the combined voting power of the

then outstanding voting securities of such corporation entitled to vote

generally in the election of directors is then beneficially owned, directly or

indirectly, by all or substantially all of the individuals and entities who

were the beneficial owners, respectively, of the outstanding Voting Securities

immediately prior to such reorganization, merger or consolidation, (B) no

Person (excluding the Company, any employee benefit plan (or related trust) of

the Company, a Subsidiary or the corporation resulting from such

reorganization, merger or consolidation or any subsidiary thereof, and any

Person beneficially owning, immediately prior to such reorganization, merger or

consolidation, directly or indirectly, 30% or more of the outstanding Voting

Securities), beneficially owns, directly or indirectly, 30% or more of,

respectively, the then outstanding shares of common stock of the corporation

resulting from such reorganization, merger or consolidation or the combined

voting power of the then outstanding voting securities of such corporation

entitled to vote generally in the election of directors, and (C) at least a

majority of the members of the board of directors of the corporation resulting

from such reorganization, merger or consolidation were members of the Incumbent

Board at the time of the execution of the initial agreement providing for such

reorganization, merger or consolidation;

(iv)          Approval by the shareholders of the

Company of a complete liquidation or dissolution of the Company; or

(v)           The sale, lease, exchange or other

disposition of all or substantially all of the assets of the Company, other than

to a corporation, with respect to which following such sale, lease, exchange or

other disposition (A) more than 50% of, respectively, the then outstanding

shares of common stock of such corporation and the combined voting power of the

then outstanding voting securities of such corporation entitled to vote

generally in the election of directors is then beneficially owned, directly or

indirectly, by all or substantially all of the individuals and entities who

were the beneficial owners of the outstanding Voting Securities immediately

prior to such sale, lease, exchange or other disposition, (B) no Person

(excluding the Company and any employee benefit plan (or related trust) of the

Company or a Subsidiary or such corporation or a subsidiary thereof and any

Person beneficially owning, immediately prior to such sale, lease, exchange or

other disposition, directly or indirectly, 30% or more of the outstanding

Voting Securities), beneficially owns, directly or indirectly, 30% or more of,

respectively, the then outstanding shares of common stock of such corporation

and the combined voting power of the then outstanding voting securities of such

corporation entitled to vote generally in the election of directors and (C) at

least a majority of the members of the board of directors of such corporation

were members of the Incumbent Board at the time of the execution of the initial

agreement or action of the Board of Directors providing for such sale, lease,

exchange or other disposition of assets of the Company.

Notwithstanding

the foregoing, a "Change in Control" shall not be deemed to have

occurred for purposes of this Agreement solely as the result of an acquisition

of securities by the Company which, by reducing the number of shares of Voting

Securities outstanding, increases the proportionate voting power represented by

the Voting Securities beneficially owned by any Person to 30% or more of the

combined voting power of all then outstanding Voting Securities; provided,

however, that if any Person referred to in this sentence shall thereafter

become the beneficial owner of any additional shares of Stock or other Voting

Securities (other than pursuant to a stock split, stock dividend, or similar

transaction), then a "Change in Control" shall be deemed to have

occurred for purposes of this Agreement.

(3)           Complete Change in Control.  A "Complete Change in Control"

shall mean that a Change in Control has occurred, after modifying the

definition of "Change in Control" by deleting clause (i) from Section

7(b)(2) of this Agreement.

(4)           Constructive Termination Without

Cause.  "Constructive

Termination Without Cause" shall mean a termination of Executive’s

employment initiated by Executive not later than 12 months following the

occurrence (not including any time during which an arbitration proceeding

referenced below is pending), without Executive’s prior written consent, of one

or more of the following events (or the latest to occur in a series of events),

and effected after giving the Company not less than 10 working days’ written

notice of the specific act or acts relied upon and right to cure:

(i)            a material adverse change in the

functions, duties or responsibilities of Executive’s position which is

inconsistent with Section 2(a), except in connection with the termination of

Executive’s employment for Disability, Cause, as a result of Executive’s death

or by Executive other than for a Constructive Termination Without Cause;

(ii)           any material breach by the Company of

this Agreement;

(iii)          any purported termination of Executive’s

employment for Cause by the Company which does not comply with the terms of

Section 7(b)(1) of this Agreement;

(iv)          the failure of the Company to obtain

an agreement, satisfactory to the Executive, from any successor or assign of

the Company, to assume and agree to perform this Agreement, as contemplated in

Section 10 of this Agreement;

(v)           the failure by the Company to

continue in effect any compensation plan in which Executive participates

immediately prior to a Change in Control which is material to Executive’s total

compensation, unless comparable alternative arrangements (embodied in ongoing

substitute or alternative plans) have been implemented with respect to such

plans, or the failure by the Company to continue Executive’s participation

therein (or in such substitute or alternative plans) on a basis not materially

less favorable, in terms of the amount of benefits provided and the level of

Executive’s participation relative to other participants, as existed during the

last completed fiscal year of the Company prior to the Change in Control;

(vi)          the relocation of the Company’s

Alexandria, Virginia offices to a new location outside of the Metropolitan Area

or the failure to locate Executive’s own office at the Alexandria, Virginia

office (or at the office to which such office is relocated which is within the

Metropolitan Area) ("Relocation Termination"); or

(vii)         any voluntary termination of employment

by the Executive for any reason during the 12–month period immediately

following a Complete Change in Control of the Company if such Complete Change

in Control occurs during the Employment Period (a “CIC Pull”).

Notwithstanding

the foregoing, a Constructive Termination Without Cause shall not be treated as

having occurred unless Executive has given a final Notice of Termination

delivered after expiration of the Company’s cure period. Executive or the

Company may, at any time after the expiration of the Company’s cure period and

either prior to or up until three months after giving a final Notice of Termination,

commence an arbitration proceeding to determine the question of whether, taking

into account the actions complained of and any efforts made by the Company to

cure such actions, a termination by Executive of his employment should be

treated as a Constructive Termination Without Cause for purposes of this

Agreement.  If the Executive or the

Company commences such a proceeding prior to delivery by Executive of a final

Notice of Termination, the commencement of such a proceeding shall be without

prejudice to either party and Executive’s and the Company’s rights and

obligations under this Agreement shall continue unaffected unless and until the

arbitrator has determined such question in the affirmative, or, if earlier, the

date on which Executive or the Company has delivered a Notice of Termination in

accordance with the provisions of this Agreement.

(5)           Average Covered Total Compensation.  "Average Covered Total

Compensation" shall mean the sum of Executive’s Covered Total Compensation

as calculated for the calendar year in which the Date of Termination occurs and

for each of the two preceding calendar years, divided by three, provided,

however, that if the Date of Termination occurs before February 26,

2003, then "Average Covered Total Compensation" shall mean the sum of

Executive's Covered Total Compensation as calculated for the calendar year in

which the Date of Termination occurs and for the preceding calendar year,

divided by two.  "Average Covered

Base And Cash Bonus Compensation," "Average Covered Cash Bonus

Compensation" and "Average Covered LT Equity Compensation" shall

have analogous meanings but with reference to Covered Base And Cash Bonus

Compensation, Covered Cash Bonus Compensation and Covered LT Equity

Compensation, respectively.

(6)           Covered Compensation Definitions.  "Covered Total Compensation," for

any calendar year, shall mean an amount equal to the sum of (i) Executive’s

Base Salary for the calendar year, (ii) the cash bonus actually earned by

Executive with respect to such calendar year, and (iii) the value of all stock

and other equity–based compensation awards made to Executive during such

calendar year.  In the event that the

Company has or hereafter makes any special, mid-year or other non-routine grant

of equity outside of the Company's recurring annual equity compensation

programs, or in the event that the Company grants, outside of the current

recurring annual equity compensation programs, any equity based compensation

pursuant to any long-term plan under which equity grants may be made based on

multi-year Company results, the value of any such mid-year, special, or

long-term plan equity based compensation shall not be included in clause (iii)

of the preceding sentence and therefore shall not be included in the

calculation of Covered Compensation definitions, and the value of such equity

shall have no impact on any cash payments made under Section 7(c) of the

Agreement.

"Covered

Base And Cash Bonus Compensation" for any calendar year shall mean Covered

Total Compensation for such year but without the inclusion of amounts

attributable to clause (iii) of the definition of Covered Total Compensation.

"Covered

Cash Bonus Compensation" for any calendar year shall mean Covered Total

Compensation for such year but without the inclusion of amounts attributable to

clauses (i) and (iii) of the definition of Covered Total Compensation.

"Covered

LT Equity Compensation" for any calendar year shall mean Covered Total

Compensation for such year but without the inclusion of clauses (i) and (ii) of

the definition of Covered Total Compensation.

                                                For

purposes of applying the Covered Compensation definitions set forth above, the

following rules shall apply:

(A)          In valuing awards for purposes of

clause (iii) of the definition of Covered Total Compensation, all such awards

shall be treated as if fully vested when granted, stock grants shall be valued

by reference to the fair market value on the date of grant of the Company’s

common stock, par value $.01 per share, and other equity–based

compensation awards shall be valued at the value established in good faith by

the Compensation Committee of the Board. 

Reference is made to Section 7(c)(viii) for further clarification

regarding this matter.

(B)           In determining the cash bonus

actually paid with respect to a calendar year, if no cash bonus has been paid

with respect to the calendar year in which the Date of Termination occurs, the

cash bonus paid with respect to the immediately preceding calendar year shall

be assumed to have been paid in each of the current and immediately preceding

calendar years, and if no cash bonus has been paid by the Date of Termination

with respect to the immediately preceding calendar year, the cash bonus paid

with respect to the second preceding calendar year shall be assumed to have been

paid in all three (or two, as applicable) of the calendar years taken into

account in determining Average Covered Total Compensation (or any of the

derivative definitions under Section 7(b)(5)).

(C)           If (i) any cash bonus paid with

respect to the current or immediately preceding calendar year was paid within

three months of Executive’s Date of Termination, (ii) such cash bonus is lower

than the last cash bonus paid more than three months from the Date of

Termination, and (iii) it is determined that the Board acted in bad faith in

setting such cash bonus (which determination of bad faith shall specifically be

made with reference to the target cash bonuses set for other officers and the

actual cash bonuses paid other officers), then in such event any such cash

bonus paid within three months of the Date of Termination shall be disregarded

and the last cash bonus paid more than three months from the Date of

Termination shall be substituted for each cash bonus so disregarded.

(D)          In determining the amount of stock and

other equity–based compensation awards made during a calendar year during

the averaging period, rules similar to those set forth in subparagraphs (B) and

(C) of this Section 7(b)(6) shall be followed except that all awards made in

connection with the Company’s initial public offering shall be disregarded.

(7)           Disability.  "Disability" shall mean Executive

has been determined to be disabled and to qualify for long–term

disability benefits under the long–term disability insurance policy

obtained pursuant to Section 3(d) of this Agreement.

(c)           Rights Upon Termination.

(i)            Payment of Benefits Earned

Through Date of Termination.  Upon

any termination of Executive’s employment during the Employment Period,

Executive, or his estate, shall in all events be paid (I) all accrued but

unpaid Base Salary and (II) (except in the case of a termination by the Company

for Cause or a voluntary termination by Executive which is not due to a

Constructive Termination Without Cause, in either of which cases this clause (II)

shall not apply) a pro rata portion of the Executive's Cash Bonus and LT Equity

Bonus.  For purposes of fulfilling the

requirements of clause (II) of the prior sentence, the following shall apply:

(a)           In

all events, any stock options issued will be issued prior to Executive's Date

of Termination so that such stock options are employee stock options.  Such stock options shall have an exercise

price equal to the closing price of the Company’s stock on the date of grant of

such options, and such options shall expire one year after the date of grant.

(b)           The

Company and Executive shall work in good faith to determine an appropriate Cash

Bonus and LT Equity Bonus for the year in which the Date of Termination

occurs.  Such determination shall be

based in good faith on an evaluation of Executive's and the Company's

performance.  If the Company and

Executive cannot agree on appropriate amounts, then:

(A) 

The Company may defer the determination of the Cash Bonus and the

restricted stock portion of the LT Equity Bonus until such bonuses in respect

of such year are determined for other officers, and at such time the amounts to

be used for determining Executive's pro rata bonuses shall be a percentage of

his target Cash Bonus and a percentage of his target number of restricted

shares with such percentages being equal to the average of the percentages that

apply to the Cash Bonus and restricted shares, respectively, of other officers

ranked Senior Vice President or higher; and

(B) The Company may grant to Executive a

number of stock options based on the assumption that the percentage of the

target number of options Executive would have received in respect of the year

in which the Date of Termination occurs would equal the average of the

percentage realization applied to options granted with respect to the prior

three calendar years.

(c)           Once

the determination in the preceding paragraph is made, the pro rata portion of

such amounts shall equal such amounts multiplied by a fraction, the numerator

of which is the number of days from January 1 to the Date of Termination in the

year of termination and the denominator of which is 365.

Executive

shall also retain all such rights with respect to vested equity–based

awards as are provided under the circumstances under the applicable grant or

award agreement, and shall be entitled to all other benefits which are provided

under the circumstances in accordance with the provisions of the Company’s

generally applicable employee benefit plans, practices and policies, other than

severance plans.

(ii)           Death.  In the event of Executive’s death during the

Employment Period, the Company shall, in addition to paying the amounts set

forth in Section 7(c)(i), take whatever action is necessary to cause all of

Executive’s unvested equity–based awards to become fully vested as of the

date of death and, in the case of equity–based awards which have an

exercise schedule, to become fully exercisable and continue to be exercisable

for such period as is provided in the case of vested and exercisable awards in

the event of death under the terms of the applicable award agreements.

(iii)          Disability.  In the event the Company elects to terminate

Executive’s employment during the Employment Period on account of Disability,

the Company shall, in addition to paying the amounts set forth in Section

7(c)(i) and subject to Executive first entering into a separation agreement,

including a general release of all claims, in a form reasonably acceptable to

the Company ("Separation Agreement"), pay to Executive, in one

lump sum, no later than the later of the effective date of said Separation

Agreement or 31 days following the Date of Termination, an amount equal to one

times Average Covered Total Compensation. 

The Company shall also, commencing upon the Date of Termination and

subject to Executive entering into a Separation Agreement:

(A)          Continue, without cost to Executive,

benefits comparable to the medical benefits provided to Executive immediately

prior to the Date of Termination under Section 3(c) for a period of 12 months

following the Date of Termination or until such earlier date as Executive

obtains comparable benefits through other employment;

(B)           Continue to pay, or reimburse

Executive, for all premiums then due or thereafter payable on the whole–life

portion of the split–dollar insurance policy referenced under Section

3(d) for so long as such payments are due; provided, that the Company’s

obligations under this Section 7(c)(iii)(B) are contingent on Executive’s

timely payment of the premiums then due or thereafter payable on the term

portion of said split-dollar insurance policy; and

(C)           Take whatever action is necessary to

cause Executive to become vested as of the Date of Termination in all stock

options, restricted stock grants, and all other equity–based awards and

be entitled to exercise and continue to exercise all stock options and all

other equity–based awards having an exercise schedule and to retain such

grants and awards to the same extent as if they were vested upon termination of

employment in accordance with their terms.

(D)          If Executive obtains a disability

policy on commercially reasonable terms with the same or similar coverage as

provided by the Company prior to the Date of Termination then, until that date

that is 12 months following the Date of Termination (or, if earlier, until

Executive obtains comparable benefits through other employment), reimburse

Executive for an amount equal to the difference between (i) the monthly

premiums for such disability policy, less (ii) the amount paid by Executive in

respect of a portion of the premiums on the disability policy provided by

Company prior to the Date of Termination.

(iv)          Non–Renewal by the Company.  In the event the Company gives Executive a

notice of non–renewal pursuant to Section 1 above, and either (I) within

one year after expiration of the Employment Period the Executive voluntarily

terminates his employment ("Post-Expiration Resignation") or

(II) within two years after expiration of the Employment Period the Executive’s

employment is terminated by the Company without Cause or Constructively

Terminated without Cause ("Post-Expiration Termination"),

then, in either such case, the Company shall, in addition to paying the amounts

set forth in Section 7(c)(i), and subject to Executive first entering into a

Separation Agreement, pay to Executive, for 12 consecutive months beginning

with the first business day of the calendar month following the Effective Date

of said Separation Agreement, a monthly amount equal to one-twelfth ( 1/12)

of the sum of one times his then applicable Base Salary plus one times Average

Covered Cash Bonus Compensation.  The

Company shall also, commencing upon the Date of Termination and subject to

Executive entering into a Separation Agreement, continue, without cost to Executive,

benefits comparable to the medical benefits provided to Executive immediately

prior to the Date of Termination under Section 3(c) for a period of 12 months

following the Date of Termination or until such earlier date as Executive

obtains comparable benefits through other employment.  In addition, if Executive obtains a disability policy on

commercially reasonable terms with the same or similar coverage as provided by

the Company prior to the Date of Termination then, until that date that is 12

months following the Date of Termination (or, if earlier, until Executive

obtains comparable benefits through other employment), reimburse Executive for

an amount equal to the difference between (i) the monthly premiums for such

disability policy, less (ii) the amount paid by Executive in respect of a

portion of the premiums on the disability policy provided by Company prior to

the Date of Termination.

In

addition to the above, in the case of a Post-Expiration Termination the Company

additionally shall:

I.  Take whatever action is necessary to cause

Executive to become vested as of the Date of Termination in all stock options,

restricted stock grants, and all other equity–based awards and be

entitled to exercise and continue to exercise all stock options and all other

equity–based awards having an exercise schedule and to retain such grants

and awards to the same extent as if they were vested upon termination of

employment in accordance with their terms; and

II.  Continue to pay, or reimburse Executive for,

all premiums then due or thereafter payable on the whole–life portion of

the split–dollar insurance policy referenced under Section 3(d) for so

long as such payments are due; provided, that the Company’s obligations

under this Section 7(c)(iv)(B)(II) are contingent on Executive’s timely payment

of the premiums then due or thereafter payable on the term portion of said

split-dollar insurance policy; 

(v)           Termination Without Cause or

Constructive Termination Without Cause Prior to Change in Control of Company.  In the event the Company or any successor to

the Company terminates Executive’s employment without Cause, or if Executive

terminates his employment in a Constructive Termination without Cause, in

either case prior to the effective time of any Change in Control of the Company

or at any time after two years after a Change in Control of the Company, the

Company shall, in addition to paying the amounts provided under Section

7(c)(i), and subject to Executive first entering into a Separation Agreement,

pay to Executive, in one lump sum no later than the later of the Effective Date

of said Separation Agreement or 31 days following the Date of Termination, an

amount equal to the sum of (x) two times Average Covered Base And Cash Bonus

Compensation plus (y) one times Average Covered LT Equity Compensation

(such sum, the “Section 7(c)(v) Payment”); provided, however,

that in the event that the Constructive Termination Without Cause is a

Relocation Termination, the Section 7(c)(v) Payment shall be an amount equal to

one times Average Covered Total Compensation. 

The Company shall also, commencing upon the Date of Termination and

subject to the Executive entering into a Separation Agreement:

(A)          Continue, without cost to Executive,

benefits comparable to the medical benefits provided to Executive immediately

prior to the Date of Termination under Section 3(c) for a period of 24 months

(12 months in the case of a Relocation Termination) following the Date of

Termination or until such earlier date as Executive obtains comparable benefits

through other employment;

(B)           Continue to pay, or reimburse

Executive, for so long as such payments are due, all premiums then due or

payable on the whole–life portion of the split–dollar insurance

policy referenced under Section 3(d); provided that the Company’s

obligations under this Section 7(c)(v)(B) are contingent on Executive’s timely

payment of the premiums then due or thereafter payable on the term portion of

said split-dollar insurance policy; and

(C)           Take whatever action is necessary to

cause Executive to become vested as of the Date of Termination in all stock

options, restricted stock grants, and all other equity–based awards and

be entitled to exercise and continue to exercise all stock options and all

other equity–based awards having an exercise schedule and to retain such

grants and awards to the same extent as if they were vested upon termination of

employment in accordance with their terms.

(D)          If Executive obtains a disability

policy on commercially reasonable terms with the same or similar coverage as

provided by the Company prior to the Date of Termination then, until that date

that is 24 months (12 months in the case of a Relocation Termination) following

the Date of Termination (or, if earlier, until Executive obtains comparable

benefits through other employment), reimburse Executive for an amount equal to

the difference between (i) the premium for such disability policy, less (ii)

the amount paid by Executive in respect of a portion of the premiums on the

disability policy provided by Company prior to the Date of Termination.

In

the event that, within six months after the Notice of Termination which gave

rise to the termination of Executive’s employment under this Section 7(c)(v), a

Change in Control of the Company occurs, then (provided Executive previously

signed a Separation Agreement), Executive shall be entitled to receive the

payments and benefits under Section 7(c)(vi) rather than this Section

7(c)(v).  To effect this increase in payments

and benefits, within 31 days of the Change in Control the Company shall pay to

Executive, in one lump sum, an amount equal to the difference between (A) three

times Average Covered Total Compensation (calculated as of the Date of

Termination) less (B) the Section 7(c)(v) Payment. No payment in the nature of

interest or for the time value of money shall be paid by the Company.       In addition, the benefits described in

Section 7(c)(v)(A) shall continue for 36 months following the Date of

Termination (or until such earlier date as Executive obtains comparable

benefits through other employment) rather than 24 months.

(vi)          Termination without Cause within

Two Years Following a Change in Control. 

In the event the Company or any successor to the Company terminates

Executive’s employment without Cause (or Executive's employment is

Constructively Terminated without Cause) within two years following the

effective time of a Change in Control of the Company, the Company shall, in

addition to paying the amounts provided under Section 7(c)(i), and subject to

the Executive first entering into a Separation Agreement, pay to the Executive,

in one lump sum no later than the later of the effective date of said

Separation Agreement or 31 days following the Date of Termination, an amount

equal to three times Average Covered Total Compensation, provided, however,

that in the event the termination is due to a CIC Pull, then the payment shall

be an amount equal to two times Average Covered Total Compensation.  The Company shall also, commencing upon the

Date of Termination:

(A)          Continue, without cost to Executive,

benefits comparable to the medical benefits provided to Executive immediately

prior to the Date of Termination under Section 3(c) for a period of 36 months

(24 months in the case of a termination due to a CIC Pull) following the Date

of Termination or until such earlier date as Executive obtains comparable

benefits through other employment;

(B)           Continue to pay, or reimburse

Executive, for so long as such payments are due, all premiums then due or

payable on the whole–life portion of the split–dollar insurance

policy referenced under Section 3(d); provided that the Company’s

obligations under this Section 7(c)(vi)(B) are contingent on Executive’s timely

payment of the premiums then due or thereafter payable on the term portion of

said split-dollar insurance policy; and

(C)           Take whatever action is necessary to

cause Executive to become vested as of the Date of Termination in all stock

options, restricted stock grants, and all other equity–based awards and

be entitled to exercise and continue to exercise all stock options and all

other equity–based awards having an exercise schedule and to retain such

grants and awards to the same extent as if they were vested upon termination of

employment in accordance with their terms.

(D)          If Executive obtains a disability

policy on commercially reasonable terms with the same or similar coverage as

provided by the Company prior to the Date of Termination then, until that date

that is 36 months (24 months in the case of a termination due to a CIC Pull)

following the Date of Termination (or, if earlier, until Executive obtains

comparable benefits through other employment), reimburse Executive for an

amount equal to the difference between (i) the monthly premiums for such disability

policy, less (ii) the amount paid by Executive in respect of a portion of the

premiums on the disability policy provided by Company prior to the Date of

Termination.

(vii)         Termination for Cause; Voluntary

Resignation.  In the event

Executive’s employment terminates during the Employment Period other than in

connection with a termination meeting the conditions of subparagraphs (ii),

(iii), (iv), (v) or (vi) of this Section 7(c), Executive shall receive the

amounts set forth in Section 7(c)(i) in full satisfaction of all of his

entitlements from the Company.  All

equity–based awards not vested as of the Date of Termination shall

terminate (unless otherwise provided in the applicable award agreement) and

Executive shall have no further entitlements with respect thereto.

(viii)        Clarification Regarding Treatment of

Options and Restricted Stock.  The

stock option and restricted stock agreements (the "Equity Award

Agreements") that Executive has or may receive may contain language

regarding the effect of a termination of Executive's employment under certain

circumstances.

(A)          Notwithstanding such language in the

Equity Award Agreements, for so long as this Agreement is in effect, the

Company will be obligated, if the terms of this Agreement are more favorable in

this regard than the terms of the Equity Award Agreements, to take the actions

required under Sections 7(c)(ii), 7(c)(iii)(C), 7(c)(iv)(for a Post-Expiration

Termination), 7(c)(v)(C) and 7(c)(vi)(C) hereof upon the happening of the

circumstances described therein.  Those

sections provide that in certain situations the Company will cause the

Executive to become vested as of the Date of Termination in all or certain

equity-based awards, and that such equity-based awards will thereafter be

subject to the provisions of the applicable Equity Award Agreement as it

applies to vested awards upon a termination. 

For purposes of clarification, although an option grant may vest in accordance with these

above-referenced Sections, such optionwill thereafter be exercisable only for so long as the

related option agreement provides, except that the Compensation Committee of

the Board of Directors may, in its sole discretion, elect to extend the

expiration date of such option.  For

example, in general Executive's option agreements granted prior to the date

hereof provide that (in the absence of an extension by the Compensation

Committee) upon a termination of employment for any reason other than death,

disability, retirement or cause, any vested options will only be exercisable

for three months from the date of termination or, if earlier, the expiration

date of the option.

(B)           Notwithstanding the definition of

"Cause" which may appear in the Equity Award Agreements, for so long

as this Agreement is in effect (X) any "for Cause" termination must

be in compliance with the terms of this Agreement, including the definition of

"Cause" set forth herein, and (Y) only in the event of a "for

Cause" termination that meets both the definition in this Agreement and

the definition in the Equity Award Agreement will the disposition of options

and restricted stock under such Equity Award Agreement be treated in the manner

described in such Equity Award Agreement in the case of a termination "for

Cause."

(C)           For purposes of Section 7(b)(6)(A),

the value of any option may be determined by the Compensation Committee of the

Board at any time after its grant date by setting such value at the value

determined by a nationally recognized accounting firm or employee benefits

compensation firm, selected by such Committee, that calculates such value in

accordance with a Black-Scholes formula or variations thereof using such

parameters and procedures (including, without limitation, parameters and

procedures used to measure the historical volatility of the Company's common

stock as of the relevant grant date) as the Compensation Committee and/or such

firm deems reasonably appropriate.  In

all events, if the parameters used for valuing any option for purposes of Section

7(b)(6)(A) are the same as the parameters used for valuing any other options

for purposes of disclosure or inclusion in the Company's financial statements

or financial statement footnotes, then such parameters shall be deemed

reasonable.

(D)          During the Employment Period any stock

options issued to Executive shall provide that if Executive's employment is

terminated in any manner which gives rise to an obligation under this Agreement

(or any successor Agreement or other severance arrangement) to cause the

acceleration of vesting of stock options, then in such event such stock options

shall not expire until one year after the Date of Termination (or, if earlier,

the expiration of their ordinary term). 

This covenant of the Company shall not apply to any stock options issued

prior to June 1, 2001 or to any stock options issued after the expiration of

the Employment Period.

(d)           Additional Benefits.

(i)            Anything in this Agreement to the

contrary notwithstanding, in the event it shall be determined that any payment

or distribution by the Company to or for the benefit of Executive, whether paid

or payable or distributed or distributable (1) pursuant to the terms of Section

7 of this Agreement, (2) pursuant to or in connection with any compensatory or

employee benefit plan, agreement or arrangement, including but not limited to

any stock options, restricted or unrestricted stock grants issued to or for the

benefit of Executive and forgiveness of any loans by the Company to Executive

or (3) otherwise (collectively, "Severance Payments"), would be

subject to the excise tax imposed by Section 4999 of the Internal Revenue Code

of 1986, as amended (the "Code"), and any interest or penalties are

incurred by Executive with respect to such excise tax (such excise tax,

together with any such interest and penalties, are hereinafter collectively

referred to as the "Excise Tax"), then Executive shall be entitled to

receive an additional payment from the Company (a "Partial Gross–Up

Payment"), such that the net amount retained by Executive, before accrual

or payment of any Federal, state or local income tax or employment tax, but

after accrual or payment of the Excise Tax attributable to the Partial Gross–Up

Payment, is equal to the Excise Tax on the Severance Payments.

(ii)           Subject to the provisions of Section

7(d)(iii), all determinations required to be made under this Section 7,

including whether a Partial Gross–Up Payment is required and the amount

of such Partial Gross–Up Payment, shall be made by Arthur Andersen LLP or

such other nationally recognized accounting firm as may at that time be the

Company’s independent public accountants immediately prior to the Change in

Control (the "Accounting Firm"), which shall provide detailed

supporting calculations both to the Company and Executive as soon as practicable

after the Date of Termination, if applicable. 

The initial Partial Gross–Up Payment, if any, as determined

pursuant to this Section 7(d)(ii), shall be paid to Executive within five days

of the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no

Excise Tax is payable by Executive, the Company shall furnish Executive with an

opinion of counsel that failure to report the Excise Tax on Executive’s

applicable federal income tax return would not result in the imposition of a

negligence or similar penalty.  Any

determination by the Accounting Firm shall be binding upon the Company and

Executive.  As a result of the

uncertainty in the application of Section 4999 of the Code at the time of the

initial determination by the Accounting Firm hereunder, it is possible that

Partial Gross–Up Payments which will not have been made by the Company

should have been made (an "Underpayment").  In the event that the Company exhausts its remedies pursuant to

Section 7(d)(iii) and Executive thereafter is required to make a payment of any

Excise Tax, the Accounting Firm shall determine the amount of the Underpayment

that has occurred, consistent with the calculations required to be made

hereunder, and any such Underpayment, and any interest and penalties imposed on

the Underpayment and required to be paid by Executive in connection with the

proceedings described in Section 7(d)(iii), and any related legal and

accounting expenses, shall be promptly paid by the Company to or for the

benefit of Executive.

(iii)          Executive shall notify the Company in

writing of any claim by the Internal Revenue Service that, if successful, would

require the payment by the Company of the Partial Gross–Up Payment.  Such notification shall be given as soon as

practicable but no later than 10 business days after Executive acquires actual

knowledge of such claim and shall apprise the Company of the nature of such

claim and the date on which such claim is requested to be paid.  Executive shall not pay such claim prior to

the expiration of the 30–day period following the date on which he gives

such notice to the Company (or such shorter period ending on the date that any

payment of taxes with respect to such claim is due).  If the Company notifies Executive in writing prior to the expiration

of such period that it desires to contest such claim, Executive shall:

(A)          give the Company any information

reasonably requested by the Company relating to such claim,

(B)           take such action in connection with

contesting such claim as the Company shall reasonably request in writing from

time to time, including, without limitation, accepting legal representation

with respect to such claim by an attorney selected by the Company,

(C)           cooperate with the Company in good

faith in order effectively to contest such claim, and

(D)          permit the Company to participate in

any proceedings relating to such claim; provided, however that the Company

shall bear and pay directly all costs and expenses attributable to the failure

to pay the Excise Tax (including related additional interest and penalties)

incurred in connection with such contest and shall indemnify and hold Executive

harmless, for any Excise Tax up to an amount not exceeding the Partial Gross–Up

Payment, including interest and penalties with respect thereto, imposed as a

result of such representation, and payment of related legal and accounting

costs and expenses (the "Indemnification Limit").  Without limitation on the foregoing

provisions of this Section 7(d)(iii), the Company shall control all proceedings

taken in connection with such contest and, at its sole option may pursue or

forego any and all administrative appeals, proceedings, hearings and

conferences with the taxing authority in respect of such claim and may, at its

sole option, either direct Executive to pay the tax claimed and sue for a

refund or contest the claim in any permissible manner, and Executive agrees to

prosecute such contest to a determination before any administrative tribunal,

in a court of initial jurisdiction and in one or more appellate courts, as the

Company shall determine; provided, however, that if the Company directs

Executive to pay such claim and sue for a refund, the Company shall advance so

much of the amount of such payment as does not exceed the Excise Tax, and

related interest and penalties, to Executive on an interest–free basis

and shall indemnify and hold Executive harmless, from any related legal and

accounting costs and expenses, and from any Excise Tax, including related

interest or penalties imposed with respect to such advance or with respect to

any imputed income with respect to such advance up to an amount not exceeding

the Indemnification Limit; and further provided that any extension of the

statute of limitations relating to payment of taxes for the taxable year of

Executive with respect to which such contested amount is claimed to be due is

limited solely to such contested amount. 

Furthermore, the Company’s control of the contest shall be limited to

issues with respect to which a Partial Gross–Up Payment would be payable

hereunder and Executive shall be entitled to settle or contest, as the case may

be, any other issues raised by the Internal Revenue Service or any other taxing

authority.

(iv)          If, after the receipt by Executive of

an amount advanced by the Company pursuant to Section 7(d)(iii), Executive

becomes entitled to receive any refund with respect to such claim, Executive

shall (subject to the Company’s complying with the requirements of Section

7(d)(iii)) promptly pay to the Company so much of such refund (together with

any interest paid or credited thereon after taxes applicable thereto) (the

"Refund") as is equal to (A) if the Company advanced or paid the

entire amount required to be so advanced or paid pursuant to Section 7(d)(iii)

hereof (the "Required Section 7(d) Advance"), the aggregate amount

advanced or paid by the Company pursuant to this Section 7(d) less the portion

of such amount advanced to Executive to reimburse him for related legal and

accounting costs, or (B) if the Company advanced or paid less than the Required

Section 7(d) Advance, so much of the aggregate amount so advanced or paid by

the Company pursuant to this Section 7(d) as is equal to the difference, if

any, between (C) the amount refunded to Executive with respect to such claim and

(D) the sum of the portion of the Required Section 7(d) Advance that was paid

by Executive and not paid or advanced by the Company plus Executive’s related

legal and accounting fees, as applicable. 

If, after the receipt by Executive of an amount advanced by the Company

pursuant to Section 7(d)(iii), a determination is made that Executive shall not

be entitled to any refund with respect to such claim and the Company does not

notify Executive in writing of its intent to contest such denial of refund prior

to the expiration of 30 days after such determination, then such advance shall

be forgiven and shall not be required to be repaid and the amount of such

advance shall offset, to the extent thereof, the amount of Partial Gross–Up

Payment required to be paid.

(e)           Notice of Termination.  Notice of non–renewal of this

Agreement pursuant to Section 1 hereof or of any termination of Executive’s

employment (other than by reason of death) shall be communicated by written

notice (a "Notice of Termination") from one party hereto to the other

party hereto in accordance with this Section 7 and Section 9.

(f)            Date of Termination.  "Date of Termination," with

respect to any termination of Executive’s employment during the Employment

Period, shall mean (i) if Executive’s employment is terminated for Disability,

30 days after Notice of Termination is given (provided that Executive shall not

have returned to the full–time performance of Executive’s duties during

such 30 day period), (ii) if Executive’s employment is terminated for Cause,

the date on which a Notice of Termination is given which complies with the

requirements of Section 7(b)(1) hereof, and (iii) if Executive’s employment is

terminated for any other reason, the date specified in the Notice of

Termination.  In the case of a

termination by the Company other than for Cause, the Date of Termination shall

not be less than 30 days after the Notice of Termination is given.  In the case of a termination by Executive,

the Date of Termination shall not be less than 15 days from the date such

Notice of Termination is given. 

Notwithstanding the foregoing, in the event that Executive gives a

Notice of Termination to the Company, the Company may unilaterally accelerate

the Date of Termination and such acceleration shall not result in the

termination being treated as a termination without Cause.  Upon any termination of his employment,

Executive will concurrently resign his membership as a director and/or officer

of the Company and all subsidiaries of the Company, to the extent applicable.

(g)           No Mitigation.  The Company agrees that, if Executive’s

employment by the Company is terminated during the term of this Agreement,

Executive is not required to seek other employment, or to attempt in any way to

reduce any amounts payable to Executive by the Company pursuant to Section

7(d)(i) hereof.  Further, the amount of

any payment provided for in this Agreement shall not be reduced by any

compensation earned by Executive as the result of employment by another

employer, by retirement benefits, or, except for amounts then due and payable

in accordance with the terms of any promissory notes given by Executive in

favor of the Company, by offset against any amount claimed to be owed by

Executive to the Company or otherwise.  

(h)           Nature of Payments.  The amounts due under this Section 7 are in

the nature of severance payments considered to be reasonable by the Company and

are not in the nature of a penalty. 

Such amounts are in full satisfaction of all claims Executive may have

in respect of his employment by the Company or its affiliates and are provided

as the sole and exclusive benefits to be provided to Executive, his estate, or

his beneficiaries in respect of his termination of employment from the Company

or its affiliates.

8.             Non–Competition; Non–Solicitation;

Specific Enforcement.

(a)           Non–Competition.  Because Executive’s services to the Company

are special and because Executive has access to the Company’s confidential

information, Executive covenants and agrees that, during the Employment Period

and, for a period of one year following the Date of Termination by the Company

for Cause or Disability, or a termination by Executive (other than a

Constructive Termination Without Cause) prior to a Change in Control, Executive

shall not, without the prior written consent of the Board of Directors, become

associated with, or engage in any "Restricted Activities" with

respect to any "Competing Enterprise," as such terms are hereinafter

defined, whether as an officer, employee, principal, partner, agent,

consultant, independent contractor or shareholder.  "Competing Enterprise," for purposes of this Agreement,

shall mean any person, corporation, partnership, venture or other entity which

is engaged in the business of managing, owning, leasing or joint venturing

multifamily rental real estate within 30 miles of multifamily rental real

estate owned or under management by the Company or its affiliates.  "Restricted Activities," for

purposes of this Agreement, shall mean executive, managerial, directorial,

administrative, strategic, business development or supervisory responsibilities

and activities relating to all aspects of multifamily rental real estate

ownership, management, multifamily rental real estate franchising, and

multifamily rental real estate joint–venturing.

(b)           Non–Solicitation.  For so long as the Executive remains

employed by the Company (or any successor thereto) and for one year following

termination of employment, regardless of reason, Executive shall not, without

the prior written consent of the Company, except in the course of carrying out

his duties hereunder, solicit or attempt to solicit for employment with or on

behalf of any corporation, partnership, venture or other business entity, any

employee of the Company or any of its affiliates or any person who was formerly

employed by the Company or any of its affiliates within the preceding six

months, unless such person’s employment was terminated by the Company or any of

such affiliates.

(c)           Specific Enforcement.  Executive and the Company agree that the

restrictions, prohibitions and other provisions of this Section 8 are

reasonable, fair and equitable in scope, terms, and duration, are necessary to

protect the legitimate business interests of the Company and are a material

inducement to the Company to enter into this Agreement.  Should a decision be made by a court of

competent jurisdiction that the character, duration or geographical scope of

the provisions of this Section 8 is unreasonable, the parties intend and

agree that this Agreement shall be construed by the court in such a manner as

to impose all of those restrictions on Executive’s conduct that are reasonable

in light of the circumstances and as are necessary to assure to the Company the

benefits of this Agreement.  The Company

and Executive further agree that the services to be rendered under this

Agreement by Executive are special, unique and of extraordinary character, and

that in the event of the breach by Executive of the terms and conditions of

this Agreement or if Executive, without the prior consent of the Board of

Directors, shall take any action in violation of this Section 8, the Company

will suffer irreparable harm for which there is no adequate remedy at law.  Accordingly, Executive hereby consents to

the entry of a temporary restraining order or ex parte injunction, in addition

to any other remedies available at law or in equity, to enforce the provisions

hereof.  Any proceeding or action

seeking equitable relief for violation of this Section 8 must be commenced in

the federal or state courts, in either case in Virginia.  Executive and the Company irrevocably and

unconditionally submit to the jurisdiction of such courts and agree to take any

and all future action necessary to submit to the jurisdiction of and venue in

such courts.

9.             Notice.  Any notice required or permitted hereunder

shall be in writing and shall be deemed sufficient when given by hand or by

nationally recognized overnight courier or by Express, registered or certified

mail, postage prepaid, return receipt requested, and addressed, if to the

Company at 2900 Eisenhower Avenue, Suite 300, Alexandria, VA 22303,

Attention:  Chief Executive Officer

(with a second copy, sent by the same means and to the same address,

Attention:  General Counsel), and if to

Executive at the address set forth in the Company’s records (or to such other

address as may be provided by notice).

10.           Miscellaneous.  This Agreement, together with Annex A and

Annex B and the Split Dollar Insurance Agreement and any Equity Award Agreements

now or hereafter in effect, constitutes the entire agreement between the

parties concerning the subjects hereof and supersedes any and all prior

agreements or understandings, including, without limitation, any plan or

agreement providing benefits in the nature of severance, but excluding benefits

provided under other Company plans or agreements, except to the extent this

Agreement provides greater rights than are provided under such other plans or

agreements.  This Agreement may not be

assigned by Executive without the prior written consent of the Company, and may

be assigned by the Company and shall be binding upon, and inure to the benefit

of, the Company’s successors and assigns. 

The Company will require any successor (whether direct or indirect, by

purchase, merger, consolidation or otherwise) to all or substantially all of

the business and/or assets of the Company to assume expressly and agree to

perform this Agreement in the same manner and to the same extent that the

Company would be required to perform it if no such succession had taken

place.  As used in this Agreement,

"Company" shall mean the Company as hereinbefore defined and any

successor to its business and/or assets as aforesaid which assumes and agrees

to perform this Agreement by operation of law, or otherwise.  Headings herein are for convenience of

reference only and shall not define, limit or interpret the contents hereof.

11.           Amendment.  This Agreement may be amended, modified or

supplemented by the mutual consent of the parties in writing, but no oral

amendment, modification or supplement shall be effective.  No waiver by either party of any breach by

the other party of any condition or provision contained in this Agreement to be

performed by such other party shall be deemed a waiver of a similar or

dissimilar condition or provision at the same or any prior or subsequent

time.  Any waiver must be in writing and

signed by Executive or an authorized officer of the Company, as the case may

be.

12.           Severability.  The provisions of this Agreement are

severable.  The invalidity of any

provision shall not affect the validity of any other provision, and each

provision of this Agreement shall be valid and enforceable to the fullest

extent permitted by law.

13.           Resolution of Disputes.

(a)           Procedures and Scope of

Arbitration.  Except for any

controversy or claim seeking equitable relief pursuant to Section 8 of this

Agreement, all controversies and claims arising under or in connection with

this Agreement or relating to the interpretation, breach or enforcement thereof

and all other disputes between the parties, shall be resolved by expedited,

binding arbitration, to be held in the District of Columbia metropolitan area

in accordance with the applicable rules of the American Arbitration Association

governing employment disputes (the "National Rules").  In any proceeding relating to the amount

owed to Executive in connection with his termination of employment, it is the

contemplation of the parties that the only remedy that the arbitrator may award

in such a proceeding is an amount equal to the termination payments, if any,

required to be provided under the applicable provisions of Section 7(c) and, if

applicable, Section 7(d) hereof, to the extent not previously paid, plus the

costs of arbitration and Executive’s reasonable attorneys fees and expenses as

provided below.  Any award made by such

arbitrator shall be final, binding and conclusive on the parties for all

purposes, and judgment upon the award rendered by the arbitrator may be entered

in any court having jurisdiction thereof.

