Document:

EX-10.4

 

Exhibit 10.4

AMENDED AND RESTATED CREDIT AGREEMENT

among

PIKE HOLDINGS, INC.,

PIKE ELECTRIC, INC.,

as Borrower,

The Several Lenders from Time to Time Parties Hereto,

BARCLAYS BANK PLC,

as Administrative Agent,

J.P. MORGAN SECURITIES INC.,

as Syndication Agent,

NATIONAL CITY BANK,

as Documentation Agent,

and

BARCLAYS CAPITAL

and

J. P. MORGAN SECURITIES INC.,

as Co-Lead Arrangers and Joint Bookrunners

Dated as of July 1, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 1.	 	Amount and Terms of Credit	 	 	1	 
	 
	 	1.1.	 	Commitment	 	 	1	 
	 
	 	1.2.	 	Minimum Borrowing Amounts, etc	 	 	3	 
	 
	 	1.3.	 	Notice of Borrowing	 	 	3	 
	 
	 	1.4.	 	Disbursement of Funds	 	 	4	 
	 
	 	1.5.	 	Evidence of Indebtedness	 	 	4	 
	 
	 	1.6.	 	Conversions	 	 	5	 
	 
	 	1.7.	 	Pro Rata Borrowings	 	 	5	 
	 
	 	1.8.	 	Interest	 	 	5	 
	 
	 	1.9.	 	Interest Periods	 	 	6	 
	 
	 	1.10.	 	Increased Costs, Illegality, etc	 	 	7	 
	 
	 	1.11.	 	Compensation	 	 	9	 
	 
	 	1.12.	 	Change of Lending Office	 	 	9	 
	 
	 	1.13.	 	Replacement of Lenders	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	Section 2.	 	Letters of Credit	 	 	10	 
	 
	 	2.1.	 	Letters of Credit	 	 	10	 
	 
	 	2.2.	 	Letter of Credit Requests; Notices of Issuance	 	 	10	 
	 
	 	2.3.	 	Agreement to Repay Letter of Credit Drawings	 	 	10	 
	 
	 	2.4.	 	Letter of Credit Participations	 	 	11	 
	 
	 	2.5.	 	Increased Costs	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	Section 3.	 	Fees; Commitments	 	 	13	 
	 
	 	3.1.	 	Fees	 	 	13	 
	 
	 	3.2.	 	Voluntary Reduction of Commitments	 	 	14	 
	 
	 	3.3.	 	Mandatory Adjustments of Commitments, etc	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	Section 4.	 	Payments	 	 	14	 
	 
	 	4.1.	 	Voluntary Prepayments	 	 	14	 
	 
	 	4.2.	 	Mandatory Prepayments	 	 	15	 
	 
	 	4.3.	 	Method and Place of Payment	 	 	18	 
	 
	 	4.4.	 	Net Payments	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	Section 5.	 	Conditions Precedent	 	 	20	 
	 
	 	5.1.	 	Conditions Precedent to Effectiveness	 	 	20	 
	 
	 	5.2.	 	Conditions Precedent to All Credit Events	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	Section 6.	 	Representations, Warranties and Agreements	 	 	26	 
	 
	 	6.1.	 	Corporate Status; Compliance with Law	 	 	26	 
	 
	 	6.2.	 	Power and Authority	 	 	27	 
	 
	 	6.3.	 	No Violation	 	 	27	 
	 
	 	6.4.	 	Litigation	 	 	27	 
	 
	 	6.5.	 	Use of Proceeds; Margin Regulations	 	 	27	 
	 
	 	6.6.	 	Governmental Approvals	 	 	28	 
	 
	 	6.7.	 	Investment Company Act	 	 	28	 
	 
	 	6.8.	 	Public Utility Holding Company Act	 	 	28	 

 i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	6.9.	 	True and Complete Disclosure	 	 	28	 
	 
	 	6.10.	 	Financial Condition; Financial Statements	 	 	29	 
	 
	 	6.11.	 	Security Interests	 	 	30	 
	 
	 	6.12.	 	Tax Returns and Payments	 	 	30	 
	 
	 	6.13.	 	Compliance with ERISA	 	 	30	 
	 
	 	6.14.	 	Subsidiaries	 	 	31	 
	 
	 	6.15.	 	Intellectual Property	 	 	31	 
	 
	 	6.16.	 	Pollution and Other Regulations	 	 	31	 
	 
	 	6.17.	 	Properties	 	 	31	 
	 
	 	6.18.	 	Labor Matters	 	 	32	 
	 
	 	6.19.	 	Holding Company Status	 	 	32	 
	 
	 	6.20.	 	No Default	 	 	32	 
	 
	 	6.21.	 	Regulation H	 	 	32	 
	 
	 	6.22.	 	Certain Agreements	 	 	32	 
	 
	 	6.23.	 	Indebtedness to be Refinanced	 	 	32	 
	 
	 	6.24.	 	Vehicles	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	Section 7.	 	Affirmative Covenants	 	 	32	 
	 
	 	7.1.	 	Information Covenants	 	 	32	 
	 
	 	7.2.	 	Books, Records and Inspections	 	 	34	 
	 
	 	7.3.	 	Maintenance of Insurance	 	 	34	 
	 
	 	7.4.	 	Payment of Taxes	 	 	34	 
	 
	 	7.5.	 	Franchises	 	 	35	 
	 
	 	7.6.	 	Compliance with Contractual Obligations and Laws, Statutes, etc.	 	 	35	 
	 
	 	7.7.	 	ERISA	 	 	35	 
	 
	 	7.8.	 	Good Repair	 	 	35	 
	 
	 	7.9.	 	Payment of Obligations	 	 	36	 
	 
	 	7.10.	 	Environmental Laws	 	 	36	 
	 
	 	7.11.	 	Use of Proceeds	 	 	36	 
	 
	 	7.12.	 	Additional Collateral	 	 	36	 
	 
	 	7.13.	 	Interest Rate Agreements	 	 	37	 
	 
	 	7.14.	 	Post-Closing Covenants	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	Section 8.	 	Negative Covenants	 	 	38	 
	 
	 	8.1.	 	Changes in Business	 	 	38	 
	 
	 	8.2.	 	Consolidation, Merger, Sale of Assets, etc.	 	 	38	 
	 
	 	8.3.	 	Liens	 	 	39	 
	 
	 	8.4.	 	Indebtedness	 	 	41	 
	 
	 	8.5.	 	Capital Expenditures	 	 	42	 
	 
	 	8.6.	 	Advances, Investments and Loans	 	 	42	 
	 
	 	8.7.	 	Leases	 	 	44	 
	 
	 	8.8.	 	Prepayments of Indebtedness; Amendments to Documents, etc.	 	 	44	 
	 
	 	8.9.	 	Dividends, etc.	 	 	45	 
	 
	 	8.10.	 	Transactions with Affiliates	 	 	47	 
	 
	 	8.11.	 	Sales and Leasebacks	 	 	47	 
	 
	 	8.12.	 	Changes in Fiscal Periods	 	 	47	 
	 
	 	8.13.	 	Cash Interest Coverage Ratio	 	 	47	 
	 
	 	8.14.	 	Leverage Ratio	 	 	48	 
	 
	 	8.15.	 	Deferred Compensation Liability	 	 	48	 

 ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Section 9.	 	Events of Default	 	 	49	 
	 