(b)           Attorneys Fees.

(i)            Reimbursement After Executive

Prevails.  Except as otherwise

provided in this paragraph, each party shall pay the cost of his or its own

legal fees and expenses incurred in connection with an arbitration

proceeding.  Provided an award is made

in favor of Executive in such proceeding, all of his reasonable attorneys fees

and expenses incurred in pursuing or defending such proceeding shall be

promptly reimbursed to Executive by the Company within five days of the entry

of the award.  Any award of reasonable

attorneys' fees shall take into account any offer of the Company, such that an

award of attorneys' fees to the Executive may be limited or eliminated to the

extent that the final decision in favor of the Executive does not represent a

material increase in value over the offer that was made by the Company during

the course of such proceeding.  However,

any elimination or limitation on attorneys' fees shall only apply to those

attorneys' fees incurred after the offer by the Company.

(ii)           Reimbursement in Actions to Stay,

Enjoin or Collect.  In any case

where the Company or any other person seeks to stay or enjoin the commencement

or continuation of an arbitration proceeding, whether before or after an award

has been made, or where Executive seeks recovery of amounts due after an award

has been made, or where the Company brings any proceeding challenging or

contesting the award, all of Executive’s reasonable attorneys fees and expenses

incurred in connection therewith shall be promptly reimbursed by the Company to

Executive, within five days of presentation of an itemized request for

reimbursement, regardless of whether Executive prevails, regardless of the

forum in which such proceeding is brought, and regardless of whether a Change

in Control has occurred.

(iii)          Reimbursement After a Change in

Control.  Without limitation on the

foregoing, solely in a proceeding commenced by the Company or by Executive

after a Change in Control has occurred, the Company shall advance to Executive,

within five days of presentation of an itemized request for reimbursement, all

of Executive’s legal fees and expenses incurred in connection therewith,

regardless of the forum in which such proceeding was commenced, subject to delivery

of an undertaking by Executive to reimburse the Company for such advance if he

does not prevail in such proceeding (unless such fees are to be reimbursed

regardless of whether Executive prevails as provided in clause (ii) above).

14.           Survivorship.  The provisions of Sections 4(b), 6, 8 (to

the extent described below) and 13 of this Agreement shall survive Executive’s

termination of employment.   Other

provisions of this Agreement shall survive any termination of Executive’s

employment to the extent necessary to the intended preservation of each party’s

respective rights and obligations.  The

provisions of Section 8(a) shall in no event apply if Executive’s employment

terminates for any reason after the expiration of the Employment Period (for

clarification, this means that if Executive's employment terminates on or prior

to the expiration of the Original Term or any later Renewal Term then the one

year post-termination non-compete set forth in Section 8(a) will apply if the

termination is for one of the reasons set forth in Section 8(a)).  The provisions of Section 8(b) shall apply

during the Employment Period, and shall also apply with respect to any

termination of Executive’s employment for any reason during the two year period

following the expiration of the Employment Period (for clarification, this

means that if Executive's employment terminates for any reason on or prior to

the second anniversary of the expiration of the Original Term or any later

Renewal Term, then the non-solicitation requirement of Section 8(b) shall apply

to Executive for one year following termination of employment).

15.           Board Action.  Where an action called for under this

Agreement is required to be taken by the Board of Directors, such action shall

be taken by the vote of not less than a majority of the members then in office

and authorized to vote on the matter.

16.           Withholding.  All amounts required to be paid by the

Company shall be subject to reduction in order to comply with applicable

federal, state and local tax withholding requirements.

17.           Counterparts.  This Agreement may be executed in two or

more counterparts, each of which shall be deemed to be an original but all of

which together shall constitute one and the same instrument.  The execution of this Agreement may be by

actual or facsimile signature.

18.           Governing Law.  This Agreement shall be construed and

regulated in all respects under the laws of the State of Maryland.

                IN WITNESS WHEREOF, this Agreement is entered into as

of the date and year first above written.

 

	

  AVALONBAY

  COMMUNITIES, INC.

  
	

  By:

  	

  /s/

  Bryce Blair

  
	

   

  	

  Bryce

  Blair

  
	

  Its:

  	

  Chief

  Executive Officer

  
	

   

  	

   

  
	

  /s/

  Leo S. Horey

  
	

  Leo

  S. HoreyPrepared by MERRILL CORPORATION

 

 

CREDIT

AGREEMENT

dated as

of April 3, 2001

 

by and among

 

F.Y.I.

INCORPORATED,

 

BANK OF

AMERICA, N.A.,

as Administrative Agent,

 

BANC OF

AMERICA SECURITIES LLC,

as Sole Lead Arranger and

Sole Book Manager,

 

SUNTRUST BANK,

as Syndication Agent,

 

WELLS FARGO BANK TEXAS,

NATIONAL ASSOCIATION,

as Documentation Agent

 

and

 

THE

LENDERS NAMED HEREIN

 

 

$297,500,000 REVOLVING

CREDIT LOAN FACILITY

 

 

 

TABLE OF CONTENTS

 

	

  ARTICLE  1 - Definitions

  
	

   

  
	

  Section 1.1  Definitions, etc.

  
	

  Section

  1.2  Other Definitional Provisions

  
	

  Section

  1.3  Accounting Terms and

  Determinations.

  
	

  Section 1.4  Financial Covenants

  
	

   

  
	

  ARTICLE 2 - Loans

  
	

  Section 2.1  Commitments

  
	

  Section

  2.2  Notes

  
	

  Section 2.3  Repayment of Loans

  
	

  Section 2.4  Interest

  
	

  Section 2.5  Borrowing Procedure

  
	

  Section

  2.6  Optional Prepayments, Conversions

  and Continuations of Loans, Reduction of Commitments

  
	

  Section 2.7  Mandatory Prepayments

  
	

  Section 2.8  Minimum Amounts

  
	

  Section 2.9  Certain Notices

  
	

  Section 2.10  Use of Proceeds

  
	

  Section

  2.11  Fees

  
	

  Section 2.12  Computations

  
	

  Section

  2.13  Termination or Reduction of

  Commitments

  
	

  Section 2.14  Letters of Credit

  
	

   

  
	

  ARTICLE 3 - Payments

  
	

  Section 3.1  Method of Payment

  
	

  Section 3.2  Pro Rata Treatment

  
	

  Section 3.3  Sharing of Payments, Etc

  
	

  Section

  3.4  Non-Receipt of Funds by the

  Administrative Agent

  
	

  Section 3.5  Withholding Taxes

  
	

  Section 3.6  Withholding Tax Exemption

  
	

  Section

  3.7  Reinstatement of Obligations

  
	

   

  
	

  ARTICLE 4 – Yield Protection

  and Illegality

  
	

  Section 4.1  Additional Costs

  
	

  Section

  4.2  Limitation on Types of Loans

  
	

  Section 4.3  Illegality

  
	

  Section 4.4  Treatment of Affected Loans

  
	

  Section 4.5  Compensation. F.Y.I.

  
	

  Section 4.6  Capital Adequacy

  
	

  Section

  4.7  Additional Interest on Eurodollar

  Loans

  
	

   

  
	

  ARTICLE  5 - Security

  
	

  Section 5.1  Collateral

  
	

  Section 5.2  Guaranties

  
	

  Section 5.3  New Subsidiaries

  
	

  Section 5.4  Additional Security

  
	

  Section 5.5  Release of Collateral

  
	

  Section

  5.6  Setoff

  
	

  Section

  5.7  Landlord and Mortgagee Waivers

  
	

   

  
	

  ARTICLE  6 - Conditions Precedent

  
	

   

  
	

  Section

  6.1  Initial Loans and Letter of

  Credit Conditions

  
	

  Section 6.2  All Extensions of Credit

  
	

  Section 6.3  Closing Certificate

  
	

   

  
	

  ARTICLE 7 - Representations

  and Warranties

  
	

  Section 7.1  Corporate Existence

  
	

  Section 7.2  Financial Statements

  
	

  Section

  7.3  Corporate Action: No Breach

  
	

  Section 7.4  Operation of Business

  
	

  Section 7.5  Intellectual Property

  
	

  Section 7.6  Litigation and Judgments

  
	

  Section

  7.7  Rights in Properties; Liens

  
	

  Section 7.8  Enforceability

  
	

  Section 7.9  Approvals

  
	

  Section

  7.10  Debt

  
	

  Section

  7.11  Taxes

  
	

  Section 7.12  Margin Securities

  
	

  Section 7.13  ERISA; Plans

  
	

  Section 7.14  Disclosure

  
	

  Section 7.15  Capitalization

  
	

  Section 7.16  Agreements

  
	

  Section 7.17  Compliance with Laws

  
	

  Section 7.18  Investment Company Act

  
	

  Section

  7.19  Public Utility Holding Company

  Act

  
	

  Section 7.20  Environmental Matters

  
	

  Section

  7.21  Labor Disputes and Acts of God

  
	

  Section 7.22  Material Contracts

  
	

  Section 7.23  Bank Accounts

  
	

  Section 7.24  Outstanding Securities

  
	

  Section 7.25  Solvency

  
	

  Section 7.26  Employee Matters

  
	

  Section 7.27  Insurance

  
	

  Section 7.28  Common Enterprise

  
	

   

  
	

  ARTICLE 8 - Affirmative

  Covenants

  
	

  Section 8.1  Reporting Requirements

  
	

  Section

  8.2  Maintenance of Existence, Conduct

  of Business

  
	

  Section 8.3  Maintenance of Properties

  
	

  Section 8.4  Taxes and Claims

  
	

  Section 8.5  Insurance

  
	

  Section 8.6  Inspection Rights

  
	

  Section 8.7  Keeping Books and Records

  
	

  Section 8.8  Compliance with Laws

  
	

  Section

  8.9  Compliance with Agreements

  
	

  Section 8.10  Further Assurances

  
	

  Section 8.11  ERISA; Plans

  
	

  Section 8.12  Trade Accounts Payable

  
	

  Section 8.13  No Consolidation

  
	

  Section

  8.14  Interest Rate Protection

  
	

   

  
	

  ARTICLE 9 - Negative

  Covenants

  
	

  Section

  9.1  Debt

  
	

  Section 9.2  Limitation on Liens

  
	

  Section 9.3  Mergers, Etc.

  
	

  Section 9.4  Restricted Payments

  
	

  Section 9.5  Investments

  
	

  Section

  9.6  Limitation on Issuance of Capital

  Stock

  
	

  Section

  9.7  Transactions With Affiliates

  
	

  Section 9.8  Disposition of Property

  
	

  Section 9.9  Sale and Leaseback

  
	

  Section 9.10  Lines of Business

  
	

  Section

  9.11  Environmental Protection

  
	

  Section

  9.12  Intercompany Transactions

  
	

  Section 9.13  Management Fees

  
	

  Section

  9.14  Modification of Other Agreements

  
	

  Section 9.15  ERISA Plans

  
	

  Section 9.16  Dividend Restrictions

  
	

   

  
	

  ARTICLE 10 - Financial

  Covenants

  
	

  Section 10.1  Consolidated Net Worth

  
	

  Section

  10.2  Ratio of Funded Debt to EBITDA

  
	

  Section

  10.3  Consolidated Fixed Charge

  Coverage Ratio

  
	

  Section 10.4  Capital Expenditures

  
	

   

  
	

  ARTICLE 11 - Default

  
	

  Section 11.1  Events of Default

  
	

  Section 11.2  Remedies

  
	

  Section 11.3  Cash Collateral

  
	

  Section

  11.4  Performance by the

  Administrative Agent

  
	

   

  
	

  ARTICLE 12 - The

  Administrative Agent

  
	

  Section

  12.1  Appointment, Powers and

  Immunities

  
	

  Section

  12.2  Reliance by the Administrative

  Agent

  
	

  Section 12.3  Defaults

  
	

  Section 12.4  Rights as Lender

  
	

  Section 12.5  Indemnification

  
	

  Section

  12.6  Non-Reliance on the

  Administrative Agent and Other Lenders

  
	

  Section

  12.7  Resignation of the

  Administrative Agent

  
	

  Section 12.8  Several Commitments

  
	

  Section

  12.9  Documentation Agent, Lead

  Arranger and Syndication Agent

  
	

   

  
	

  ARTICLE 13 - Miscellaneous

  
	

  Section 13.1  Expenses

  
	

  Section 13.2  INDEMNIFICATION

  
	

  Section 13.3  Limitation of Liability

  
	

  Section 13.4  No Duty

  
	

  Section

  13.5  No Fiduciary Relationship

  
	

  Section 13.6  Equitable Relief

  
	

  Section

  13.7  No Waiver; Cumulative Remedies

  
	

  Section 13.8  Successors and Assigns

  
	

  Section 13.9  Survival

  
	

  Section 13.10  ENTIRE

  AGREEMENT

  
	

  Section 13.11  Amendments

  
	

  Section 13.12  Maximum Interest Rate

  
	

  Section 13.13  Notices

  
	

  Section

  13.14  GOVERNING LAW; SUBMISSION TO JURISDICTION; SERVICE OF PROCESS

  
	

  Section 13.15  Counterparts

  
	

  Section 13.16  Severability

  
	

  Section 13.17  Headings

  
	

  Section 13.18  Construction

  
	

  Section

  13.19  Independence of Covenants

  
	

  Section 13.20  Confidentiality

  
	

  Section 13.21  WAIVER OF JURY TRIAL

  
	

  Section 13.22  Approvals and Consent

  
	

  Section

  13.23  Agent for Services of Process

  

 

 

INDEX TO EXHIBITS

 

	

  Exhibit

  	

  Description of Exhibit

  	

  Section

  
	

   

  	

   

  	

   

  
	

  A

  	

  Form of Assignment and Acceptance

  	

  1.1

  
	

  B

  	

  Form of Note

  	

  1.1 and 2.2

  
	

  C

  	

  Form of Subordination Agreement

  	

  1.1

  
	

  D

  	

  Form of Swingline Note

  	

  1.1 and 2.2

  
	

  E

  	

  Form of Notice of

  Borrowings, Conversions, Continuations or Prepayments

  	

  

  2.9

  
	

  F

  	

  Form of Solvency Certificate

  	

  1.1, 6.1, 8.1

  
	

  G

  	

  Form of Compliance Certificate

  	

  8.1

  
	

  H

  	

  Form of Master Guaranty

  	

  1.1

  
	

  I

  	

  Form of Joinder Agreement

  	

  1.1

  
	

  J

  	

  Form of Extension Agreement

  	

  1.1 and 2.1

  

 

INDEX TO SCHEDULES

 

	

  Schedule

  	

  Description of Schedule

  
	

   

  	

   

  
	

  1.1(a)

  	

  Mortgaged Properties

  
	

  1.1(b)

  	

  Permitted Liens

  
	

  2.14

  	

  Existing Letters of Credit

  
	

  7.4

  	

  Permits, Franchises,

  Licenses and Authorizations constituting Governmental Requirements or

  involving Governmental Authorities

  
	

  7.6

  	

  Litigation and Judgments

  
	

  7.7

  	

  Ownership of Real Properties

  
	

  7.10

  	

  Existing Debt

  
	

  7.11

  	

  Taxes

  
	

  7.13

  	

  Plans

  
	

  7.15

  	

  Capitalization; Options, etc.

  
	

  7.22

  	

  Material Contracts

  
	

  7.23

  	

  Bank Accounts

  
	

  7.26

  	

  Employee Matters

  
	

  7.27

  	

  Insurance

  
	

  9.5

  	

  Investments

  
	

  9.15

  	

  ERISA Plans

  

 

CREDIT AGREEMENT

 

THIS CREDIT

AGREEMENT, dated as of April 3, 2001, is by and among F.Y.I. INCORPORATED

("F.Y.I."), a Delaware corporation, each of the banks or other

lending institutions which is a party hereto (as evidenced by the signature

pages of this Agreement) or which may from time to time become a party hereto

or any successor or assignee thereof (individually, a "Lender"

and, collectively, the "Lenders"), BANK OF AMERICA, N.A., a

national banking association, as administrative agent for itself and the other

Lenders (in such capacity, together with its successors in such capacity, the

"Administrative Agent"), SUNTRUST BANK, as syndication agent, and

WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION, as documentation agent.

 

RECITALS:

 

F.Y.I. has

requested that the Lenders extend credit to F.Y.I. in the form of a revolving

credit facility.  The Lenders are

willing to extend such credit to F.Y.I. upon the terms and conditions

hereinafter set forth.

 

NOW, THEREFORE, in

consideration of the premises and the mutual covenants herein contained, the

parties hereto hereby agree as follows:

 

ARTICLE 1

 

Definitions

 

Section 1.1             Definitions,

etc. As used in this Agreement,

the following terms shall have the following meanings:

 

"Accounting

Changes" means as specified in Section 1.3(a).

 

"Acquisition"

means any transaction or series of related transactions for the purpose of or

resulting, directly or indirectly, in (a) the acquisition of all or

substantially all of the assets of a Person or of any business or division of a

Person, (b) the acquisition by a Person of 50% or more of the Capital

Stock of any Person or otherwise causing any Person to become a Subsidiary of

the acquiring Person, or (c) a merger, consolidation, amalgamation or any

other combination of a Person with another Person.

 

"Additional

Costs" means as specified in Section 4.1(a).

 

"Adjusted

Eurodollar Rate" means, for any Eurodollar Loan for any Interest

Period therefor, the rate per annum (rounded upwards, if necessary, to the

nearest 1/16 of one percent) determined by the Administrative Agent to be equal

to (a) the Eurodollar Rate for such Eurodollar Loan for such Interest

Period divided by (b) one minus the Reserve Requirement for such

Eurodollar Loan for such Interest Period.

 

"Administrative

Agent" means as specified in the initial paragraph of this Agreement.

 

"Affiliate"

means, as to any Person, any other Person (a) that directly or indirectly,

through one or more intermediaries, controls or is controlled by, or is under

common control with, such Person; (b) that directly or indirectly

beneficially owns or holds fifty percent or more of any class of voting Capital

Stock of such Person; or (c) fifty percent or more of the voting Capital

Stock of which is directly or indirectly beneficially owned or held by the

Person in question.  The term

"control" means the possession, directly or indirectly, of the power

to direct or cause direction of the management and policies of a Person,

whether through the ownership of voting securities, by contract or otherwise; provided,

however, in no event shall the Administrative Agent, the Lead Arranger

or any Lender be deemed an Affiliate of F.Y.I. or any of its Subsidiaries.

 

"Agreement"

means this Agreement and any and all amendments, modifications, supplements,

renewals, extensions or restatements hereof.

 

"Applicable

Lending Office" means for each Lender and each Type of Loan, the

Lending Office of such Lender (or an Affiliate of such Lender) designated for

such Type of Loan below its name on the signature pages hereof (or, with

respect to a Lender that becomes a party to this Agreement pursuant to an

assignment made in accordance with Section 13.8, in the Assignment and

Acceptance executed by it) or such other office of such Lender (or an Affiliate

of such Lender) as such Lender may from time to time specify to F.Y.I. and the

Administrative Agent as the office by which its Loans of such Type are to be

made and maintained.

 

"Applicable

Margin" means, with respect to any period and with respect to Prime

Rate Loans, Eurodollar Loans and the Commitment Fees, the percentage set forth

in the table below that corresponds to the ratio of (a) Funded Debt as of the

date of the relevant financial statements referred to below to (b) EBITDA for

the four fiscal quarters of  F.Y.I. then

most recently ended as of the date of such financial statements, calculated in

accordance with Section 1.4:

 

	

   

  	

   

  	

  Applicable Margins

  For

  	

   

  
	

  Funded

  Debt to EBITDA Ratio

  	

   

  	

  Eurodollar 

  Loans

  	

   

  	

  Prime

  Rate Loans

  	

   

  	

  Commitment

  Fee

  	

   

  
	

  Greater than 2.50 to

  1.00

  	

   

  	

  2.000%

  	

   

  	

  0.500%

  	

   

  	

  0.375%

  	

   

  
	

  Greater than 2.00 to 1.00 but less than or equal to

  2.50 to 1.00

  	

   

  	

  1.750%

  	

   

  	

  0.250%

  	

   

  	

  0.350%

  	

   

  
	

  Greater than 1.50 to

  1.00 but less than or equal to 2.00 to 1.00

  	

   

  	

  1.500%

  	

   

  	

  0%

  	

   

  	

  0.300%

  	

   

  
	

  Greater than 1.00 to

  1.00 but less than or equal to 1.50 to 1.00

  	

   

  	

  1.250%

  	

   

  	

  0%

  	

   

  	

  0.250%

  	

   

  
	

  Less than or equal to

  1.00 to 1.00

  	

   

  	

  1.125%

  	

   

  	

  0%

  	

   

  	

  0.250%

  	

   

  

 

For purposes

hereof and notwithstanding the preceding sentence, the Applicable Margin for

the period from the Effective Date to the first Calculation Date thereafter

shall be deemed to be 1.500% for Eurodollar Loans, 0% for Prime Rate Loans and

0.300% for Commitment Fees and shall thereafter be calculated on each Calculation

Date based upon the preceding table and the financial statements delivered by

F.Y.I. pursuant to Section 8.1(b) and the certificate delivered by

F.Y.I. pursuant to Section 8.1(c); provided, that if  F.Y.I. fails to deliver to the

Administrative Agent such financial statements or certificate on or before the

relevant Calculation Date, the Applicable Margin shall be deemed to be the

percentage reflected in the preceding table as if the ratio of Funded Debt to

EBITDA were greater than 2.50 to 1.00 until the date such statements and

certificate are received by the Administrative Agent, after which the

Applicable Margin shall be determined as otherwise provided herein.

 

"Asset

Disposition" means the disposition of any or all of the Property

(other than sales of Inventory in the ordinary course of business and the grant

of a Lien as security) of F.Y.I. or any of its Subsidiaries, whether by sale,

lease, transfer, assignment, condemnation or otherwise, but excluding any

involuntary disposition resulting from casualty damage to Property.

 

"Assignee"

means as specified in Section 13.8(b).

 

"Assigning

Lender" means as specified in Section 13.8(b).

 

"Assignment

and Acceptance" means an assignment and acceptance entered into by a

Lender and its Assignee and accepted by the Administrative Agent pursuant to Section

13.8(e), in substantially the form of Exhibit A hereto.

 

"B&B

Letter of Credit" means a Letter of Credit issued by BNP Paribas,

Chicago Branch (formerly known as Banque Paribas) in favor of the Fifth Third Bank,

as trustee, or any successor thereto (the "Trustee") for the

benefit of the holders of those certain $2,400,000 Prince George's County,

Maryland Variable Rate Demand/Fixed Rate Revenue Bonds (B&B Records Center,

Inc. Facility) 1989 Issue as a replacement for the letter of credit issued by

Crestar Bank in favor of the Trustee, in a face amount not to exceed

$2,500,000, and issued under the Commitments, as such Letter of Credit may be

renewed, extended or replaced.

 

"Bank of

America" means Bank of America, N.A., a national banking association.

 

"Bankruptcy

Code" means as specified in Section 11.1(e).

 

"Basle

Accord" means the proposals for risk-based capital framework described

by the Basle Committee on Banking Regulations and Supervisory Practices in its

paper entitled "International Convergence of Capital Measurement and

Capital Standards" dated July 1988, as amended, supplemented and otherwise

modified and in effect from time to time, or any replacement thereof.

 

"Business

Day" means (a) any day on which commercial banks are not

authorized or required to close in New York, New York, Dallas, Texas or

Charlotte, North Carolina, and (b) with respect to all borrowings,

payments, Conversions, Continuations, Interest Periods and notices in

connection with Eurodollar Loans, any day which is a Business Day described in clause

(a) above and which is also a day on which dealings in Dollar deposits are

carried out in the London interbank market.

 

"Calculation

Date" means the date occurring each quarter during the term of this

Agreement which is 15 days after the date upon which quarterly financial

statements of F.Y.I. and its consolidated Subsidiaries are required by Section

8.1(b) to be delivered to the Administrative Agent (or, if such date is not

a Business Day, the next succeeding Business Day).

 

"Capital

Expenditures" means, for any period, expenditures (including the

aggregate amount of Capital Lease Obligations incurred during such period) made

by F.Y.I. or any of its Subsidiaries to acquire or construct fixed assets,

plant or equipment (including renewals, improvements or replacements, but

excluding repairs) during such period and which, in accordance with GAAP, are

classified as capital expenditures, exclusive of any expenditures for

Acquisitions.

 

"Capital Lease

Obligations" means, as to any Person, the obligations of such Person

to pay rent or other amounts under a lease of (or other agreement conveying the

right to use) real and/or personal Property, which obligations are classified

as a capital lease on a balance sheet of such Person under GAAP.  For purposes of this Agreement, the amount

of such Capital Lease Obligations shall be the capitalized amount thereof,

determined in accordance with GAAP.

 

"Capital

Stock" means corporate stock and any and all shares, partnership

interests, limited partnership interests, limited liability company interests,

membership interests, equity interests, participations, rights or other

equivalents (however designated) of corporate stock or any of the foregoing

issued by any entity (whether a corporation, a partnership or another entity).

 

"Change of

Control" means the existence or occurrence of any of the following

after the Closing Date: (a) any Person or two or more Persons acting as a

group (as defined in Section 13d-3 of the Securities Exchange Act of 1934)

shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of

the Securities and Exchange Commission under the Securities Exchange Act of

1934) of 20% or more of the outstanding shares of voting stock of F.Y.I.;

(b) individuals who, as of the Closing Date, constitute the Board of

Directors of F.Y.I. (the "F.Y.I. Incumbent Board") cease for

any reason to constitute at least a majority of the Board of Directors of

F.Y.I.; provided, however, that any individual becoming a

director of F.Y.I. subsequent to the Closing Date whose election, or nomination

for election by F.Y.I.'s shareholders was approved by a vote of at least a

majority of the directors then comprising the F.Y.I. Incumbent Board shall be

considered as though such individual were a member of the F.Y.I. Incumbent

Board, but excluding, for this purpose, any such individual whose initial

assumption of office occurs as a result of either an actual or threatened

election contest (as such terms are used in Rule 14a-11 of Regulation 14A

promulgated under the Securities Exchange Act of 1934) or other actual or

threatened solicitation of proxies or contest by or on behalf of a Person other

than the Board of Directors of F.Y.I.; or (c) the consummation of any

transaction the result of which is that any Person or group beneficially owns

more of the voting stock of F.Y.I. than is beneficially owned, in the

aggregate, by the "Permitted Holders" as such term is defined in the

Prior Agreement.

 

"Closing

Date" means April 3, 2001, the date of this Agreement.

 

"Code"

means the Internal Revenue Code of 1986, as amended, and the regulations

promulgated and rulings issued thereunder.

 

"Collateral"

means all Property of any nature whatsoever upon which a Lien is created or

purported to be created by any Loan Document as security for the Obligations or

any portion thereof.

 

"Commitment"

means, as to any Lender, the obligation of such Lender to make or continue

Loans and incur or participate in Letter of Credit Liabilities hereunder in an

aggregate principal amount at any one time outstanding up to but not exceeding

the amount set forth opposite the name of such Lender on the signature pages

hereto under the heading "Commitment" or, if such Lender is a party

to an Assignment and Acceptance, the amount set forth in the most recent

Assignment and Acceptance of such Lender, as the same may be reduced or

terminated pursuant to Section 2.13 or 11.2, and "Commitments"

means such obligations of all Lenders. 

As of the Closing Date, the aggregate principal amount of the

Commitments is $297,500,000.

 

"Commitment

Percentage"  means, as to any

Lender, the percentage equivalent of a fraction, the numerator of which is the

amount of the Commitment of such Lender, and the denominator of which is the

aggregate amount of the Commitments of all of the Lenders, as adjusted from

time to time in accordance with Section 13.8.

 

"Consolidated

Fixed Charge Coverage Ratio" 

means, for any period, the ratio of (a)(i) EBITDAR of F.Y.I. and

its Subsidiaries for such period minus (ii) Maintenance Capital

Expenditures made by F.Y.I. and its Subsidiaries during such period minus

(iii) taxes of F.Y.I. and its Subsidiaries paid or payable in cash during such

period, to (b) the Fixed Charges of F.Y.I. and its Subsidiaries for such

period.

 

"Consolidated

Net Income" means, for any period, the net income (or loss) of F.Y.I.

and its Subsidiaries (or other applicable Person) for such period, determined

on a consolidated basis in accordance with GAAP.

 

"Consolidated

Net Worth" means, at any particular time, all amounts which, in

conformity with GAAP, would be included as stockholders' equity on a

consolidated balance sheet of F.Y.I. and its Subsidiaries.

 

"Continue",

"Continuation" and "Continued" shall refer to

the continuation pursuant to Section 2.6 of a Eurodollar Loan as a

Eurodollar Loan of the same Type from one Interest Period to the next Interest

Period.

 

"Contract

Rate" means as specified in Section 13.12(a).

 

"Convert",

"Conversion" and "Converted" shall refer to a

conversion pursuant to Section 2.6 or Article 4 of one Type of

Loan into the other Type of Loan.

 

"Currency

Hedge Agreement" means any currency hedge or exchange agreement,

option or futures contract or other agreement intended to protect against or

manage a Person's exposure to fluctuations in currency exchange rates.

"Current

Date" means a date occurring no more than 30 days prior to the Closing

Date or such earlier date which is reasonably acceptable to the Administrative

Agent.

 

"Debt"

means as to any Person at any time (without duplication): (a) all

indebtedness, liabilities and obligations of such Person for borrowed money,

(b) all indebtedness, liabilities and obligations of such Person evidenced

by bonds, notes, debentures, or other similar instruments, (c) all

indebtedness, liabilities and obligations of such Person to pay the deferred

purchase price of Property or services, except trade accounts payable of such

Person arising in the ordinary course of business that are not past due by more

than 120 days, and excluding Seller Earn Out which is contingent, (d) all

Capital Lease Obligations of such Person, (e) all asset securitizations

programs and any other off balance sheet financings, (f) all Debt of

others Guaranteed by such Person, (g) all indebtedness, liabilities and

obligations secured by a Lien existing on Property owned by such Person,

whether or not the indebtedness, liabilities or obligations secured thereby

have been assumed by such Person or are non-recourse to such Person, (h) all

reimbursement obligations of such Person (whether contingent or otherwise) in

respect of letters of credit, bankers' acceptances, surety or other bonds and

similar instruments, (i) all indebtedness, liabilities and obligations of

such Person to redeem or retire shares of Capital Stock of such Person,

(j) all indebtedness, liabilities and obligations of such Person under

Interest Rate Protection Agreements or Currency Hedge Agreements, and

(k) all indebtedness, liabilities and obligations of such Person in respect

of unfunded vested benefits under any Plan.

 

"Debt

Issuance" means any issuance by F.Y.I. or any Subsidiary of F.Y.I. of

any Debt of F.Y.I. or such Subsidiary, respectively, which Debt is issued or

sold by F.Y.I. or any Subsidiary of F.Y.I. primarily for the purpose of raising

capital or increasing liquidity and which Debt consists of Debt of the types

referred to in clauses (a) or (b) of the definition of

"Debt", but not of the types of Debt referred to in clauses (c),

(d), (f), (h), (i), (j) or (k) of the

definition of "Debt" and which Debt is not permitted under Section

9.1.  The incurrence of

Seller Subordinated Debt does not constitute a "Debt

Issuance."

 

"Default"

means an Event of Default or the occurrence of an event or condition which with

notice or lapse of time or both would become an Event of Default.

 

"Default

Rate" means, (a) in respect of any principal of any Loan or any

Reimbursement Obligation at all times during which an Event of Default has

occurred and is continuing, and (b) in respect of any principal of any Loan,

any Reimbursement Obligation or any other amount payable by F.Y.I. under this

Agreement or any other Loan Document which is not paid when due (whether at

stated maturity, by acceleration or otherwise), a rate per annum during the

period of such Event of Default or during the period commencing on the due date

until such amount is paid in full, respectively, equal to the lesser of (i) the

sum of two percent (2%) plus the Prime Rate as in effect from time to time plus

the Applicable Margin for Prime Rate Loans for the applicable period or (ii)

the Maximum Rate; provided, however, that if such Event of

Default relates to, or if such amount in default is, principal of a Eurodollar

Loan and the due date is a day other than the last day of an Interest Period

therefor, the "Default Rate" for such principal shall be, for the

period from and including the due date and to but excluding the last day of the

Interest Period therefor, the lesser of (A) two percent plus the interest rate

for such Eurodollar Loan for such Interest Period as provided in Section

2.4(a)(ii) hereof  or (B) the

Maximum Rate and, thereafter, the rate provided for above in this definition.

 

"Deposit

Account" means a deposit account maintained by F.Y.I. with a bank selected

by F.Y.I. and reasonably acceptable to the Administrative Agent.

 

"Documentation

Agent" means Wells Fargo Bank Texas, National Association, in its

capacity as documentation agent.

 

"Dollars"

and "$" mean lawful money of the U.S.

 

"Domestic

Subsidiary" means any Subsidiary of F.Y.I. which is organized under

the laws of the United States or one of the States thereof.

 

"EBITDA"

means, for any period, without duplication, the sum of the following for F.Y.I.

and its Subsidiaries (or other applicable Person) for such period determined on

a consolidated basis in accordance with GAAP: (a) Consolidated Net Income,

plus (b) Interest Expense, plus (c) income and

franchise taxes to the extent deducted in determining Consolidated Net Income, plus

(d) depreciation and amortization expense and other non-cash, non-tax

items to the extent deducted in determining Consolidated Net Income, minus

(e) non-cash income to the extent included in determining Consolidated Net

Income; provided, however, that for purposes of calculating the EBITDA of

F.Y.I. and its consolidated Subsidiaries for any period of four consecutive

fiscal quarters including, without limitation, the four consecutive fiscal

quarter period used in determining compliance with the twelve month trailing

EBITDA requirement in the definition of Permitted Acquisition, (i) the EBITDA

associated with any Person or assets acquired in a Permitted Acquisition during

such period of four consecutive fiscal quarters shall be added, without

duplication, if either (A) the financial statements of the Person or assets

acquired from which such EBITDA would be determined were audited by independent

certified public accountants of recognized standing acceptable to the

Administrative Agent or (B) the Permitted Acquisition and the EBITDA of the

Person or assets acquired were approved in writing by the Required Lenders; and

(ii) the EBITDA associated with any Person or assets disposed of in a Permitted

Disposition during such period of four consecutive fiscal quarters shall be deducted.

 

"EBITDAR"

means, for any period, without duplication, the sum of the following for F.Y.I.

and its Subsidiaries (or other applicable Person) for such period determined on

a consolidated basis in accordance with GAAP: 

(a) EBITDA, plus (b) Rental Expense.

 

"Effective

Date" means the date upon which all conditions precedent to the

obligations of the Lenders to make Loans hereunder specified in Article 6

hereof have been satisfied and, as a result thereof, the initial Loans are made

hereunder.

 

"Eligible Assignee"

means (a) any Affiliate of a Lender or (b) any commercial bank,

savings and loan association, savings bank, finance company, insurance company,

pension fund, mutual fund or other financial institution (whether a

corporation, partnership or other entity) acceptable to the Administrative

Agent and approved by F.Y.I., which approval shall not unreasonably be

withheld, provided, however, that any  Person referred to in this clause (b) shall not be

required to be approved by F.Y.I. if a Default has then occurred and is

continuing.

 

"Environmental

Law" means any federal, state, local or foreign law, statute, code or

ordinance, principle of common law, rule or regulation, as well as any Permit,

order, decree, judgment or injunction issued, promulgated, approved or entered

thereunder, relating to pollution or the protection, cleanup or restoration of

the environment or natural resources, or to the public health or safety, or

otherwise governing the generation, use, handling, collection, treatment,

storage, transportation, recovery, recycling, discharge or disposal of

Hazardous Materials, including, without limitation as to U.S. laws, the

Comprehensive Environmental Response, Compensation and Liability Act of 1980,

42 U.S.C. Section 9601 et seq., the Superfund Amendment and

Reauthorization Act of 1986, 99-499, 100 Stat. 1613, the Resource Conservation

and Recovery Act of 1976, 42 U. S. C. Section 6901 et seq., the

Occupational Safety and Health Act, 29 U S.C. Section 651 et seq.,

the Clean Air Act, 42 U.S.C. Section 7401 et seq., the Clean Water

Act, 33 U. S. C. Section 1251 et seq., the Emergency Planning and

Community Right to Know Act, 42 U. S. C. Section 11001 et seq., the

Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Section 136 et seq.,

and the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.,

and any state or local counterparts.

 

"Environmental

Liabilities" means, as to any Person, all liabilities, obligations,

responsibilities, Remedial Actions, losses, damages, punitive damages,

consequential damages, treble damages, costs and expenses (including, without

limitation, all reasonable fees, disbursements and expenses of counsel, expert

and consulting fees and costs of investigation and feasibility studies), fines,

penalties, sanctions and interest incurred as a result of any claim or demand,

by any Person, whether based in contract, tort, implied or express warranty,

strict liability or criminal, penal or civil statute, including, without

limitation, any Environmental Law, Permit, order or agreement with any

Governmental Authority or other Person, arising from environmental, health or

safety conditions or the Release or threatened Release of a Hazardous Material

into the environment.

 

"Equity

Issuance" means any issuance by F.Y.I. or any Subsidiary of F.Y.I. of

any Capital Stock of F.Y.I. or such Subsidiary, respectively.

 

"ERISA"

means the Employee Retirement Income Security Act of 1974, as amended from time

to time, and the regulations and published interpretations thereunder.

 

"ERISA

Affiliate" means any corporation or trade or business which is a

member of a group of entities, organizations or employers of which a Loan Party

is also a member and which is treated as a single employer within the meaning

of Sections 414(b), (c), (m) or (o) of the Code.

 

"Eurodollar

Daily Floating Rate" means the fluctuating rate of interest equal to

the Eurodollar Rate (for a one month Interest Period) on the second preceding

Business Day, as adjusted on a daily basis for as long as the Swingline Advance

to which such rate relates is outstanding and as adjusted from time to time in

the Administrative Agent's sole discretion for then-applicable reserve

requirements, deposits insurance assessment rates and other regulatory costs.

 

"Eurodollar

Loans" means Loans that bear interest at rates based upon the

Eurodollar Rate and the Adjusted Eurodollar Rate.

 

"Eurodollar

Rate" means, for any Eurodollar Loan for any Interest Period therefor,

the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)

appearing on Dow Jones Markets Service (formerly known as Telerate) Page 3750

(or any successor page) as the London interbank offered rate for deposits in

Dollars at approximately 11:00 a.m. (London time) two (2) Business Days prior

to the first day of such Interest Period for a term comparable to such Interest

Period.  If for any reason such rate is

not available, the term "Eurodollar Rate" shall mean, for any

Eurodollar Loan for any Interest Period therefor, the rate per annum (rounded

upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen

LIBO Page as the London interbank offered rate for deposits in Dollars at

approximately 11:00 a.m. (London time) two (2) Business Days prior to the first

day of such Interest Period for a term comparable to such Interest Period; provided,

however, if more than one rate is specified on Reuters Screen LIBO Page,

the applicable rate shall be the arithmetic mean of all such rates (rounded

upwards, if necessary, to the nearest 1/100 of 1%).

 

"Event of

Default" means as specified in Section 11.1.

 

"Existing

B of A Letter of Credit" means that certain Letter of Credit issued by

Bank of America National Trust & Savings Association in favor of the New

York State Workers Compensation Board as beneficiary in a face amount of

$5,000,000 having an expiration date of March 31, 2003, which Letter of Credit

was issued pursuant to an Application and Agreement for Standby Letter of

Credit, dated as of January 27, 1998, between F.Y.I. and QCSINET Acquisition Corp.,

a wholly-owned Subsidiary of F.Y.I., as Applicants, and Bank of America Texas,

N.A., as credit-provider.

 

"Existing

Debt" means the Debt of F.Y.I. under that certain Amended and Restated

Credit Agreement dated as of February 17, 1998 by and among F.Y.I., the lenders

party thereto and Banque Paribas, as agent, as amended.

 

"Existing

Letters of Credit" means the outstanding letters of credit identified

on Schedule 2.14.

 

"Extension

Agreement" means an agreement in substantially the form of Exhibit

J pursuant to which F.Y.I., the Administrative Agent and an individual

Lender may agree to extend the Maturity Date in accordance with the terms of Section

2.1(d).

 

"Federal

Funds Rate" means, for any day, the rate per annum (rounded upwards,

if necessary, to the nearest one-sixteenth of one percent (1/100 of 1%)) equal

to the weighted average of the rates on overnight Federal funds transactions

with members of the Federal Reserve System arranged by Federal funds brokers on

such day, as published by the Federal Reserve Bank of New York on the Business

Day next succeeding such day, provided that (a) if the day for

which such rate is to be determined is not a Business Day, the Federal Funds

Rate for such day shall be such rate on such transactions on the next preceding

Business Day as so published on the next succeeding Business Day and

(b) if such rate is not so published on such next succeeding Business Day,

the Federal Funds Rate for any day shall be the average rate charged to the

Administrative Agent (in its individual capacity) on such day on such

transactions as determined by the Administrative Agent.

 

"Fee

Letter" means the letter dated as of December 29, 2000 among F.Y.I.,

the Administrative Agent and the Lead Arranger.

 

"Fixed

Charges" means, for any period, the sum of (a) cash Interest

Expense of F.Y.I. and its Subsidiaries during such period, plus

(b) all scheduled payments (as such scheduled payments are reduced by

application of any prepayments) of principal with respect to the Loans and

other outstanding Debt during such period, plus (c) Rental Expense of

F.Y.I. and its Subsidiaries during such period, plus (d) Seller Earn

Outs paid in cash by F.Y.I. and its Subsidiaries during such period.

 

"Foreign

Debt and Investment" means as specified in Section 9.1(e).

 

"Foreign

Subsidiary" means any Subsidiary of F.Y.I. which is organized under

the laws of a country or province other than the United States or a State

thereof.

 

"Funded

Debt" means, at any particular time, the sum, without duplication, of

(a) the aggregate principal amount of all Debt for borrowed money of F.Y.I. and

its Subsidiaries outstanding, determined on a consolidated basis, plus (b) the

aggregate principal amount of all Debt of F.Y.I. and its Subsidiaries

outstanding, determined on a consolidated basis, secured by any Lien on any

Property of F.Y.I. or any of its Subsidiaries (including, without limitation,

all recourse and non-recourse Capital Lease Obligations), plus (c) the

aggregate principal amount of all Debt Guaranteed by F.Y.I. and its

Subsidiaries outstanding, determined on a consolidated basis.

 

"Funded

Debt to EBITDA Ratio" means as specified in Section 10.2.

 

"F.Y.I."

means as specified in the initial paragraph of this Agreement.

 

"F.Y.I.