	 	9.1.	 	Payments	 	 	49	 
	 
	 	9.2.	 	Representations etc	 	 	49	 
	 
	 	9.3.	 	Covenants	 	 	49	 
	 
	 	9.4.	 	Default Under Other Agreements	 	 	49	 
	 
	 	9.5.	 	Bankruptcy, etc	 	 	49	 
	 
	 	9.6.	 	ERISA	 	 	50	 
	 
	 	9.7.	 	Security Documents	 	 	50	 
	 
	 	9.8.	 	Guaranty	 	 	50	 
	 
	 	9.9.	 	Judgments	 	 	51	 
	 
	 	9.10.	 	Change of Control	 	 	51	 
	 
	 	 	 	 	 	 	 	 
	Section 10.	 	Definitions	 	 	51	 
	 
	 	 	 	 	 	 	 	 
	Section 11.	 	The Administrative Agent	 	 	73	 
	 
	 	11.1.	 	Appointment	 	 	73	 
	 
	 	11.2.	 	Delegation of Duties	 	 	73	 
	 
	 	11.3.	 	Exculpatory Provisions	 	 	73	 
	 
	 	11.4.	 	Reliance by Administrative Agent	 	 	74	 
	 
	 	11.5.	 	Notice of Default	 	 	74	 
	 
	 	11.6.	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	74	 
	 
	 	11.7.	 	Indemnification	 	 	75	 
	 
	 	11.8.	 	The Administrative Agent in its Individual Capacity	 	 	75	 
	 
	 	11.9.	 	Successor Administrative Agent	 	 	75	 
	 
	 	 	 	 	 	 	 	 
	Section 12.	 	Miscellaneous	 	 	75	 
	 
	 	12.1.	 	Payment of Expenses, etc	 	 	75	 
	 
	 	12.2.	 	Right of Setoff	 	 	76	 
	 
	 	12.3.	 	Notices	 	 	76	 
	 
	 	12.4.	 	Benefit of Agreement	 	 	77	 
	 
	 	12.5.	 	No Waiver; Remedies Cumulative	 	 	79	 
	 
	 	12.6.	 	Payments Pro Rata	 	 	79	 
	 
	 	12.7.	 	Calculations; Computations	 	 	79	 
	 
	 	12.8.	 	Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial	 	 	80	 
	 
	 	12.9.	 	Counterparts	 	 	80	 
	 
	 	12.10.	 	Effectiveness	 	 	81	 
	 
	 	12.11.	 	Headings	 	 	81	 
	 
	 	12.12.	 	Amendment or Waiver	 	 	81	 
	 
	 	12.13.	 	Survival	 	 	82	 
	 
	 	12.14.	 	Domicile of Loans	 	 	82	 
	 
	 	12.15.	 	Confidentiality	 	 	83	 
	 
	 	12.16.	 	Release of Liens and Guarantees	 	 	83	 
	 
	 	12.17.	 	Integration	 	 	83	 
	 
	 	12.18.	 	Acknowledgments	 	 	83	 

 iii

 

ANNEXES:

	 	 	 
	1.1A
	 	Commitments and Addresses
	1.1B
	 	Mortgaged Properties
	5.1(h)(iii)
	 	Mortgaged Aircraft
	5.1(p)
	 	Approvals
	6.4
	 	Litigation
	6.12
	 	Taxes
	6.13
	 	ERISA
	6.14
	 	Subsidiaries
	6.16
	 	Environmental Matters
	6.21
	 	Regulation H
	8.3(d)
	 	Existing Liens
	8.4(d)
	 	Existing Indebtedness
	8.6(d)
	 	Existing Investments
	8.10
	 	Affiliate Transactions

EXHIBITS:

	 	 	 
	A
	 	Form of Notice of Borrowing
	B-1
	 	Form of Term Note
	B-2
	 	Form of Revolving Note
	C
	 	Form of Letter of Credit Request
	D
	 	Form of Assignment Agreement
	E
	 	Form of Closing Certificate
	F
	 	Form of Exemption Certificate
	G-1
	 	Form of Opinion of Cravath, Swaine & Moore
	G-2
	 	Form of Opinion of Bell Davis & Pitt
	H
	 	Form of Amended and Restated Guarantee and Collateral Agreement
	I
	 	Form of Real Property Mortgage
	J
	 	Form of Aircraft Mortgage
	K
	 	Form of Compliance Certificate

 iv

 

          AMENDED AND RESTATED CREDIT AGREEMENT, dated as of July 1, 2004, among PIKE HOLDINGS, INC.
(“Holdings”), a North Carolina corporation, PIKE ELECTRIC, INC. (the “Borrower”), a
North Carolina corporation, the lending and other financial institutions listed from time to time
on Annex 1.1A hereto (each a “Lender” and, collectively, the “Lenders”), NATIONAL
CITY BANK, as documentation agent (in such capacity, the “Documentation Agent”), BARCLAYS
CAPITAL and J.P. MORGAN SECURITIES INC., as co-lead arrangers and joint bookrunners (collectively,
in such capacity, the “Arrangers”), J.P. MORGAN SECURITIES INC., as syndication agent (the
“Syndication Agent”), and BARCLAYS BANK PLC, as administrative agent (the
“Administrative Agent”). Unless otherwise defined herein, all capitalized terms used
herein and defined in Section 10 are used herein as so defined.