Common Stock" means the common stock of F.Y.I., par value $.01 per

share.

 

"F.Y.I.

Equity Documents" means F.Y.I.'s Certificate of Incorporation and the

F.Y.I. Common Stock.

 

"GAAP"

means generally accepted accounting principles, applied on a consistent basis,

as set forth in Opinions of the Accounting Principles Board of the American

Institute of Certified Public Accountants and/or in statements of the Financial

Accounting Standards Board and/or their respective successors and which are

applicable in the circumstances as of the date in question.  Accounting principles are applied on a

"consistent basis" when the accounting principles applied in a

current period are comparable in all material respects to those accounting

principles applied in a preceding period.

 

"Governmental

Authority" means any nation or government, any state, provincial or

political subdivision thereof and any entity exercising executive, legislative,

judicial, regulatory or administrative functions of or pertaining to

government.

 

"Governmental

Requirement" means any law, statute, code, ordinance, order, rule,

regulation, judgment, decree, injunction, franchise, Permit, certificate,

license, authorization or other directive or requirement of any federal, state,

county, municipal, parish, provincial or other Governmental Authority or any

department, commission, board, court, agency or any other instrumentality of

any of them.

 

"Guarantee"

by any Person means any obligation, contingent or otherwise, of such Person

directly or indirectly guaranteeing any Debt or other obligation of any other

Person and, without limiting the generality of the foregoing, any obligation,

direct or indirect, contingent or otherwise, of such Person (a) to

purchase or pay (or advance or supply funds for the purchase or payment of)

such Debt or other obligation (whether arising by virtue of partnership

arrangements, by agreement to keep-well, to purchase assets, goods, securities

or services, to take-or-pay or to maintain financial statement conditions or

otherwise) or (b) entered into for the purpose of assuring in any other

manner the obligee of such Debt or other obligation as to the payment thereof

or to protect the obligee against loss in respect thereof (in whole or in

part), provided that the term Guarantee shall not include endorsements

for collection or deposit in the ordinary course of business.  The term "Guarantee" used as a

verb has a corresponding meaning.  The

amount of any Guarantee shall be deemed to be an amount equal to the stated or

determinable amount of the primary obligation in respect of which such

Guarantee is made or, if not stated or determinable, the maximum anticipated

liability in respect thereof (assuming such Person is required to perform

thereunder).

 

"Guaranties"

means the guaranty agreements, in form and substance satisfactory to the

Administrative Agent, (including, without limitation, the Master Guaranty)

executed at any time pursuant to this Agreement by any of the Subsidiaries of

F.Y.I. or any other Loan Party in favor of the Administrative Agent for the

benefit of the Administrative Agent and the Lenders, and any guaranty agreement

executed pursuant to Section 5.3 hereof, and any and all amendments,

modifications, supplements, renewals, extensions or restatements thereof.

 

"Hazardous

Material" means any substance, product, liquid, waste, pollutant,

chemical, contaminant, insecticide, pesticide, gaseous or solid matter, organic

or inorganic matter, fuel, micro-organisms, ray, odor, radiation, energy,

vector, plasma, constituent or material which (a) is or becomes listed,

regulated or addressed under any Environmental Law or (b) is, or is deemed

to be, alone or in any combination, hazardous, hazardous waste, toxic, a

pollutant, a deleterious substance, a contaminant or a source of pollution or

contamination under any Environmental Law, including, without limitation,

asbestos, petroleum, underground storage tanks (whether empty or containing any

substance) and polychlorinated biphenyls.

 

"Intellectual

Property" means any U.S. or foreign patents, patent applications,

trademarks, trade names, service marks, brand names, logos and other trade

designations (including unregistered names and marks), trademark and service

mark registrations and applications, copyrights and copyright registrations and

applications, inventions, invention disclosures, protected formulae,

formulations, processes, methods, trade secrets, computer software, computer

programs and source codes, manufacturing research and similar technical

information, engineering know-how, customer and supplier information, assembly

and test data drawings or royalty rights.

 

"Intercompany

Debt" means as specified in Section 9.1(e).

 

"Interest

Expense" means, for any period and for any Person, the sum of (a)

interest expense of such Person calculated without duplication on a consolidated

basis for such period in accordance with GAAP, plus (b) expenses paid

under Interest Rate Protection Agreements and Currency Hedge Agreements during

such period, minus (c) payments received under Interest Rate Protection

Agreements and Currency Hedge Agreements during such period.

 

"Interest

Period" means, with respect to any Eurodollar Loan, each period

commencing on the date such Loan is made or Converted from a Prime Rate Loan or

(if Continued) the last day of the next preceding Interest Period with respect

to such Loan, and ending on the numerically corresponding day in the first,

second, third or sixth calendar month thereafter, as F.Y.I. may select as

provided in Section 2.9 hereof, except that each such Interest Period

which commences on the last Business Day of a calendar month (or on any day for

which there is no numerically corresponding day in the appropriate subsequent

calendar month) shall end on the last Business Day of the appropriate

subsequent calendar month. 

Notwithstanding the foregoing: (a) each Interest Period which would

otherwise end on a day which is not a Business Day shall end on the next

succeeding Business Day (or, if such succeeding Business Day falls in the next

succeeding calendar month, on the next preceding Business Day); (b) any

Interest Period which would otherwise extend beyond the Maturity Date shall end

on the Maturity Date; (c) no more than seven (7) Interest Periods for

Eurodollar Loans shall be in effect at the same time; (d) no Interest

Period shall have a duration of less than one month and, if the Interest Period

for any Eurodollar Loans would otherwise be a shorter period, such Loans shall

not be available hereunder; (e) no Interest Period shall have a duration

of more than six months; and (f) no Interest Period for a Loan may

commence before and end after any principal repayment date unless, after giving

effect thereto, the aggregate principal amount of the Eurodollar Loans having

Interest Periods that end after such principal payment date shall be equal to or

less than the amount of the Loans scheduled to be outstanding hereunder after

such principal payment date.  The

permitted length of Interest Periods will not limit the terms of any Interest

Rate Protection Agreement.

 

"Interest

Rate Protection Agreements" means, with respect to F.Y.I. or any

Subsidiary of F.Y.I., an interest rate swap, cap or collar agreement or similar

arrangement between F.Y.I. or any Subsidiary of F.Y.I. and one or more Lenders

that are parties to this Agreement, Affiliates of such Lenders or other

entities that would qualify as "Eligible Assignees" under this

Agreement, providing for the transfer or mitigation of interest rate risks

either generally or under specified contingencies.

 

"Inventory"

means all inventory now owned or hereafter acquired by F.Y.I. or any of its

Subsidiaries wherever located and whether or not in transit, which is or may at

any time be held for sale or lease, or furnished under any contract (exclusive

of leases of real Property covered by a Mortgage) for service or held as raw

materials, work in process, or supplies or materials used or consumed in the

business of F.Y.I. or any of its Subsidiaries.

 

"Investments"

means as specified in Section 9.5.

 

"Issuing

Bank" means Bank of America, except with respect to the Existing

Letters of Credit (other than the Existing B of A Letter of Credit), for which

"Issuing Bank" means BNP Paribas, Chicago Branch.

 

"Joinder

Agreement" means an agreement which has been or will be executed by a

Subsidiary of F.Y.I. adding it as a party to the Master Guaranty and certain of

the other Security Documents, in substantially the form of Exhibit I, as the

same may be amended or otherwise modified.

 

"Lead

Arranger" means Banc of America Securities LLC, in its capacity as

sole lead arranger and sole book manager.

 

"Lender"

and "Lenders" means as specified in the initial paragraph of

this Agreement.

 

"Letter of

Credit" means any standby letter of credit issued by the Issuing Bank

for the account of F.Y.I. (or F.Y.I. and any of its Subsidiaries) pursuant to

this Agreement (which letter of credit shall be irrevocable unless otherwise

agreed by the Issuing Bank and F.Y.I.).

 

"Letter of

Credit Agreement" means, with respect to each Letter of Credit to be

issued by the Issuing Bank therefor, the letter of credit application and

reimbursement agreement which such Issuing Bank requires to be executed by the

account party or parties in connection with the issuance of such Letter of

Credit.

 

"Letter of

Credit Liabilities" means, at any time, the aggregate undrawn face

amounts of all outstanding Letters of Credit and all unreimbursed drawings

under Letters of Credit issued pursuant to the Commitments.

 

"Lien"

means any lien, mortgage, security interest, tax lien, financing statement,

pledge, charge, hypothecation or other encumbrance of any kind or nature

whatsoever (including, without limitation, any conditional sale or title

retention agreement), whether arising by contract, operation of law or

otherwise.

 

"Loan

Documents" means this Agreement, the Notes, the Security Documents,

the Fee Letter, the Letters of Credit, the Letter of Credit Agreements, any

Interest Rate Protection Agreement or Currency Hedge Agreement between F.Y.I.

or any Subsidiary of F.Y.I. and any Lender or any Affiliate of any Lender, any Subordination

Agreements, and all other agreements, documents and instruments now or

hereafter executed and/or delivered pursuant to or in connection with any of

the foregoing, and any and all amendments, modifications, supplements,

renewals, extensions or restatements thereof.

 

"Loan

Party" means F.Y.I., each of its Subsidiaries and any other Person who

is or becomes a party to any agreement, document or instrument that Guarantees

or secures payment or performance of the Obligations or any part thereof.

 

"Loans"

means as specified in Section 2.1(a).

 

"Maintenance

Capital Expenditures" means, for any period and for any Person and its

Subsidiaries, the amount of depreciation expense on the tangible assets of such

Persons (not including any amortization of goodwill or other non-tangible

assets) determined on a consolidated basis in accordance with GAAP.

 

"Master

Guaranty" means guaranty of the Domestic Subsidiaries of F.Y.I. in

favor of the Administrative Agent, for the benefit of the Administrative Agent

and the Lenders, in substantially the form of Exhibit H, as the

same may be modified pursuant to one or more Joinder Agreements and as the same

may be otherwise modified from time to time.

 

"Material

Adverse Effect" means any material adverse effect, or the occurrence

of any event or the existence of any condition that could reasonably be

expected to have a material adverse effect, on (a) the business or

financial condition or performance of F.Y.I. and its Subsidiaries, taken as a

whole, (b) the ability of F.Y.I. to pay and perform the Obligations when

due, or (c) the validity or enforceability of (i) any of the Loan

Documents, (ii) any Lien created or purported to be created by any of the

Loan Documents or the required priority of any such Lien, or (iii) the rights

and remedies of the Administrative Agent or the Lenders under any of the Loan

Documents.

 

"Material

Contracts" means, as to any Person, any supply, purchase, service,

employment, tax, indemnity, shareholder or other agreement or contract for

which the aggregate amount or value of services performed or to be performed

for or by, or funds or other Property transferred or to be transferred to or

by, such Person or any of its Subsidiaries party to such agreement or contract,

or by which such Person or any of its Subsidiaries or any of their respective

Properties are otherwise bound, during any fiscal year of the Person exceeds

$5,000,000 as of the Closing Date with respect to expenditures required by such

Person, or $10,000,000 as of the Closing Date with respect to revenues which

the other party to the contract is required to pay to such Person, and any and

all amendments, modifications, supplements, renewals or restatements thereof.

 

"Material

Subsidiary" means any Subsidiary of F.Y.I. which is not a Nonmaterial

Subsidiary.

 

"Maturity

Date" means April 3, 2004, as such date may be extended from

time to time with respect to some or all of the Lenders pursuant to Section

2.1(d), or if such date is not a Business Day, the next succeeding Business

Day.

 

"Maximum

Foreign Amount" means as specified in Section 9.1(e).

 

"Maximum

Rate" means, with respect to any Lender, the maximum non-usurious

interest rate (or, if the context so permits or requires, an amount of interest

calculated at such rate), if any, that at any time or from time to time may be

contracted for, taken, reserved, charged or received with respect to the

particular Obligations as to which such rate is to be determined, payable to

such Lender pursuant to this Agreement or any other Loan Document, under laws

applicable to such Lender which are presently in effect or, to the extent

allowed by law, under such applicable laws which may hereafter be in effect and

which allow a higher maximum non-usurious interest rate than applicable laws

now allow.  The Maximum Rate shall be

calculated in a manner that takes into account any and all fees, payments and

other charges in respect of the Loan Documents that constitute interest under

applicable law.  Each change in any interest

rate provided for herein based upon the Maximum Rate resulting from a change in

the Maximum Rate shall take effect without notice to F.Y.I.  at the time of such change in the Maximum

Rate.  For purposes of determining the

Maximum Rate under Texas law to the extent applicable, if at all, the

applicable rate ceiling shall be the indicated rate ceiling described in, and

computed in accordance with, the Texas Credit Code.

 

"Mortgaged

Properties" means, collectively, the fee-owned Properties and

leasehold interests in the Properties listed on Schedule 1.1(a) hereof

which are or are to be subject to the Mortgages, and any such after-acquired

Properties which become subject to a Mortgage pursuant to Section 5.4

hereof.

 

"Mortgages"

means the deed of trusts, leasehold deeds of trust, mortgages, leasehold

mortgages, collateral assignments of leases and other real estate security

documents, in form and substance satisfactory to the Administrative Agent,

executed at any time pursuant to this Agreement by F.Y.I. or any of its

Subsidiaries or any other Loan Party in favor of the Administrative Agent for

the benefit of the Administrative Agent and the Lenders with respect to any

Mortgaged Property, and any and all amendments, modifications, supplements,

renewals or restatements thereof.

 

"Multiemployer

Plan" means a multiemployer plan defined as such in Section 3(37) of

ERISA to which contributions have been made by or are required from any Loan

Party or any ERISA Affiliate since 1974 and which is covered by Title IV of

ERISA.

 

"Net

Proceeds" means, with respect to any Asset Disposition, (a) the

gross amount of cash received by F.Y.I. or any of its Subsidiaries from such

Asset Disposition, minus (b) the amount, if any, of all taxes paid

or payable by F.Y.I. or any of its Subsidiaries directly resulting from such

Asset Disposition (including the amount, if any, estimated by F.Y.I. in good

faith at the time of such Asset Disposition for taxes payable by F.Y.I. or any

of its Subsidiaries on or measured by net income or gain resulting from such

Asset Disposition), minus (c) the reasonable out-of-pocket costs

and expenses incurred by F.Y.I. or such Subsidiary in connection with such

Asset Disposition (including reasonable brokerage fees paid to a Person other

than an Affiliate of F.Y.I. and including any transfer or similar taxes)

excluding any fees or expenses paid to an Affiliate of F.Y.I., minus

(d) amounts applied to the repayment of indebtedness (other than the

Obligations) secured by a Permitted Lien on the Property subject to the Asset

Disposition, minus (e) the actual amount refunded to the buyer as a

result of a post-closing purchase price adjustment which occurs within 180 days

of the closing and is provided for in the asset purchase agreement or the stock

purchase agreement as provided to the Lenders prior to the Acquisition.  "Net Proceeds" with respect

to any Asset Disposition shall also include proceeds (after deducting any

amounts specified in clauses (b), (c) and (d) of the

preceding sentence) of insurance with respect to any actual or constructive

loss of Property, an agreed or compromised loss of Property or the taking of

any Property under the power of eminent domain and condemnation awards and

awards in lieu of condemnation for the taking of Property under the power of

eminent domain, except such proceeds and awards as are released to and used by

F.Y.I. or any of its Subsidiaries in accordance with Section 8.5(b).  "Net Proceeds" means, with

respect to any Equity Issuance or Debt Issuance, (a) the gross amount of

cash or other consideration received from such Equity Issuance or Debt

Issuance, as the case may be, minus (b) the reasonable

out-of-pocket costs and expenses incurred by the issuer in connection with such

Equity Issuance or Debt Issuance, as the case may be (including reasonable

underwriting fees paid to a Person other than an Affiliate of F.Y.I.) excluding

any fees or expenses paid to an Affiliate of F.Y.I.

 

"Nonconsenting

Lender" means as specified in Section 13.11.

 

"Nonmaterial

Subsidiary" means, as of any date of determination, a Subsidiary of

F.Y.I. (a) which has total tangible assets that are less than $15,000,000,

(b) which has net worth that is less than $15,000,000, and (c) which

has revenues that are less than $15,000,000 during the twelve-month period then

most recently ended.  For purposes of

this definition, total tangible assets, net worth and revenues of a Subsidiary

shall be determined on a consolidated basis for such Subsidiary and for all

Subsidiaries of such Subsidiary.

 

"Notes"

means the promissory notes made by F.Y.I. evidencing the Loans (including,

without limitation, the Swingline Advances) in the form of Exhibit B or,

as to the Swingline Advances,  Exhibit D

hereto, and also includes such promissory notes issued in registered form

pursuant to Section 2.2(b).

 

"Obligations"

means any and all (a) indebtedness, liabilities and obligations of the

Loan Parties, or any of them, to the Administrative Agent, the Lead Arranger,

the Issuing Bank and the Lenders, or any of them, evidenced by and/or arising

pursuant to any of the Loan Documents, now existing or hereafter arising,

whether direct, indirect, related, unrelated, fixed, contingent, liquidated,

unliquidated, joint, several or joint and several, including, without

limitation, (i) the obligations of the Loan Parties to repay the Loans,

the Letter of Credit Liabilities and the Reimbursement Obligations, to pay

interest on the Loans, the Letter of Credit Liabilities and Reimbursement

Obligations (including, without limitation, interest, if any, accruing after

any bankruptcy, insolvency, reorganization or other similar filing) and to pay

all fees, indemnities, costs and expenses (including attorneys' fees) provided

for in the Loan Documents and (ii) the indebtedness constituting the

Loans, the Letter of Credit Liabilities, the Reimbursement Obligations and such

fees, indemnities, costs and expenses, and (b) indebtedness, liabilities

and obligations of F.Y.I. or any of its Subsidiaries under any and all Interest

Rate Protection Agreements and Currency Hedge Agreements that it may enter into

with any Lender or any Affiliate of a Lender to the extent permitted by Section

9.1(f).

 

"Operating

Lease" means, with respect to any Person, any lease, rental or other

agreement for the use by that Person of any Property which is not a Capital Lease

Obligation.

 

"Outstanding

Credit" means, at any particular time, the sum of (a) the

outstanding principal amount of the Loans (inclusive of the Swingline

Advances), plus (b) the Letter of Credit Liabilities.

 

"Payor"

means as specified in Section 3.4.

 

"PBGC"

means the Pension Benefit Guaranty Corporation or any entity succeeding to all

or any of its functions under ERISA.

 

"Pension

Plan" means an employee pension benefit plan as defined in Section

3(2) of ERISA (including a Multiemployer Plan) which is subject to the funding

requirements under Section 302 of ERISA or Section 412 of the Code, in whole or

in part, and which is maintained or contributed to currently or at any time

within the six years immediately preceding the Closing Date or, in the case of

a Multiemployer Plan, at any time since September 2, 1974, by F.Y.I. or any

subsidiary of F.Y.I. or any ERISA Affiliate for employees of F.Y.I. or any

subsidiary of F.Y.I. or any ERISA Affiliate.

 

"Peril"

means as specified in Section 8.5(a).

 

"Permit"

means any permit, certificate, approval, order, license or other authorization.

 

"Permitted

Acquisition" means any Acquisition which has been approved in writing

by the Administrative Agent and the Required Lenders or any other Acquisition

which satisfies each of the following requirements: (a) the acquiror (or

surviving corporation if the acquisition is by means of a merger) is F.Y.I. or

any Subsidiary of F.Y.I., (b) the assets to be acquired in connection with such

Acquisition are assets that are to be used in the existing businesses of the

acquiror as such business is presently conducted, (c) such Acquisition has been

approved by the Board of Directors of the acquired entity, (d) the acquired

entity shall have generated positive EBITDA during the twelve-month period

preceding the Acquisition, which positive EBITDA shall be audited or reviewed

by an accounting firm acceptable to the Administrative Agent if (but only if)

the Acquisition involves total consideration paid or payable of $10,000,000 or

more, after adjusting for excess owners' compensation and other pro forma

charges as validated, using reasonable standards and methods, by the

Administrative Agent, (e) after giving effect to such Acquisition and any Debt

incurred in connection therewith, Funded Debt does not exceed 2.50 times EBITDA

for the four fiscal quarters most recently completed of F.Y.I. and its

Subsidiaries (and including the acquired entity's trailing twelve-month EBITDA

as adjusted for any interest not acquired, if audited or reviewed by an

accounting firm acceptable to the Administrative Agent) (EBITDA may include

proforma adjustments to an acquired entity's earnings, as adjusted for any

interest not acquired, acceptable to the Administrative Agent), (f) such

Acquisition shall not exceed $25,000,000 in cash consideration and any Debt

assumed or guaranteed in connection therewith, without Required Lenders'

approval, (g) the aggregate amount of all such Acquisitions made on or after

March 1, 2001 shall not exceed $60,000,000 in cash consideration and any Debt

assumed or guaranteed in connection therewith in any twelve-month period

without Required Lenders' approval, (h) prior to and after giving effect to the

Acquisition, no Default shall exist, (i) after giving effect to such

Acquisition, F.Y.I. will not violate any financial covenant, and (j) no

material part of the Property or business operations to be acquired are located

outside the U.S. or Canada; provided, however, that up to

$10,000,000 (valued at total purchase consideration including any Debt assumed

or guaranteed in connection therewith) in Acquisitions made on or after the

Closing Date and during the term of this Agreement will be deemed to be

Permitted Acquisitions despite their failure to meet the requirements of items

(d) and (j) preceding so long as no such acquired entity or entities shall have

annual sales (individually for any one such acquired entity or in the aggregate

for all such acquired entities) in excess of $10,000,000 or cumulative EBITDA

losses (individually for any one such acquired entity or in the aggregate for

all such acquired entities) in excess of $1,500,000 incurred, in each case

during the twelve-month period preceding the respective dates of acquisition.

 

"Permitted

Acquisition Documents" means any acquisition agreement and each other

material agreement, document or instrument executed or delivered in connection

with or pursuant to any Permitted Acquisition.

 

"Permitted

Capital Expenditures" means as specified in Section 10.4.

 

"Permitted

Dispositions" means the disposition by F.Y.I. or any Subsidiary of

F.Y.I. of all or substantially all of the Property or Capital Stock of certain

Subsidiaries of F.Y.I. on or before December 31, 2001, provided that (a) the

EBITDA of all such Subsidiaries shall not exceed $3,200,000in the aggregate, (b) the

tangible net assets of all such Subsidiaries shall not exceed $10,000,000in

the aggregate, and (c) no Default or Event of Default exists at the time of

such disposition or proposed disposition.

 

"Permitted

Liens" means:

 

(a)           Liens disclosed on Schedule 1.1(b)

hereto as to F.Y.I. and its Material Subsidiaries (as applicable, as described

on such schedule);

 

(b)           Liens securing the Obligations in

favor of the Administrative Agent (for the benefit of the Administrative Agent

and the Lenders) pursuant to the Loan Documents;

 

(c)           Encumbrances consisting of easements,

zoning restrictions or other restrictions on the use of real Property or, as to

the real Property referred to in clause (ii) below only, imperfections

to title that (i) as to any Mortgaged Property, do not (individually or in

the aggregate) materially affect the value of the Property encumbered thereby

or materially impair the ability of F.Y.I. or any of its Subsidiaries to use

such Property in its businesses, and none of which is violated in any material

respect by existing or proposed structures or land use, and (ii) as to any

real Property other than Mortgaged Property, were entered into in the ordinary

course of business and could not have a Material Adverse Effect;

 

(d)           Liens for taxes, assessments or other

governmental charges that are not delinquent or which are being contested in

good faith and for which adequate reserves have been established;

 

(e)           Liens of mechanics, materialmen,

warehousemen, carriers, landlords or other similar statutory Liens securing

obligations that are not yet due and are incurred in the ordinary course of

business or which are being contested in good faith and for which adequate

reserves have been established;

 

(f)            Liens resulting from good faith

deposits to secure payment of workmen's compensation or other social security

programs or to secure the performance of tenders, statutory obligations, surety

and appeal bonds, bids, contracts (other than for payment of Debt) or leases,

all in the ordinary course of business;

 

(g)           Purchase-money Liens on any Property

hereafter acquired or the assumption after the Closing Date of any Lien on

Property existing at the time of such acquisition (and not created in

contemplation of such acquisition), or a Lien incurred or assumed after the

Closing Date in connection with any conditional sale or other title retention

agreement or Capital Lease Obligation; provided that:

 

(i)            any Property subject to the

foregoing is acquired by F.Y.I. or any of its Subsidiaries in the ordinary

course of its business and the Lien on the Property attaches concurrently or

within 90 days after the acquisition thereof;

 

(ii)           the Debt secured by any Lien so

created, assumed or existing shall not exceed the lesser of the cost or fair

market value at the time of acquisition of the Property covered thereby; and

 

(iii)          each such Lien shall attach only to

the Property so acquired and the proceeds thereof;

 

(h)           Easements, rights-of-way,

restrictions and other Liens and imperfections to title that are approved by

the Administrative Agent and are listed on Exhibit B to any Mortgage; and

 

(i)            Any extension, renewal or

replacement of any of the foregoing, provided that Liens permitted hereunder

shall not be extended or spread to cover any additional indebtedness or

Property;

 

provided,

however, that none of the Permitted Liens (except those in favor of the

Administrative Agent) may attach or relate to the Capital Stock of or any other

ownership interest in F.Y.I. or any of its Subsidiaries.

 

"Permitted

Share Repurchases" means repurchases by F.Y.I. of F.Y.I. Common Stock

made after the Closing Date, not to exceed $30,000,000 in the aggregate.

 

"Person"

means any individual, corporation, trust, association, company, partnership,

joint venture, limited liability company, Governmental Authority or other

entity.

 

"Plan"

means any employee benefit plan as defined in Section 3(3) of ERISA, or any

comparable plan of a Governmental Authority, established or maintained or

contributed to by any Loan Party or any ERISA Affiliate, including any Pension

Plan.

 

"Prime

Rate" means, at any time, the rate of interest per annum equal to the

higher of (a) the Federal Funds Rate plus one-half of one percent (0.50%) or

(b) the rate of interest established from time to time by Bank of America as

its prime rate, which rate may not be the lowest rate of interest charged by

Bank of America to its customers.  Each

change in any interest rate provided for herein based upon the Prime Rate

resulting from a change in the Prime Rate shall take effect without notice to

F.Y.I. at the time of such change in the Prime Rate.

 

"Prime

Rate Loans" means Loans that bear interest at rates based upon the

Prime Rate.

 

"Principal

Office" means the principal office of the Administrative Agent in

Dallas, Texas, presently located at 901 Main Street, Dallas, Texas 75202.

 

"Prohibited

Transaction" means any transaction set forth in Section 406 of ERISA

or Section 4975 of the Code.

 

"Projections"

means F.Y.I.'s forecasted consolidated (a) balance sheets, (b) income

statements, and (c) cash flow statements, together with appropriate

supporting details and a statement of underlying assumptions, prepared on or

about the Closing Date.

 

"Property"

means property of all kinds, real, personal or mixed, tangible or intangible

(including, without limitation, all rights relating thereto), whether owned or

acquired on or after the Closing Date.

 

"Quarterly

Date" means the last day of each March, June, September and December

of each year, the first of which shall be the first such day after the Closing

Date.

 

"Receivables"

means, as at any date of determination thereof, each and every

"account" as such term is defined in the UCC and includes, without

limitation, the unpaid portion of the obligation, as stated on the respective

invoice, or, if there is no invoice, other writing, of a customer of F.Y.I. or

any of its Subsidiaries in respect of Inventory sold and shipped or services

rendered by F.Y.I. or any of its Subsidiaries.

 

"Register"

means as specified in Section 13.8(d).

 

"Regulation

D" means Regulation D of the Board of Governors of the Federal Reserve

System as the same may be amended or supplemented from time to time.

 

"Regulatory

Change" means, with respect to any Lender, any change after the

Closing Date in any U.S. federal or state laws or foreign laws or regulations

(including Regulation D) or the adoption or making after such date of any

interpretations, directives or requests applying to a class of lenders

including such Lender of or under any U.S. federal or state laws or foreign

laws or regulations (whether or not having the force of law) by any

Governmental Authority charged with the interpretation or administration

thereof.

 

"Reimbursement

Obligation" means the obligation of F.Y.I. (as account party or

parties, respectively) to reimburse the Issuing Bank for any drawing under a

Letter of Credit.

 

"Release"

means, as to any Person, any release, spill, emission, leaking, pumping,

injection, deposit, discharge, disposal, disbursement, leaching or migration of

Hazardous Materials into the indoor or outdoor environment or into or out of

Property owned by such Person, including, without limitation, the movement of

Hazardous Materials through or in the air, soil, surface water or ground water.

 

"Remedial

Action" means a actions required to (a) cleanup, remove, respond

to, treat or otherwise address Hazardous Materials in the indoor or outdoor

environment, (b) prevent the Release or threat of Release or minimize the

further Release of Hazardous Materials so that they do not migrate or endanger

or threaten to endanger public health or welfare or the indoor or outdoor

environment, (c) perform studies and investigations on the extent and

nature of any actual or suspected contamination, the remedy or remedies to be

used or health effects or risks of such contamination, or (d) perform

post-remedial monitoring, care or remedy of a contaminated site.

 

"Rental

Expense" means, for any period and for any Person, the rental or lease

expense of such Person under operating leases calculated without duplication on

a consolidated basis for such period as determined in accordance with GAAP.

 

"Reportable

Event" means any of the events set forth in Section 4043 of ERISA.

 

"Required

Lenders" means, at any date of determination, the Lenders having in

the aggregate more than sixty-six and two-thirds of one percent (66 2/3%) (in

Dollar amount as to any one or more of the following) of the sum of the

aggregate outstanding Commitments (or, if the Commitments have terminated or

expired, the aggregate outstanding principal amount of the Loans and the

aggregate Letter of Credit Liabilities).

 

"Required

Payment" means as specified in Section 3.4.

 

"Reserve

Requirement" means, for any Eurodollar Loan of any Lender for any

Interest Period therefor, the maximum rate at which reserves (including any

marginal, supplemental or emergency reserves) are required to be maintained

during such Interest Period under any regulations of the Board of Governors of

the Federal Reserve System (or any successor) by such Lender for deposits

exceeding $1,000,000 against "Eurocurrency Liabilities" as such term

is used in Regulation D. Without limiting the effect of the foregoing, the

Reserve Requirement shall reflect any other reserves required to be maintained by

such Lenders by reason of any Regulatory Change against (a) any category

of liabilities which includes deposits by reference to which the Eurodollar

Rate or the Adjusted Eurodollar Rate is to be determined or (b) any

category of extensions of credit or other assets which include Eurodollar

Loans.

 

"Responsible

Officer" means, as to any Loan Party, the chief financial officer,

chief operating officer or chief executive officer of such Person.

 

"Restricted

Payment" means (a) any dividend or other distribution (whether in

cash, Property or obligations), direct or indirect, on account of (or the

setting apart of money for a sinking or other analogous fund for) any shares of

any class of Capital Stock of F.Y.I. or any of its Subsidiaries now or

hereafter outstanding, except a dividend payable solely in equity securities of

F.Y.I.; (b) any redemption, conversion, exchange, retirement, sinking fund

or similar payment, purchase or other acquisition for value, direct or

indirect, of any shares of any class of Capital Stock of F.Y.I. or any of its

Subsidiaries now or hereafter outstanding; (c) any loan, advance or

payment (pursuant to a tax sharing agreement or otherwise) to F.Y.I.; and

(d) any payment made to retire, or to obtain the surrender of, any outstanding

warrants, options or other rights to acquire shares of any class of Capital

Stock of F.Y.I. or any of its Subsidiaries now or hereafter outstanding.

 

"Sale and

Leaseback Transaction" means as specified in Section 9.9.

 

"Security

Agreements" means the security agreements, in form and substance

satisfactory to the Administrative Agent, executed at any time pursuant to this

Agreement by F.Y.I. or any of its Subsidiaries or any other Loan Party in favor

of the Administrative Agent for the benefit of the Administrative Agent and the

Lenders, and any security agreement executed pursuant to Section 5.3

hereof, and any and all amendments, modifications, supplements, renewals,

extensions or restatements thereof.

 

"Security

Documents" means the Guaranties, the Security Agreements and the

Mortgages, as they may be amended, modified, supplemented, renewed, extended or

restated from time to time, and any and all other agreements, deeds of trust,

mortgages, chattel mortgages, security agreements, pledges, guaranties, assignments

of proceeds, assignments of income, assignments of contract rights, assignments

of partnership interests, assignments of royalty interests, assignments of

performance or other collateral assignments, completion or surety bonds,

standby agreements, subordination agreements, undertakings and other

agreements, documents, instruments and financing statements now or hereafter

executed and/or delivered by any Loan Party in connection with or as security

or assurance for the payment or performance of the Obligations or any part

thereof.

 

"Seller

Earn Out" means any obligation incurred by F.Y.I. or a Subsidiary in

connection with a Permitted Acquisition which (i) is only payable by

F.Y.I. for performance by a seller, or a shareholder, officer or director of a seller,

of obligations over the passage of time (e.g., non-compete payments) or in the

event certain future performance goals are achieved with respect to the assets

or business acquired and (ii) provides that the maximum potential

liability of F.Y.I. or any Subsidiary with respect thereto is limited.

 

"Seller

Subordinated Debt" means any Debt of F.Y.I. (and not of any Subsidiary

of F.Y.I.) which (a) is owed to a seller as part of the purchase

consideration for a Permitted Acquisition, (b) is subordinated to the

Obligations pursuant to a Subordination Agreement, (c) does not, when

aggregated with the principal balance of all other Seller Subordinated Debt,

exceed $10,000,000 in principal amount, (d) does not have an interest rate

in excess of twelve percent (12%) per annum, and (e) is unsecured.  Seller Subordinated Debt may be convertible

into Capital Stock of F.Y.I.

 

"Solvency

Certificate" means a certificate substantially in the form of Exhibit

F attached hereto.

 

"Solvent"

means, with respect to any Person as of the date of any determination, that on

such date (a) the fair value of the Property of such Person (both at fair

valuation and at present fair saleable value) is greater than the total

liabilities, including, without limitation, contingent liabilities, of such

Person, (b) the present fair saleable value of the assets of such Person

is not less than the amount that will be required to pay the probable liability

of such Person on its debts as they become absolute and matured, (c) such

Person is able to realize upon its assets and pay its debts and other

liabilities, contingent obligations and other commitments as they mature in the

normal course of business, (d) such Person does not intend to, and does

not believe that it will, incur debts or liabilities beyond such Person's

ability to pay as such debts and liabilities mature, and (e) such Person

is not engaged in business or a transaction, and is not about to engage in

business or a transaction, for which such Person's Property would constitute unreasonably

small capital after giving due consideration to current and anticipated future

capital requirements and current and anticipated future business conduct and

the prevailing practice in the industry in which such Person is engaged.  In computing the amount of contingent

liabilities at any time, such liabilities shall be computed at the amount

which, in light of the facts and circumstances existing at such time,

represents the amount (net of contribution rights) that can reasonably be

expected to become an actual or matured liability.

 

"Subordination

Agreement" means a Subordination Agreement substantially similar to

the form attached hereto as Exhibit C, relating to Seller Subordinated

Debt.

 

"Subsidiary"

means, with respect to any Person, any corporation or other entity of which at

least a majority of the outstanding shares of stock or other ownership

interests having by the terms thereof ordinary voting power to elect a majority

of the board of directors (or Persons performing similar functions) of such

corporation or entity (irrespective of whether or not at the time, in the case

of a corporation, stock of any other class or classes of such corporation shall

have or might have voting power by reason of the happening of any contingency)

is at the time directly or indirectly owned or controlled by such Person or one

or more of its Subsidiaries or by such Person and one or more of its

Subsidiaries.

 

"Swingline

Advances" means as specified in Section 2.1(a).

 

"Syndication

Agent" means SunTrust Bank, in its capacity as syndication agent.

 

"Type"

means any type of Loan (i.e., a Prime Rate Loan or Eurodollar Loan).

 

"UCC"

means the Uniform Commercial Code as in effect in the State of Texas and/or any

other jurisdiction, the laws of which may be applicable to or in connection

with the creation, perfection or priority of any Lien on any Property created

pursuant to any Security Document.

 

"UCP"

means as specified in Section 2.14(b).

 

"U.S."

means the United States of America.

 

"Wholly-Owned

Subsidiary" means, with respect to any Person, a Subsidiary of such

Person all of whose outstanding Capital Stock (other than directors' qualifying

shares, if any) shall at the time be owned by such Person and/or one or more of

its Wholly-Owned Subsidiaries.

 

Section 1.2             Other

Definitional Provisions.  All definitions contained in this Agreement

are equally applicable to the singular and plural forms of the terms

defined.  The words "hereof",

"herein" and "hereunder" and words of similar import

referring to this Agreement refer to this Agreement as a whole and not to any

particular provision of this Agreement. 

Unless otherwise specified, all Article and Section references pertain

to this Agreement.  Terms used herein

that are defined in the UCC, unless otherwise defined herein, shall have the

meanings specified in the UCC.

 

Section 1.3             Accounting

Terms and Determinations.

 

(a)           All

accounting terms not specifically defined herein shall be construed in

accordance with GAAP consistent with such accounting principles applied in the

preparation of the audited financial statements referred to in Section

7.2(a). All financial information delivered to the Administrative Agent

pursuant to Section 8.1 shall be prepared in accordance with GAAP

applied on a basis consistent with such accounting principles applied in the

preparation of the audited financial statements referred to in Section

7.2(a) or in accordance with Section 8.7.  In the event that any "Accounting Changes" (as defined

below) occur and such changes result in a change in the method of calculation

of financial covenants, standards or terms in this Agreement, then F.Y.I. and

the Administrative Agent agree to enter into negotiations in order to amend

such provisions of this Agreement so as to equitably reflect such Accounting

Changes with the desired result that the criteria for evaluating F.Y.I.'s

financial condition shall be the same after such Accounting Changes as if such

Accounting Changes had not been made. 

Until such time as such an amendment shall have been executed and delivered

by F.Y.I., the Administrative Agent and the Required Lenders, all financial

covenants, standards and terms in this Agreement shall continue to be

calculated or construed as if such Accounting Changes had not occurred.  "Accounting Changes"

means:  (i) changes in accounting

principles required by the promulgation of any rule, regulations, pronouncement

or opinion by the Financial Accounting Standards Board, the American Institute

of Certified Public Accountants or the Securities and Exchange Commission (or

successors thereto or agencies with similar functions) after the Closing Date;

and (ii) changes in accounting principles approved by F.Y.I.'s certified

public accountants and implemented after the Closing Date.

 

(b)           F.Y.I.

shall deliver to the Administrative Agent and the Lenders, at the same time as

the delivery of any annual or quarterly financial statement under Section

8.1, (i) a description, in reasonable detail, of any material

variation between the application of GAAP employed in the preparation of the

next preceding annual, quarterly or monthly financial statements as to which no

objection has been made in accordance with the last sentence of subsection

(a) preceding and (ii) reasonable estimates of the difference between

such statements arising as a consequence thereof.

 

(c)           To

enable the ready and consistent determination of compliance with the covenants

set forth in this Agreement (including Article 10 hereof), neither

F.Y.I. nor any of its Subsidiaries will change the last day of its fiscal year

from December 31, or the last days of the first three fiscal quarters of F.Y.I.

and its Subsidiaries in each of its fiscal years from that existing on the

Closing Date.  Any Subsidiary of F.Y.I.

created or acquired after the Closing Date shall, as soon as reasonably

practicable, be put on a fiscal year ending December 31.

 

Section 1.4             Financial

Covenants.  The

financial covenants contained in Article 10 shall be calculated on a

consolidated basis for F.Y.I. and its Subsidiaries.

 

ARTICLE 2

 

Loans

 

Section 2.1              Commitments.

 

(a)           Loans.

Subject to the terms and conditions of this Agreement, each Lender severally

agrees to make one or more revolving credit loans to F.Y.I. from time to time

from and including the Effective Date to but excluding the Maturity Date up to

but not exceeding the amount of such Lender's Commitment as then in effect; provided,

however, that (i) the Outstanding Credit applicable to a Lender

shall not at any time exceed the remainder of such Lender's Commitment then in

effect minus such Lender's Commitment Percentage of the Swingline

Advances then outstanding and (ii) the Outstanding Credit of all Lenders

shall not at any time exceed the remainder of the Commitments then in effect minus

the Swingline Advances then outstanding. 

(Such revolving credit loans referred to in this Section 2.1(a)

now or hereafter made by the Lenders to F.Y.I. from and including and after the

Effective Date are hereinafter collectively called the "Loans".)  All loans made by the Lenders (as defined in

this Agreement or the Prior Agreement) or their predecessors in interest to

F.Y.I. or any Subsidiary of F.Y.I. under the Prior Agreement that are

outstanding as of the Effective Date shall hereafter be Loans hereunder and

shall be deemed to have been made to F.Y.I. under this Agreement.  Subject to the foregoing limitations and the

other terms and conditions of this Agreement, F.Y.I. may, prior to the Maturity

Date, borrow, repay and reborrow the Loans hereunder.  Notwithstanding anything to the contrary contained in this

Agreement, F.Y.I. may from time to time request, and Bank of America may at its

discretion from time to time advance (but shall in no event be obligated to

advance), Loans which are to be funded solely by Bank of America (the "Swingline

Advances"); provided, however, that (A) the

aggregate principal amount of the Swingline Advances outstanding at any time

shall not exceed $10,000,000 and the aggregate principal amount of the Loans

outstanding at any time (inclusive of the Swingline Advances) shall not exceed

the aggregate principal amount of the Commitments, (B) all Swingline

Advances shall bear interest as set forth in Section 2.4(a)(iii), (C)

each Swingline Advance shall be payable on demand, but in any event no later

than the 7th day after the making of such Swingline Advance, and (D) Bank

of America shall give the Administrative Agent and each Lender written notice

of the aggregate outstanding principal amount of the Swingline Advances upon

the written request of the Administrative Agent or any Lender (but no more

often than once every calendar quarter). 

Furthermore, upon one Business Day's prior written notice given by Bank

of America to the Administrative Agent and the other Lenders at any time and

from time to time (including, without limitation, at any time following the

occurrence of a Default or an Event of Default) and, in any event and without

the necessity of any such notice, on the Business Day immediately preceding the

Maturity Date, each Lender (including, without limitation, Bank of America)

severally agrees, as provided in the first sentence of this Section 2.1(a),

and notwithstanding anything to the contrary contained in this Agreement, the

existence of any Default or Event of Default or the inability or failure of

F.Y.I. or any of its Subsidiaries  or

any other Loan Party to satisfy any condition precedent to funding any of the

Loans contained in Article 6 (which conditions precedent shall not apply

to this sentence), to make a Loan, in the form of a Prime Rate Loan, in an

amount equal to its Commitment Percentage of the aggregate principal amount of

the Swingline Advances then outstanding, and the proceeds of such Loans shall

be promptly paid by the Administrative Agent to Bank of America and applied as

a repayment of the aggregate principal amount of the Swingline Advances then

outstanding.

 

(b)           Continuation

and Conversion of Loans.  Subject to

the terms and conditions of this Agreement, F.Y.I. may borrow the Loans as

Prime Rate Loans or as Eurodollar Loans (except for Loans which constitute

Swingline Advances) and, until the Maturity Date, may Continue Eurodollar Loans

or Convert Loans (other than Loans which constitute Swingline Advances) of one

Type into Loans of the other Type.

 

(c)           Lending

Offices.  Loans of each Type made by

each Lender shall be made and maintained at such Lender's Applicable Lending

Office for Loans of such Type.

 

(d)           Extensions.  The Maturity Date may be extended on both

the first and second anniversaries of the Closing Date as set forth in this Section

2.1(d), in each case for a period of 364 days measured from the Maturity

Date then in effect.  If F.Y.I. wishes

to request an extension of the Maturity Date, it shall give notice to that

effect to the Administrative Agent not less than 45 days nor more than 60 days

prior to the first and/or second anniversary of the Closing Date. The

Administrative Agent shall promptly notify each Lender of receipt of such

request. Each Lender shall endeavor to respond to such request, whether

affirmatively or negatively (such determination in the sole discretion of such

Lender), by notice to F.Y.I. and the Administrative Agent within 30 days of

receipt of such request. Subject to the execution by F.Y.I., the Administrative

Agent and such Lenders of a duly completed Extension Agreement in substantially

the form of Exhibit J, the Maturity Date applicable to the Commitment of each

Lender so affirmatively notifying F.Y.I. and the Administrative Agent shall be

extended for the period specified above; provided that no Maturity Date

of any Lender shall be extended unless Lenders having at least 51% in aggregate

amount of the Commitments in effect at the time any such extension is requested

shall have elected so to extend their Commitments. Any Lender which does not

give such notice to F.Y.I. and the Administrative Agent shall be deemed to have

elected not to extend as requested and the Commitment of each non-extending

Lender shall terminate on the Maturity Date determined without giving effect to

such requested extension.  F.Y.I. shall

have the right to replace any such non-extending Lender with another Person

pursuant to the provisions of Section 13.11.

 

Section 2.2             Notes.  The Loans made by each Lender shall be

evidenced by a single promissory note of F.Y.I. in substantially the form of Exhibit

B hereto, payable to the order of such Lender in a principal amount equal

to its Commitment (as originally in effect or thereafter increased) and

otherwise duly completed; provided, however, that the Swingline

Advances made by Bank of America shall be evidenced by a single promissory note

of F.Y.I. in the maximum original principal amount of $10,000,000 payable to

the order of Bank of America in substantially the form of Exhibit D

hereto, dated the Closing Date.  Each

Lender is hereby authorized by F.Y.I. to endorse on the schedule (or a

continuation thereof) attached to the Note of such Lender, to the extent

applicable, the date, amount and Type of and the Interest Period for each Loan

made by such Lender to F.Y.I. 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

F.Y.I. under such Note or this Agreement in respect of such Loan.

 

Section 2.3             Repayment

of Loans.  F.Y.I. shall pay to the Administrative Agent

for the account of each applicable Lender the outstanding principal of the

Loans existing on the Maturity Date. 

For purposes of this Section 2.3, the aggregate undrawn face

amount of all Letters of Credit

and the aggregate amount of the outstanding Reimbursement Obligations shall be

added to the outstanding principal balance of the Loans for purposes of

determining the amount F.Y.I. must pay to the Administrative Agent under this Section

2.3.  More specifically, if any

Letters of Credit or Reimbursement Obligations are outstanding as of the

Maturity Date, then, in addition to the repayment of all outstanding Loans on

the Maturity Date, F.Y.I. shall deliver to the Administrative Agent cash or

cash equivalents in an amount equal to the aggregate undrawn face amount of all

Letters of Credit and the aggregate amount of all outstanding Reimbursement

Obligations, such cash or cash equivalents to be pledged to the Administrative

Agent as security for the Obligations pursuant to documentation satisfactory to

the Administrative Agent in form and substance.

 

Section 2.4             Interest.

 

(a)           Interest

Rate.  F.Y.I. shall pay to the

Administrative Agent for the account of each Lender interest on the unpaid

principal amount of each Loan made by such Lender to F.Y.I. for the period

commencing on the date of such Loan to but excluding the date such Loan shall

be paid in full, at the following rates per annum:

 

(i)            during the periods such Loan is a

Prime Rate Loan, the lesser of (A) the Prime Rate plus the

Applicable Margin or (B) the Maximum Rate;

 

(ii)           during the periods such Loan is a

Eurodollar Loan, the lesser of (A) the Eurodollar Rate plus the

Applicable Margin or (B) the Maximum Rate; and

 

(iii)          with respect to Swingline Advances,

the lesser of (A) Eurodollar Daily Floating Rate plus the Applicable

Margin (for Eurodollar Loans), or (B) the Maximum Rate.

 

(b)           Payment

Dates.  Accrued interest on the

Loans shall be due and payable in arrears as follows:

 

(i)            in the case of Prime Rate Loans, on

each Quarterly Date;

 

(ii)           in the case of each Eurodollar Loan,

on the last day of the Interest Period with respect thereto and, in the case of

a Eurodollar Loan having an Interest Period of six (6) months, on the day in

the third succeeding calendar month numerically corresponding to the

commencement date of such Interest Period (or, if no numerically corresponding

date exists, on the last Business Day of such third succeeding calendar month);

 

(iii)          upon the payment or prepayment of any

Loan or the Conversion of any Loan to a Loan of the other Type (but only on the

principal amount so paid, prepaid or Converted); and

 

(iv)          on the Maturity Date.

 

(c)           Default

Interest.  Notwithstanding the

foregoing, F.Y.I. shall pay to the Administrative Agent for the account of each

Lender interest at the applicable Default Rate on any principal of any Loan

made by such Lender, any Reimbursement Obligation owing to such Lender and (to

the fullest extent permitted by law) any other amount payable by F.Y.I. under

this Agreement or any other Loan Document to such Lender, which is not paid in

full when due (whether at stated maturity, by acceleration or otherwise) or

which is outstanding during the continuance of an Event of Default, for the

period from and including the due date thereof or the date of the occurrence of

such Event of Default (as applicable) to but excluding the date the same is

paid in full.  Interest payable at the

Default Rate shall be payable from time to time on demand by the Administrative

Agent.

 

Section 2.5             Borrowing

Procedure.  F.Y.I. shall give the Administrative Agent

notice of each borrowing hereunder in accordance with Section 2.9.  Not later than 1:00 p.m. (Dallas, Texas

time) on the date specified for each borrowing hereunder, each Lender will make

available the amount of the Loan to be made by it on such date to the

Administrative Agent, at the Principal Office, in immediately available funds,

for the account of F.Y.I.  The amount so

received by the Administrative Agent shall, subject to the terms and conditions

of this Agreement, be made available to F.Y.I. by wire transfer of immediately

available funds to the applicable Deposit Account no later than 1:00 p.m.

 

Section 2.6             Optional

Prepayments, Conversions and Continuations of Loans, Reduction of Commitments.  Subject to Sections 2.7 and 2.8,

F.Y.I. shall have the right from time to time to prepay the Loans, to Convert

all or part of a Loan (other than a Swingline Advance) of one Type into a Loan

of another Type or to Continue Eurodollar Loans; provided that:  (a) F.Y.I. shall give the

Administrative Agent notice of each such prepayment, Conversion or Continuation

as provided in Section 2.9, (b) Eurodollar Loans may only be

Converted on the last day of the Interest Period, unless F.Y.I., concurrently

with making any such prepayment, pays all amounts owing to the Administrative

Agent and the Lenders under Section 4.5, (c) except for Conversions

of Eurodollar Loans into Prime Rate Loans, no Conversions or Continuations

shall be made while a Default has occurred and is continuing, (d) optional

prepayments of the Loans shall be applied first to the Swingline Advances

(until such advances are paid in full) and then to the Loans other than the

Swingline Advances, and (e) optional prepayments of the Loans made on or

after the Maturity Date shall be applied to the then-remaining installments of

principal of the Loans pro rata.

 

Section 2.7             Mandatory

Prepayments.

 

(a)           Asset

Dispositions.  F.Y.I. shall, within

two Business Days after each day on which it or any of its Subsidiaries

receives any Net Proceeds from an Asset Disposition, pay to the Administrative

Agent, as a prepayment of the Loans, an aggregate amount equal to 100% of the

Net Proceeds from such Asset Disposition. 

Notwithstanding the foregoing, no such prepayment will be required

pursuant to this Section 2.7(a) (i) from the Net Proceeds from any

single Asset Disposition of used equipment if such Net Proceeds are $250,000 or

less and are fully re-invested in equipment used in the ordinary course of the

business of the Person making such Asset Disposition within 180 days of such

Asset Disposition, so long as the Net Proceeds from all such Asset Dispositions

in any one calendar year do not exceed $250,000, (ii) from the Net Proceeds

of any expropriation or condemnation of real Property if and to the extent that

such Net Proceeds are, as a result of such expropriation or condemnation,

re-invested in similar real Property or used to modify other then-existing real

Property used in the ordinary course of the business of the Person whose real

Property is affected thereby within 180 days of receipt of proceeds of such

expropriation or condemnation, (iii) from the Net Proceeds of any of the

Permitted Dispositions, or (iv) until the cumulative Net Proceeds received

at any time from all Asset Dispositions made on or after December 31,

2000, exclusive of the Permitted Dispositions, exceeds 15% of F.Y.I.'s

consolidated tangible net assets as of the date of such Asset Disposition (in

which case a prepayment shall be made in the amount of the Net Proceeds from

any Asset Disposition in excess of such amount, or if, as of the date of

determination, cumulative Net Proceeds from prior Asset Dispositions exceed 15%

of F.Y.I.'s consolidated tangible net assets, F.Y.I. shall pay to the

Administrative Agent, as a prepayment of the Loans, in addition to 100% of the

Net Proceeds from such Asset Disposition, the amount of such cumulative Net

Proceeds from prior Asset Dispositions in excess of 15% of F.Y.I.'s consolidated

tangible net assets).  Notwithstanding

the foregoing, in connection with any Asset Disposition consisting of the

disposition of assets acquired in a Permitted Acquisition, to the extent that

the disposition of such assets was contemplated and disclosed to the Lenders at

the time of the consummation of the Permitted Acquisition in which the assets

were acquired, and if such Asset Disposition occurs within one year of the

closing of the Permitted Acquisition, the prepayment required under this Section

2.7(a) shall be limited to the lesser of 100% of the Net Proceeds of the

Asset Disposition or an amount equal to the principal amount of any Loans

advanced in connection with the Permitted Acquisition.

 

(b)           Equity Issuances.  F.Y.I. shall, on each day that it receives

any Net Proceeds from any Equity Issuance, pay to the Administrative Agent, as

a prepayment of the Loans, an aggregate amount equal to 100% of the Net

Proceeds from such Equity Issuance; provided, however, that no

prepayment shall be required if and to the extent that the Capital Stock issued

in such Equity Issuance is (i) issued to a Seller as part of the purchase

consideration for a Permitted Acquisition, (ii) issued to raise cash to

pay part of the purchase consideration for a specific Permitted Acquisition

contemplated at the time of such issuance and the proceeds of which are

subsequently expended for such purpose, or (iii) issued to an officer,

director, employee or consultant of either F.Y.I. or a Subsidiary of F.Y.I. in

consideration for services rendered or pursuant to any employee benefit or

incentive plan.  This Section 2.7(b)

shall not apply if the Funded Debt to EBITDA Ratio is less than 2.00 to 1.00

after giving effect to the Equity Issuance and to application of the proceeds

thereof.

 

(c)           Debt Issuances.  F.Y.I. shall, on each day that it or any of

its Subsidiaries receives any Net Proceeds from any Debt Issuance, pay to the

Administrative Agent, as a prepayment of the Loans, an aggregate amount equal

to 100% of the Net Proceeds from such Debt Issuance.  No Debt Issuances may be made without the prior written consent

of the Administrative Agent and the Required Lenders.

 

(d)           Commitments.  If at any time the Outstanding Credit

exceeds the Commitments, within three Business Day after the occurrence thereof

F.Y.I. shall pay to the Administrative Agent the amount of such excess as a

prepayment of the Loans (or, if the Loans have been paid in full, to reduce or

to provide cash collateral to secure the outstanding Letter of Credit Liabilities

relating to Letters of Credit issued pursuant to the Commitments).

 

(e)           Application of Mandatory

Prepayments.  All prepayments

pursuant to Sections 2.7(a), 2.7(b) or 2.7(c)

preceding shall be applied first to any Swingline Advances until such advances are

paid in full.

 

Section 2.8             Minimum

Amounts.  Except

for Conversions and prepayments pursuant to Section 2.7 and Article 4,

each borrowing, each Conversion and each prepayment of principal of the Loans

shall be in an amount at least equal to $1,000,000 or an integral multiple of

$500,000 in excess thereof; provided, however, that each

borrowing of Swingline Advances shall be in an amount at least equal to

$100,000 or in integral multiples of $50,000 in excess thereof (borrowings,

prepayments or Conversions of or into Loans of different Types or, in the case

of Eurodollar Loans, having different Interest Periods at the same time

hereunder shall be deemed separate borrowings, prepayments and Conversions for

purposes of the foregoing, one for each Type or Interest Period).

 

Section 2.9             Certain

Notices.  Notices by F.Y.I. to the Administrative

Agent of terminations or reductions of Commitments, of borrowings and issuances

of Letters of Credit, Conversions, Continuations and prepayments of Loans and

of the duration of Interest Periods shall be

irrevocable and shall be effective only if received by the Administrative Agent

not later than 11:00 a.m. (Dallas, Texas time) on the Business Day prior to or

on the date of the relevant termination, reduction, borrowing or issuance,

Conversion, Continuation or prepayment or the first day of such Interest Period

specified below:

 

	

   

  Notice

  	

   

  	

  Number of 

  Business Days Prior

  	

   

  
	

   

  	

   

  	

   

  
	

  Terminations or

  Reductions of Commitments

  	

   

  	

  1

  
	

  Borrowing of

  Swingline Advances

  	

   

  	

  same day

  	

   

  
	

  Borrowing of

  Prime Rate Loans

  	

   

  	

  same day

  	

   

  
	

  Borrowing of

  Eurodollar Loans

  	

   

  	

  3

  	

   

  
	

  Conversions or

  Continuations of Loans

  	

   

  	

  3

  	

   

  
	

  Prepayment of

  Prime Rate Loans

  	

   

  	

  same day

  	

   

  
	

  Prepayments of

  Eurodollar Loans

  	

   

  	

  same day

  	

   

  
	

  Issuances of

  Letters of Credit

  	

   

  	

  5

  	

   

  

 

Each such notice of

termination or reduction shall specify the amount of the Commitments to be

terminated or reduced.  Each such notice

of borrowing, Conversion, Continuation or prepayment shall specify the Loans to

be borrowed, Converted, Continued or prepaid and the amount (subject to Section

2.8 hereof) and Type of the Loans to be borrowfed (and, with respect to

Prime Rate Loans, whether any of such Loans shall consist of Swingline

Advances), Converted, Continued or prepaid (and, in the case of a Conversion,

the Type of Loans to result from such Conversion) and the date of borrowing,

Conversion, Continuation or prepayment (which shall be a Business Day).  Notices of borrowings, Conversions,

Continuations or prepayments shall be in the form of Exhibit E

hereto, appropriately completed as applicable. 

Each such notice of the duration of an Interest Period shall specify the

Loans to which such Interest Period is to relate.  The Administrative Agent shall promptly notify the Lenders of the

contents of each such notice.  In the event

F.Y.I. fails to select the Type of Loan, or the duration of any Interest Period

for any Eurodollar Loan, within the time period and otherwise as provided in

this Section 2.9, such Loan (if outstanding as Eurodollar Loan) will be

automatically Converted into a Prime Rate Loan on the last day of preceding

Interest Period for such Loan or (if outstanding as a Prime Rate Loan) will

remain as, or (if not then outstanding) will be made as, a Prime Rate

Loan.  F.Y.I. may not borrow any

Eurodollar Loans, Convert any Loans into Eurodollar Loans or Continue any Loans

as Eurodollar Loans if the interest rate for such Eurodollar Loans would exceed

the Maximum Rate.

 

Section 2.10           Use

of Proceeds.

 

(a)           F.Y.I.

represents and warrants to and covenants with the Administrative Agent and the

Lenders that the proceeds of the Loans to be made on and after the Effective

Date shall be used for working capital and general corporate purposes of F.Y.I.

and its Subsidiaries in the ordinary course of business, to finance partially

or wholly future Permitted Acquisitions, including the transaction costs of

F.Y.I. and its Subsidiaries associated with such Permitted Acquisitions, and to

finance partially or wholly future Permitted Share Repurchases.

 

(b)           None

of the proceeds of any Loan have been or will be used to acquire any security

in any transaction that is subject to Section 13 or 14 of the Securities

Exchange Act of 1934, as amended, or to purchase or carry any margin stock

(within the meaning of Regulations T, U or X of the Board of Governors of the

Federal Reserve System).

 

Section 2.11           Fees.

 

(a)           F.Y.I.

agrees to pay to the Administrative Agent for the account of each Lender a

commitment fee (the "Commitment Fees") on the daily average

unused or unfunded amount of such Lender's Commitment, for the period from and

including the Closing Date to and including the Maturity Date, at the rate

equal to the Applicable Margin per annum based on a 360 day year and the actual

number of days elapsed, which accrued Commitment Fees shall be payable in

arrears on each Quarterly Date beginning on June 30, 2001 and on the Maturity

Date.  Notwithstanding anything to the

contrary contained in this Agreement, any and all Swingline Advances

outstanding from time to time shall be wholly excluded, and shall not count as

used or funded amounts, for purposes of determining the unused or unfunded

amount of each Lender's Commitment in accordance with this Section 2.11(a).

 

(b)           F.Y.I.

agrees to pay to the Administrative Agent (for the account of the Administrative

Agent and/or the Lenders, as may be specified in the Fee Letter) such

additional fees as are specified in the Fee Letter, which fees shall be payable

in such amounts and on such dates as are specified therein.  Such additional fees shall include, without

limitation, an upfront fee payable by F.Y.I. to each Lender on the Effective

Date in the amount agreed upon among the Administrative Agent and/or the Lead

Arranger and such Lender.

 

Section 2.12           Computations.  Interest and fees payable by F.Y.I. hereunder

and under the other Loan Documents shall be computed on the basis of a year of

360 days (except as stated in the proviso below) and the actual number of days

elapsed (including the first day but excluding the last day) occurring in the

period for which payable unless, in the case of interest, such calculation

would result in a usurious rate, in which case interest shall be calculated on

the basis of a year of

365 or 366 days, as the case may be; provided, however, that

interest payable by F.Y.I. hereunder on all Prime Rate Loans shall be on the

basis of a completed year of 365 or 366 days, as applicable.

 

Section 2.13           Termination

or Reduction of Commitments.

 

(a)           Optional.  F.Y.I. shall have the right to terminate or

reduce in part the unused portion of the Commitments at any time and from time

to time, provided that (i) F.Y.I. shall give notice of each such

termination or reduction as provided in Section 2.9, (ii) each

partial reduction shall be in an aggregate amount of at least $1,000,000 or an

integral multiple of $500,000 in excess thereof, and (iii) F.Y.I. shall

not have the right to terminate or reduce in part any unused portion of the

Commitments that could or may be required to be advanced by the Lenders to

refinance Swingline Advances then outstanding. 

The Commitments may not be reinstated or increased after they have been

terminated or reduced.

 

(b)           Mandatory.  Each mandatory prepayment of the Loans

pursuant to Section 2.7 shall permanently reduce the Commitments by the

amount of the prepayment, which reduction may not be reinstated.

 

Section 2.14           Letters

of Credit.

 

(a)           Subject

to the terms and provisions of this Agreement, F.Y.I. may utilize the

Commitments by requesting that the Issuing Bank issue Letters of Credit; provided,

that the aggregate amount of outstanding Letter of Credit Liabilities under the

Commitments shall not at any time exceed $25,000,000.  Notwithstanding anything to the contrary contained in this

Agreement, each of the Existing Letters of Credit shall be deemed, and shall

be, a Letter of Credit issued hereunder. 

Upon the later of (i) the date of this Agreement or (ii) the date of

issue of each Letter of Credit, the Issuing Bank shall be deemed, without

further action by any party hereto, to have sold to each Lender, and each

Lender shall be deemed, without further action by any party hereto, to have

purchased from the Issuing Bank, a participation to the extent of such Lender's

Commitment Percentage in such Letter of Credit.

 

(b)           F.Y.I.

shall give the Issuing Bank (with a copy to the Administrative Agent) at least

five Business Days irrevocable prior notice (effective upon receipt) specifying

the date of each Letter of Credit and the nature of the transactions to be

supported thereby.  The Issuing Bank

shall, on a quarterly basis, notify each applicable Lender of the contents of

all such notices received from F.Y.I. during such quarter and of such Lender's

Commitment Percentage of the amount of all such Letters of Credit proposed

during such quarter.  Each Letter of

Credit shall have an expiration date that does not exceed one year from the

date of issuance (provided, however, that the B&B Letter of

Credit may have an expiration date that is up to eighteen months after the date

of issuance and the Existing B of A Letter of Credit may have an expiration

date that extends to March 31, 2003) and that does not extend beyond the

Maturity Date, shall be payable in Dollars, shall support a transaction entered

into in the ordinary course of the account party's or parties' business, shall

be satisfactory in form and substance to the Issuing Bank, and shall be issued

pursuant to such agreements, documents and instruments (including a Letter of

Credit Agreement) as the Issuing Bank may reasonably require, none of which

shall be inconsistent with this Section 2.14.  Each Letter of Credit shall (i) provide for the payment of

drafts presented for, on or thereunder by the beneficiary in accordance with

the terms thereof, when such drafts are accompanied by the documents (if any)

described in the Letter of Credit and (ii) to the extent not inconsistent

with the terms hereof or any applicable Letter of Credit Agreement, be subject

to the Uniform Customs and Practice for Documentary Credits (1993 Revision),

International Chamber of Commerce Publication No. 500 (together with any

subsequent revision thereof approved by a Congress of the International Chamber

of Commerce and adhered to by the Issuing Bank, the "UCP"),

and shall, as to matters not governed by the UCP, be governed by, and construed

and interpreted in accordance with, the laws of the State of Texas.

 

(c)           F.Y.I.

agrees to pay to the Administrative Agent for the account of each Lender, in

arrears on each Quarterly Date beginning on June 30, 2001 and on the Maturity

Date, a nonrefundable letter of credit fee with respect to each Letter of

Credit issued in an amount equal to the product of (i) the Applicable

Margin for Eurodollar Loans in effect on the date of issuance of such Letter of

Credit (with respect to the fee due on the first Quarterly Date after issuance)

or on the first day of the applicable quarter or other period beginning after

the calendar quarter during which the issuance of such Letter of Credit

occurred (with respect to the fee due on each subsequent Quarterly Date or on the

Maturity Date), multiplied by (ii) the daily average face amount of the

Letters of Credit in effect during the applicable period.  The Administrative Agent agrees to pay to

each Lender, promptly after receiving any payment of letter of credit fees

referred to above in this subsection (c), such Lender's Commitment

Percentage of such fees.  F.Y.I. further

agrees to pay to the Issuing Bank for its own account, on the date of issuance

of such Letter of Credit and on each anniversary of such date of issuance (if

such Letter of Credit then remains outstanding), an amount equal to 0.125% of

the face amount of the Letter of Credit being issued.  In addition to the foregoing fees, F.Y.I. shall pay or reimburse

the Issuing Bank for such normal and customary costs and expenses, including,

without limitation, administrative, issuance, amendment, payment and

negotiation charges, as are incurred or charged by the Issuing Bank in issuing,

effecting payment under, amending or otherwise administering any Letter of

Credit.

 

(d)           Upon

receipt from the beneficiary of any Letter of Credit of any demand for payment

or other drawing under such Letter of Credit, the Issuing Bank shall promptly

notify F.Y.I. and each applicable Lender as to the amount to be paid as a

result of such demand or drawing and the respective payment date.  If at any time the Issuing Bank shall make a

payment to a beneficiary of a Letter of Credit pursuant to a drawing under such

Letter of Credit, each Lender will pay to the Issuing Bank, immediately upon

the Issuing Bank's demand at any time commencing after such payment until

reimbursement therefor in full by F.Y.I., an amount equal to such Lender's

Commitment Percentage of such payment, together with interest on such amount

for each day from the date of such payment to the date of payment by such

Lender of such amount at a rate of interest per annum equal to the Federal

Funds Rate.

 

(e)           F.Y.I.

shall be irrevocably and unconditionally obligated to immediately reimburse the

Issuing Bank for any amounts paid by the Issuing Bank upon any drawing under

any Letter of Credit issued pursuant to the Commitments, without presentment,

demand, protest or other formalities of any kind. The Issuing Bank will pay to

each Lender such Lender's Commitment Percentage of all amounts received from or

on behalf of F.Y.I. for application in payment, in whole or in part, of the

Reimbursement Obligation in respect of any Letter of Credit, but only to the

extent such Lender has made payment to the Issuing Bank in respect of such Letter

of Credit pursuant to subsection (d) above.  Outstanding Reimbursement Obligations shall bear interest at the

Default Rate and such interest shall be payable on demand.

 

(f)            The

Reimbursement Obligations of F.Y.I. under this Agreement and the other Loan Documents

shall be absolute, unconditional and irrevocable, and shall be performed

strictly in accordance with the terms of this Agreement and the other Loan

Documents under all circumstances whatsoever, including, without limitation,

the following circumstances.

 

(i)            Any lack of validity or

enforceability of any Letter of Credit or any other Loan Document;

 

(ii)           Any amendment or waiver of or any

consent to departure from any Loan Document;

 

(iii)          The existence of any claim, setoff,

counterclaim, defense or other right which any Loan Party or other Person may

have at any time against any beneficiary of any Letter of Credit, the

Administrative Agent, the Issuing Bank, the Lenders or any other Person,

whether, in connection with this Agreement or any other Loan Document or any

unrelated transaction;

 

(iv)          Any statement, draft or other document

presented under any Letter of Credit proving to be forged, fraudulent, invalid

or insufficient in any respect or any statement therein being untrue or

inaccurate in any respect whatsoever, provided, that the failure of the

Issuing Bank to discover such forgery, fraud, invalidity or insufficiency shall

not have constituted gross negligence or willful misconduct by the Issuing

Bank;

 

(v)           Payment by the Issuing Bank under any

Letter of Credit against presentation of a draft or other document that does

not comply with the terms of such Letter of Credit, provided, that such

payment shall not have constituted gross negligence or willful misconduct of

the Issuing Bank; and

 

(vi)          Any other circumstance whatsoever,

whether or not similar to any of the foregoing, provided that such other

circumstance or event shall not have been the result of the gross negligence or

willful misconduct of the Issuing Bank.

 

(g)           F.Y.I.

assumes all risks of the acts or omissions of any beneficiary of any Letter of

Credit with respect to its use of such Letter of Credit.  Neither the Administrative Agent, the

Issuing Bank, the Lenders nor any of their respective officers or directors

shall have any responsibility or liability to F.Y.I. or any other Person for:

(i) the failure of any draft to bear any reference or adequate reference

to any Letter of Credit, or the failure of any documents to accompany any draft

at negotiation, or the failure of any Person to surrender or to take up any

Letter of Credit or to send documents apart from drafts as required by the

terms of any Letter of Credit, or the failure of any Person to note the amount

of any instrument on any Letter of Credit, (ii) errors, omissions, interruptions

or delays in transmission or delivery of any messages, (iii) in the

absence of gross negligence or willful misconduct of the Issuing Bank, the

validity, sufficiency or genuineness of any draft or other document, or any

endorsement(s) thereon, even if any such draft, document or endorsement should

in fact prove to be in any and all respects invalid, insufficient, fraudulent

or forged or any statement therein is untrue or inaccurate in any respect,

(iv) the payment by the Issuing Bank to the beneficiary of any Letter of

Credit against presentation of any draft or other document that does not comply

with the terms of the Letter of Credit, or (v) any other circumstance

whatsoever in making or failing to make any payment under a Letter of Credit; provided,

however, that, notwithstanding the foregoing, the account party or

parties shall have a claim against the Issuing Bank, and the Issuing Bank shall

be liable to the account party or parties, to the extent of any direct, but not

indirect or consequential, damages suffered by the account party or parties

which it or they prove in a final nonappealable judgment were caused by

(A) the Issuing Bank's willful misconduct or gross negligence in

determining whether documents presented under any Letter of Credit complied

with the terms thereof or (B) the Issuing Bank's willful failure to pay

under any Letter of Credit after presentation to it of documents strictly

complying with the terms and conditions of such Letter of Credit.  The Issuing Bank may accept documents that

appear on their face to be in order, without responsibility for further

investigation, regardless of any notice or information to the contrary.

 

ARTICLE 3

 

Payments

 

Section 3.1             Method of Payment.  All

payments of principal, interest, fees and other amounts to be made by the

F.Y.I. under this Agreement and the other Loan Documents shall be made to the

Administrative Agent at the Principal Office for the account of each Lender's

Applicable Lending Office in Dollars and in immediately available funds, without

setoff, deduction or counterclaim, not later than 11:00 a.m. (Dallas, Texas

time) on the date on which such payment shall become due (each such payment

made after such time on such due date to be deemed to have been made on the

next succeeding Business Day).  F.Y.I.

shall, at the time of making any such payment, specify to the Administrative

Agent the sums payable by F.Y.I. under this Agreement and the other Loan

Documents to which such payment is to be applied (and in the event that F.Y.I.

fails to so specify, or if an Event of Default has occurred and is continuing,

the Administrative Agent may apply such payment to the Obligations in such

order and manner as the Administrative Agent may elect, subject to Section

3.2); provided, however, that, unless Bank of America

expressly agrees to the contrary, such payment shall be applied first to any Swingline Advances until such advances are paid in

full.  Upon the occurrence and during

the continuation of an Event of Default, all proceeds of any Collateral, and

all funds from time to time on deposit in any concentration account or any

collection account, if any, referred to in Section 8.13, may be applied

by the Administrative Agent to the Obligations in such order and manner as the

Administrative Agent may elect, subject to Section 3.2; provided,

however, that, unless Bank of America expressly agrees to the contrary,

such proceeds and funds shall be applied first to any outstanding Swingline

Advances until such advances are paid in full. 

Each payment received by the Administrative Agent under this Agreement

or any other Loan Document for the account of a Lender shall be paid promptly

to such Lender, in immediately available funds, for the account of such

Lender's Applicable Lending Office. 

Whenever any payment under this Agreement or any other Loan Document

shall be stated to be due on a day that

is not a Business Day, such payment may be made on the next succeeding Business

Day, and such extension of time shall in such case be included in the

computation of the payment of interest and commitment fee, as the case may be.

 

Section 3.2             Pro

Rata Treatment.  Except to the extent otherwise provided in

this Agreement:  (a) each Loan

shall be made by the Lenders under Section 2.1, each payment of

commitment fees under Section 2.11(a) shall be made for the account of

the Lenders, and each termination or reduction of the Commitments under Section

2.13 shall be applied to the Commitments of the Lenders, pro rata according

to the respective unused Commitments; (b) the making, Conversion and

Continuation of Loans of a particular Type (other than Conversions provided for

by Section 4.4) shall be made pro rata among the Lenders holding Loans

of such Type according to the amounts of their respective Commitments;

(c) each payment and prepayment by F.Y.I. of principal of or interest on

Loans of a particular Type shall be made to the Administrative Agent for the

account of the Lenders holding Loans of such Type pro rata in accordance with the

respective unpaid principal amounts of such Loans held by such Lenders;

(d) Interest Periods for Loans of a particular Type shall be allocated

among the Lenders holding Loans of such Type pro rata according to the

respective principal amounts held by such Lenders; and (e) the Lenders

(other than the Issuing Bank) shall purchase participations in the Letters of

Credit pro rata in accordance with their Commitment Percentages.

 

Section 3.3             Sharing

of Payments, Etc. If

a Lender shall obtain payment of any principal of or interest on any of the Obligations

due to such Lender hereunder through the exercise of any right of setoff,

banker's lien, counterclaim or similar right, or otherwise, it shall promptly

purchase from the other Lenders participations in the Obligations held by the

other Lenders in such amounts, and make such adjustments from time to time as

shall be equitable to the end that all the Lenders shall share pro rata in

accordance with the unpaid principal and interest on the Obligations then due

to each of them.  To such end, all of the

Lenders shall make appropriate adjustments among themselves (by the resale of

participations sold or otherwise) if all or any portion of such excess payment

is thereafter rescinded or must otherwise be restored.  F.Y.I. agrees, to the fullest extent it may

effectively do so under applicable law, that any Lender, so purchasing a

participation in the Obligations by the other Lenders may exercise all rights

of setoff, banker's lien, counterclaim or similar rights with respect to such

participation as fully as if such Lender were a direct holder of Obligations in

the amount of such participation. 

Nothing contained herein shall require any Lender to exercise any such

right or shall affect the right of any Lender to

exercise, and retain the benefits of exercising, any such right with respect to

any other indebtedness, liability or obligation of F.Y.I. or any of its

Subsidiaries.

 

Section 3.4             Non-Receipt

of Funds by the Administrative Agent.  Unless the Administrative Agent shall have

been notified by a Lender or F.Y.I. (the "Payor") prior to the

date on which such Lender is to make payment to the Administrative Agent of the

proceeds of a Loan to be made by it hereunder or F.Y.I. is to make a payment to

the Administrative Agent for the account of one or more of the Lenders, as the

case may be (such payment being herein called the "Required Payment"),

which notice shall be effective upon receipt, that the Payor does not intend to

make the Required Payment to the Administrative Agent, the Administrative Agent

may assume that the Required Payment has been made and may, in reliance upon

such assumption (but shall not be required to), make the amount thereof

available to the intended recipient on such

date and, if the Payor has not in fact made the Required Payment to the

Administrative Agent, the recipient of such payment shall, on demand, pay to

the Administrative Agent the amount made available to it together with interest

thereon in respect of the period commencing on the date such amount was so made

available by the Administrative Agent until the date the Administrative Agent

recovers such amount at a rate per annum equal to the Federal Funds Rate for

such period.

 

Section 3.5             Withholding

Taxes.

 

(a)           All

payments by F.Y.I. of principal of and interest on the Loans and of all fees

and other amounts payable under the Loan Documents shall be made free and clear

of, and without deduction by reason of, any present or future taxes, levies,

duties, imposts, assessments or other charges levied or imposed by any

Governmental Authority (other than taxes on the overall net income of any

Lender).  If any such taxes, duties,

imposts, assessments or other charges are so levied or imposed, F.Y.I. will

(i) make additional payments in such amounts so that every net payment of

principal of and interest on the Loans and of all other amounts payable by it

under the Loan Documents, after withholding or deduction for or on account of

any such present or future taxes, duties, imposts, assessments or other charges

(including any tax imposed on or measured by net income of a Lender

attributable to payments made to or on behalf of a Lender pursuant to this Section 3.5

and any penalties or interest attributable to such payments), will not be less

than the amount provided for herein or therein absent such withholding or

deduction (provided that F.Y.I. shall not have any obligation to pay

such additional amounts to any Lender to the extent that such taxes, duties,

imposts, assessments or other charges are levied or imposed by reason of the

failure of such Lender to comply with the provisions of Section 3.6),

(ii) make such withholding or deduction, and (iii) remit the full

amount deducted or withheld to the relevant Governmental Authority in

accordance with applicable law.  Without

limiting the generality of the foregoing, F.Y.I. will, upon written request of

any Lender, reimburse each such Lender for the amount of (A) such taxes,

duties, imports, assessments or other charges so levied or imposed by any

Governmental Authority and paid by such Lender as a result of payments made by

F.Y.I. under or with respect to the Loans and Letter of Credit Liabilities

other than such taxes, duties, imports, assessments and other charges

previously withheld or deducted by F.Y.I. which have previously resulted in the

payment of the required additional amount to the Lender, and (B) such

taxes, duties, assessments and other charges so levied or imposed with respect

to any Lender reimbursement under the foregoing clause (A), so that

the net amount received by such Lender (net of payments made under or with

respect to the Loans and Letter of Credit Liabilities) after such reimbursement

will not be less than the net amount the Lender would have received if such

taxes, duties, assessments and other charges on such reimbursement had not been

levied or imposed.  F.Y.I. shall furnish

promptly to the Administrative Agent for distribution to each affected Lender,

as the case may be, upon request of such Lender, official receipts evidencing

any such payment, withholding or reduction.

 

(b)           F.Y.I.

will indemnify the Administrative Agent and each Lender (without duplication)

against, and reimburse the Administrative Agent and each Lender for, all

present and future taxes, levies, duties, imposts, assessments or other charges

(including interest and penalties) levied or collected (whether or not legally

or correctly imposed, assessed, levied or collected), excluding, however, any

taxes imposed on the overall net income of the Administrative Agent or such

Lender or any lending office of the Administrative Agent or such Lender by any

jurisdiction in which the Administrative Agent or such Lender or any such

lending office is located, on or in respect of this Agreement, any of the Loan

Documents or the Obligations or any portion thereof (the "reimbursable

taxes").  Any such

indemnification shall be on an after-tax basis, taking into account any such

reimbursable taxes imposed on the amounts paid as indemnity.

 

(c)           Without

prejudice to the survival of any other term or provision of this Agreement, the

obligations of F.Y.I. under this Section 3.5 shall survive the

payment of the Loans and the other Obligations and termination of the

Commitments.

 

Section 3.6             Withholding

Tax Exemption.  Each Lender that is not incorporated or

otherwise formed under the laws of the U.S. or a state thereof agrees that it

will, prior to or on or about the Closing Date or the date upon which it

becomes a party to this Agreement and if it is legally able to do so, deliver

to F.Y.I., for and on behalf of F.Y.I., and the Administrative Agent two duly

completed copies of U.S. Internal Revenue Service Form W-8ECI or W-8BEN, as

appropriate, certifying in any case that such Lender is entitled to receive

payments from F.Y.I. under any Loan Document without deduction or withholding

of any U.S. federal income taxes.  Each

Lender which so delivers a Form W-8ECI or W-8BEN further undertakes to deliver

to F.Y.I., for and on behalf of F.Y.I., and the Administrative Agent two

additional copies of such form (or a successor form) on or before the date such

form expires or becomes obsolete or after the occurrence of any event requiring

a change in the most recent form so delivered by it, and such amendments

thereto or extensions or renewals thereof as may be reasonably requested by

F.Y.I. or the Administrative Agent, in each case certifying that such Lender is

entitled to receive payments from F.Y.I. under any Loan Document without

deduction or withholding of any U.S. federal income taxes, unless an event

(including without limitation any change in treaty, law or regulation) has

occurred prior to the date on which any such delivery would otherwise be

required which renders all such forms inapplicable or which would prevent such

Lender from duly completing and delivering any such form with respect to it and

such Lender advises F.Y.I., for and on behalf of F.Y.I., and the Administrative

Agent that it is not capable of receiving such payments without any deduction

or withholding of U.S. federal income tax.

 

Section 3.7             Reinstatement

of Obligations.

Notwithstanding anything to the contrary contained in this Agreement or any

other Loan Document, if the payment of any amount of principal of or interest 

with respect to the Loans, the Reimbursement Obligations or any other

amount of the Obligations, or any portion thereof, is rescinded, voided or must

otherwise be refunded by the Administrative Agent, any Lender or the Issuing

Bank upon the insolvency, bankruptcy or reorganization of F.Y.I. or any other

Loan Party or otherwise for any reason whatsoever, then each of (a) the

Obligations, (b) the Loan Documents (including, without limitation, this

Agreement, the Notes and the Security Documents), (c) the indebtedness,

liabilities and obligations of F.Y.I. and any other Loan Party under the Loan

Documents, and (d) all Liens for the benefit of the Administrative Agent and

the Lenders created under or evidenced by the Loan Documents, will be

automatically reinstated and become automatically effective and in full force

and effect, all to the extent that and as though such payment so rescinded,

voided or otherwise refunded had never been made.

 

ARTICLE 4

 

Yield Protection and Illegality

 

Section 4.1             Additional

Costs.

 

(a)           F.Y.I.

shall pay directly to each Lender from time to time, promptly upon the request

of such Lender, the costs actually incurred by such Lender which such Lender

determines are directly attributable to its making or maintaining of any

Eurodollar Loans to F.Y.I. or its obligation to make or create any of such

Loans hereunder to F.Y.I., or any reduction in any amount receivable by such

Lender hereunder from F.Y.I. in respect of any such Loans or obligations (such

increases in costs and reductions in amounts receivable being herein called

"Additional Costs"), resulting from any Regulatory Change which:

 

(i)            changes the basis of taxation of any

amounts payable to such Lender under this Agreement or its Notes in respect of

any of such Loans (other than taxes imposed on the overall net income of such

Lender or its Applicable Lending Office for any of such Loans by the

jurisdiction in which such Lender has its principal office or such Applicable

Lending Office);

 

(ii)           imposes or modifies any reserve,

special deposit, minimum capital, capital ratio or similar requirement relating

to any extensions of credit or other assets of, or any deposits with or other

liabilities or commitments of, such Lender (including any of such Loans or any

deposits referred to in the definition of "Eurodollar Rate" in Section

1.1 hereof, but excluding the Reserve Requirement to the extent it is

included in the calculation of the Adjusted Eurodollar Rate); or

 

(iii)          imposes any other condition affecting

this Agreement or the Notes or any of such extensions of credit or liabilities

or commitments.

 

Each Lender will notify

F.Y.I. (with a copy to the Administrative Agent) of any event occurring after

the Closing Date which will entitle such Lender to compensation pursuant to

this Section 4.1(a) as promptly as practicable after it obtains

knowledge thereof and determines to request such compensation, and (if so

requested by F.Y.I.) will designate a different Applicable Lending Office for

the Eurodollar Loans of such Lender if such designation will avoid the need

for, or reduce the amount of, such compensation and will not, in the sole opinion

of such Lender, violate any law, rule or regulation or be in any way

disadvantageous to such Lender, provided that such Lender shall have no

obligation to so designate an Applicable Lending Office located in the U.S.

Each Lender will furnish F.Y.I. with a certificate setting forth the basis,

amount and computation of each request of such Lender for compensation under

this Section 4.1(a).  If any

Lender requests compensation from F.Y.I. under this Section 4.1(a),

F.Y.I. may, by notice to such Lender (with a copy to the Administrative Agent),

suspend the obligation of such Lender to make or Continue making, or Convert

Prime Rate Loans into, Eurodollar Loans until the Regulatory Change giving rise

to such request ceases to be in effect (in which case the provisions of Section

4.4 hereof shall be applicable).