W I T N E S S E T H:

          WHEREAS, the Borrower is a party to the Credit Agreement, dated as of April 18, 2002 (as
amended, supplemented or otherwise modified from time to time prior to the amendment and
restatement provided for herein, the “Existing Credit Agreement”), among Holdings, the
Borrower, the lending and other financial institutions listed from time to time on Annex 1.1A
thereto, the Arrangers referred to therein, the Syndication Agent referred to therein and the
Administrative Agent;

          WHEREAS, the Borrower has entered into a Stock Purchase Agreement, dated as of May 4, 2004
(the “Acquisition Agreement”), with the Mick Dubea 2003 Grantor Retained Annuity Trust,
John Charles Simpson 2003 Grantor Retained Annuity Trust for John, Jr., John Charles Simpson 2003
Grantor Retained Annuity Trust for Angela, Simeon A. Thibeaux, Jr., Mick J. Dubea, John C. Simpson
(each of the foregoing being referred to as a “Seller”) and Red Simpson, Inc., a Louisiana
corporation (“Red Simpson”), pursuant to which the Borrower has agreed to purchase (the
“Acquisition”) all the outstanding shares of common stock, no par value, of Red Simpson
(constituting all the issued and outstanding capital stock of Red Simpson);

          WHEREAS, Holdings and the Borrower have requested that the Existing Credit Agreement be
amended and restated as provided herein for the purposes, among others, of increasing the amount of
the Term Facility to $300,000,000 to provide funds to finance the Acquisition and increasing the
amount of the Revolving Facility to $70,000,000 to provide sufficient funding for the working
capital needs and general corporate purposes of the Borrower and its Subsidiaries after giving
effect to the Acquisition; and

          WHEREAS, it is the intent of the parties hereto that this Agreement not constitute a novation
of the obligations and liabilities existing under the Existing Credit Agreement and which remain
outstanding, or evidence repayment of any of such obligations and liabilities, and that this
Agreement amend and restate in its entirety the Existing Credit Agreement and re-evidence the
obligations of the Borrower outstanding thereunder;

          NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the
parties hereto hereby agree that on the Effective Date, the Existing Credit Agreement shall be, and
hereby is, amended and restated to read in its entirety as follows:

          SECTION 1. AMOUNT AND TERMS OF CREDIT.

          1.1. Commitment. Subject to and upon the terms and conditions herein set forth, each
Lender severally agrees to make a loan or loans (each a “Loan” and, collectively, the
“Loans”) to the Borrower, which Loans shall
be drawn, to the extent such Lender has a Commitment under such Facility, under the Term
Facility, the Revolving Facility and the Swingline Facility, as set forth below:

 

 

 2

     (a) Loans under the Term Facility (each a “Term Loan” and, collectively, the
“Term Loans”) (i) shall be made pursuant to a single borrowing which shall be on the

Effective Date and (ii) shall not exceed in aggregate principal amount for any Lender at the
time of incurrence thereof the Term Commitment, if any, of such Lender. Once repaid, Term
Loans borrowed hereunder may not be reborrowed.

     (b) Loans under the Revolving Facility (each a “Revolving Loan” and,
collectively, the “Revolving Loans”) (i) shall be made, subject to the last sentence
of this Section 1.1(b), at any time and from time to time on and after the Effective Date
and prior to the Revolving Facility Final Maturity Date, (ii) except as hereinafter
provided, may, at the option of the Borrower, be incurred and maintained as, and/or
converted into, ABR Loans or Eurodollar Loans, provided that all Revolving Loans
made as part of the same Borrowing shall, unless otherwise specifically provided herein,
consist of Revolving Loans of the same Type, (iii) may be repaid and reborrowed in
accordance with the provisions hereof, (iv) shall not exceed for any Lender at any time
outstanding that aggregate principal amount which, when added to the product of (x) such
Lender’s Revolving Percentage and (y) the sum of (I) the aggregate amount of Letter of
Credit Outstandings at such time and (II) the aggregate principal amount of all
Swingline Loans then outstanding, equals the Revolving Commitment of such Lender at such
time and (v) shall not exceed in aggregate principal amount at any time outstanding, when
added to the sum of (x) the aggregate amount of Letters of Credit Outstandings at such time
and (y) the aggregate principal amount of all Swingline Loans then outstanding, the Total
Revolving Commitment. The Revolving Loans may be borrowed on the Effective Date in an
aggregate amount not to exceed $5,000,000.