 

(b)           Without

limiting the effect of the foregoing provisions of this Section 4.1, in

the event that, by reason of any Regulatory Change, any Lender either

(i) incurs Additional Costs based on or measured by the excess above a

specified level of the amount of a category of deposits or other liabilities of

such Lender which includes deposits by reference to which the interest rate on

Eurodollar Loans is determined as provided in this Agreement or a category of

extensions of credit or other assets of such Lender which includes Eurodollar

Loans or (ii) becomes subject to restrictions on the amount of such a

category of liabilities or assets which it may hold, then, if such Lender so

elects by notice to F.Y.I. (with a copy to the Administrative Agent), the

obligation of such Lender to make or Continue making, or Convert Prime Rate

Loans into, Eurodollar Loans hereunder shall be suspended until such Regulatory

Change ceases to be in effect (in which case the provisions of Section 4.4

hereof shall be applicable).

 

(c)           Determinations

and allocations by any Lender for purposes of this Section 4.1 of the

effect of any Regulatory Change on its costs of maintaining its obligation to

make Loans or of making or maintaining Loans or on amounts receivable by it in

respect of Loans and of the additional amounts required to compensate such

Lender in respect of any Additional Costs, shall be conclusive in the absence

of manifest error, provided that such determinations and allocations are made

on a reasonable basis.

 

Section 4.2             Limitation

on Types of Loans.  Anything herein to the contrary

notwithstanding, if with respect to any Eurodollar Loans for any Interest

Period therefor:

 

(a)           The

Administrative Agent reasonably determines (which determination shall be

conclusive absent manifest error) that quotations of interest rates for the

relevant deposits referred to in the definition of "Eurodollar Rate"

in Section 1.1 hereof are not being provided in the relative amounts or

for the relative maturities for purposes of determining the rate of interest

for such Loans as provided in this Agreement; or

 

(b)           Required

Lenders reasonably determine (which determination shall be conclusive absent

manifest error) and notify the Administrative Agent that the relevant rates of

interest referred to in the definition of "Eurodollar Rate" or

"Adjusted Eurodollar Rate" in Section 1.1 hereof on the

basis of which the rate of interest for such Loans for such Interest Period is

to be determined do not accurately reflect the cost to the Lenders of making or

maintaining such Loans for such Interest Period;

 

then the Administrative

Agent shall give F.Y.I. prompt notice thereof and, so long as such condition

remains in effect, the Lenders shall be under no obligation to make Eurodollar

Loans or to Convert Prime Rate Loans into Eurodollar Loans and F.Y.I. shall, on

the last day(s) of the then current Interest Period(s) for the outstanding

Eurodollar Loans, either prepay such Loans or Convert such Loans into Prime

Rate Loans in accordance with the terms of this Agreement.

 

Section 4.3             Illegality.  Notwithstanding any other provision of this

Agreement, in the event that it becomes unlawful for any Lender or its

Applicable Lending Office to (a) honor its obligation to make Eurodollar

Loans hereunder or (b) maintain Eurodollar Loans hereunder, then such

Lender shall promptly notify F.Y.I. for and on behalf of F.Y.I. (with a copy to

the Administrative Agent) thereof and such Lender's obligation to make or maintain

Eurodollar Loans and to Convert Prime Rate Loans into Eurodollar Loans

hereunder shall be suspended until

such time as such Lender may again make and maintain Eurodollar Loans (in which

case the provisions of Section 4.4 hereof shall be applicable).

 

Section 4.4             Treatment

of Affected Loans.  If the obligation of any Lender to make or

Continue, or to Convert Prime Rate Loans into, Eurodollar Loans is suspended

pursuant to Section 4.1 or 4.3 hereof, such Lender's

Eurodollar Loans shall be automatically Converted into Prime Rate Loans on the

last day(s) of the then current Interest Period(s) for the Eurodollar Loans

(or, in the case of a Conversion required by Section 4.1(b) or 4.3

hereof, on such earlier date as such Lender may specify to F.Y.I., with a copy

to the Administrative Agent) and, unless and until such Lender gives notice as

provided below that the circumstances specified in Section 4.1 or 4.3

hereof which gave rise to such Conversion no longer exist:

 

(a)           To

the extent that such Lender's Eurodollar Loans have been so Converted, all

payments and prepayments of principal which would otherwise be applied to such

Lender's Eurodollar Loans shall be applied instead to its Prime Rate Loans; and

 

(b)           All

Loans which would otherwise be made or Continued by such Lender as Eurodollar

Loans shall be made as or Converted into Prime Rate Loans and all Loans of such

Lender which would otherwise be Converted into Eurodollar Loans shall be

Converted instead into (or shall remain as) Prime Rate Loans.

 

If such Lender gives

notice to F.Y.I. (with a copy to the Administrative Agent) that the

circumstances specified in Section 4.1 or 4.3 hereof which gave

rise to the Conversion of such Lender's Eurodollar Loans pursuant to this Section

4.4 no longer exist (which such Lender agrees to do promptly upon such

circumstances ceasing to exist) at a time when Eurodollar Loans are

outstanding, such Lender's Prime Rate Loans shall be automatically Converted,

on the first day(s) of the next succeeding Interest Period(s) for such outstanding

Eurodollar Loans, to the extent necessary so that, after giving effect thereto,

all Loans held by the Lenders holding Eurodollar Loans and by such Lender are

held pro rata (as to principal amounts, Types and Interest Periods) in

accordance with their respective Commitments.

 

Section 4.5             Compensation.

F.Y.I. shall pay to the Administrative Agent for the account of each Lender,

promptly upon the request of such Lender through the Administrative

Agent, such amount or amounts as shall be sufficient (in the

reasonable opinion of such Lender) to compensate it for any loss, cost or

expense incurred by it as a result of:

 

(a)           Any

payment, prepayment or Conversion of a Eurodollar Loan for any reason

(including, without limitation, the acceleration of the outstanding Loans

pursuant to Section 11.2) on a date other than the last day of an

Interest Period for such Loan; or

 

(b)           Any

failure by F.Y.I. for any reason (including, without limitation, the failure of

any conditions precedent specified in Article 6 to be satisfied) to

borrow, Convert or prepay a Eurodollar Loan on the date for such borrowing,

Conversion or prepayment specified in the relevant notice of borrowing,

prepayment or Conversion under this Agreement.

 

Section 4.6             Capital

Adequacy.  If, after the Closing Date, any Lender shall

have determined that the adoption or implementation of any applicable law, rule

or regulation regarding capital

adequacy (including, without limitation, any law, rule or regulation

implementing the Basle Accord), or any change therein, or any change in the

interpretation or administration thereof by any central bank or other

Governmental Authority charged with the interpretation or administration

thereof, or compliance by such Lender (or its parent) with any guideline, request

or directive regarding capital adequacy (whether or not having the force of

law) of any central bank or other Governmental Authority (including, without

limitation, any guideline or other requirement implementing the Basle Accord),

has or would have the effect of reducing the rate of return on such Lender's

(or its parent's) capital as a consequence of its obligations hereunder or the

transactions contemplated hereby to a level below that which such Lender (or

its parent) could have achieved but for such adoption, implementation, change

or compliance (taking into consideration such Lender's policies with respect to

capital adequacy) by an amount deemed by such Lender to be material, then from

time to time, within ten Business Days after demand by such Lender (with a copy

to the Administrative Agent), F.Y.I. shall pay to such Lender such additional

amount or amounts as will compensate such Lender (or its parent) for such

reduction.  A certificate of such Lender

claiming compensation under this Section 4.6 and setting forth the

additional amount or amounts to be paid to it hereunder shall be conclusive

absent manifest error, provided that the determination thereof is made

on a reasonable basis.  In determining

such amount or amounts, such Lender may use any reasonable averaging and

attribution methods.

 

Section 4.7             Additional

Interest on Eurodollar Loans.  F.Y.I. shall pay to the Administrative

Agent, for the account of each Lender from time to time, additional interest on

the unpaid principal amount of each Eurodollar Loan held by such Lender, from

the date of the making of such Eurodollar Loan until such principal amount is

paid in full, at an interest rate per annum determined by such Lender in good

faith equal to the positive remainder (if any) of (a) the Adjusted

Eurodollar Rate applicable to such Eurodollar Loan minus (b) the

Eurodollar Rate applicable to such Eurodollar Loan.  Each payment of additional interest pursuant to this Section

4.7 shall be payable by F.Y.I. on each date upon which interest is payable

on such Eurodollar Loan pursuant to Section 2.4(b); provided, however,

that F.Y.I. shall not be obligated to make any such payment of additional

interest until the first Business Day after the date when F.Y.I. has been

informed (i) that such Lender is subject to a Reserve Requirement and

(ii) of the amount of such Reserve Requirement (after which time F.Y.I.

shall be obligated to make all such payments of additional interest, including,

without limitation, such payment of additional interest that otherwise

would have been payable by F.Y.I. on or prior to such time had F.Y.I. been

earlier informed).

ARTICLE 5

 

Security

 

Section 5.1             Collateral.  To secure the full and complete payment and

performance of the Obligations, F.Y.I. shall, and shall cause each of its

Subsidiaries  in existence on the

Closing Date to, grant to the Administrative Agent for the benefit of the

Administrative Agent and the Lenders a perfected, first priority Lien (except

for Permitted Liens, if any, which are expressly permitted by the Loan

Documents to have priority over the Liens in favor of the Administrative Agent) on all of its right,

title and interest in and to the following Property, whether now owned or

hereafter acquired, pursuant to the Security Documents:

 

(a)           all Capital Stock of each of the

Domestic Subsidiaries that are not Nonmaterial Subsidiaries (subject to the

last sentence of this Section 5.1) of F.Y.I. now owned or hereafter

acquired by F.Y.I. or any Subsidiary of F.Y.I.; and

 

(b)           the lesser of (i) 65% of the shares

of each class of Capital Stock of each Foreign Subsidiary (whether present or

future) that is not a Nonmaterial Subsidiary (subject to the last sentence of

this Section 5.1) and that is a direct, Wholly-Owned Subsidiary of

F.Y.I. or of a Domestic Subsidiary of F.Y.I., or (ii) all of the shares of each

class of Capital Stock of each such Foreign Subsidiary, in each case owned as

of the Closing Date or thereafter acquired by F.Y.I. or such Domestic

Subsidiary.

F.Y.I. covenants that

none of the Capital Stock to be pledged in accordance with this Section 5.1

shall be subject to any transfer restrictions, shareholders’ agreement, or

other restriction except for such restrictions under applicable securities laws

and such restrictions, if any, as may be reasonably acceptable to

Administrative Agent.  In connection

with and in addition to the foregoing, F.Y.I. and its applicable Subsidiaries

shall execute and/or deliver such Security Documents and further agreements, documents,

and instruments (including, without limitation, stock certificates, stock

powers, and financing statements) as Administrative Agent may reasonably

request in order for it to obtain and maintain the perfected, first priority

Liens to be granted in accordance with this Section 5.1. Notwithstanding

anything to the contrary contained in this Section 5.1, the Capital

Stock of one or more Nonmaterial Subsidiaries (as the Administrative Agent may

request) shall be required to be pledged in accordance with this Section 5.1

as if such Nonmaterial Subsidiaries were Material Subsidiaries if and to the

extent necessary to ensure that (i) the aggregate total assets of all

Nonmaterial Subsidiaries whose Capital Stock has not been pledged does not

exceed five percent of the total assets of F.Y.I. and its Subsidiaries on a

consolidated basis, (ii) the aggregate net worth of all Nonmaterial

Subsidiaries whose Capital Stock has not been pledged does not exceed five

percent of the total net worth of F.Y.I. and its Subsidiaries on a consolidated

basis, and (iii) the aggregate revenues of all Nonmaterial Subsidiaries

whose Capital Stock has not been pledged does not exceed five percent of the

revenues of F.Y.I. and its Subsidiaries on a consolidated basis.

 

Section 5.2             Guaranties.  Each Domestic Subsidiary of F.Y.I. in

existence on the Closing Date shall guarantee the payment and performance of

the Obligations pursuant to the Master Guaranty.

 

Section 5.3             New

Subsidiaries.  Contemporaneously with the creation or

acquisition of any Subsidiary of F.Y.I. after the Closing Date, F.Y.I. shall

and shall cause each of its Subsidiaries to:

 

(a)           grant

or cause to be granted to the Administrative Agent for the benefit of the

Administrative Agent and the Lenders, (i) if the Subsidiary is a Domestic

Subsidiary and is not a Nonmaterial Subsidiary (subject to the proviso at the

end of this Section 5.3(a)), a perfected, first priority security

interest in all Capital Stock or other ownership interests in or indebtedness

of such Subsidiary owned by F.Y.I. or by any Subsidiary of F.Y.I. or, (ii) if

the Subsidiary is a Foreign Subsidiary and is not a Nonmaterial Subsidiary

(subject to the proviso at the end of this Section 5.3(a)), a perfected,

first priority security interest in sixty-five percent (65%) of  Capital Stock or other ownership interests

in or indebtedness of such Subsidiary owned by F.Y.I. or by any Subsidiary of

F.Y.I. (to the extent such Capital Stock or other ownership interests or

indebtedness are already not so pledged to the Administrative Agent); provided,

however, that the Capital Stock of one or more Nonmaterial Subsidiaries (as the

Administrative Agent may request) shall be required to be pledged in accordence

with this Section 5.3(a) as if such Nonmaterial Subsidiaries were

Material Subsidiaries if and to the extent necessary to ensure that

(A) the aggregate total assets of all Nonmaterial Subsidiaries whose

Capital Stock has not been pledged does not exceed five percent of the total

assets of F.Y.I. and its Subsidiaries on a consolidated basis, (B) the

aggregate net worth of all Nonmaterial Subsidiaries whose Capital Stock has not

been pledged does not exceed five percent of the total net worth of F.Y.I. and

its Subsidiaries on a consolidated basis, and (C) the aggregate revenues

of all Nonmaterial Subsidiaries whose Capital Stock has not been pledged does

not exceed five percent of the revenues of F.Y.I. and its Subsidiaries on a

consolidated basis;

 

(b)           cause

each Domestic Subsidiary to guarantee the payment and performance of the

Obligations by executing and delivering to the Administrative Agent a Joinder

Agreement pursuant to which such Domestic Subsidiary becomes a party to the

Master Guaranty, and which Joinder Agreement also provides that such Subsidiary

agrees to comply with all of the covenants contained in this Agreement

applicable to it; and

 

(c)           if

and to the extent required by Section 5.4, cause each such

Subsidiary to execute and deliver to the Administrative Agent an appropriate

Security Agreement, substantially in the form of the Security Agreements

delivered by other Subsidiaries of F.Y.I., and such other Security Documents as

the Administrative Agent may reasonably request to grant the Administrative

Agent, for the benefit of the Administrative Agent and the Lenders, a

perfected, first priority Lien (except for Permitted Liens, if any, which are

expressly permitted by the Loan Documents to have priority over the Liens in

favor of the Administrative Agent) on all Property of such Subsidiary (other

than immaterial Properties in which the Administrative Agent has agreed it will

not require a Lien).

 

Section 5.4             Additional

Security.

 

(a)           If

the Funded Debt to EBITDA Ratio shall at any time exceed 2.50 to 1.00 for two

consecutive fiscal quarters of F.Y.I., 

F.Y.I. shall, and shall cause each of its Subsidiaries other than

Nonmaterial Subsidiaries (subject to Section 5.4(b)) to, within ten

Business Days thereafter, grant or cause to be granted to the Administrative

Agent, for the benefit of the Administrative Agent and the Lenders, a

perfected, first priority Lien in all Property of F.Y.I. and such Subsidiaries

(other than immaterial Properties in which Administrative Agent has agreed it

will not require a Lien) in which a Lien was not previously granted in

accordance with Section 5.1 or 5.3 , which Liens shall be

granted pursuant to such Security Documents in form and substance satisfactory

to the Administrative Agent as the Administrative Agent may request from time

to time.  Without limiting the

generality of the foregoing, if the Funded Debt to EBITDA Ratio shall at any

time exceed 2.50 to 1.00 for two consecutive fiscal quarters of F.Y.I., F.Y.I.

shall, and shall cause each of its Subsidiaries other than Nonmaterial

Subsidiaries (subject to Section 5.4(b)) to, within ten Business

Days thereafter and contemporaneously with the acquisition of any fee real

Property or the execution of any lease of real Property concurrently therewith

or thereafter execute, acknowledge and deliver to the Administrative Agent a

Mortgage or an amendment or modification to an existing Mortgage covering

(i) all fee real Property then owned or then being or thereafter acquired,

respectively, F.Y.I. or any of such Subsidiaries and (ii) all of F.Y.I.'s

or any of such Subsidiaries' rights and interests as lessee, in, to and under

each real estate lease then in existence or then being or thereafter entered

into, respectively, together with evidence reasonably satisfactory to the

Administrative Agent and its counsel, including, without limitation, if

requested by the Administrative Agent, a commitment for a mortgagee policy of

title insurance in favor of the Administrative Agent, in form and substance

reasonably satisfactory to the Administrative Agent, that the Mortgage creates

a valid, first priority Lien on the fee estate or leasehold estate, as the case

may be, in favor of the Administrative Agent for the benefit of the

Administrative Agent and the Lenders (except for Permitted Liens, if any, which

are expressly permitted by the Loan Documents to have priority over the Liens

in favor of the Administrative Agent), together with appraisals and surveys if

requested by the Administrative Agent; provided, however, that

(A) with respect to any fee real Property having a fair market value of

less than $200,000, F.Y.I. and such Subsidiaries shall not be required to

execute, acknowledge or deliver such Mortgage or amendment or modification to

an existing Mortgage unless or until fee real Property or Properties having an

aggregate fair market value of $200,000 or more would be covered by any such

Mortgage or amendment or modification to an existing Mortgage and, until such

time, shall not be required to deliver such mortgagee policy of title insurance

or such appraisals (unless required by laws or regulations applicable to any

Lender) or surveys with respect to such Properties or waivers of landlord liens

or landlord agreements referred to herein and (B) with respect to any

lease of real Property, F.Y.I. and such Subsidiaries shall not be required to

execute, acknowledge or deliver such Mortgage or amendment or modification to

an existing Mortgage if the tangible Property of F.Y.I. and/or its Subsidiaries

located and to be located thereon does not exceed $500,000 in aggregate fair

market value.  Following the date of

each such acquisition of Property, if requested by the Administrative Agent or

the Required Lenders,  F.Y.I. shall, and

shall cause each of its Subsidiaries with an interest in such Properties to,

(A) deliver or cause to be delivered to the Administrative Agent, a

mortgagee policy of title insurance insuring the Liens of the Mortgage covering

such fee real Property in an amount reasonably satisfactory to the

Administrative Agent on standard form policies (except for Permitted Liens, if

any, which are expressly permitted by the Loan Documents to have priority over

the Liens in favor of the Administrative Agent) and (B) provide the

Administrative Agent with a current environmental assessment of such Property

in form and substance reasonably satisfactory to the Administrative Agent.  In addition, with respect to each such

leasehold estate, F.Y.I. shall, and shall cause each of its Subsidiaries to,

use its best reasonable efforts to obtain either (1) waivers of landlord's

Liens from each lessor or (2) landlord agreements from each lessor, in form and

substance reasonably satisfactory to the Administrative Agent.

 

(b)           Notwithstanding

anything to the contrary contained in Section 5.4(a), in the event

that additional security is required to be granted in accordance with Section 5.4(a),

one or more Nonmaterial Subsidiaries (as the Administrative Agent may request)

shall be required to grant Liens in accordance with Section 5.4(a)

as if such Nonmaterial Subsidiaries were Material Subsidiaries if and to the

extent necessary to ensure that (i) the aggregate total assets of all

Nonmaterial Subsidiaries that have not granted such Liens does not exceed five

percent of the total assets of F.Y.I. and its Subsidiaries on a consolidated

basis, (ii) the aggregate net worth of all Nonmaterial Subsidiaries that have

not granted such Liens does not exceed five percent of the total net worth of

F.Y.I. and its Subsidiaries on a consolidated basis, and (iii) the

aggregate revenues of all Nonmaterial Subsidiaries that have not granted such

Liens does not exceed five percent of the revenues of F.Y.I. and its

Subsidiaries on a consolidated basis.

 

Section 5.5             Release

of Collateral.

 

(a)           Upon

any sale, transfer or other disposition of Collateral that is expressly

permitted under Section 9.8 and upon five Business Days prior written

request by F.Y.I., the Administrative Agent shall execute at F.Y.I.'s expense

such documents as may be necessary to evidence the release by the

Administrative Agent of its Liens on such Collateral; provided, however,

that (i) the Administrative Agent shall not be required to release any Lien on

any Collateral if a Default shall have occurred and be continuing,

(ii) the Administrative Agent shall not be required to execute any such

document on terms which, in the Administrative Agent's opinion, would expose the

Administrative Agent to liability or create any obligation not reimbursed by

F.Y.I. or entail any consequences other than the release of such Lien without

recourse or warranty, and (iii) such release shall not in any manner

discharge, affect or impair any of the Obligations or any of the Administrative

Agent's Liens on any Collateral retained by F.Y.I. or any of its Subsidiaries,

including, without limitation, its Liens on the proceeds of any such sale,

transfer or other disposition.

 

(b)           If,

after additional security has been granted in accordance with Section 5.4,

the Funded Debt to EBITDA Ratio is less than 2.25 to 1.00 for two consecutive

fiscal quarters of F.Y.I. and F.Y.I., at such time, has an investment grade

rating from either Moody's Investors Service, Inc. (Baa3 or better) or Standard

& Poor's Corporation (BBB- or better) on an unsecured basis, the

Administrative Agent shall, upon the request of F.Y.I., execute at F.Y.I.'s

expense such documents as may be necessary to evidence the release by the

Administrative Agent of its Liens on any or all Collateral granted as

additional security in accordance with Section 5.4; provided, however,

that (i) the Administrative Agent shall not be required to release any

Lien on any Collateral if a Default shall have occurred and be continuing,

(ii) the Administrative Agent shall not be required to execute any such

document on terms which, in the Administrative Agent's opinion, would expose

the Administrative Agent to liability or create any obligation not reimbursed

by F.Y.I. or entail any consequences other than the release of such Lien

without recourse or warranty, and (iii) such release shall not in any

manner discharge, affect or impair any of the Obligations or any of the

Administrative Agent's Liens on any Collateral retained by F.Y.I. or any of its

Subsidiaries, including, without limitation, its Liens on the proceeds of any

such sale, transfer or other disposition.

 

Section 5.6             Setoff.  If an Event of Default shall have occurred

and be continuing, each Lender is hereby authorized at any time and from time

to time, without notice to F.Y.I., any other Loan Party or any other Person

(any such notice being hereby expressly waived by F.Y.I.), to set off and apply

any and all deposits (general, time or demand, provisional or final) at any

time held and other indebtedness at any time owing by such Lender to or for the

credit or the account of F.Y.I. against any and all of the Obligations now or

hereafter existing under this Agreement, such Lender's Note or any other Loan

Document, irrespective of whether or not the Administrative Agent or such

Lender shall have made any demand under this Agreement, such Lender's Note or

any such other Loan Document and although such Obligations may be unmatured.  Each Lender agrees promptly to notify F.Y.I.

(with a copy to the Administrative Agent) after any such setoff and

application, provided that the failure to give such notice shall not

affect the validity of such setoff and application.  The rights and remedies of each Lender hereunder are in addition

to other rights and remedies (including, without limitation, other rights of

setoff) which such Lender may have.

 

Section 5.7             Landlord

and Mortgagee Waivers.  On or before the Closing Date with respect

to a lease of real Property as to which the Administrative Agent has or is, in

accordance with Article 5 hereof, required to have a leasehold

Mortgage, and prior to or concurrently with F.Y.I. or any of its Subsidiaries

entering into a lease of real Property on or after the Closing Date as to which

the Administrative Agent has or is, in accordance with Article 5,

required to have a leasehold Mortgage, F.Y.I. shall, unless the Administrative

Agent has waived such requirement in its discretion as to any particular leased

Property, provide to the Administrative Agent an agreement of such of the

landlords and their lenders relating to such leased Properties, in form and substance reasonably satisfactory

to the Administrative Agent, including, without limitation, any leased Properties

where the landlord (i) owns any Capital Stock of F.Y.I., (ii) holds

any Seller Subordinated Debt, or (iii) is the beneficiary of or payee

under any Seller Earn Out.

 

ARTICLE

6

 

Conditions Precedent

 

Section 6.1             Initial

Loans and Letter of Credit Conditions.  The agreement of the Administrative Agent

and the Lenders to enter into this Agreement, and each of the obligations of

each Lender to make its initial Loan under this Agreement and the obligation of

the Issuing Bank to issue the initial Letter of Credit under this Agreement are

subject to the conditions precedent that the Administrative Agent shall have

received, on or before the Effective Date, all of the following in form and

substance satisfactory to the Administrative Agent and, in the case of actions

to be taken, evidence that the following required actions have been taken to

the satisfaction of the Administrative Agent:

 

(a)           Resolutions.  Resolutions of the Board of Directors

of  F.Y.I. and each Material Subsidiary

certified by its Secretary or an Assistant Secretary which authorize the

execution, delivery and performance by such Loan Party of the Loan Documents to

which it is or is to be a party;

 

(b)           Incumbency

Certificate.  A certificate of

incumbency certified by the Secretary or an Assistant Secretary of F.Y.I. and

each Material Subsidiary certifying the name of each officer or other

representative of such Loan Party (i) who is authorized to sign the Loan

Documents to which such Loan Party is or is to be a party (including any

certificates contemplated therein), together with specimen signatures of each

such officer or other representative, and (ii) who will, until replaced by

other officers or representatives duly authorized for that purpose, act as its

representative for the purposes of signing documents and giving notices and

other communications in connection with the Loan Documents and the transactions

contemplated thereby;

 

(c)           Articles

or Certificates of Incorporation, etc. 

The articles or certificates of incorporation, certificate of formation,

certificate of limited partnership, partnership agreement or other applicable

constitutional document of F.Y.I. and each Material Subsidiary certified by the

Secretary of State or other applicable Governmental Authority of the state or

other jurisdiction of incorporation or organization of such Loan Party and

dated as of a Current Date;

 

(d)           Bylaws.  The bylaws of F.Y.I. and each Material

Subsidiary certified by the Secretary or an Assistant Secretary of such Loan

Party;

 

(e)           Governmental

Certificates.  Certificates of

appropriate officials as to the existence and good standing, status or

compliance, as applicable, of F.Y.I. and each Material Subsidiary in their

respective jurisdictions of incorporation or organization and any and all

jurisdictions where such Loan Party is qualified to do business as a foreign

corporation or other entity, each such certificate to be dated as of a Current

Date;

 

(f)            Notes.  The Notes duly completed and executed by

F.Y.I.;

 

(g)           Guaranties.  A Master Guaranty executed by each of the

Domestic Subsidiaries of F.Y.I.;

 

(h)           Security

Agreements.  Security Agreements

executed by F.Y.I. and each of its Subsidiaries which are required to grant

Liens in accordance with Article 5 (including, without limitation,

security agreements required in accordance with Section 5.1 and security

agreements, to be held in escrow by the Administrative Agent, required in

accordance with Section 5.4);

 

(i)            Stock

Certificates.  The stock

certificates representing all of the issued and outstanding Capital Stock of

each of the Subsidiaries of F.Y.I. accompanied by appropriate stock powers

signed in blank;

 

(j)            Financing

Statements.  Financing statements

and all other requisite filing documents executed by the Loan Parties necessary

or appropriate to perfect the Liens created pursuant to the Security Documents

(including, without limitation, financing statements relating to the security

agreements required in accordance with Section 5.1 and financing

statements, to be held in escrow by the Administrative Agent, relating to the

security agreements required in accordance with Section 5.4);

 

(k)           Lien

Releases.  Releases or assignments

of Liens and UCC-3 financing statements in recordable form, as may be necessary

to reflect that the Liens created by the Security Documents are first priority

Liens (except for Permitted Liens, if any, which are expressly permitted by the

Loan Documents to have priority over the Liens in favor of the Administrative

Agent);

 

(l)            Lien

Searches. Lien searches in the names of F.Y.I. and each of its Material

Subsidiaries (and in all names under which each such Person has done business

within the last five years and in all names of Persons who previously owned any

of the Properties constituting Collateral as the Administrative Agent may

require) in each state, county, parish or other jurisdiction where each such

Person maintains an office or has Property, showing no financing statements or

other Lien instruments of record except for Permitted Liens (and Liens released

in accordance with Section 6.1(k));

 

(m)          Leases.  If requested by the Administrative Agent,

copies of all leases (and all amendments and supplements thereto) pursuant to

which F.Y.I. or any of its Subsidiaries leases Mortgaged Properties;

 

(n)           Consents.  Copies of all material consents necessary

for the execution, delivery and performance by each of the Loan Parties of the

Loan Documents to which it is a party, which consents shall be certified by a

Responsible Officer of the applicable Loan Party as true and correct copies of

such consents as of the Effective Date;

 

(o)           Permits.

If requested by the Administrative Agent, copies of all material Permits

affecting F.Y.I. or any of its Material Subsidiaries in connection with its

businesses or any of the Properties owned or leased by it, and evidence

satisfactory to the Administrative Agent that F.Y.I. and each of its Material

Subsidiaries are able to conduct their businesses with the use of such Permits

in full force and effect;

 

(p)           Payment

of Principal, Interest, Fees and Expenses. 

F.Y.I. shall have paid in full (i) all outstanding principal of,

and all accrued and unpaid interest and fees with respect to, the Existing

Debt, (ii) all fees due on or before the Effective Date as specified in this

Agreement or in the Fee Letter, and (iii) all fees and expenses of or incurred

by the Administrative Agent and its counsel to the extent billed on or before

the Effective Date and payable pursuant to this Agreement;

 

(q)           Regulatory

Approvals. Evidence satisfactory to the Administrative Agent that all

filings, consents or approvals with or of Governmental Authorities necessary to

consummate the transactions contemplated by the Loan Documents have been made

and obtained, as applicable, including, without limitation, all approvals or filings

(if any) required under the Hart-Scott-Rodino Antitrust Improvements Act of

1976 and the lapse of all waiting periods with respect thereto;

 

(r)            Compliance

with Laws.  As of the Effective

Date, each Person that is a party to this Agreement or any of the other Loan

Documents shall have complied with all Governmental Requirements necessary to

consummate the transactions contemplated by this Agreement and the other Loan

Documents;

 

(s)           No

Prohibitions.  No Governmental

Requirement shall prohibit the consummation of the transactions contemplated by

this Agreement or any other Loan Document, and no order, judgment or decree of

any Governmental Authority or arbitrator shall, and no litigation or other

proceeding shall be pending or threatened which would, enjoin, prohibit,

restrain or otherwise adversely affect the consummation of the transactions

contemplated by this Agreement and the other Loan Documents or otherwise have a

Material Adverse Effect;

 

(t)            No

Material Adverse Change.  As of the

Effective Date, no material adverse change shall have occurred with respect to

the condition (financial or otherwise), results of operations, business,

operations, capitalization, assets or liabilities (actual or contingent) of

F.Y.I. and its Subsidiaries taken as a whole since December 31, 1999;

 

(u)           Financial

Statements.  If and to the extent

not previously delivered to the Administrative Agent, copies of each of the

financial statements referred to in Section 7.2;

 

(v)           Opinions

of Counsel.  Favorable opinions (or

comfort letters with respect to clause (ii) succeeding) of

(i) Locke Liddell & Sapp, LLP, counsel for the Loan Parties, and such

other counsel as may be acceptable to the Administrative Agent, in form and

substance satisfactory to the Administrative Agent with respect to F.Y.I. and

its Subsidiaries with respect to the Loan Documents and (ii) such other

counsel as may be acceptable to the Administrative Agent regarding the power

and authority of each of the Subsidiaries of F.Y.I. to execute and deliver its

Guaranty and Security Agreement under the laws of its jurisdiction of

incorporation or organization, as the Administrative Agent may require;

 

(w)          Opinions

of Local Counsel.  If and to the

extent not previously delivered to the Administrative Agent, a favorable opinion

or comfort letter (as the Administrative Agent may require) of local counsel to

the Administrative Agent in each state or province where Mortgaged Properties

or Inventory owned by F.Y.I. or its Subsidiaries are located in form and

substance satisfactory to the Administrative Agent; and

 

(x)            Accountant's

Letter.  If and to the extent not

previously delivered to the Administrative Agent, a letter from F.Y.I.

authorizing the independent public accountant of F.Y.I. and its Subsidiaries to

communicate with the Administrative Agent and the Lenders and acknowledging

reliance by the Administrative Agent and the Lenders on past, present and

future financial statements.

 

(y)           Wiring

Instructions.  Written instructions

from F.Y.I. to the Administrative Agent with respect to the disbursement of the

proceeds of the Loans;

 

(z)            Insurance

Policies.  Originals of certificates

of insurance evidencing all insurance policies required by this Agreement and

the other Loan Documents, together with endorsements naming the Administrative

Agent as loss payee under all such casualty insurance policies and the

Administrative Agent as an additional insured party under all such liability

policies and, if requested by the Administrative Agent, copies of all such

insurance policies.

 

(aa)         Letter

of Credit Agreement.  With respect

to any issuance of a Letter of Credit, a Letter of Credit Agreement in the form

required by the Issuing Bank with respect thereto executed by F.Y.I.;

 

(bb)         Solvency

Certificate; Contribution Agreement. 

(i) A Solvency Certificate; and (ii) contribution agreements

(or applicable amendments to any such agreements existing as of the Effective

Date) between and among F.Y.I. and its Subsidiaries to evidence applicable

rights of contribution;

 

(cc)         No

Material Litigation.  As of the

Effective Date, no action, suit, investigation, or proceeding shall be pending

or threatened before any Governmental Authority that purports to affect F.Y.I.

or any of its Subsidiaries that could reasonably be expected to result in a

Material Adverse Effect or that could have a material adverse effect on the

ability of F.Y.I. or any of its Subsidiaries to perform their Obligations under

the Loan Documents;

 

(dd)         Due

Diligence Review.  Receipt and

review, with results satisfactory to Administrative Agent and its counsel, of

information regarding litigation, tax, accounting, labor, insurance, pension

liabilities (actual or contingent), real estate leases, material contracts,

debt agreements, property ownership, environmental matters, contingent

liabilities and management of F.Y.I. and its Subsidiaries; and

 

(ee)         Information

Systems Review. Receipt and review, with results satisfactory to

Administrative Agent, of a complete review of F.Y.I.'s and its Subsidiaries'

information systems by an independent firm acceptable to F.Y.I. and the

Administrative Agent.

 

F.Y.I. shall deliver, or

cause to be delivered, to the Administrative Agent sufficient counterparts of

each agreement, document or instrument to be received by the Administrative

Agent under this Section 6.1 to permit the Administrative Agent to

distribute a copy of the same to each of the Lenders.

 

Section 6.2             All

Extensions of Credit.  The obligation of each Lender to make any

Loan (including the initial Loan) and the obligation of the Issuing Bank to

issue any Letter of Credit (including the initial Letter of Credit) under this

Agreement are subject to the satisfaction of each of the conditions precedent

set forth in Section 6.1 and each of the following additional conditions

precedent:

 

(a)           No

Default or Material Adverse Effect. 

No Default or Material Adverse Effect shall have occurred and be

continuing, or would result from such Loan or Letter of Credit;

 

(b)           Representations

and Warranties.  All of the

representations and warranties of F.Y.I. and its Subsidiaries and the other

Loan Parties contained in Article 7 hereof and in the other Loan

Documents shall be true and correct on and as of the date of such Loan or

Letter of Credit with the same force and effect as if such representations and

warranties had been made on and as of such date, except to the extent that such

representations and warranties are expressly by their terms made only as of the

Closing Date or another specified date; and

 

(c)           Additional

Documentation.  The Administrative Agent

shall have received such additional approvals, opinions, agreement, documents

and instruments as the Administrative Agent may reasonably request.

 

Each notice of borrowing

or request for the issuance of a Letter of Credit by F.Y.I. hereunder shall constitute

a representation and warranty by F.Y.I. that the conditions precedent set forth

in Sections 6.2(a) and (b) have been satisfied (both as of

the date of such notice and, unless F.Y.I. otherwise notifies the

Administrative Agent prior to the date of such borrowing or Letter of Credit,

as of the date of such borrowing or Letter of Credit).

 

Section 6.3             Closing

Certificate.  The agreement of the Administrative Agent

and the Lenders to enter into this Agreement, the obligations of the Lenders to

make the initial Loan and the obligation of the Issuing Bank to issue the

initial Letter of Credit are subject to the condition that the Administrative

Agent receive, concurrently with the execution and delivery of this Agreement,

a Closing Certificate in form and substance reasonably satisfactory to the Administrative Agent certifying as to the satisfaction of

each of the conditions precedent set forth in Section 6.1.

 

ARTICLE 7

 

Representations and Warranties

 

F.Y.I.

represents and warrants to the Administrative Agent and the Lenders that the

following statements are and, after giving effect to the transactions

contemplated hereby, will be true, correct and complete:

 

Section 7.1             Corporate

Existence.  Each Loan Party (a) is a corporation

duly organized, validly existing and in good standing under the laws of the

jurisdiction of its incorporation or organization, (b) has all requisite

power and authority to own its Properties and carry on its business as now

being or as proposed to be conducted, and (c) is qualified to do business

in all jurisdictions in which the nature of its business makes such

qualification necessary and where failure to so qualify would have a Material

Adverse Effect.  Each Loan Party has the

power and authority and legal right to execute, deliver and perform its

obligations under the Loan Documents to which it is or may become a party.  F.Y.I. is a holding company and is not an

operating company and does not engage in any material business operations apart

from the ownership and management of its Subsidiaries.

 

Section 7.2             Financial

Statements.

 

(a)           F.Y.I.

has delivered to the Administrative Agent and the Lenders audited consolidated

financial statements of F.Y.I. and its Subsidiaries as of and for the fiscal

years ended December 31, 1997, 1998 and 1999, including, without limitation,

balance sheets and income and cash flow statements.  To F.Y.I.'s knowledge, such financial statements are true and

correct, have been prepared in accordance with GAAP and fairly and accurately

present, on a consolidated basis, the financial condition of F.Y.I. and its

consolidated Subsidiaries, as of the respective dates indicated therein and the

results of operations for the respective periods indicated therein.  There has not been, as of the Closing Date

or the Effective Date, any material adverse change in the business, condition

(financial or otherwise), operations or Properties of F.Y.I. or its

Subsidiaries or since the effective dates of the most recent applicable

financial statements referred to in this Section 7.2(a).

 

(b)           The

Projections were prepared by F.Y.I. on a basis substantially consistent with

the financial statements referred to in Section 7.2(a).  The Projections represent, as of the Closing

Date and the Effective Date, the good faith estimate of F.Y.I. concerning the

probable financial condition and performance of F.Y.I. and its Subsidiaries

based on assumptions believed to be reasonable at the time made.

 

Section 7.3             Corporate

Action: No Breach.  The execution, delivery and performance by

each Loan Party of the Loan Documents to which it is or may become a party and

compliance with the terms and provisions hereof and thereof have been duly

authorized by all requisite corporate or other entity action on the part of the

Loan Parties and do not and will not

(a) violate or conflict with, or result in a breach of, or require any

consent under (i) the articles or certificates of incorporation or bylaws of

any Loan Party, (ii) any Governmental Requirement applicable to a Loan

Party or any of its Property or any order, writ, injunction or decree of any

Governmental Authority or arbitrator applicable to a Loan Party or any of its

Property, or (iii) any material agreement, document or instrument to which

any Loan Party is a party or by which any Loan Party or any of its Property is

bound or subject, or (b) constitute a default under any such material

agreement, document or instrument, or result in the creation or imposition of

any Lien (except under the Security Documents as provided in Article 5)

upon any of the revenues or Property of any Loan Party.

 

Section 7.4             Operation

of Business.  The

Loan Parties possess all material Permits, franchises, licenses and

authorizations necessary or appropriate to conduct their respective businesses

substantially as now conducted and where the failure to do so would constitute

or result in a Material Adverse Effect. 

All of such material Permits, franchises, licenses and authorizations of

F.Y.I. and its Material Subsidiaries which constitute a Governmental

Requirement or which are or are to be issued by any Governmental Authority are

disclosed on Schedule 7.4.  None

of such Persons is in material violation of any such Permits, franchises,

licenses or authorizations.

 

Section 7.5             Intellectual

Property.  The Loan Parties own or possess (or will be

licensed or have the full right to use) all Intellectual Property which is

necessary for the operation of their respective businesses as presently

conducted and as proposed to be conducted, without any known conflict with the

rights of others which could reasonably be expected to have a Material Adverse

Effect.  The consummation of the

transactions contemplated by this Agreement and the other Loan Documents will

not materially alter or impair, individually or in the aggregate, any of such

rights of such Persons.  No product of

the Loan Parties infringes upon any Intellectual Property owned by any other

Person, and no claim or litigation is pending or, to the knowledge of F.Y.I. or

any of its Subsidiaries, threatened against any Loan Party or any such

Person contesting its right to use any product or material which

could have a Material Adverse Effect. 

There is no violation by any Loan Party of any right of such Loan Party

with respect to any material Intellectual Property owned or used by such Loan

Party which would constitute or result in a Material Adverse Effect.

 

Section 7.6             Litigation

and Judgments.  Each material action, suit, investigation or

proceeding before or by any Governmental Authority or arbitrator pending or, to

the knowledge of  F.Y.I. or any of its

Subsidiaries, threatened against or affecting any Loan Party is disclosed on Schedule

7.6.  None of such actions, suits,

investigations or proceedings could, if adversely determined, have a Material

Adverse Effect.  As of the Closing Date

and the Effective Date, there are no outstanding judgments against any Loan

Party or any of their respective Subsidiaries.

 

Section 7.7             Rights

in Properties; Liens.  Each of the Loan Parties has good and

indefeasible title to or, except as expressly stated to the contrary on Schedule

1.1(a), valid leasehold interests

in its Properties and assets, real and personal, including the Properties,

assets and leasehold interests reflected in the financial statements described

in Section 7.2, and none of the Properties or leasehold interests of

F.Y.I. or any of its Material Subsidiaries or, to the best of F.Y.I.'s

knowledge without undertaking a current Lien search, any of its Nonmaterial

Subsidiaries is subject to any Lien, except Permitted Liens.  Except as disclosed on Schedule 7.7,

neither F.Y.I. nor any of its Subsidiaries owns any right, title or interest in

any real Properties.

 

Section 7.8             Enforceability.

The execution, delivery and performance of the Loan Documents to which each of

the Loan Parties is a party have been duly authorized by resolutions of the

board of directors of such Loan Party (or other appropriate action authorizing

such execution, delivery and performance has been taken with respect to each

Loan Party that is not a corporation). 

The Loan Documents have been duly and validly executed and delivered by

each of the Loan Parties that is a party thereto and constitute the legal,

valid and binding obligations of the Loan Parties, enforceable against the Loan

Parties in accordance with their respective terms, except as limited by

bankruptcy, insolvency or other laws of general application relating to the

enforcement of creditors' rights and general principles of equity.

 

Section 7.9             Approvals.  No authorization, approval or consent of,

and no filing or registration with or notice to, any Governmental Authority or

third party is or will be necessary for the execution, delivery or performance

by any Loan Party of any of the Loan Documents to which it is a party or for

the validity or enforceability thereof, except for such consents, approvals and

filings as have been validly obtained or made and are in full force and

effect.  None of the Loan Parties has

failed to obtain any material governmental consent, approval, license, Permit,

franchise or other governmental authorization necessary for the ownership of

any of its Properties or the conduct of its business.

 

Section 7.10           Debt.  As of the Closing Date and the Effective

Date, the Loan Parties and their Subsidiaries have no Debt except for (a) the

Obligations and (b) the Debt disclosed on Schedule 7.10 hereto.

 

Section 7.11           Taxes.  The Loan Parties have filed all tax returns

(federal, state and local) required to be filed, including all income,

franchise, employment, Property and sales tax returns, and

have paid all of their respective liabilities (other than liabilities which do

not, in the aggregate, exceed $100,000 in amount) for taxes, assessments,

governmental charges and other levies that are due and payable, except such

taxes, if any, the payment of which is currently being contested in good faith

by appropriate proceedings diligently conducted by or on behalf of such Person

and as to which, if required by GAAP, such Person has established adequate

reserves.  F.Y.I. is not aware of any

pending investigation of any Loan Party or any of their respective

Subsidiaries, by any taxing authority or of any pending but unassessed tax

liability of any Loan Party or any of their respective Subsidiaries, other than

with respect to (a) ad valorem or other real property taxes not in excess

of $100,000 as to any such Person and (b) other taxes in an aggregate

amount as to any such Person which could not, if an adverse determination is

made with respect to such taxes, materially and adversely affect such Person,

which (as to each of clauses (a) and (b) preceding) are currently

being contested in good faith by appropriate proceedings diligently conducted

by or on behalf of such Person and as to which, if required by GAAP, such Person has established adequate reserves.  No tax Liens have been filed and, except as

disclosed on Schedule 7.11, no claims are being asserted against any

Loan Party or any of their respective Subsidiaries, with respect to any taxes; provided,

however, that, with respect to the Nonmaterial Subsidiaries, such

representation is made only to the best of F.Y.I.'s knowledge without

undertaking a current Lien search. 

Except as disclosed on Schedule 7.11 hereto, as of the Closing

Date and the Effective Date, none of the U.S. income tax returns of the Loan

Parties or any of their respective Subsidiaries are under audit.  The charges, accruals and reserves on the

books of the Loan Parties in respect of taxes or other governmental charges are

in accordance with GAAP.

 

Section 7.12           Margin

Securities.  None

of the Loan Parties or any of their respective Subsidiaries is engaged

principally, or as one of its important activities, in the business of

extending credit for the purpose of purchasing or carrying margin stock (within

the meaning of Regulations T, U or X of the Board of Governors of the Federal

Reserve System), and no part of the proceeds of any Loan will be used to

purchase or carry any margin stock or to extend credit to others for the

purpose of purchasing or carrying margin stock.

 

Section 7.13           ERISA;

Plans.  Neither

any Loan Party nor any ERISA Affiliate maintains or contributes to, or has any

obligation under, any Pension Plan other than the Pension Plans identified on Schedule

7.13.  Except as specified on Schedule

7.13, each Plan of each Loan Party is in compliance in all material

respects with all applicable provisions of ERISA and the Code.  Except as specified on Schedule 7.13,

neither a Reportable Event nor a Prohibited Transaction has occurred within the

last 60 months with respect to any Plan. 

No notice of intent to terminate a Pension Plan has been filed, nor has

any Pension Plan been terminated.  No

circumstances exist which constitute grounds entitling the PBGC to institute

proceedings to terminate, or appoint a trustee to administer, a Pension Plan,

nor has the PBGC instituted any such proceedings.  Neither any of the Loan Parties nor any ERISA Affiliate has

completely or partially withdrawn from a Multiemployer Plan.  Each Loan Party and each ERISA Affiliate

have met their minimum funding requirements under ERISA and the Code with

respect to all of their Plans subject to such requirements, and, as of the

Closing Date and the Effective Date except as specified on Schedule 7.13,

the present value of all vested benefits under each funded Plan (exclusive of

any Multiemployer Plan) does not and will not exceed the fair market value of

all such Plan assets allocable to such benefits, as determined on the most

recent valuation date of such Plan and in accordance with ERISA.  Neither any of the Loan Parties nor any

ERISA Affiliate has incurred any liability to the

PBGC under ERISA.  No litigation is

pending or threatened concerning or involving any Plan.  There are no unfunded or unreserved liabilities

(on either a going-concern basis or a wind-up basis) relating to any Plan that

could, individually or in the aggregate, have a Material Adverse Effect if such

Loan Party were required to fund or reserve such liability in full.  As of the Closing Date and the Effective

Date, no funding waivers have been or will have been requested or granted under

Section 412 of the Code with respect to any Plan.  No unfunded or unreserved liability for benefits under any Plan

or Plans or (exclusive of any Multiemployer Plans) exceeds $2,000,000 with

respect to any such Plan or $4,000,000 with respect to all such Plans in the

aggregate as of the Closing Date and the Effective Date, on either a

going-concern basis or a wind-up basis.

 

Section 7.14           Disclosure.  No written statement, report, representation

or warranty made by any Loan Party in any Loan Document or furnished to the

Administrative Agent or any Lender by any Loan Party in connection with the

Loan Documents or the making of

the Loans or issuance of the Letters of Credit as contemplated hereby contains

any untrue statement (at the time such statement was made) of a material fact

or omits to state any material fact necessary to make the statements herein or

therein not misleading.  There is no

fact known to F.Y.I. which has had a Material Adverse Effect, and

there is no fact known to F.Y.I. which might in the future have a Material

Adverse Effect, except as may have been disclosed in writing to the

Administrative Agent and the Lenders.

 

Section 7.15           Capitalization.

 

(a)           On

and as of the Closing Date and the Effective Date, the authorized Capital

Stock, share ownership and par value per share of each of the Subsidiaries of

F.Y.I. are listed on Schedule 7.15.

 

(b)           All

of the issued and outstanding Capital Stock of F.Y.I. and its Subsidiaries has

been validly issued and is fully paid and nonassessable.  Except as described on Schedule 7.15,

there are no outstanding subscriptions, options, warrants, calls or rights

(including preemptive rights) to acquire, and no outstanding securities or

instruments convertible into, Capital Stock of F.Y.I. or any of its

Subsidiaries.

 

(c)           On

and as of the Closing Date and the Effective Date, each Material Subsidiary of

F.Y.I. is identified as such on Schedule 7.15 and, except as so

identified, F.Y.I. does not have any Material Subsidiaries on and as of such

date.

 

Section 7.16           Agreements.  None of the Loan Parties is a party to any

indenture, loan, credit agreement, stock purchase agreement or any lease or

other agreement, document or instrument, or subject to any charter or corporate

restriction, that could reasonably be expected to have a Material Adverse

Effect.  None of the Loan Parties is in

default in any respect in the performance, observance or fulfillment of any of

the obligations, covenants or conditions contained in any agreement, document

or instrument binding on it or its Properties, except for instances of

noncompliance that, individually or in the aggregate, could not have a Material

Adverse Effect.

 

Section 7.17           Compliance

with Laws.  None

of the Loan Parties is in violation of any Governmental Requirement, except for

instances of non-compliance that, individually or in the aggregate, could not

have a Material Adverse Effect.

 

Section 7.18           Investment

Company Act.  None

of the Loan Parties is an "investment company" within the meaning of

the Investment Company Act of 1940, as amended.

 

Section 7.19           Public

Utility Holding Company Act.  None of the Loan Parties is a "holding company" or a

"subsidiary company" of a "holding company" or an

"affiliate" of a "holding company" or a "public

utility" within the meaning of the Public Utility Holding Company Act of

1935, as amended.

 

Section 7.20           Environmental

Matters.

 

(a)           Except

for instances of noncompliance with or exceptions to any of the following

representations and warranties that could not have, individually or in the

aggregate, a Material Adverse Effect:

 

(i)            The Loan Parties and all of their

respective Properties and operations are in full compliance with all

Environmental Laws in all material respects. 

Neither F.Y.I. nor any of its Subsidiaries is aware of, and neither

F.Y.I. nor any of its Subsidiaries has received written notice of, any past,

present or future conditions, events, activities, practices or incidents which

may interfere with or prevent the compliance or continued compliance by any

Loan Party with all Environmental Laws;

 

(ii)           The Loan Parties have obtained all

Permits that are required under applicable Environmental Laws, and all such

Permits are in good standing and all such Persons are in compliance with all of

the terms and conditions thereof;

 

(iii)          No Hazardous Materials exist on, about

or within or have been (to F.Y.I.'s or any of its Subsidiaries' knowledge) or

are being used, generated, stored, transported, disposed of on or Released from

any of the Properties of the Loan Parties except in compliance with applicable

Environmental Laws in all material respects. 

The use which the Loan Parties make and intend to make of their

respective Properties will not result in the use, generation, storage, transportation,

accumulation, disposal or Release of any Hazardous Material on, in or from any

of their Properties except in compliance with applicable Environmental Laws;

 

(iv)          Neither the Loan Parties nor any of

their respective currently or previously owned or leased Properties or

operations is subject to any outstanding or, to the best of F.Y.I.'s or any of

its Subsidiaries' knowledge, threatened order from or agreement with any

Governmental Authority or other Person or subject to any judicial or administrative

proceeding with respect to (A) any failure to comply with Environmental

Laws, (B) any Remedial Action, or (C) any Environmental Liabilities;

 

(v)           There are no conditions or

circumstances associated with the currently or previously owned or leased Properties

or operations of the Loan Parties that could reasonably be expected to give

rise to any Environmental Liabilities or claims resulting in any Environmental

Liabilities.  None of the Loan Parties

is subject to, or has received written notice of any claim from any Person

alleging that any of the Loan Parties is or will be subject to, any

Environmental Liabilities;

 

(vi)          None of the Properties of the Loan

Parties is a treatment facility (except for the recycling of Hazardous

Materials generated on-site and the treatment of liquid wastes subject to the

Clean Water Act or other applicable Environmental Law) for temporary storage of

Hazardous Materials generated on-site prior to their disposal off-site) or

disposal facility requiring a permit under the Resource Conservation and

Recovery Act, 42 U.S.C. ' 6901 et seq., regulations thereunder or

any comparable provision of state law. 

The Loan Parties and their Subsidiaries are compliance with all

applicable financial responsibility requirements of all Environmental Laws; and

 

(vii)         None of the Loan Parties has failed to

file any notice required under applicable Environmental Law reporting a

Release.

 

(b)           No

Lien arising under any Environmental Law has attached to any Property or

revenues of any Loan Party.

 

Section 7.21           Labor

Disputes and Acts of God.  Neither the business nor the Properties of any Loan Party are

affected by any fire, explosion, accident, strike, lockout or other labor

dispute, drought, storm, hail, earthquake, embargo, act of God or of the public

enemy or other casualty (whether or not covered by insurance) that is having or

could have a Material Adverse Effect.

 

Section 7.22           Material

Contracts. 

Attached hereto as Schedule 7.22 is a complete list, as of the

Closing Date and the Effective Date, of all Material Contracts of the Loan

Parties, other than the Loan Documents. 

All of the Material Contracts are in full force and effect and none of

the Loan Parties is in default under any Material Contract and, to the best of

F.Y.I.'s or any of its Subsidiaries' 

knowledge after due inquiry, no other Person that is a party thereto is

in default under any of the Material Contracts.  None of the Material Contracts prohibit the transactions

contemplated under the Loan Documents. 

All of the Material Contracts have been transferred or assigned to, or

are currently in the name of, a Loan Party. 

F.Y.I. has delivered to the Administrative Agent a complete and current

copy of each Material Contract (other than purchase orders entered into in the

ordinary course of business) existing on the Closing Date and, with respect to

each Material Contract (other than purchase orders entered into in the ordinary

course of business) entered into after the Closing Date, will deliver to the

Administrative Agent a complete and current copy of such Material Contract in a

reasonably prompt fashion after the creation thereof.

 

Section 7.23           Bank

Accounts.  As of the Closing Date and the Effective

Date, Schedule 7.23 sets forth the account numbers and location of all

primary bank accounts of F.Y.I.

 

Section 7.24           Outstanding

Securities.  As of

the Closing Date and the Effective Date, all outstanding securities (as defined

in the Securities Act of 1933, as amended, or any successor thereto, and the

rules and regulations of the Securities and Exchange Commission thereunder) of

the Loan Parties have been offered, issued, sold and delivered in compliance

with all applicable Governmental Requirements.  As of the Closing Date and the Effective

Date, F.Y.I. has filed all registration statements, reports and other documents

required to be filed by it with the Securities and Exchange Commission and all

such registration statements, reports and other documents are true and correct

in all material respects.

 

Section 7.25           Solvency.  F.Y.I. and each of its Subsidiaries, as a

separate entity, is Solvent as of the Closing Date and the Effective Date.

 

Section 7.26           Employee

Matters.  Except

as set forth on Schedule 7.26, as of the Closing Date and the Effective

Date (a) none of the Loan Parties or any of its respective Subsidiaries,

or any of its respective employees, is subject to any collective bargaining

agreement, and (b) no petition for certification or union election is

pending with respect to the employees of any Loan Party or any of its respective

Subsidiaries, and no union or collective bargaining unit has sought such

certification or recognition with respect to the employees of any of the Loan

Parties or any of its respective

Subsidiaries.  There are no strikes,

slowdowns, work stoppages or controversies pending or, to the best knowledge of

F.Y.I. or any of its Subsidiaries after due inquiry, threatened against,

any of the Loan Parties or any of its respective Subsidiaries, and its

respective employees, which could have, either individually or in the

aggregate, a Material Adverse Effect. 

Except as set forth on Schedule 7.26, as of the Closing Date and

the Effective Date, none of the Loan Parties or any of its respective

Subsidiaries is subject to an employment contract.

 

Section 7.27           Insurance.  Schedule 7.27 sets forth a summary

description of all policies of insurance that will be in effect as of the

Closing Date and the Effective Date for F.Y.I. and its Subsidiaries.  To the extent such policies have not been

replaced, no notice of cancellation has been received for such policies and

F.Y.I. and its Subsidiaries are in compliance with all of the terms and

conditions of such policies.

 

Section 7.28           Common

Enterprise.  The

expertise and efforts of F.Y.I. and each of its Subsidiaries support and benefit

the other members of their affiliated corporate group.  F.Y.I. and each Subsidiary expect to derive

substantial benefit (and F.Y.I. and each Subsidiary may reasonably be expected

to derive substantial benefit), directly and indirectly, from the Loans,

Letters of Credit and the other transactions contemplated by this Agreement,

both in their separate capacities and as a member of an affiliated and

integrated corporate group.  F.Y.I. and

each Subsidiary will receive reasonably equivalent value in exchange for the

collateral and guaranty being provided by it pursuant to Article 5 as

security for the payment and performance of the Obligations.

 

ARTICLE 8

 

Affirmative Covenants

 

F.Y.I.

covenants and agrees that, as long as the Obligations or any part thereof are

outstanding or any Lender has any Commitment hereunder or any Letter of Credit

remains outstanding, it will perform and observe, or cause to be performed and

observed, the following covenants:

 

Section 8.1             Reporting

Requirements.  F.Y.I. will furnish to the Administrative

Agent (and the Administrative Agent shall distribute a copy of the same to each

Lender in a reasonably prompt fashion after its receipt thereof):

 

(a)           Annual

Financial Statements.  As soon as

available, and in any event within 90 days after the end of each fiscal year of

F.Y.I., beginning with the fiscal year ending December 31, 2000,

(i) a copy of the annual audit report of F.Y.I. and its consolidated

Subsidiaries as of the end of and for such fiscal year then ended containing,

on a consolidated and (if requested by the Administrative Agent) consolidating

basis, balance sheets and statements of income, retained earnings and cash

flow, in each case setting forth in comparative form the figures for the

preceding fiscal year, all in reasonable detail and audited and certified by

independent certified public accountants of recognized standing acceptable to

the Administrative Agent and containing no qualification thereto except as may

be reasonably acceptable to the Administrative Agent, to the effect that such

report has been prepared in accordance with GAAP, (ii) a certificate of

such independent certified public accountants to the Administrative Agent

(A) stating that to their knowledge no Default has occurred and is

continuing or, if in their opinion a Default has occurred and is continuing,

stating the nature thereof, and (B) confirming the calculations set forth

in the officer's certificate delivered concurrently therewith, and

(iii) if requested by the Administrative Agent, unaudited consolidating

balance sheets and statements of income, retained earnings and cash flow, in

each case setting forth in comparative form the figures for the preceding

fiscal year;

 

(b)           Quarterly

Financial Statements.  As soon as

available, and in any event within 45 days after the end of each of the first

three quarters of each fiscal year of F.Y.I., beginning with the fiscal quarter

ending March 31, 2001, a copy of (i) an unaudited financial report of

F.Y.I. and its consolidated Subsidiaries as of the end of such fiscal quarter

and for the portion of the fiscal year then ended containing, on a consolidated

basis, balance sheets and statements of income, retained earnings and cash

flow, in each case setting forth in comparative form the figures for the corresponding

period of the preceding fiscal year, all in reasonable detail certified by a

Responsible Officer of F.Y.I. to have been prepared in accordance with GAAP and

to fairly and accurately present (subject to year-end audit adjustments) the

financial condition and results of operations of F.Y.I. and its consolidated

Subsidiaries, on a consolidated basis, at the date and for the periods

indicated therein and (ii) management's financial reports comparing actual

financial results for the period to the current budget for the period;

 

(c)           Compliance

Certificate.  Concurrently with the

delivery of each of the financial statements referred to in Sections 8.1(a)

and 8.1(b)), a certificate, substantially in the form of Exhibit G  hereto, of a Responsible Officer of F.Y.I.

(i) stating that, to the best of such officer's knowledge, no Default has

occurred and is continuing or, if a Default has occurred and is continuing,

stating the nature thereof and the action that has been taken and is proposed

to be taken with respect thereto, and (ii) showing (with respect to each

certificate delivered concurrently with the delivery of each of the financial

statements referred to in Section 8.1(a) and 8.1(b)) in

reasonable detail the calculations demonstrating compliance with Section

9.5(i) and Article 10, (iii) summarizing all material information

regarding each Acquisition made during the fiscal quarter then most recently

ended, which information shall include the names of the acquiror and the entity

whose Capital Stock or assets were acquired, the nature of the assets owned by

the acquired entity or acquired directly (as applicable), the nature of the

business of the acquired entity or in which the assets acquired were and will

be utilized (as applicable), the amount of the purchase price and all other

consideration paid and payable in connection with such Acquisition and the form

of such purchase price or other consideration, the remaining amount (if any) in

each "basket" referred to in the definition of the term "Permitted

Acquisition" after giving effect to all of such Acquisitions and such

other information as the Administrative Agent may reasonably request, (iv)

attaching (unless the Administrative Agent has agreed that the same need not be

attached) the most recent financial statements of the entity whose Capital

Stock or assets were acquired that are available to F.Y.I. and (if the

Administrative Agent so requests) a copy of all Permitted Acquisition Documents

relating to such Acquisition referred to in clause (iii) preceding, and

(v) certifying that each Acquisition referred to in clause (iii)

preceding is a Permitted Acquisition (and including financial data supporting

such certification if requested by the Administrative Agent) and that no other

Acquisitions were consummated during the fiscal quarter then most recently

ended;

 

(d)           Budget.  Promptly upon any request therefor by the

Administrative Agent,  a copy of the

budget of F.Y.I. and its Subsidiaries on a consolidated basis for each fiscal

year (segregated by entity with respect to each entity, if any, to be acquired

which is included in such budget and segregated by quarter or month and setting

forth all material assumptions);

 

(e)           Management

Letters.  Promptly upon any request

therefor by the Administrative Agent, a copy of any management letter or

written report submitted to any Loan Party by independent certified public

accountants with respect to the business, condition (financial or otherwise),

operations, prospects or Properties of any such Person;

 

(f)            Notice

of Litigation.  Promptly after the

commencement thereof, notice of all actions, suits and proceedings before any

Governmental Authority or arbitrator affecting any Loan Party which, if

determined adversely to any such Person could have a Material Adverse Effect;

 

(g)           Notice

of Default.  As soon as possible and

in any event immediately upon F.Y.I.'s knowledge or the knowledge of any

Subsidiary of F.Y.I. of the occurrence of any Default, a written notice setting

forth the details of such Default and the action that F.Y.I. or such Subsidiary

has taken and proposes to take with respect thereto, and F.Y.I. will also at

that time provide notice of such Default to each holder of Seller Subordinated

Debt;

 

(h)           ERISA

Reports.  Promptly after the filing

or receipt thereof, copies of all reports, including annual reports, and

notices which any Loan Party or any of its ERISA Affiliates files with or

receives from the PBGC or the U.S. Department of Labor under ERISA; and as soon

as possible and in any event within five days after any such Person knows or

has reason to know that any Pension Plan is insolvent, or that any Reportable

Event or Prohibited Transaction has occurred with respect to any Plan or that

the PBGC, any Loan Party or any ERISA Affiliate has instituted or will institute

proceedings under ERISA to terminate or withdraw from or reorganize any Pension

Plan, a certificate of a Responsible Officer of such Loan Party setting forth

the details as to such insolvency, withdrawal, Reportable Event, Prohibited

Transaction, tax or penalty or termination and the action that such Loan Party

has taken and proposes to take with respect thereto;

 

(i)            Reports

to Other Creditors.  Promptly after

the furnishing thereof, a copy of any statement or report furnished by any Loan

Party to any other party pursuant to the terms of any indenture, loan, stock

purchase or credit or similar agreement and not otherwise required to be

furnished to the Administrative Agent and the Lenders pursuant to any other

subsection of this Section 8.1;

 

(j)            Notice

of Material Adverse Effect.  Within

five Business Days after F.Y.I. or any Subsidiary of F.Y.I. becomes aware

thereof, written notice of any matter that could have a Material Adverse

Effect;

 

(k)           Proxy

Statements, Etc.  Promptly upon any

request therefor by the Administrative Agent, one copy of each financial

statement, report, notice or proxy statement sent by any Loan Party to its

stockholders generally and one copy of each regular, periodic or special

report, registration statement or prospectus filed by any Loan Party with any

securities exchange or the Securities and Exchange Commission or any successor

agency, and of all press releases and other statements made by any of the Loan

Parties to the public containing material developments in its business;

 

(l)            Notice

of New Properties and Subsidiaries. 

If additional security has been granted (and not released) in accordance

with the terms of Section 5.4, concurrently with the delivery of each of

the financial statements referred to in Sections 8.1(a) and 8.1(b),

notice of (i) any real Property acquired or any lease of real Property

which meets the criteria set forth in Section 5.4 entered into by F.Y.I.

or any of its Subsidiaries as lessee, (ii) any additional patents,

copyrights and trademarks, and any other Intellectual Property of which the

Administrative Agent should be aware in order to ensure its Lien thereon,

acquired by F.Y.I. or any of its Subsidiaries, and (iii) the creation or

acquisition of any direct or indirect Subsidiary of F.Y.I. after the Closing

Date and subsequent to the last delivery of such information;

 

(m)          Appraisals.  From time to time if the Administrative

Agent determines that such appraisals are required to comply with applicable

Governmental Requirements or to syndicate the Loans, appraisals of the

Mortgaged Properties reasonably satisfactory in form and substance to the

Administrative Agent (such appraisals to be at the expense of F.Y.I.);

 

(n)           Insurance.  Within 30 days after any request therefor by

the Administrative Agent, a report in form and substance reasonably

satisfactory to the Administrative Agent summarizing all material insurance

coverage maintained by F.Y.I. and its Subsidiaries as of the date of such

report and all material insurance coverage planned to be maintained by such

Persons in the subsequent fiscal year;

 

(o)           Plan

Information.  From time to time, as

reasonably requested by the Administrative Agent or any Lender, such books,

records and other documents relating to the any Pension Plan as the

Administrative Agent or any Lender shall specify; prior to any termination,

partial termination or merger of a Pension Plan covering employees of F.Y.I. or

any Subsidiary of F.Y.I. or any ERISA Affiliate, or a transfer of assets of a

Pension Plan covering employees of F.Y.I. or any Subsidiary of F.Y.I. or any

ERISA Affiliate, written notification thereof; promptly upon F.Y.I.'s or any

F.Y.I. Subsidiary's receipt thereof, a copy of any determination letter or

advisory opinion regarding any Pension Plan received from any Governmental

Authority and any amendment or modification thereto as may be necessary as a

condition to obtaining a favorable determination letter or advisory opinion;

and promptly upon the occurrence thereof, written notification of any action

requested by any Governmental Authority to be taken as a condition to any such

determination letter or advisory opinion;

 

(p)           Environmental

Assessments and Notices.  Promptly

after the receipt thereof, a copy of each environmental assessment (including

any analysis relating thereto) prepared with respect to any real Property of

any Loan Party and each notice sent by any Governmental Authority relating to

any failure or alleged failure to comply with any Environmental Law or any

liability with respect thereto;

 

(q)           General

Information.  Promptly, such other

information concerning the Loan Parties and their respective Subsidiaries as

the Administrative Agent or any Lender may from time to time reasonably

request; and

 

(r)            Solvency

Certificate.  At the time of the

making of the initial Loan or the issuance of the initial Letter of Credit and

at the making of each Loan thereafter, a Solvency Certificate.

 

Section 8.2             Maintenance

of Existence, Conduct of Business.  F.Y.I. will, and will cause each of its

Subsidiaries to (except as may be otherwise permitted by Section 9.3),

preserve and maintain its corporate existence and all of its material leases,

privileges, licenses, Permits, franchises, qualifications, Intellectual

Property, intangible Property and rights that are necessary in the ordinary

conduct of its business.  F.Y.I. will,

and will cause each of its Subsidiaries to, conduct its business in an orderly

and efficient manner in accordance with good business practices, in each case in

all material respects.

 

Section 8.3             Maintenance

of Properties. 

F.Y.I. will, and will in all material respects cause each of its

Subsidiaries to, maintain, keep and preserve all of its Properties necessary or

appropriate in the proper conduct of its business in good repair, working order

and condition (ordinary wear and tear excepted) and make all necessary repairs,

renewals, replacements, betterments and improvements thereof.

 

Section 8.4             Taxes

and Claims. 

F.Y.I. will, and will cause each of its Subsidiaries to, pay or

discharge at or before maturity or before becoming delinquent (a) all

taxes, levies, assessments and governmental charges (other than those which do

not, in the aggregate, exceed $100,000 in amount) imposed on it or its income

or profits or any of its Property and (b) all lawful claims for labor,

material and supplies, which, if unpaid, might become a Lien upon any of its

Property; provided, however, that neither F.Y.I. nor any of its

Subsidiaries shall be required to pay or discharge any tax, levy, assessment or

governmental charge or claim for labor, material or supplies whose amount,

applicability or validity is being contested in good faith by appropriate

proceedings being diligently pursued and for which adequate reserves have been

established under GAAP.

 

Section 8.5             Insurance.

 

(a)           F.Y.I.

will, and will cause each of its Subsidiaries to, keep insured by financially

sound and reputable insurers all Property of a character usually insured by

responsible corporations engaged in the same or a similar business similarly

situated against loss or damage of the kinds and in the amounts customarily

insured against by such corporations or entities and carry such other insurance

as is usually carried by such corporations or entities, provided that in

any event F.Y.I. and its Subsidiaries (as appropriate) will maintain:

 

(i)            Property Insurance. Insurance

against loss or damage covering substantially all of the tangible real and

personal Property and improvements of F.Y.I. and each of its Subsidiaries by

reason of any Peril (as defined below) in such amounts (subject to any

deductibles as shall be satisfactory to the Administrative Agent) as shall be

reasonable and customary and sufficient to avoid the insured named therein from

becoming a co-insurer of any loss under such policy, but in any event in such

amounts as are reasonably available as determined by F.Y.I.'s independent

insurance broker reasonably acceptable to the Administrative Agent.

 

(ii)           Automobile Liability Insurance for

Bodily Injury and Property Damage. 

Insurance in respect of all vehicles (whether owned, hired or rented by

F.Y.I. or any of its Subsidiaries) at any time located at, or used in

connection with, its Properties or operations against liabilities for bodily

injury and Property damage in such amounts as are then customary for vehicles

used in connection with similar Properties and businesses, but in any event to

the extent required by applicable law.

 

(iii)          Comprehensive General Liability

Insurance.  Insurance against claims

for bodily injury, death or Property damage occurring on, in or about the

Property (and adjoining streets, sidewalks and waterways) of F.Y.I. and its

Subsidiaries, in such amounts as are then customary for Property similar in use

in the jurisdictions where such Properties are located.

 

(iv)          Worker's Compensation Insurance.  Worker's compensation insurance (including

employers' liability insurance) to the extent required by applicable law, which

may be self-insurance to the extent permitted by applicable law.

 

(v)           Product Liability Insurance.  Insurance against claims for bodily injury,

death or Property damage resulting from the use of products sold by F.Y.I. or

any of its Subsidiaries to the extent and in such amounts as then customarily

maintained by responsible Persons engaged in businesses similar to that of

F.Y.I. and/or any of its Subsidiaries.

 

(vi)          Business Interruption Insurance.  Insurance against loss of operating income

earned from the operation of the Properties of F.Y.I. and its Subsidiaries, by

reason of any Peril (to the extent reasonably available) affecting the

operation thereof, and insurance against any other insurable loss of operating

income by reason of any business interruption affecting F.Y.I. or any of its

Subsidiaries to the extent covered by standard business interruption policies

in the applicable states.

 

Such insurance shall be

written by financially responsible companies selected by F.Y.I. and having an

A.M. Best Rating of "A-" or better and being in a financial size

category of "VI" or larger, or by other companies reasonably

acceptable to the Required Lenders.  No

later than the date of the making of the initial Loan or the issuance of the

initial Letter of Credit, each policy referred to in this Section 8.5

shall provide that it will not be canceled, amended or reduced except after not

less than 30 days' prior written notice to the Administrative Agent and shall

also provide that the interests of the Administrative Agent and the Lenders

shall not be invalidated by any act or negligence of F.Y.I. or any of its

Subsidiaries.  F.Y.I. will advise the

Administrative Agent promptly of any policy cancellation, reduction or

amendment.  For purposes hereof, the

term "Peril" shall mean, collectively, fire, lightning, flood,

windstorm, hail, explosion, riot and civil commotion, vandalism and malicious

mischief, damage from aircraft, vehicles and smoke and other perils covered by

the "all-risk" endorsement then in use in the jurisdictions where the

Properties of F.Y.I. and its Subsidiaries are located.

 

(b)           If

a Default shall have occurred and be continuing, F.Y.I. will cause all proceeds

of insurance paid on account of the loss of or damage to any Property of F.Y.I.

or any of its Subsidiaries and all awards of compensation for any Property of

F.Y.I. or any of its Subsidiaries taken by condemnation or eminent domain to be

paid directly to the Administrative Agent to be applied against or held as

security for the Obligations, at the election of the Administrative Agent and

the Required Lenders.

 

Section 8.6             Inspection

Rights.  F.Y.I. will,

and will cause each of its Subsidiaries to, permit representatives and agents

of the Administrative Agent and each Lender, during normal business hours and

upon reasonable notice to F.Y.I., to examine, copy and make extracts from its

books and records, to visit and inspect its Properties and to discuss its

business, operations and financial condition with its officers and independent

certified public accountants.  F.Y.I.

will authorize its accountants in writing (with a copy to the Administrative

Agent) to comply with this Section 8.6. 

The Administrative Agent or its representatives may, at any time and

from time to time at F.Y.I.'s expense, conduct field exams for such purposes as

the Administrative Agent may reasonably request.

 

Section 8.7             Keeping

Books and Records. 

F.Y.I. will, and will cause each of its Subsidiaries to, maintain

appropriate books of record and account in accordance with GAAP consistently

applied in which true, full and correct entries will be made of all their

respective dealings and business affairs. 

If any Accounting Changes from the accounting principles used in the

preparation of the financial statements referenced in Section 8.1 are

hereafter required or permitted by GAAP and are adopted by any F.Y.I. or any of

its Subsidiaries, the provisions of Section 1.3(a) shall be applicable

thereto; provided that, until any necessary amendments have been made,

the certificate required to be delivered under Section 8.1(c) hereof

demonstrating compliance with Article 10 shall include calculations

setting forth the adjustments from the relevant items as shown in the current

financial statements based on the changes to GAAP to the corresponding items

based on GAAP as used in the financial statements referenced in Section 7.2(a),

in order to demonstrate how such financial covenant compliance was derived from

the current financial statements.

 

Section 8.8             Compliance

with Laws.  F.Y.I. will, and will cause each of its

Subsidiaries to, comply with all applicable Governmental Requirements, except

for instances of noncompliance that could not have, individually or in the

aggregate, a Material Adverse Effect.

 

Section 8.9             Compliance

with Agreements. 

F.Y.I. will, and will cause each of its Subsidiaries to, comply with all

agreements, contracts and instruments binding on it or affecting its Properties

or business, except for instances of noncompliance that could not have,

individually or in the aggregate, a Material Adverse Effect.

 

Section 8.10           Further

Assurances. 

F.Y.I. will, and will cause each of its Subsidiaries to, execute and

deliver such further agreements, documents and instruments and take such

further action as may be reasonably requested by the Administrative Agent to

carry out the provisions and purposes of this Agreement and the other Loan

Documents, to evidence the Obligations and to create, preserve, maintain and

perfect the Liens of the Administrative Agent for the benefit of

itself and the Lenders in and to the Collateral and the required priority of

such Liens.

 

Section 8.11           ERISA;

Plans.  F.Y.I.

will, and will cause each of its ERISA Affiliates to, comply with all minimum

funding requirements and all other material requirements of ERISA or other

comparable Governmental Requirement, if applicable, so as not to give rise to

any liability thereunder.

 

Section 8.12           Trade

Accounts Payable. 

F.Y.I. will, and will cause each of its Subsidiaries to, pay all trade

accounts payable before the same become more than 90 days past due, except

(a) trade accounts payable contested in good faith or (b) trade

accounts payable in an aggregate amount not to exceed at any time outstanding

$400,000 and with respect to which no proceeding to enforce collection has been

commenced or, to the knowledge of F.Y.I. or any Subsidiary of F.Y.I.,

threatened.

 

Section 8.13           No

Consolidation. 

F.Y.I. will, and (except with respect to clause (a)

succeeding which shall not be applicable to Subsidiaries of F.Y.I.) will cause

each of its Subsidiaries to:

 

(a)           with

respect to F.Y.I. only, provide that, at all times, at least one

(1) member of its board of directors or at least one (1) of its

officers will be a Person who is not an officer, director or employee of any

Affiliate of F.Y.I. or any other Subsidiary;

 

(b)           maintain

corporate records and books of account separate from those of any corporation

which is an Affiliate of F.Y.I. and separate from those of any Subsidiary of

F.Y.I.;

 

(c)           not

commingle its funds or assets with those of any corporation which is an

Affiliate of F.Y.I. or with those of any Subsidiary of F.Y.I.; and

 

(d)           provide

that its board of directors will hold all appropriate meetings (or, to the

extent allowed by applicable law, act by written consent) to authorize and

approve such Person's corporate actions.

 

Section 8.14           Interest

Rate Protection. 

F.Y.I. will, commencing on or before the 120th day after the Closing

Date, maintain in full force and effect for a period of two years, one or more

Interest Rate Protection Agreements, in form and substance reasonably

satisfactory to the Administrative Agent, that enable F.Y.I. to fix or place a limit upon a rate of interest

with respect to at least an aggregate notional amount of the lesser of

$50,000,000 or 100% of the Funded Debt of F.Y.I. and its Subsidiaries bearing

interest at a variable rate.

 

ARTICLE

9

 

Negative Covenants

 

Each

of F.Y.I. and each of its Subsidiaries jointly and severally covenants and

agrees that, as long as the Obligations or any part thereof are outstanding or

any Lender has any Commitment hereunder or any Letter of Credit remains outstanding,

it will perform and observe, or cause to be performed and observed, the

following covenants:

 

Section 9.1             Debt.  F.Y.I. will not, and will not permit any of

its Subsidiaries to, incur, create, assume or permit to exist any Debt, except:

 

(a)           Debt

of F.Y.I. and its Subsidiaries to the Lenders pursuant to the Loan Documents;

 

(b)           Existing

Debt described on Schedule 7.10 hereto and renewals, replacements (on

terms no more onerous to the borrower than the existing terms), and extensions

of such Debt which do not increase the outstanding principal amount of, such

Debt and the terms and provisions of which are not materially more onerous than

the terms and conditions of such Debt on the Closing Date;

 

(c)           purchase

money Debt (including, without limitation, Capital Lease Obligations) secured

by purchase money Liens, which Debt and Liens are permitted under and meet all

of the requirements of clause (g) of the definition of "Permitted

Liens" contained in Section 1.1; provided, however,

that (i) the aggregate outstanding principal amount of purchase money Debt

(including, without limitation, Capital Lease Obligations) permitted by this Section

9.1(c) plus (ii) the aggregate, unamortized sales price paid to

F.Y.I. and/or its Subsidiaries with respect to sales of Property in connection

with Sale and Leaseback Transactions shall not at any time exceed $10,000,000;

 

(d)           Seller

Subordinated Debt and other Debt that is subordinated to the Obligations

pursuant to documentation in form and substance reasonably satisfactory to the

Administrative Agent ("Other Subordinated Debt"); provided,

however, that (i) the aggregate outstanding principal amount of Seller

Subordinated Debt shall not at any time exceed $10,000,000, (ii) the aggregate

principal amount of Other Subordinated Debt shall not at any time exceed

$10,000,000, (iii) any Other Subordinated Debt created or incurred shall be

unsecured and shall not mature until after the Maturity Date, and (iv) no

Seller Subordinated Debt or Other Subordinated Debt may be created or incurred

during the continuance of any Default or Event of Default or if a Default or

Event of Default would result from the creation or incurrence of such Debt;

 

(e)           Intercompany

Debt between or among F.Y.I. and any of its Wholly-Owned Subsidiaries incurred

in the ordinary course of business, subject to the requirement that any and all

of the Debt permitted pursuant to this Section 9.1(e) shall be

unsecured, shall be evidenced by instruments satisfactory to the Administrative

Agent which will be pledged to the Administrative Agent for the benefit of the

Administrative Agent and the Lenders and shall be subordinated to the

Obligations pursuant to a subordination agreement in form and substance

satisfactory to the Administrative Agent (the foregoing being referred to as

"Intercompany Debt"); provided also that the

aggregate sum of (i) the outstanding principal amount of the loans, advances

and other extensions of credit made to Foreign Subsidiaries by F.Y.I. and its

Domestic Subsidiaries plus (ii) the Investments by F.Y.I. in any Foreign

Subsidiary (collectively, the "Foreign Debt and Investment")

shall not at any time exceed an amount equal to the product of the book value

of the total assets of F.Y.I. and its Subsidiaries, on a consolidated basis in

accordance with GAAP, multiplied by 5% (such product herein the "Maximum

Foreign Amount").

 

(f)            Obligations

under Interest Rate Protection Agreements and Currency Hedge Agreements, provided

that each counterparty shall be Bank of America or another counterparty rated

in one of the three highest rating categories of Standard and Poors Corporation

or Moody's Investors Service, Inc., and provided that the maximum amount for

which interest may be fixed or capped under all such Interest Rate Protection

Agreements may not exceed one hundred percent (100%) of the Debt of F.Y.I. and

its Subsidiaries, and provided further, however, that the maximum amount of

currency for which risk may be hedged under a Currency Hedge Agreement may not

exceed one hundred percent (100%) of the foreign currency at risk in the

transactions in which F.Y.I. and its Subsidiaries are engaged;

 

(g)           Liabilities

of F.Y.I. or any F.Y.I. Subsidiary in respect of unfunded vested benefits under

any Plan if and to the extent that the existence of such liabilities will not

constitute, cause or result in a Default; and

 

(h)           Up

to $27,500,000 of additional Obligations under this Agreement (secured by the

Collateral) in the event that F.Y.I. is able to identify existing or additional

Lenders willing to commit to advance such additional amount, provided

that (i) if F.Y.I. identifies additional Lenders willing to commit such

additional amount, F.Y.I. shall give the existing Lenders notice of its intent

to amend this Agreement to include such additional Lenders and the existing

Lenders shall have a 30 day period after the receipt of such notice to increase

their commitments hereunder prior to any such amendment, (ii) as of the Closing

Date and the Effective Date, none of the Lenders party hereto have agreed to

commit to advance any such additional amount, (iii) the weighted average life

to maturity and maximum contractual interest rate of such additional

Obligations shall not exceed (or, in the case of maturity, be materially less

than) those of the current Obligations, (iv) no changes to the covenants

contained herein will be made without the consent of Required Lenders, (v) no

Default or Event of Default shall have occurred and be continuing, and (vi)

such additional commitments and obligations must be evidenced by an amendment

to this Agreement in form and substance satisfactory to the Administrative

Agent (without further approval by or execution of such amendment by the

Lenders (other than the existing or new Lenders providing such increased or new

commitments) being required);

 

provided,

however, that, notwithstanding the foregoing, the aggregate outstanding

principal amount of Debt of F.Y.I. and the Subsidiaries of F.Y.I., exclusive of

Debt referred to in clauses (a) and (h) preceding, shall not at

any time exceed $25,000,000.

 

Section 9.2             Limitation

on Liens.  F.Y.I. will not, and will not permit any of

its Subsidiaries to, incur, create, assume or permit to exist any Lien upon any

of its Property or revenues, whether now owned or hereafter acquired, except

Permitted Liens.

 

Section 9.3             Mergers,

Etc. F.Y.I. will not, and will not permit its

Subsidiaries to, (a) become a party to a merger or consolidation,

(b) wind-up, dissolve or liquidate itself, or (c) purchase or acquire

all or a material or substantial part of the business or Properties of any

Person; provided, however, that (i) Permitted Acquisitions

(but no other Acquisitions) shall be permitted, and (ii)  any Subsidiary

of F.Y.I. that is not a Foreign Subsidiary may merge with and into F.Y.I. if

F.Y.I. is the entity surviving such merger and any Subsidiary of F.Y.I. that is

not a Foreign Subsidiary may merge with and into any Wholly-Owned Subsidiary of

F.Y.I. that is not

a

Foreign Subsidiary if such Wholly-Owned Subsidiary is the entity surviving such

merger and no consideration is given by the surviving entity in such merger

other than Capital Stock of the surviving entity and such Capital Stock is

pledged to the Administrative Agent, on behalf of the Administrative Agent and

the Lenders, as security for the Obligations pursuant to Section 9.6.

The surviving entity in any such merger shall ratify the Security Documents and

other obligations of the non-surviving entity under the Loan Documents.

 

Section 9.4             Restricted

Payments.  F.Y.I.

will not, and will not permit any of its Subsidiaries to, make any Restricted

Payments, except:

 

(a)           Subsidiaries

of F.Y.I. may declare and pay dividends to F.Y.I.;

 

(b)           The

Subsidiaries of F.Y.I. may make tax payments to F.Y.I. if and to the extent

that all such payments are promptly paid by F.Y.I. to the appropriate

Governmental Authority to whom such payments are owed; provided that in no

event shall such payments be greater than the amounts actually paid by F.Y.I.

in respect of such taxes;

 

(c)           To

the extent required by the terms of any employment agreement, purchases by

F.Y.I. of shares of F.Y.I. Common Stock from employees of F.Y.I. or its

Subsidiaries upon the termination of the employment of such employees, provided

that the amount paid therefor shall not exceed the fair market value of such

shares to be purchased and shall not exceed $250,000 in the aggregate during

any fiscal year or a cumulative total of $350,000 in the aggregate during the

term of this Agreement and F.Y.I. shall grant to the Administrative Agent, for

the benefit of the Administrative Agent and the Lenders, a Lien on all of such

shares purchased by F.Y.I. as security for the Obligations pursuant to a pledge

agreement in form and substance reasonably satisfactory to the Administrative

Agent;

 

(d)           F.Y.I.

may make Permitted Share Repurchases; and

 

(e)           To

the extent permitted under Sections 9.5(g) and 9.5(h);

 

provided,

however, that no Restricted Payments may be made pursuant to clauses

(a), (b), (c), (d) or (e) preceding if a

Default exists at the time of such Restricted Payment or would result

therefrom.

 

Section 9.5             Investments.  F.Y.I. will not, and will not permit any of

its Subsidiaries to, make or permit to remain outstanding any advance, loan,

extension of credit or capital contribution to or investment in any Person, or

purchase or own any stock, bonds, notes, debentures or other securities of any

Person, or be or become a joint venturer with or partner of any Person (all

such transactions being herein called "Investments"), except:

 

(a)           Investments

in obligations or securities received in settlement of debts (created in the

ordinary course of business) owing to F.Y.I. or any of its Subsidiaries;

 

(b)           Existing

Investments identified on Schedule 9.5 hereto;

 

(c)           Investments

in securities issued or guaranteed by the U.S. or any agency thereof with

maturities of one year or less from the date of acquisition;

 

(d)           Investments

in certificates of deposit and Eurodollar time deposits with maturities of six

months or less from the date of acquisition, bankers' acceptances with

maturities not exceeding six months and overnight bank deposits, in each case

with any Lender or with any domestic commercial bank having capital and surplus

in excess of $500,000,000;

 

(e)           Investments

in repurchase obligations with a term of not more than seven days for

securities of the types described in clause (c) preceding with any

Lender or with any domestic commercial bank having capital and surplus in

excess of $500,000,000;

 

(f)            Investments

in commercial paper of a domestic issuer rated A-1 or better or P-1 or better

by Standard & Poor's Corporation or Moody's Investors Services, Inc.,

respectively, maturing not more than six months from the date of acquisition,

including, without limitation, the Dreyfus Cash Management Plus fund or similar

funds used to facilitate efficient short-term cash management;

 

(g)           (i)

Investments by F.Y.I. and its Subsidiaries in its Subsidiaries existing on the

Closing Date, (ii) any Investments of F.Y.I. in its Subsidiaries which

represent amounts invested in such Subsidiary to enable such Subsidiary (A) to

pay all or a portion of the purchase consideration for a Permitted Acquisition,

(B) to make Permitted Capital Expenditures, (C) to retire any Existing Debt, or

(D) to retire any Debt assumed in connection with a Permitted Acquisition, and

(iii) Investments by F.Y.I. in Wholly-Owned Subsidiaries of F.Y.I.; provided,

that the Foreign Debt and Investments shall not at any time exceed an amount

equal to the Maximum Foreign Amount.

 

(h)           Intercompany

Debt permitted pursuant to Section 9.1(e);

 

(i)            up

to $10,000,000 in Investments made by F.Y.I., and owned by F.Y.I. and not any

Subsidiary of F.Y.I., in publicly traded equity securities of a Person whose

material business and properties are all located in the U.S. or Canada and who

is engaged in a business similar or complementary to the business of F.Y.I. or

a Subsidiary of F.Y.I. and which has generated positive EBITDA during the

twelve-month period preceding the purchase of such securities so long as the

aggregate of such equity securities owned by F.Y.I. does not at any time exceed

(a) 5% of the total assets of F.Y.I. and its consolidated Subsidiaries as

determined in accordance with GAAP;

 

(j)            Investments

which constitute Permitted Acquisitions; and

 

(k)           Investments

made in the ordinary course of business by MMS Securities, Inc.;

 

provided,

however, that no Investments may be made by F.Y.I. or any of its

Subsidiaries pursuant to clause (g) or (h) preceding if a Default

exists at the time of such Investment or would result therefrom.

 

Section 9.6             Limitation

on Issuance of Capital Stock.  F.Y.I. will not permit any of its

Subsidiaries to, at any time issue, sell, assign or otherwise dispose of

(a) any of its Capital Stock, (b) any securities exchangeable for or

convertible into or carrying any rights to acquire any of its Capital Stock, or

(c) any option, warrant or other right to acquire any of its Capital Stock; provided,

however, that, if and to the extent not otherwise prohibited by this

Agreement or the other Loan Documents (i) a Subsidiary of F.Y.I. may issue

additional shares of its Capital Stock to F.Y.I. for full and fair

consideration, and (ii) F.Y.I. may engage in any merger permitted under clause

(ii) of the proviso to Section 9.3; provided, further,

however, that all of such additional shares of Capital Stock referred

to in clauses (i) and (ii) preceding and any shares of Capital

Stock issued in any merger referred to in clause (ii) preceding shall be

pledged to the Administrative Agent, on behalf of the Administrative Agent and

the Lenders, as security for the Obligations pursuant to a pledge agreement in

form and substance reasonably satisfactory to the Administrative Agent.

 

Section 9.7             Transactions

With Affiliates. 

Except for (a) the payment of salaries, bonus and incentive

compensation in the ordinary course of business consistent with prudent

business practices, and (b) the furnishing of employment benefits in the

ordinary course of business

consistent with prudent business practices, F.Y.I. will not, and will not

permit any of its Subsidiaries to, enter into any transaction, including,

without limitation, the purchase, sale or exchange of Property or the rendering

of any service, with any Affiliate, officer or director of F.Y.I. or such

Subsidiary except in the ordinary course of and pursuant to the reasonable

requirements of F.Y.I.'s or such Subsidiary's business and upon fair and

reasonable terms no less favorable to F.Y.I. or such Subsidiary, respectively,

than would be obtained in a comparable arms-length transaction with a Person

not an Affiliate, officer or director of F.Y.I. or such Subsidiary,

respectively.

 

Section 9.8             Disposition

of Property. 

F.Y.I. will not, and will not permit any of its Subsidiaries to, sell,

lease, assign, transfer or otherwise dispose of any of its Property, except:

 

(a)           dispositions

of Inventory in the ordinary course of business,

 

(b)           Asset

Dispositions by F.Y.I. and its Subsidiaries to Persons other than F.Y.I. and

its Subsidiaries if each of the following conditions has been satisfied:

(i) the Net Proceeds from any single Asset Disposition or series of

related Asset Dispositions in any fiscal year of F.Y.I. do not exceed $250,000

and the cumulative Net Proceeds from all Asset Dispositions do not exceed

$500,000, (ii) the consideration received by F.Y.I. or its Subsidiaries is

at least equal to the fair market value of such assets, (iii) the sole

consideration received is cash payable at the closing, provided, however, that

up to a cumulative total of $125,000 of Property may be disposed of by F.Y.I.

and its Subsidiaries on a combined basis on terms which defer payment of a

portion of the purchase price, (iv) no Default exists at the time of or

will result from such Asset Disposition, and (v) F.Y.I. makes, or causes

the appropriate Subsidiary to make, any payment required under Section 2.7;

 

(c)           Asset

Dispositions by F.Y.I. and its Subsidiaries to F.Y.I. or another Subsidiary if

each of the following conditions has been satisfied: (i) the aggregate

fair market value of the assets sold, disposed of or otherwise transferred

shall not exceed $250,000 in aggregate amount during any fiscal year,

(ii) the assets sold, disposed of or otherwise transferred shall, if

subject to a first priority Lien in favor of the Administrative Agent and the

Lenders, continue to be subject to a perfected, first priority Lien (except for

Permitted Liens, if any, which are expressly permitted by the Loan Documents to

have priority over the Liens in favor of the Administrative Agent) in favor of the

Administrative Agent and the Lenders, and (iii) no Default exists at the

time of or will result from such Asset Disposition;

 

(d)           dispositions

of Property no longer used or useful in the ordinary course of business;

 

(e)           Asset

Dispositions that were contemplated and disclosed to the Lenders at the time of

any Permitted Acquisition if the Asset Disposition occurs, and the Net Proceeds

thereof are applied, as required or permitted by Section 2.7;

 

(f)            Asset

Dispositions by Subsidiaries of F.Y.I., and Asset Dispositions consisting of a

sale of all of the issued and outstanding Capital Stock of a Subsidiary of

F.Y.I., if the aggregate fair market value of the Property sold or otherwise

transferred in connection with all of such Asset Dispositions on or after the

Closing Date does not exceed ten percent of the net book value of the tangible

assets of F.Y.I. and its Subsidiaries as of the date of any such Asset

Disposition;

 

(g)           Permitted

Dispositions; and

 

(h)           to

the extent permitted by Section 9.9, Sale and Leaseback Transactions.

 

Section 9.9             Sale

and Leaseback. 

F.Y.I. will not, and will not permit any of its Subsidiaries to, enter

into any arrangement with any Person pursuant to which it leases from such

Person real or personal Property that has been or is to be sold or transferred,

directly or indirectly, by it to such Person (which arrangement is hereinafter

called a "Sale and Leaseback Transaction"); provided, however,

that F.Y.I. and its Material Subsidiaries may enter into Sale and Leaseback

Transactions with one another; provided, further, however,

that Sale and Leaseback Transactions are permitted if and to the extent that,

after giving effect thereto, F.Y.I. and its Subsidiaries would be in compliance

with the proviso contained in Section 9.1(c).

 

Section 9.10           Lines

of Business.  F.Y.I. will not, and will not permit any of

its Subsidiaries to, engage in any line or lines of business activity other

than the businesses in which they are engaged on the Closing Date and lines of

business reasonably related thereto. 

F.Y.I. will not, without the prior written consent of the Required

Lenders, become an operating company and will not engage in any business

activity except for business activities relating to its ownership and

management of its Subsidiaries substantially consistent with its current

business activities.  F.Y.I. shall not

and shall not permit any of its Subsidiaries to own Property or conduct any

material business operations outside the U.S., Canada or, to the extent

permitted by the last proviso in the definition of Permitted Acquisitions,

Mexico and the Caribbean (provided that Data Center Del Norte, S.A. de

C.V. may own Property and conduct material business operations in Mexico and

Net Data Services, Ltd. may own Property and conduct material business

operations in St. Vincent, the Grenadines).

 

Section 9.11           Environmental

Protection. 

F.Y.I. will not, and will not permit any of its Subsidiaries to,

(a) use (or permit any tenant to use) any of its Properties for the

handling, processing, storage, transportation or disposal of any Hazardous

Material except in compliance with applicable Environmental Laws,

(b) generate any Hazardous Material except in compliance with applicable

Environmental Laws, (c) conduct any activity that is likely to cause a Release

or threatened Release of any Hazardous Material in violation of any

Environmental Law, or (d) otherwise conduct any activity or use any of its

Properties in any manner that violates or is likely to violate any

Environmental Law or create any Environmental Liabilities for which F.Y.I. or

any of its Subsidiaries would be responsible, except for circumstances or

events described in clauses (a) through (d) preceding that could

not have, individually or in the aggregate, a Material Adverse Effect.

 

Section 9.12           Intercompany

Transactions. 

Except as may be expressly permitted or required by the Loan Documents,

F.Y.I. will not, and will not permit any of its Subsidiaries to, create or otherwise

cause or permit to exist or become effective any consensual encumbrance or

restriction of any kind on the ability of any Subsidiary to (a) pay

dividends or make any other distribution to F.Y.I. or any of its Subsidiaries

in respect of such Subsidiary's Capital Stock or with respect to any other

interest or participation in, or measured by, its profits, (b) pay any

indebtedness owed to F.Y.I. or any of its Subsidiaries, (c) make any loan

or advance to F.Y.I. or any of its Subsidiaries, or (d) sell, lease or

transfer any of its Property to F.Y.I. or any of its Subsidiaries.

 

Section 9.13           Management

Fees.  F.Y.I. will

not, and will not permit any of its Subsidiaries to, pay any management,

consulting or similar fees (excluding directors' fees) to any Affiliate of

F.Y.I. or to any director, officer or employee of F.Y.I. or any Affiliate of

F.Y.I.; provided, however, that any Subsidiary of F.Y.I. may pay

management or similar fees to F.Y.I. to the extent that the amount of such fees

paid in any year does not exceed fifteen percent of the gross revenues of the

paying Subsidiary for that year.

 

Section 9.14           Modification

of Other Agreements.  F.Y.I. will not, and will not permit any of

its Subsidiaries to, consent to or implement any termination, amendment,

modification, supplement or waiver of (a) the F.Y.I. Equity Documents, if

the same could have a Material Adverse Effect or otherwise could be materially

adverse to the Administrative Agent or the Lenders, (b) the certificate of

incorporation or bylaws (or analogous constitutional documents) of F.Y.I. or

any of its Subsidiaries if the same could have a Material Adverse Effect or

otherwise could be materially adverse to the Administrative Agent or the

Lenders, or (c) any other Material Contract to which it is a party or any

Permit which it possesses if the same could have a Material Adverse Effect; provided,

however, that F.Y.I. and its Subsidiaries may amend or modify the

agreements, documents and instruments referred to in clause (c)

preceding if and to the extent that such amendment or modification is not

substantive or material and could not have a Material Adverse Effect.

 

Section 9.15           ERISA

Plans.  Except as

specified on Schedule 9.15, F.Y.I. will not, and will not permit any of

its Subsidiaries to:

 

(a)           allow,

or take (or permit any ERISA Affiliate to take) any action which would cause,

any unfunded or unreserved liability for benefits under any Plan (exclusive of

any Multiemployer Plan) to exist or to be created that exceeds $25,000 with

respect to any such Plan or $50,000 with respect to all such Plans in the

aggregate on either a going concern or a wind-up basis; or

 

(b)           with

respect to any Multiemployer Plan, allow, or take (or permit any ERISA

Affiliate to take) any action which would cause, any unfunded or unreserved

liability for benefits under any Multiemployer Plan to exist or to be created,

either individually as to any such Plan or in the aggregate as to all such

Plans, that could, upon any partial or complete withdrawal from or termination

of any such Multiemployer Plan or Plans, have a Material Adverse Effect.

 

Section 9.16           Dividend

Restrictions. F.Y.I. will not permit any of its

Subsidiaries to be party to or bound by any agreement, document, instrument,

covenant or other restriction (other than this

Agreement) which restricts the ability of such Subsidiary to pay dividends to,

make distribution to, and make advance to, F.Y.I. or any Subsidiary of F.Y.I.

 

ARTICLE 10

 

Financial

Covenants

 

F.Y.I.

covenants and agrees that, as long as the Obligations or any part thereof are

outstanding or any Lender has any Commitment hereunder or any Letter of Credit

remains outstanding, it will perform and observe, or cause to be performed and

observed, the following covenants:

 

Section 10.1           Consolidated

Net Worth.  F.Y.I. will at all times maintain

Consolidated Net Worth in an amount not less than the sum of

(a) $215,383,200 plus (b) 75% of cumulative Consolidated Net

Income, if positive, for any fiscal quarter, i.e., exclusive of negative

Consolidated Net Income for any fiscal quarter, after December 31, 2000, plus

(c) all Net Proceeds of each Equity Issuance after December 31, 2000,

minus the amount of any stock repurchase consummated under the terms of Section

9.4(c).

 

Section 10.2           Ratio

of Funded Debt to EBITDA.  F.Y.I. will not permit the ratio, calculated as of the end of

each fiscal quarter of F.Y.I. commencing with the fiscal quarter ended

December 31, 2000, of (i) Funded Debt to (ii) EBITDA (the "Funded

Debt to EBITDA Ratio") for the four fiscal quarters then ended for

F.Y.I. and its Subsidiaries to exceed the ratio set forth below for the period

during which such fiscal quarter end occurs:

 

	

  Period

  	

   

  	

  Ratio

  
	

  From December 31, 2000,

  through and including September 30, 2002

  	

   

  	

  3.00

  to 1.00

  
	

  From December 31, 2002

  and at all times thereafter

  	

   

  	

  2.50

  to 1.00

  

 

Section 10.3           Consolidated

Fixed Charge Coverage Ratio.  F.Y.I. will not permit the Consolidated

Fixed Charge Coverage Ratio, calculated as of the end of each fiscal quarter of

F.Y.I. commencing with the fiscal quarter ended March 31, 2001, for the four

fiscal quarters of F.Y.I. then ended, to be less than the

ratio set forth below for the period during which such fiscal quarter end

occurs:

 

	

  Period

  	

   

  	

  Ratio

  
	

  From March 31, 2001, through and including September 30, 2002

  	

   

  	

  1.25

  to 1.00

  
	

  From December 31, 2002 and at all times thereafter

  	

   

  	

  1.50 to 1.00

  

 

Section 10.4           Capital

Expenditures.  F.Y.I. will not permit the aggregate Capital

Expenditures of F.Y.I. and its Subsidiaries (a) during the fiscal year of

F.Y.I. ending December 31, 2001 to exceed $20,000,000, and (b) for each

subsequent fiscal year of F.Y.I., an amount equal to the aggregate Capital

Expenditures permitted under this Section 10.4 for the prior fiscal year

of F.Y.I. ("the "Prior Permitted Capital Expenditures") plus

20% of the Prior Permitted Capital Expenditures (the "Permitted Capital

Expenditures").

 

ARTICLE 11

 

Default

 

Section 11.1           Events

of Default.  Each of the following shall be deemed an

"Event of Default":

 

(a)           F.Y.I.

or any of its Subsidiaries shall fail to pay, repay or prepay when due any

amount of principal owing to the Administrative Agent or any Lender pursuant to

this Agreement or any other Loan Document, or shall fail to pay within two days

after the due date thereof any interest, fee or other amount or other

Obligation owing to the Administrative Agent or any Lender pursuant to this

Agreement or any other Loan Document; provided that F.Y.I. shall have up

to 30 days after the invoice date to pay outstanding fees and expenses other

than the Commitment Fees, letter of credit fees and fees payable in accordance

with the terms of the Fee Letter.

 

(b)           Any

representation or warranty made or deemed made by F.Y.I. or any of its

Subsidiaries or by any Loan Party in any Loan Document or in any certificate,

report, notice or financial statement furnished at any time in connection with

this Agreement or any other Loan Document shall be false, misleading or

erroneous in any material respect when made or deemed to have been made.

 

(c)           F.Y.I.

or any of its Subsidiaries shall fail to perform, observe or comply with any

covenant, agreement or term contained in Sections 5.1, 5.2, 8.1(g),

8.1(j), 8.2 (other than the last sentence of Section 8.2),

8.6, or 8.7, Article 9 (other than Section 9.7, 9.11

and 9.15) or Article 10 of this Agreement; F.Y.I. or any of its

Subsidiaries shall fail to perform, observe or comply with any covenant,

agreement or term contained in Sections 5.3, 8.1 (other than

Sections 8.1(g), or 8.1(j)), 8.4, 8.5, 8.8, 8.9,

8.10, 8.12, 9.7 or 9.11) and such failure is not

remedied or waived within ten days after such failure commenced; F.Y.I. or any

of its Subsidiaries shall fail to perform, observe or comply with any covenant,

agreement or term contained in any Security Agreement and such failure shall

continue beyond any grace or cure period specified in such Security Agreement;

F.Y.I. or any of its Subsidiaries shall fail to perform, observe or comply with

any covenant, agreement or term contained in any Mortgage executed by it and

such failure shall continue beyond any grace or cure period specified in such

Mortgage; any Guarantor shall fail to perform, observe or comply with any

covenant, agreement or term contained in its Guaranty, subject to any grace

period applicable to such covenant, agreement or term in this Agreement to the

extent this Agreement is incorporated therein by reference; or any Loan Party

shall fail to perform, observe or comply with any other covenant, agreement or

term contained in this Agreement or any other Loan Document (other than

covenants to pay the Obligations) and such failure is not remedied or waived

within the earlier to occur of 30 days after such failure commenced or, if a

different grace period is expressly made applicable in such other Loan

Documents, such applicable grace period.

 

(d)           F.Y.I.

ceases to be Solvent or any other Loan Party (other than a Nonmaterial

Subsidiary) ceases to be Solvent for a period exceeding 15 days from the

earlier of the date notice of such failure to remain Solvent is given by the

Administrative Agent to F.Y.I. or the date F.Y.I. is obligated to give notice of

such Default to the Administrative Agent under Section 8.1(g), or any

Loan Party (other than a Nonmaterial Subsidiary) shall admit in writing its

inability to, or be generally unable to, pay its debts as such debts become

due; provided, however, that if any Loan Party shall cease to be

Solvent more than once in any twelve-month period, such occurrence shall

immediately become an Event of Default.

 

(e)           Any

Loan Party (other than a Nonmaterial Subsidiary) shall (i) apply for or

consent to the appointment of, or the taking of possession by, a receiver,

custodian, trustee, examiner, liquidator or the like of itself or of all or any

substantial part of its Property, (ii) make a general assignment for the

benefit of its creditors, (iii) commence a voluntary case under the United

States Bankruptcy Code as now or hereafter in effect (the "Bankruptcy

Code"), (iv) institute any proceeding or file a petition seeking

to take advantage of any other law relating to bankruptcy, insolvency,

reorganization, liquidation, dissolution, winding-up or composition or

readjustment of debts, (v) fail to controvert in a timely and appropriate

manner, or acquiesce in writing to, any petition filed against it in an

involuntary case under the Bankruptcy Code, or (vi) take any corporate or

other action for the purpose of effecting any of the foregoing.

 

(f)            A

proceeding or case shall be commenced, without the application, approval or

consent of any of the Loan Parties in (other than a Nonmaterial Subsidiary) any

court of competent jurisdiction, seeking (i) its reorganization,

liquidation, dissolution, arrangement or winding-up, or the composition or

readjustment of its debts, (ii) the appointment of a receiver, custodian,

trustee, examiner, liquidator or the like of any of the Loan Parties or of all

or any substantial part of its Property, or (iii) similar relief in

respect of any of the Loan Parties under any law relating to bankruptcy,

insolvency, reorganization, winding-up or composition or adjustment of debts,

and such proceeding or case shall continue undismissed, or an order, judgment

or decree approving or ordering any of the foregoing shall be entered and

continue unstayed and in effect, for a period of 60 or more days; or an order

for relief against any of the Loan Parties shall be entered in an involuntary

case under the Bankruptcy Code.

 

(g)           Any

one or more of the Loan Parties shall fail to discharge within a period of 30

days after the commencement thereof any attachment, sequestration, forfeiture

or similar proceeding or proceedings involving an aggregate amount in excess of

$5,000,000 against any of its or their Properties.

 

(h)           A

final judgment or judgments for the payment of money in excess of $5,000,000 in

the aggregate shall be rendered by a court or courts against the Loan Parties

or any of them on claims not covered by insurance or as to which the insurance

carrier has denied responsibility and the same shall not be paid or discharged,

or a stay of execution thereof shall not be procured, within 30 days from the

date of entry thereof and the Loan Parties shall not, within said period of 30

days, or such longer period during which execution of the same shall have been

stayed, appeal therefrom and cause the execution thereof to be stayed during

such appeal.

 

(i)            Any

of the Loan Parties shall fail to pay when due any principal of or interest on

any Debt (other than the Obligations) having (either individually or in the

aggregate) a principal amount of at least $5,000,000, or the maturity of any

such Debt shall have been accelerated, or any such Debt shall have been

required to be prepaid prior to the stated maturity thereof, or any event shall

have occurred (and shall not have been waived or otherwise cured) that permits

(or, with the giving of notice or lapse of time or both, would permit) any

holder or holders of such Debt or any Person acting on behalf of such holder or

holders to accelerate the maturity thereof or require any such prepayment.

 

(j)            This

Agreement or any other Loan Document shall cease to be in full force and effect

or shall be declared null and void or the validity or enforceability thereof

shall be contested or challenged by any Permitted Holder, any Loan Party, or

any of its Affiliates, or any Loan Party shall deny that it has any further

liability or obligation under any of the Loan Documents, or any Lien created by

the Loan Documents shall for any reason cease to be a valid, first priority

perfected Lien (except for Permitted Liens, if any, which are expressly

permitted by the Loan Documents to have priority over the Liens in favor of the

Administrative Agent) upon any of the Collateral purported to be covered

thereby.

 

(k)           Any

of the following events shall occur or exist with respect to any Loan Party or

any ERISA Affiliate: (i) any Prohibited Transaction involving any Plan;

(ii) any Reportable Event with respect to any Pension Plan; (iii) the

filing under Section 4041 of ERISA of a notice of intent to terminate any

Pension Plan or the termination of any Pension Plan; (iv) any event or

circumstance that might constitute grounds entitling the PBGC to institute

proceedings under Section 4042 of ERISA for the termination of, or for the

appointment of a trustee to administer, any Pension Plan, or the institution by

the PBGC of any such proceedings; (v) any "accumulated funding

deficiency" (as defined in Section 406 of ERISA or Section 412 of the

Code), whether or not waived, shall exist with respect to any Plan; or

(vi) complete or partial withdrawal under Section 4201 or 4204 of ERISA

from a Plan or the reorganization, insolvency or termination (other than in

connection with an Acquisition and in compliance with ERISA and other

applicable laws) of any Pension Plan; and in each case above, such event or

condition, together with all other events or conditions, if any, have subjected

or could in the reasonable opinion of Required Lenders subject any Loan Party

or any ERISA Affiliate to any tax, penalty or other liability to a Plan, a

Multiemployer Plan, the PBGC or otherwise (or any combination thereof) which in

the aggregate exceed or could reasonably be expected to exceed $2,000,000.

 

(l)            The

occurrence of a Change of Control.

 

(m)          If,

at any time, the subordination provisions of any of the Seller Subordinated

Debt shall be invalidated or shall otherwise cease to be in full force and

effect.

 

(n)           The

occurrence of any Material Adverse Effect; provided, however,

that, for purposes of this Section 11.1(n), no Material Adverse Effect

shall be deemed to have occurred under clause (a) of the definition of

Material Adverse Effect in Section 1.1 unless, based upon the financial

condition or financial performance of F.Y.I., it is not reasonable to expect

that F.Y.I. will be able to comply with all its financial covenants set forth

in Article 10.

 

Section 11.2           Remedies.  If any Event of Default shall occur and be

continuing, the Administrative Agent may and, if directed by the Required

Lenders, the Administrative Agent shall do any one or more of the following:

 

(a)           Acceleration.  Declare all outstanding principal of and

accrued and unpaid interest on the Loans and all other amounts payable by

F.Y.I. or any of its Subsidiaries under the Loan Documents immediately due and

payable (provided that, with respect to any Interest Rate Protection

Agreement or Currency Hedge Agreement to which a Lender or an Affiliate of a

Lender is the counterparty, such Lender or Affiliate of Lender shall determine

whether or not to accelerate amounts payable thereunder and if such

counterparty fails to accelerate such obligations prior to the date of receipt

by the Administrative Agent of any proceeds from the disposition of Collateral

under any Security Document, such obligations shall not be included in any pro

rata distributions of such proceeds), and the same shall thereupon become

immediately due and payable, without notice, demand, presentment, notice of

dishonor, notice of acceleration, notice of intent to accelerate, protest or

other formalities of any kind, all of which are hereby expressly waived by

F.Y.I.;

 

(b)           Termination

of Commitments.  Terminate the

Commitments (including, without limitation, the obligation of the Issuing Bank

to issue Letters of Credit) without notice to F.Y.I.;

 

(c)           Judgment.  Reduce any claim to judgment;

 

(d)           Foreclosure.  Foreclose or otherwise enforce any Lien

granted to the Administrative Agent for the benefit of the Administrative Agent

and the Lenders to secure payment and performance of the Obligations in

accordance with the terms of the Loan Documents; or

 

(e)           Rights.  Exercise any and all rights and remedies

afforded by the laws of the State of Texas or any other jurisdiction, by any of

the Loan Documents, by equity or otherwise, including, without limitation, the

right of setoff provided by Section 5.6 of this Agreement;

 

provided,

however, that upon the occurrence of an Event of Default under Section

11.1(e) or Section 11.1(f), the Commitments of all of the

Lenders (including, without limitation, the obligation of the Issuing Bank to

issue Letters of Credit) shall immediately and automatically terminate, and the

outstanding principal of and accrued and unpaid interest on the Loans and all

other amounts payable by F.Y.I. under the Loan Documents shall thereupon become

immediately and automatically due and payable, all without notice, demand,

presentment, notice of dishonor, notice of acceleration, notice of intent to

accelerate, protest or other formalities of any kind, all of which are hereby

expressly waived by the F.Y.I.

 

Section 11.3           Cash

Collateral.  If an Event of Default shall have occurred

and be continuing F.Y.I. shall, if requested by the Administrative Agent or the

Required Lenders, pledge to the Administrative Agent as security for the

Obligations an amount in immediately available funds equal to the then

outstanding Letter of Credit Liabilities, such funds to be held in a cash

collateral account satisfactory to the Administrative Agent without any right

of withdrawal by F.Y.I. or any of its Subsidiaries.

 

Section 11.4           Performance

by the Administrative Agent.  If any Loan Party shall fail to perform any covenant or agreement

in accordance with the terms of the Loan Documents, the Administrative Agent

may, at the direction of the Required Lenders, perform or attempt to perform

such covenant or agreement on behalf of such Loan Party.  In such event, F.Y.I. or any of its

Subsidiaries shall, at the request of the Administrative Agent, promptly pay

any amount expended by the Administrative Agent or the Lenders in connection

with such performance or attempted performance to the Administrative Agent at

the Principal Office, together with interest thereon at the applicable Default

Rate from and including the date of such expenditure to but excluding the date

such expenditure is paid in full. 

Notwithstanding the foregoing, it is expressly agreed that neither the

Administrative Agent nor any Lender shall have any liability or responsibility

for the performance of any obligation of F.Y.I. or any of its Subsidiaries or

any other Loan Party under this Agreement or any of the other Loan Documents.

 

ARTICLE 12

 

The Administrative Agent

 

Section 12.1           Appointment,

Powers and Immunities. Each Lender hereby irrevocably

appoints and authorizes Bank of America to act as its agent under this

Agreement and the other Loan Documents with such powers and discretion as are

specifically delegated to the Administrative

Agent by the terms of this Agreement and the other Loan Documents, together

with such other powers as are reasonably incidental thereto.  The Administrative Agent (which term as used

in this sentence and in Section 12.5 shall include its Affiliates

(including Banc of America Securities LLC) and its own and its Affiliates'

officers, directors, employees, and agents): 

(a) shall not have any duties or responsibilities except those expressly

set forth in the Loan Documents and shall not be a trustee or fiduciary for any

Lender; (b) shall not be responsible to the Lenders for any recital, statement,

representation,

or warranty (whether written or oral) made in or in connection with any Loan

Document or any certificate or other document referred to or provided for in,

or received by any of them under, any Loan Document, or for the value,

validity, effectiveness, genuineness, enforceability, or

sufficiency of any Loan Document, or any other document referred to or provided

for therein or for

any failure by any Loan Party or any other Person to perform any of its

obligations thereunder; (c) shall not be responsible for or have any duty to

ascertain, inquire into, or verify the performance or observance of any

covenants or agreements by any Loan Party or the satisfaction of any condition

or to inspect the property (including the books and records) of any Loan Party

or any of its Affiliates; (d) shall not be required to initiate or conduct any

litigation or collection proceedings under any Loan Document; and (e) shall not

be responsible for any action taken or omitted to be taken by it under or in

connection with any Loan Document, except for its own gross negligence or

willful misconduct.  The Administrative

Agent may employ agents and attorneys-in-fact and shall not be responsible for the

negligence or misconduct of any such agents or attorneys-in-fact selected by it

with reasonable care.

 

Section 12.2           Reliance by the Administrative

Agent.  The

Administrative Agent shall be entitled to rely upon any certification, notice,

instrument, writing, or other communication (including, without limitation, any

thereof by telephone or telecopy) believed by it to be genuine and correct and to have been signed, sent

or made by or on behalf of the proper Person or Persons, and upon advice and

statements of legal counsel (including counsel for any Loan Party), independent

accountants, and other experts selected by the Administrative Agent.  The Administrative Agent may deem and treat

the payee of any Note as the holder thereof for all purposes hereof unless and

until the Administrative Agent receives and accepts an Assignment and

Acceptance executed in accordance with Section 13.8.  As to any matters not expressly provided for

by this Agreement, the Administrative Agent shall not be required to exercise

any discretion or take any action, but shall be required to act or to refrain

from acting (and shall be fully protected in so acting or refraining from

acting) upon the  instructions of the

Required Lenders, and such instructions shall be binding on all of the Lenders;

provided, however, that the Administrative Agent shall not be required to

take any action that exposes the Administrative Agent to personal liability or

that is contrary to any Loan Document or applicable law.

 

Section 12.3           Defaults.  The Administrative Agent shall not be deemed

to have knowledge or notice of the occurrence of a Default unless the

Administrative Agent has received written notice from a Lender or the Borrower

specifying such Default and stating that such notice is a "Notice of

Default".  In the event that the

Administrative Agent receives such a notice of the occurrence of a Default, the

Administrative Agent shall give prompt notice thereof to the Lenders.  The Administrative Agent shall take such

action with respect to such Default as it shall deem appropriate or as shall

reasonably be directed by the Required Lenders.

 

Section 12.4           Rights

as Lender. 

With respect to its Commitment and the Loans made by it, Bank of America

(and any successor acting as the Administrative Agent) in its capacity as a

Lender hereunder shall have the same rights and powers hereunder as any other

Lender and may exercise the same as though it were not acting as the

Administrative Agent, and the term "Lender" or "Lenders"

shall, unless the context otherwise indicates, include the Administrative Agent

in its individual capacity.  Bank of

America (and any successor acting as the Administrative Agent) and its

Affiliates may (without having to account therefor to any Lender) accept

deposits from, lend money to, make investments in, provide services to, and

generally engage in any kind of lending, trust, or other business with any Loan

Party or any of their respective Affiliates as if it were not acting as the Administrative

Agent, and Bank of America (and any successor acting as the Administrative

Agent) and its Affiliates may accept fees and other consideration from any Loan

Party or any of their respective Affiliates for services in connection with this Agreement

or otherwise without having to account for the same to the Lenders.

 

Section 12.5           Indemnification.  THE LENDERS AGREE TO INDEMNIFY THE

ADMINISTRATIVE AGENT (TO THE EXTENT NOT REIMBURSED UNDER SECTION 13.1

OR SECTION 13.2, BUT WITHOUT LIMITING THE OBLIGATIONS OF F.Y.I. UNDER

SUCH SECTIONS) RATABLY IN ACCORDANCE WITH THEIR RESPECTIVE COMMITMENT

PERCENTAGES, FOR ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,

PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES), OR DISBURSEMENTS OF ANY KIND AND NATURE

WHATSOEVER THAT MAY BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST THE

ADMINISTRATIVE AGENT (INCLUDING BY ANY LENDER) IN ANY WAY RELATING TO OR

ARISING OUT OF ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY OR

ANY ACTION TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER ANY LOAN

DOCUMENT; PROVIDED THAT NO LENDER SHALL BE LIABLE FOR ANY OF THE

FOREGOING TO THE EXTENT THEY ARE FOUND IN A FINAL, NON-APPEALABLE JUDGMENT

RENDERED BY A COURT OF COMPETENT JURISDICTION TO HAVE ARISEN FROM THE GROSS

NEGLIGENCE OR WILLFUL MISCONDUCT OF, THE PERSON TO BE INDEMNIFIED.  WITHOUT LIMITING ANY PROVISION OF ANY LOAN

DOCUMENT, IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO

BE INDEMNIFIED UNDER THIS SECTION SHALL BE INDEMNIFIED FROM AND HELD HARMLESS

AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,

DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING, WITHOUT

LIMITATION, ATTORNEYS’ FEES) ARISING OUT OF OR RESULTING FROM THE SOLE OR

CONTRIBUTORY NEGLIGENCE OF SUCH PERSON. 

WITHOUT LIMITATION OF THE FOREGOING, EACH LENDER AGREES TO REIMBURSE THE

ADMINISTRATIVE AGENT PROMPTLY UPON DEMAND FOR ITS RATABLE SHARE (CALCULATED

BASED ON THE COMMITMENT PERCENTAGES) OF ANY COSTS OR EXPENSES PAYABLE BY F.Y.I.

UNDER SECTION 13.1 TO THE EXTENT THAT THE ADMINISTRATIVE AGENT IS NOT

PROMPTLY REIMBURSED FOR SUCH COSTS AND EXPENSES BY F.Y.I.  IN THE CASE OF AN INVESTIGATION, LITIGATION,

OR OTHER PROCEEDING TO WHICH THE INDEMNITY IN THIS SECTION 12.5 APPLIES,

SUCH INDEMNITY SHALL BE

EFFECTIVE WHETHER OR NOT SUCH INVESTIGATION, LITIGATION OR PROCEEDING IS

BROUGHT BY THE BORROWER, ITS DIRECTORS, SHAREHOLDERS, OR CREDITORS OR ANY PARTY

ENTITLED TO INDEMNIFICATION HEREUNDER OR ANY OTHER PERSON AND WHETHER OR NOT

THE TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED.

 

Section 12.6           Non-Reliance

on the Administrative Agent and Other Lenders. 

Each Lender agrees that it has, independently and without reliance on

the Administrative Agent or any other Lender, and based on such documents and

information as it has deemed appropriate, made its own credit analysis of the

Loan Parties and decision to enter into this Agreement and 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 deem appropriate at the time, continue to make its own analysis and

decisions in taking or not taking action under the Loan Documents.  Except for notices, reports, and other

documents and information expressly required to be furnished to the Lenders by

the Administrative Agent hereunder, the Administrative Agent shall not have any

duty or responsibility to provide any Lender with any credit or

other information concerning the affairs, financial condition, or business of

any Loan Party or any of their Affiliates that may come into the possession of

any Agent or any of its Affiliates.

 

Section 12.7           Resignation of the Administrative

Agent.  The

Administrative Agent may resign at any time by giving notice thereof to the

Lenders and F.Y.I.  Upon any such

resignation, the Required Lenders shall have the right to appoint a successor

the Administrative Agent, which successor agent shall be

subject to the approval of F.Y.I. if and so long as no Event of Default has

occurred and is continuing, which approval shall not be unreasonably withheld,

conditioned, or delayed.  If no

successor the Administrative Agent shall have been so appointed by the Required

Lenders and shall have accepted such appointment within thirty (30) days after

the retiring Administrative Agent’s giving of notice of resignation, then the

retiring Administrative Agent may, on behalf of the Lenders, appoint a

successor Administrative Agent which shall be a commercial bank organized under

the laws of the U.S. having combined capital and surplus of at least Five

Hundred Million Dollars ($500,000,000), which successor agent shall be subject

to the approval of F.Y.I., which approval shall not be unreasonably withheld, conditioned,

or delayed.  Upon the acceptance of any

appointment as the Administrative Agent hereunder by a successor, such

successor shall thereupon succeed to and become vested with all the rights,

powers, discretion, privileges, and duties of the retiring Administrative

Agent, and the retiring Administrative Agent shall be discharged from its

duties and obligations hereunder.  After

any retiring Administrative Agent’s resignation hereunder as the Administrative

Agent, the provisions of this Article 12 shall continue in effect for its benefit

in respect of any actions taken or omitted to be taken by it while it was

acting as the Administrative Agent.

 

Section 12.8           Several Commitments.  The Commitments and other obligations of the

Lenders under any Loan Document are several. 

The default by any Lender in making a Loan in accordance with its

Commitment shall not relieve the other Lenders of their obligations under any

Loan Document.  In the event of any

default by any Lender in making any Loan, each nondefaulting Lender shall be

obligated to make its Loan but shall not be obligated to advance the amount which

the defaulting Lender was required to advance hereunder.  No Lender shall be responsible for any act

or omission of any other Lender.

 

Section 12.9           Documentation

Agent, Lead Arranger and Syndication Agent.  None of the Documentation Agent, the Lead

Arranger nor the Syndication Agent, acting in such capacities, shall have any

obligations under this Agreement or the other Loan Documents.

 

ARTICLE 13

 

Miscellaneous

 

Section 13.1           Expenses.  Whether or not the transactions contemplated

hereby are consummated, F.Y.I. hereby agrees, on demand, to pay or reimburse

the Administrative Agent and each of the Lenders for paying: (a) all

reasonable out-of-pocket costs and expenses of the Administrative Agent in

connection with the preparation, negotiation, execution and delivery of this

Agreement and the other Loan Documents, and any and all waivers, amendments,

modifications, renewals, extensions and supplements thereof and thereto, and

the syndication of the Commitments and the Loans, including, without

limitation, the reasonable fees and expenses of legal counsel for the

Administrative Agent, (b) all reasonable out-of-pocket costs and expenses

of the Administrative Agent and the Lenders in connection with any Default, the

exercise of any right or remedy and the enforcement of this Agreement or any

other Loan Document or any term or provision hereof or thereof, including,

without limitation, the reasonable fees and expenses of legal counsel for the

Administrative Agent and the Lenders, (c) all transfer, stamp, documentary

or other similar taxes, assessments or charges levied by any Governmental

Authority in respect of this Agreement or any of the other Loan Documents,

(d) all costs, expenses, assessments and other charges incurred in

connection with any filing, registration, recording or perfection of any Lien

contemplated by this Agreement or any other Loan Document, and

(e) all reasonable out-of-pocket costs and expenses incurred by the

Administrative Agent in connection with due diligence, computer services,

copying, appraisals, audits (including environmental audits and collateral

audits), field exams, insurance, consultants and search reports.

 

Section 13.2           INDEMNIFICATION.  F.Y.I. HEREBY AGREES TO INDEMNIFY THE

ADMINISTRATIVE AGENT AND EACH LENDER AND EACH AFFILIATE THEREOF AND THEIR

RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS AND AGENTS FROM, AND HOLD

EACH OF THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES (INCLUDING,

WITHOUT LIMITATION, ENVIRONMENTAL LIABILITIES), CLAIMS, DAMAGES, PENALTIES,

JUDGMENTS, DISBURSEMENTS, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS'

AND CONSULTANTS' FEES) TO WHICH ANY OF THEM MAY BECOME SUBJECT WHICH DIRECTLY

OR INDIRECTLY ARISE FROM OR RELATE TO (A) THE NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION OR ENFORCEMENT

OF ANY OF THE LOAN DOCUMENTS, (B) ANY OF THE TRANSACTIONS CONTEMPLATED BY

THE LOAN DOCUMENTS, (C) ANY BREACH BY ANY LOAN PARTY OF ANY REPRESENTATION,

WARRANTY, COVENANT OR OTHER AGREEMENT CONTAINED IN ANY OF THE LOAN DOCUMENTS,

(D) THE USE OR PROPOSED USE OF ANY LOAN OR LETTER OF CREDIT, (E) ANY

AND ALL TAXES, LEVIES, DEDUCTIONS AND CHARGES IMPOSED ON THE ADMINISTRATIVE

AGENT, THE ISSUING BANK OR ANY LENDER IN RESPECT OF ANY LETTER OF CREDIT, (F) THE

PRESENCE, RELEASE, THREATENED RELEASE, DISPOSAL, REMOVAL OR CLEANUP OF ANY

HAZARDOUS MATERIAL LOCATED ON, ABOUT, WITHIN OR AFFECTING ANY OF THE PROPERTIES

OF ANY LOAN PARTY, EXCEPT TO THE EXTENT THAT THE LOSS, DAMAGE OR CLAIM IS THE

DIRECT RESULT OF AN INTENTIONAL AND AFFIRMATIVE ACT BY THE PERSON TO BE

INDEMNIFIED THAT CONSTITUTES GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH

PERSON, OR (G) ANY INVESTIGATION, LITIGATION OR OTHER PROCEEDING, INCLUDING,

WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION OR OTHER

PROCEEDING RELATING TO ANY OF THE FOREGOING; BUT EXCLUDING ANY OF THE FOREGOING

TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE

PERSON TO BE INDEMNIFIED.  THE

OBLIGATIONS OF F.Y.I. UNDER THIS SECTION 13.2 SHALL SURVIVE THE

REPAYMENT OF THE LOANS AND LETTER OF CREDIT LIABILITIES AND TERMINATION OF THE

COMMITMENTS.

 

Section 13.3           Limitation

of Liability.  None of the Administrative Agent, the Lead

Arranger, any Lender or any Affiliate, officer, director, employee, attorney or

agent thereof shall be liable for any error of judgment or act done in good

faith, or be otherwise liable or responsible under any circumstances whatsoever

(including such Person's negligence), except for such Person's gross negligence

or willful misconduct.  None of the

Administrative Agent, the Lead Arranger, any Lender or any Affiliate, officer,

director, employee, attorney or agent thereof shall have any

liability with respect to, and F.Y.I. hereby waives, releases and agrees not to

sue any of them upon, any claim for any special, indirect, incidental or

consequential damages suffered or incurred by F.Y.I. or any other Loan Party in

connection with, arising out of or in any way related to this Agreement or any

of the other Loan Documents, or any of the transactions contemplated by this

Agreement or any of the other Loan Documents. 

F.Y.I. hereby waives, releases and agrees not to sue the Administrative

Agent, the Lead Arranger or any Lender or any of their respective Affiliates,

officers, directors, employees, attorneys or agents for exemplary or punitive

damages in respect of any claim in connection with, arising out of or in any

way related to this Agreement or any of the other Loan Documents, or any of the

transactions contemplated by this Agreement or any of the other Loan Documents.

 

Section 13.4           No

Duty.  All

attorneys, accountants, appraisers and other professional Persons and

consultants retained by the Administrative Agent and the Lenders shall have the

right to act exclusively in the interest of the Administrative Agent and the

Lenders and shall have no duty of disclosure, duty of loyalty, duty of care or

other duty or obligation of any type or nature

whatsoever to F.Y.I. or any of its Subsidiaries or any of their shareholders or

any other Person.

 

Section 13.5           No

Fiduciary Relationship. 

The relationship between F.Y.I. and each Lender is solely that of debtor

and creditor, and neither the Administrative Agent nor any Lender has any fiduciary

or other special relationship with F.Y.I. or any other Loan Party, and no term

or condition of any of the Loan Documents shall be construed so as to deem the

relationship between F.Y.I. and any Lender, or any other Loan Party and any

Lender, to be other than that of debtor

and creditor.  No joint venture or

partnership is created by this Agreement among the Lenders or among F.Y.I. or

any other Loan Party and the Lenders.

 

Section 13.6           Equitable

Relief.  F.Y.I.

recognizes that, in the event it fails to pay, perform, observe or discharge

any or all of the Obligations, any remedy at law may prove to be inadequate

relief to the Administrative Agent and the Lenders. F.Y.I. therefore agrees

that the Administrative Agent and the Lenders, if the Administrative Agent or

the Lenders so request, shall be entitled to temporary and permanent injunctive

relief in any such case without the necessity of proving actual damages.

 

Section 13.7           No

Waiver; Cumulative Remedies.  No failure on the part of the Administrative Agent or any Lender

to exercise and no delay in exercising, and no course of dealing with respect

to, any right, power or privilege under this Agreement or any other Loan

Document shall operate as a waiver thereof, nor shall any single or partial exercise

of any right, power or privilege under this Agreement or any other Loan

Document preclude any other or further exercise thereof or the exercise of any

other right, power or privilege.  The

rights and remedies provided for in this Agreement and the other Loan Documents

are cumulative and not exclusive of any rights and remedies provided by law.

 

Section 13.8           Successors

and Assigns.

 

(a)           This

Agreement shall be binding upon and inure to the benefit of the parties hereto

and their respective successors and assigns. 

Neither F.Y.I. nor any other Loan Party may assign or transfer any of

its rights or obligations under this Agreement or any other Loan Document

without the prior written consent of the Administrative Agent and the Required

Lenders.  Any Lender may sell

participations in all or a portion of its rights and obligations under this

Agreement and the other Loan Documents (including, without limitation, all or a

portion of its Commitments and the Loans owing to it); provided, however,

that (i) such Lender's obligations under this Agreement and the other Loan

Documents (including, without limitation, its Commitments) shall remain

unchanged, (ii) such Lender shall remain solely responsible to F.Y.I. for

the performance of such obligations, (iii) such Lender shall remain the

holder of its Notes for all purposes of this Agreement, (iv) F.Y.I. shall

continue to deal solely and directly with such Lender in connection with such

Lender's rights and obligations under this Agreement and the other Loan Documents,

and (v) such Lender shall not sell a participation that conveys to the

participant the right to vote or give or withhold consents under this Agreement

or any other Loan Document, other than (if and to the extent that such Lender

so agrees) the right to vote upon or consent to (A) any increase of such

Lender's Commitments (other than an increase resulting from an assignment to or

in favor of such Lender from another Lender in accordance with this Agreement),

(B) any reduction of the principal amount of, or interest to be paid on,

the Loans of such Lender, (C) any reduction of any commitment fee or other

amount payable to such Lender under any Loan Document if and to the extent that

such reduction would decrease the fee or other amount payable to the participant,

(D) any postponement of any date for the payment of any amount payable in

respect of the Loans of such Lender, (E) any release of a material portion

of the Collateral from the Liens created by the Security Documents and not

otherwise expressly authorized by the Loan Documents, and (F) any release

of any Loan Party from liability under the Loan Documents.

 

(b)           F.Y.I.

and each of the Lenders agree that any Lender (the "Assigning Lender")

may at any time assign to one or more Eligible Assignees all, or a proportionate

part of all, of its rights and obligations under this Agreement and the other

Loan Documents (including, without limitation, its Commitments, Loans, Letters

of Credit (each an "Assignee"); provided, however,

that (i) each such assignment shall be of a constant  percentage of the Assigning Lender's rights

and obligations under this Agreement and the other Loan Documents and

(ii) except in the case of an assignment of all of a Lender's rights and

obligations under this Agreement and the other Loan Documents, the amount of

the Commitments, Loans and Letters of Credit of the Assigning Lender being

assigned pursuant to each assignment (determined as of the date of the

Assignment and Acceptance with respect to such assignment) shall in no event be

less than an aggregate amount equal to $5,000,000, and (iii) the parties

to each such assignment shall execute and deliver to the Administrative Agent

for its acceptance and recording in the Register (as defined below), an

Assignment and Acceptance, together with the Notes subject to such assignment,

and a processing and recordation fee of $3,500.  Upon such execution, delivery, acceptance and recording, from and

after the effective date specified in each Assignment and Acceptance, which

effective date shall be at least five Business Days after the execution thereof

or such other date as may be approved by the Administrative Agent, (1) the

Assignee thereunder shall be a party hereto as a "Lender" and, to the

extent that rights and obligations hereunder have been assigned to it pursuant

to such Assignment and Acceptance, have the rights and obligations of a Lender

hereunder and under the Loan Documents, and (2) the Assigning Lender

thereunder shall, to the extent that rights and obligations hereunder have been

assigned by it pursuant to such Assignment and Acceptance, relinquish its

rights and be released from its obligations under this Agreement and the other

Loan Documents (and, in the case of an Assignment and Acceptance covering all

or the remaining portion of a Lender's rights and obligations under the Loan

Documents, such Lender shall cease to be a party thereto, provided that

such Lender's rights under Article 4, Section 13.1 and Section

13.2 accrued through the date of assignment shall continue.

 

(c)           By

executing and delivering an Assignment and Acceptance, the Assigning Lender

thereunder and the Assignee thereunder confirm to and agree with each other and

the other parties hereto as follows: (i) other than as provided in such

Assignment and Acceptance, such Assigning Lender makes no representation or

warranty and assumes no responsibility with respect to any statements,

warranties or representations made in or in connection with the Loan Documents

or the execution, legality, validity, enforceability, genuineness, sufficiency

or value of the Loan Documents or any other instrument or document furnished

pursuant thereto; (ii) such Assigning Lender makes no representation or

warranty and assumes no responsibility with respect to the financial condition

or results of operations of any Loan Party or the performance or observance by

any Loan Party of its obligations under the Loan Documents; (iii) such

Assignee confirms that it has received a copy of the other Loan Documents,

together with copies of the financial statements referred to in Section 7.2

and such other documents and information as it has deemed appropriate to make

its own credit analysis and decision to enter into such Assignment and

Acceptance; (iv) such Assignee will, independently and without reliance upon

the Administrative Agent or such Assigning Lender and based on such documents

and information as it shall deem appropriate at the time, continue to make its

own credit decisions in taking or not taking action under this Agreement and

the other Loan Documents; (v) such Assignee confirms that it is an

Eligible Assignee; (vi) such Assignee appoints and authorizes the

Administrative Agent to take such action as agent on its behalf and exercise

such powers under the Loan Documents as are delegated to the Administrative

Agent by the terms thereof, together with such powers as are reasonably

incidental thereto; and (vii) such Assignee agrees that it will perform in

accordance with their terms all of the obligations which by the terms of the

Loan Documents are required to be performed by it as a Lender.

 

(d)           The

Administrative Agent shall maintain at its Principal Office a copy of each

Assignment and Acceptance delivered to and accepted by it and a register for

the recordation of the names and addresses of the Lenders and the Commitments

of, and principal amount of the Loans owing to, each Lender from time to time

(the "Register").  The

entries in the Register shall be conclusive and binding for all purposes,

absent manifest error, and F.Y.I., the Administrative Agent and the Lenders may

treat each Person whose name is recorded in the Register as a Lender hereunder

for all purposes under the Loan Documents. 

The Register shall be available for inspection by any Borrower any

Lender at any reasonable time and from time to time upon reasonable prior

notice.

 

(e)           Upon

its receipt of an Assignment and Acceptance executed by an Assigning Lender and

Assignee representing that it is an Eligible Assignee, together with the Notes

subject to such assignment, the Administrative Agent shall, if such Assignment

and Acceptance has been completed and is in substantially the form of Exhibit

A hereto, (i) accept such Assignment and Acceptance, (ii) record

the information contained therein in the Register, and (iii) give prompt

written notice thereof to F.Y.I.  Within

five Business Days after its receipt of such notice, F.Y.I., at its expense,

shall execute and deliver to the Administrative Agent in exchange for each

surrendered Note evidencing particular Loans, a new Note evidencing each such

Loans payable to the order of such Eligible Assignee in an amount equal to such

Loans assigned to it and, if the Assigning Lender has retained any Loans, a new

Note evidencing each such Loans payable to the order of the Assigning Lender in

the amount of such Loans retained by it (each such promissory note shall

constitute a "Note" for purposes of the Loan Documents).  Such new Notes shall be dated the effective

date of such Assignment and Acceptance and shall otherwise be in substantially

the form of Exhibits C and D hereto, as applicable.

 

(f)            Any

Lender may, in connection with any assignment or participation or proposed

assignment or participation pursuant to this Section 13.8, disclose to

the Assignee or participant or proposed Assignee or participant any information

relating to F.Y.I. or any of its Subsidiaries or any other Loan Party furnished

to such Lender by or on behalf of F.Y.I. or any of its Subsidiaries or any

other Loan Party provided that F.Y.I. shall have no liability for the accuracy of

any such information except (i) to the Administrative Agent and the

Lenders to the extent expressly provided herein or (ii) as of the date it

was furnished by F.Y.I.; provided that each such actual or proposed

Assignee or participant shall agree to be bound by the provisions of Section

13.20.

 

(g)           Any

Lender may assign and pledge all or any of the Notes held by it to any Federal

Reserve Bank or the U.S. Treasury as collateral security pursuant to Regulation

A of the Board of Governors of the Federal Reserve System and any operating

circular issued by such Federal Reserve System and/or Federal Reserve Bank; provided,

that, any payment made by F.Y.I. for the benefit of such assigning and/or

pledging Lender in accordance with the terms of the Loan Documents shall

satisfy F.Y.I.'s obligations under the Loan Documents in respect thereof to the

extent of such payment.  No such

assignment and/or pledge shall release the assigning and/or pledging Lender

from its obligations hereunder.

 

Section 13.9           Survival.  All representations and warranties made or

deemed made in this Agreement or any other Loan Document or in any document,

statement or certificate furnished in connection with this Agreement shall

survive the execution and delivery of this Agreement and the other Loan

Documents and the making of the Loans, and no investigation by the

Administrative Agent or any Lender or any closing shall affect the

representations and warranties or the right of the Administrative Agent or any

Lender to rely upon them.  Without prejudice

to the survival of any other obligation of F.Y.I. hereunder, the obligations of

F.Y.I. under Article 4 and Sections 13.1 and 13.2 shall

survive repayment of the Loans and the Letter of Credit Liabilities, but shall

not survive the expiration of any applicable statute of limitations.

 

Section 13.10         ENTIRE

AGREEMENT.  THIS

AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE

ANY AND ALL PRIOR COMMITMENTS, TERM SHEETS, AGREEMENTS, REPRESENTATIONS AND

UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF

AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR

SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG

THE PARTIES HERETO.

 

Section 13.11         Amendments.  No amendment or waiver of any provision of

this Agreement, the Notes or any other Loan Document (except for any Interest

Rate Protection Agreements or Currency Hedge Agreements that are Loan

Documents) to which F.Y.I. is a party, nor any consent to any departure by

F.Y.I. therefrom, shall in any event be effective unless the same shall be

agreed or consented to by the Required Lenders and F.Y.I. in writing, and each

such waiver or consent shall be effective only in the specific instance and for

the specific purpose for which given; provided, that no amendment,

waiver or consent shall, unless in writing and signed by all of the Lenders and

F.Y.I., do any of the following: (a) increase the Commitments of the

Lenders or subject the Lenders to any additional obligations; (b) reduce

the principal of, or interest on, the Loans, Letter of Credit Liabilities or

any fees or other amounts payable hereunder; (c) postpone any date fixed

for any payment (including, without limitation, any mandatory prepayment) of

principal of, or interest on, the Loans, Letter of Credit Liabilities or any

fees or other amounts payable hereunder; (d) change the Commitment

Percentages or the aggregate unpaid principal amount of the Loans, Letter of

Credit Liabilities or the number or interests of the Lenders which shall be

required for the Lenders or any of them to take any action under this

Agreement; (e) change any provision contained in this Section 13.11

or modify the definition of "Required Lenders" contained in Section 1.1;

or (f) release all or substantially all of the Collateral from the Liens

created by the Security Documents (provided that a release of Collateral

in accordance with the terms of Section 5.4(b) shall not be considered

to be a release of all or substantially all of the Collateral for purposes of

this Section 13.11) or release all or substantially all guaranties of

all or any portion of the Obligations; provided further that

the amendment to increase the amount of the committed Obligations under this

Agreement permitted by clause (h) of Section 9.1 shall require

only the agreement of (and execution thereof by) F.Y.I., the Administrative

Agent and the Lenders (existing or new) committing to advance such increase

amount. The Administrative Agent shall not terminate a Payment Blockage Period

under any Subordination Agreement without the consent of the Required

Lenders.  Notwithstanding anything to

the contrary contained in this Section 13.11, no amendment, waiver or

consent shall be made with respect to Article 12 hereof without the

prior written consent of the Administrative Agent.  If at any time a Lender becomes a Nonconsenting Lender (as

identified in this Section 13.11), F.Y.I. shall have the right to

replace such Lender with another Person; provided that (i) such new

Person shall be an Eligible Assignee acceptable to the Administrative Agent and

such new Person shall execute an Assignment and Acceptance, (ii) F.Y.I.

shall have no right to replace Bank of America, (iii) neither the

Administrative Agent nor any Lender shall have any obligation to F.Y.I. to find

such other Person, and (iv) in the event of a replacement of a

Nonconsenting Lender, in order for F.Y.I. to be entitled to replace such a

Lender, such replacement must take place no later than 180 days after the date

the Nonconsenting Lender shall notify F.Y.I. and the Administrative Agent of

its failure to agree to any requested consent, waiver, extension or other modification.  Each Lender (other than Bank of America)

agrees to its replacement at the option of F.Y.I. pursuant to this Section

13.11 and in accordance with Section 13.8; provided that

the successor Lender shall purchase without recourse such Lender's interest in

the Obligations of F.Y.I. to such Lender for cash in an aggregate amount equal

to the aggregate unpaid principal thereof, all unpaid interest accrued thereon,

all unpaid commitment fees accrued for the account of such Lender, any breakage

costs incurred by the selling Lender because of the prepayment of any

Eurodollar Loans, all other fees (if any) applicable thereto and all other

amounts (including any amounts under Article 4) then owing to such

Lender hereunder or under any other Loan Document and the Loan Parties shall

execute a release addressed to such Lender releasing such Lender from all

claims arising in connection with the Loan Documents.  In the event that either (A) (x) F.Y.I. or the

Administrative Agent has requested the Lenders to consent to a departure or

waiver of any provisions of the Loan Documents or to agree to any other

modification thereto, (y) the consent, waiver or other modification in

question requires the agreement of all Lenders in accordance with the terms of

this Section 13.11 and (z) Required Lenders have agreed to such

consent, waiver or other modification, or (B) pursuant to Section 2.1(d)

F.Y.I. has requested an extension to the Maturity Date and at least 51% of the

Lenders have agreed to extend the Maturity Date in accordance therewith, then

any Lender who does not agree to such consent, waiver, extension or other

modification shall be deemed a "Nonconsenting Lender".

 

Section 13.12         Maximum

Interest Rate.

 

(a)           No

interest rate specified in this Agreement or any other Loan Document shall at

any time exceed the Maximum Rate.  If at

any time the interest rate (the "Contract Rate") for any

Obligation shall exceed the Maximum Rate, thereby causing the interest accruing

on such Obligation to be limited to the Maximum Rate, then any subsequent

reduction in the Contract Rate for such Obligation shall not reduce the rate of

interest on such Obligation below the Maximum Rate until the aggregate amount

of interest accrued on such Obligation equals the aggregate amount of interest

which would have accrued on such Obligation if the Contract Rate for such

Obligation had at all times been in effect.

 

(b)           Notwithstanding

anything to the contrary contained in this Agreement or the other Loan

Documents, none of the terms and provisions of this Agreement or the other Loan

Documents shall ever be construed to create a contract or obligation to pay

interest at a rate in excess of the Maximum Rate; and neither the

Administrative Agent nor any Lender shall ever charge, receive, take, collect,

reserve or apply, as interest on the Obligations, any amount in excess of the

Maximum Rate.  The parties hereto agree

that any interest, charge, fee, expense or other obligation provided for in

this Agreement or in the other Loan Documents which constitutes interest under

applicable law shall be, ipso facto and under any and all

circumstances, limited or reduced to an amount equal to the lesser of

(i) the amount of such interest, charge, fee, expense or other obligation

that would be payable in the absence of this Section 13.12(b) or

(ii) an amount, which when added to all other interest payable under this

Agreement and the other Loan Documents, equals the Maximum Rate.  If, notwithstanding the foregoing, the

Administrative Agent or any Lender ever contracts for, charges, receives,

takes, collects, reserves or applies as interest any amount in excess of the

Maximum Rate, such amount which would be deemed excessive interest shall be

deemed a partial payment or prepayment of principal of the Obligations and

treated hereunder as such; and if the Obligations, or applicable portions

thereof, are paid in full, any remaining excess shall promptly be paid to

F.Y.I. (as appropriate).  In determining

whether the interest paid or payable, under any specific contingency, exceeds

the Maximum Rate, F.Y.I., the Administrative Agent and the Lenders shall, to

the maximum extent permitted by applicable law, (i) characterize any

nonprincipal payment as an expense, fee or premium rather than as interest,

(ii) exclude voluntary prepayments and the effects thereof, and

(iii) amortize, prorate, allocate and spread in equal or unequal parts the

total amount of interest throughout the entire contemplated term of the

Obligations, or applicable portions thereof, so that the interest rate does not

exceed the Maximum Rate at any time during the term of the Obligations; provided

that, if the unpaid principal balance is paid and performed in full prior

to the end of the full contemplated term thereof, and if the interest received

for the actual period of existence thereof exceeds the Maximum Rate, the

Administrative Agent and/or the Lenders, as appropriate, shall refund to F.Y.I.

the amount of such excess and, in such event, the Administrative Agent and the

Lenders shall not be subject to any penalties provided by any laws for

contracting for, charging, receiving, taking, collecting, reserving or applying

interest in excess of the Maximum Rate.

 

Section 13.13         Notices.  All notices and other communications

provided for in this Agreement and the other Loan Documents to which F.Y.I. or

any of its Subsidiaries is a party shall be given or made by telecopy or in

writing and telecopied, mailed by certified mail return receipt requested or

delivered to the intended recipient at the "Address for Notices" specified

below its name on the signature pages hereof (or, with respect to a Lender that

becomes a party to this Agreement pursuant to an assignment made in accordance

with Section 13.8, in the Assignment and Acceptance executed by

it); or, as to any party, at such other address as shall be designated by such

party in a notice to each other party given in accordance with this Section

13.13.  Except as otherwise provided

in this Agreement, all such communications shall be deemed to have been

duly given when transmitted by telecopy or personally delivered or, in the case

of a mailed notice, upon receipt, in each case given or addressed as aforesaid;

provided, however, that notices to the Administrative Agent shall

be deemed given when received by the Administrative Agent.

 

Section 13.14         GOVERNING

LAW; SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.  EXCEPT AS MAY BE EXPRESSLY STATED TO THE

CONTRARY IN CERTAIN LOAN DOCUMENTS, THIS AGREEMENT, THE NOTES AND THE OTHER

LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS

OF THE STATE OF TEXAS (WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES) AND

APPLICABLE LAWS OF THE U.S.  F.Y.I. AND

EACH OF ITS SUBSIDIARIES HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF

EACH OF (1) THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS AND

(2) ANY TEXAS STATE COURT SITTING IN DALLAS COUNTY, TEXAS FOR THE PURPOSES

OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY

OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH OF F.Y.I. AND EACH OF ITS SUBSIDIARIES

HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH

ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH PERSON AT

ITS ADDRESS SET FORTH UNDERNEATH ITS SIGNATURE HERETO.  EACH OF F.Y.I. AND EACH OF ITS SUBSIDIARIES HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT

PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE

LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM

THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN

INCONVENIENT FORUM.

 

Section 13.15         Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall be deemed an original, but all of which

together shall constitute one and the same instrument.

 

Section 13.16         Severability.  Any provision of this Agreement held by a

court of competent jurisdiction to be invalid or unenforceable shall not impair

or invalidate the remainder of this Agreement and the effect thereof shall be

confined to the provision held to be invalid or illegal.

 

Section 13.17         Headings.  The headings, captions and arrangements used

in this Agreement are for convenience only and shall not affect the

interpretation of this Agreement.

 

Section 13.18         Construction.  Each of F.Y.I. and each of its Subsidiaries,

the Administrative Agent and each Lender acknowledges that it has had the

benefit of legal counsel of its own choice and has been afforded an opportunity

to review this Agreement and the other Loan Documents with its legal counsel

and that this Agreement and the other Loan Documents shall be construed as if

jointly drafted by the parties hereto.

 

Section 13.19         Independence

of Covenants.  All

covenants hereunder shall be given independent effect so that if a particular

action or condition is not permitted by any of such covenants, the fact that it

would be permitted by an exception to, or be otherwise within the limitations

of, another covenant shall not avoid the occurrence of a Default if such action

is taken or such condition exists.

 

Section 13.20         Confidentiality.  Each Lender agrees to exercise its best

efforts to keep any information delivered or made available by any Loan Party

to it which is clearly indicated to be confidential information, confidential

from anyone other than Persons employed or retained by such Lender who are or

are expected to become engaged in evaluating, approving, structuring or

administering the Loans; provided that nothing herein shall prevent any

Lender from disclosing such information (a) to any other Lender,

(b) to any Person if reasonably incidental to the administration of the

Loans, (c) upon the order of any court or administrative agency,

(d) upon the request or demand of any regulatory agency or authority

having jurisdiction over such Lender, (e) which has been publicly

disclosed, (f) in connection with any litigation to which the

Administrative Agent, any Lender or their respective Affiliates may be a party,

(g) to the extent reasonably required in connection with the exercise of

any remedy under the Loan Documents, (h) to such Lender's legal counsel,

independent auditors and affiliates, and (i) to any actual or proposed

participant or Assignee of all or part of its rights hereunder, so long as such

actual or proposed participant or Assignee agrees to be bound by the provisions

of this Section 13.20.

 

Section 13.21         WAIVER

OF JURY TRIAL.  TO

THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO

HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY

ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR

OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE

TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF ANY LOAN PARTY, THE ADMINISTRATIVE

AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

 

Section 13.22         Approvals

and Consent. 

Except as may be expressly provided to the contrary in this Agreement or

in the other Loan Documents (as applicable), in any instance under this Agreement or the other Loan Documents where the

approval, consent or exercise of judgment of the Administrative Agent or any

Lender is requested or required, (a) the granting or denial of such

approval or consent and the exercise of such judgment shall be within the sole

discretion of the Administrative Agent and such Lender, and the Administrative

Agent and such Lender shall not, for any reason or to any extent, be required

to grant such approval or consent or to exercise such judgment in any

particular manner, regardless of the reasonableness of the request or the

action or judgment of the Administrative Agent or such Lender, and (b) no

approval or consent of the Administrative Agent or any Lender shall in any

event be effective unless the same shall be in writing and the same shall be

effective only in the specific instance and for the specific purpose for which

given.

 

Section 13.23         Agent

for Services of Process. 

Each of F.Y.I. and each of its Subsidiaries hereby irrevocably

designates any officer of F.Y.I., at the offices of F.Y.I. at 3232 McKinney Avenue,

Suite 900, Dallas, Texas 75204, to receive, for and on behalf of such Person,

service of process in the State of Texas, such service being hereby

acknowledged by such Person to be effective and binding service in every

respect.  Each of F.Y.I. and each of its

Subsidiaries agrees that the failure of its agent for service of process to

give any notice of any such service of process to such Person shall not impair

or affect the validity of such service or of any judgment based thereon.  If, despite the foregoing, there is for any

reason no agent for service of process of such Person available to be served,

then such Person further irrevocably consents to the service of process by the

mailing thereof by the Administrative Agent or the Required Lenders by

registered or certified mail, postage prepaid, to such Person at its address

listed on the signature pages hereof. 

Nothing in this Section 13.23 shall affect the right of the

Administrative Agent or the Lenders to serve legal process in any other manner

permitted by law or affect the right of the Administrative Agent or any Lender

to bring any action or proceeding against F.Y.I. or any of its Subsidiaries or

its Property in the court of any jurisdiction.

 

IN WITNESS WHEREOF, the

parties hereto have duly executed this Agreement as of the day and year first

above written.

 

	

   

  	

  F.Y.I. INCORPORATED

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

  /s/ Barry L. Edwards

  	

   

  
	

   

  	

  Barry L. Edwards

  	 

	

   

  	

  Executive Vice

  President and Chief Financial Officer

  	 

	

   

  	

   

  	 

	

   

  	

  Address for Notices:

  	 

	

   

  	

  3232 McKinney Avenue,

  Suite 900

  	 

	

   

  	

  Dallas, Texas 75204

  	 

	

   

  	

  Telecopy No.: 

  (214) 953-7556

  	 

	

   

  	

  Telephone No.: 

  (214) 953-7555

  	 

	

   

  	

  Attention: 

  Barry L. Edwards

  	 

				

 

 

	

   

  	

  BANK OF AMERICA,

  N.A., as Administrative Agent

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

  /s/ David A.

  Johanson

  	

   

  
	

   

  	

  David A. Johanson

  	

   

  	 

	

   

  	

  Vice President

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

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

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

  Commitment:

  	

  By:

  	

  /s/ Steven A. Mackenzie

  	

   

  	 

	

  $40,000,000

  	

  Steven A.

  Mackenzie

  	

   

  	 

	

   

  	

  Vice President

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  Address for Notices:

  	

   

  	

   

  	 

	

   

  	

  Bank of America, N.A.

  	

   

  	 

	

   

  	

  231 South LaSalle Street

  	

   

  	 

	

   

  	

  Chicago, Illinois 

  60604

  	

   

  	 

	

   

  	

  Telecopy No. (312) 974-9102

  	

   

  	 

	

   

  	

  Telephone No. (312) 828-7933

  	

   

  	 

	

   

  	

  Attention: 

  David Johanson

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  with

  a copy to:

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  Bank of America, N.A.

  	

   

  	 

	

   

  	

  901 Main Street, 7th Floor

  	

   

  	 

	

   

  	

  Dallas, Texas 

  75201

  	

   

  	 

	

   

  	

  Telecopy No. (214) 209-3140

  	

   

  	 

	

   

  	

  Telephone No. (214) 209-3680

  	

   

  	 

	

   

  	

  Attention: 

  Steven A. Mackenzie

  	 

										

 

 

	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

  Bank of America, N.A.

  	

   

  
	

   

  	

  231 South LaSalle

  Street

  	

   

  
	

   

  	

  Chicago, Illinois  60604

  	

   

  
	

   

  	

  Telecopy No. (312)

  974-9102

  	

   

  
	

   

  	

  Telephone No. (312)

  828-7933

  	

   

  
	

   

  	

  Attention:  David Johanson

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  with a copy to:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Bank of America, N.A.

  	

   

  
	

   

  	

  901 Main Street, 14th

  Floor

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No. (214)

  290-9442

  	

   

  
	

   

  	

  Telephone No. (214)

  209-9289

  	

   

  
	

   

  	

  Attention:  Monica Barnes

  	

   

  
				

 

 

	

   

  	

  SUNTRUST BANK,

  as syndication agent and as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Daniel S. Komitor

  	

   

  
	

  $40,000,000

  	

  Daniel S.

  Komitor

  	

   

  
	

   

  	

  Director

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

  Suntrust Bank

  	

   

  	

   

  
	

   

  	

  303 Peachtree St.

  	

   

  
	

   

  	

  MC 1921-2nd

  Floor

  	

   

  
	

   

  	

  Atlanta, Georgia 30308

  	

   

  
	

   

  	

  Telecopy No.

  404.588.8833

  	

   

  
	

   

  	

  Telephone No.

  404.724.3889

  	

   

  
	

   

  	

  Attention: Daniel S.

  Komitor

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Suntrust Bank

  	

   

  
	

   

  	

  25 Park Place

  	

   

  
	

   

  	

  Atlanta, Georgia  30303

  	

   

  
	

   

  	

  Telecopy No. 404.232.1940

  	

   

  
	

   

  	

  Telephone No.

  404.588.7077

  	

   

  
	

   

  	

  Attention: Tom Presley

  	

   

  
	

   

  	

   

  
									

 

 

	

   

  	

  WELLS FARGO BANK

  TEXAS, NATIONAL ASSOCIATION, as documentation agent and as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Zachary S. Johnson

  	

   

  
	

  $35,000,000

  	

  Zachary S.

  Johnson

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Wells Fargo Bank Texas,

  National Association

  	

   

  
	

   

  	

  1445 Ross Avenue, 3rd

  Floor

  	

   

  
	

   

  	

  Dallas, Texas  75202

  	

   

  
	

   

  	

  Telecopy No.:  (214) 969-0370 

  	

   

  
	

   

  	

  Telephone No.: 

  (214) 740-1587

  	

   

  
	

   

  	

  Attention: 

  Zachary Johnson

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Wells Fargo Bank Texas,

  National Association

  	

   

  
	

   

  	

  1445 Ross Avenue, 3rd

  Floor

  	

   

  
	

   

  	

  Dallas, Texas  75202

  	

   

  
	

   

  	

  Telecopy No.:  (214) 969-0370

  	

   

  
	

   

  	

  Telephone No.: 

  (214) 740-1587

  	

   

  
	

   

  	

  Attention: 

  Zachary Johnson

  	

   

  
							

 

 

	

   

  	

  BANK ONE, NA, as

  a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Thomas R. Freas

  	

   

  
	

  $25,000,000

  	

  Thomas R. Freas

  	

   

  
	

   

  	

  Authorized

  Signatory

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Bank One, NA

  	

   

  
	

   

  	

  1717 Main Street

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:

  214.290.2765

  	

   

  
	

   

  	

  Telephone No.: 214.290.4110

  	

   

  
	

   

  	

  Attention: Thomas R. Freas

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Bank One, NA

  	

   

  
	

   

  	

  1717 Main Street

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:

  214.290.2765

  	

   

  
	

   

  	

  Telephone No.: 214.290.4110

  	

   

  
	

   

  	

  Attention: Thomas R. Freas

  	

   

  
							

 

 

	

   

  	

  BNP PARIBAS, as

  a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Jeff Tebeaux

  	

   

  
	

  $25,000,000

  	

  Jeff Tebeaux

  	

   

  
	

   

  	

  Associate

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Lloyd G. Cox

  	

   

  
	

   

  	

  Name:

  	

  Lloyd G. Cox

  	

   

  
	

   

  	

  Title:

  	

  Managing Director

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  BNP Paribas

  	

   

  
	

   

  	

  12201 Merit Drive, Suite

  860

  	

   

  
	

   

  	

  Dallas, Texas  75251

  	

   

  
	

   

  	

  Telecopy No.:

  972.788.9140

  	

   

  
	

   

  	

  Telephone No.: 972.788.9191

  	

   

  
	

   

  	

  Attention: Jeff Tebeaux

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  BNP Paribas

  	

   

  
	

   

  	

  1200 Smith Street, Ste.

  3100

  	

   

  
	

   

  	

  Houston, Texas  77002

  	

   

  
	

   

  	

  Telecopy No.:

  713.659.5228

  	

   

  
	

   

  	

  Telephone No.: 

  713.659.4811

  	

   

  
	

   

  	

  Attention: Donna Rose

  	

   

  
									

 

 

	

   

  	

  FIRST UNION

  NATIONAL BANK, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Jeffrey R. Stottler

  	

   

  
	

  $25,000,000

  	

  Jeffrey R.

  Stottler

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  First Union National

  Bank

  	

   

  
	

   

  	

  301 South College

  Street, 5th Floor DC5

  	

   

  
	

   

  	

  Charlotte, North

  Carolina  28288-0760

  	

   

  
	

   

  	

  Telecopy No.:

  704.383.7611

  	

   

  
	

   

  	

  Telephone No.: 704.715.8098

  	

   

  
	

   

  	

  Attention: David Diggers

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  First Union National

  Bank

  	

   

  
	

   

  	

  201 South College

  Street, 17th Floor NC1183

  	

   

  
	

   

  	

  Charlotte, North

  Carolina  28288-1183

  	

   

  
	

   

  	

  Telecopy No.:

  704.383.7999

  	

   

  
	

   

  	

  Telephone No.: 704.715.1876

  	

   

  
	

   

  	

  Attention: Dianne Taylor

  	

   

  
						

 

 

	

   

  	

  THE BANK OF NOVA

  SCOTIA, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ F.C.H. Ashby

  	

   

  
	

  $25,000,000

  	

  F.C.H. Ashby

  	

   

  
	

   

  	

  Senior Manager

  Loan Operations

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  The Bank of Nova Scotia

  	

   

  
	

   

  	

  Atlanta Agency

  	

   

  
	

   

  	

  600 Peachtree Street

  N.E., Suite 2700

  	

   

  
	

   

  	

  Atlanta, Georgia  30308

  	

   

  
	

   

  	

  Telecopy No.: 

  (404) 888-8998

  	

   

  
	

   

  	

  Telephone No.: 

  (404) 877-1552

  	

   

  
	

   

  	

  Attention: 

  Twala Johnson

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  The Bank of Nova Scotia

  	

   

  
	

   

  	

  Atlanta Agency

  	

   

  
	

   

  	

  600 Peachtree Street

  N.E., Suite 2700

  	

   

  
	

   

  	

  Atlanta, Georgia  30308

  	

   

  
	

   

  	

  Telecopy No.: 

  (404) 888-8998

  	

   

  
	

   

  	

  Telephone No.: 

  (404) 877-1552

  	

   

  
	

   

  	

  Attention: 

  Twala Johnson

  	

   

  
							

 

 

	

   

  	

  THE CHASE

  MANHATTAN BANK, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Michael D.S. Kerner

  	

   

  
	

  $25,000,000

  	

  Michael D.S.

  Kerner

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  The Chase Manhattan

  Bank

  	

   

  
	

   

  	

  2200 Ross Avenue, 5th

  Floor

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:  (214) 965-2384

  	

   

  
	

   

  	

  Telephone No.: 

  (214) 965-2503

  	

   

  
	

   

  	

  Attention: 

  Michael D.S. Kerner

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  The Chase Manhattan

  Bank

  	

   

  
	

   

  	

  2200 Ross Avenue, 5th

  Floor

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:  (214) 965-2384

  	

   

  
	

   

  	

  Telephone No.: 

  (214) 965-2503

  	

   

  
	

   

  	

  Attention: 

  Michael D.S. Kerner

  	

   

  
							

 

 

	

   

  	

  WACHOVIA BANK,

  N.A., as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ David L. Corts

  	

   

  
	

  $25,000,000

  	

  David L. Corts

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Wachovia Bank, N.A.

  	

   

  
	

   

  	

  191 Peachtree Street

  	

   

  
	

   

  	

  MC-GA-370

  	

   

  
	

   

  	

  Atlanta, Georgia  30303

  	

   

  
	

   

  	

  Telecopy No.:  (404) 332-4136

  	

   

  
	

   

  	

  Telephone No.: 

  (404) 332-1093

  	

   

  
	

   

  	

  Attention: 

  Brad Watkins

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Wachovia Bank, N.A.

  	

   

  
	

   

  	

  191 Peachtree Street

  	

   

  
	

   

  	

  MC-GA-370

  	

   

  
	

   

  	

  Atlanta, Georgia  30303

  	

   

  
	

   

  	

  Telecopy No.:  (404) 332-332.4320

  	

   

  
	

   

  	

  Telephone No.: 

  (404) 332-1127

  	

   

  
	

   

  	

  Attention: 

  Carla Brooks

  	

   

  
							

 

 

	

   

  	

  WASHINGTON

  MUTUAL BANK, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Bruce Kendrex

  	

   

  
	

  $15,000,000

  	

  Bruce Kendrex

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Washington Mutual Bank

  	

   

  
	

   

  	

  1201 Third Avenue,

  Suite 1445

  	

   

  
	

   

  	

  Seattle Washington  98101

  	

   

  
	

   

  	

  Telecopy No.:  (206) 490-2538

  	

   

  
	

   

  	

  Telephone No.:  (206) 377-3888

  	

   

  
	

   

  	

  Attention: 

  Bruce Kendrex

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Washington Mutual Bank

  	

   

  
	

   

  	

  1201 Third Avenue,

  Suite 1445

  	

   

  
	

   

  	

  Seattle Washington  98101

  	

   

  
	

   

  	

  Telecopy No.:  (206) 490-2538

  	

   

  
	

   

  	

  Telephone No.:  (206) 377-3888

  	

   

  
	

   

  	

  Attention: 

  Bruce Kendrex

  	

   

  
									

 

 

	

   

  	

  TEXAS CAPITAL

  BANK, NATIONAL ASSOCIATION, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ Paul Howell

  	

   

  
	

  $10,000,000

  	

  Paul Howell

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Texas Capital Bank,

  National Association

  	

   

  
	

   

  	

  2100 McKinney Avenue,

  Suite 900

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:  (214) 932-6604

  	

   

  
	

   

  	

  Telephone No.:  (214) 932-6663

  	

   

  
	

   

  	

  Attention: 

  Paul D. Howell

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  
	

   

  	

   

  	

   

  
	

   

  	

  Texas Capital Bank,

  National Association

  	

   

  
	

   

  	

  2100 McKinney Avenue,

  Suite 900

  	

   

  
	

   

  	

  Dallas, Texas  75201

  	

   

  
	

   

  	

  Telecopy No.:  (214) 932-6604

  	

   

  
	

   

  	

  Telephone No.:  (214) 932-6663

  	

   

  
	

   

  	

  Attention: 

  Paul D. Howell

  	

   

  
						

 

 

	

   

  	

  RAYMOND JAMES

  BANK, FSB, as a Lender

  
	

   

  	

   

  
	

  Commitment:

  	

   

  	

  By:

  	

  /s/ John D. Hallstrom

  	

   

  
	

  $7,500,000

  	

  John D.

  Hallstrom

  	

   

  
	

   

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Address for Notices:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Raymond James Bank, FSB

  	

   

  
	

   

  	

  710 Carillon Parkway

  	

   

  
	

   

  	

  St. Petersburg,

  Florida  33716

  	

   

  
	

   

  	

  Telecopy No.:  (727) 575-5519

  	

   

  
	

   

  	

  Telephone No.:  (727) 571-3333, x34847

  	

   

  
	

   

  	

  Attention: 

  John D. Hallstrom

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lending Office for

  Prime Rate and Eurodollar Loans:

  
	

   

  	

   

  	

   

  
	

   

  	

  Raymond James Bank, FSB

  	

   

  
	

   

  	

  710 Carillon Parkway

  	

   

  
	

   

  	

  St. Petersburg,

  Florida  33716

  	

   

  
	

   

  	

  Telecopy No.:  (727) 575-5519

  	

   

  
	

   

  	

  Telephone No.:  (727) 571-3333, x34847

  	

   

  
	

   

  	

  Attention: 

  John D. Hallstrom

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]