     (c) Subject to and upon the terms and conditions herein set forth, the Swingline
Lender, in its individual capacity, agrees, at any time and from time to time after the
Effective Date and prior to the Swingline Expiry Date, to make a loan or loans (each a
“Swingline Loan” and, collectively, the “Swingline Loans”) to the Borrower,
which Swingline Loans (i) shall be made and maintained as ABR Loans, (ii) shall not exceed
at any time outstanding the Swingline Commitment, (iii) shall not exceed in aggregate
principal amount at any time outstanding, when combined with (x) the aggregate principal
amount of all Revolving Loans then outstanding and (y) all Letter of Credit Outstandings at
such time, the Total Revolving Commitment then in effect, and (iv) may be repaid and
reborrowed in accordance with the provisions hereof. On the Swingline Expiry Date, all
Swingline Loans shall be repaid in full. The Swingline Lender shall not make any Swingline
Loan after receiving a written notice from the Borrower or any Lender stating that a Default
or an Event of Default exists and is continuing until such time as the Swingline Lender
shall have received written notice of (i) rescission of all such notices from the party or
parties originally delivering such notice (which notice of rescission such Person or Persons
shall give to the Swingline Lender promptly upon the discontinuance of such Default or Event
of Default) or (ii) the waiver of such Default or Event of Default in accordance with this
Agreement. Also, the Swingline Lender shall not have any obligation to make any Swingline
Loan in the event a Lender Default exists unless the Swingline Lender has entered into
arrangements satisfactory to it and the Borrower to eliminate the Swingline Lender’s risk
with respect to any such Defaulting Lender’s or Lenders’ obligations to fund Mandatory
Borrowings, including by collateralizing such Defaulting Lender’s or Lenders’ Revolving
Percentages of the Swingline Loans outstanding from time to time. On any Business Day, the
Swingline Lender may, in its sole discretion, give notice to the Lenders that all then
outstanding Swingline Loans shall be funded with a Borrowing of Revolving Loans
(provided that such notice shall be deemed
to have been automatically given upon the occurrence of an Event of Default under
Section 9.5), in which case a Borrowing of Revolving Loans constituting ABR Loans (each such
Borrowing, a “Mandatory Borrowing”) shall be made on the immediately succeeding
Business Day by all

 

 

 3

Lenders with a Revolving Commitment pro rata based on
such Lender’s Revolving Percentages and the proceeds thereof shall be applied directly to
the Swingline Lender to repay such outstanding Swingline Loans. Each Lender with a
Revolving Loan Commitment hereby irrevocably agrees to make such Revolving Loans upon one
Business Day’s notice pursuant to each Mandatory Borrowing in the amount and in the manner
specified in the preceding sentence and on the date specified to it in writing by the
Swingline Lender notwithstanding (i) that the amount of the Mandatory Borrowing may not
comply with the minimum amount for a Borrowing specified in Section 1.2, (ii) whether any
conditions specified in Section 5 are then satisfied, (iii) the date of such Mandatory
Borrowing and (iv) any reduction in the Total Revolving Commitment after such Swingline
Loans were made. In the event that any Mandatory Borrowing cannot for any reason be made on
the date otherwise required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code in respect of the Borrower), each
Lender with a Revolving Commitment hereby agrees that it shall forthwith purchase from the
Swingline Lender (without recourse or warranty), by assignment, such outstanding Swingline
Loans as shall be necessary to cause such Lenders to share in such Swingline Loans ratably
based upon their respective Revolving Percentages, provided that all interest
payable on such Swingline Loans shall be for the account of the Swingline Lender until the
date the respective purchase is made and, to the extent attributable to such purchase, shall
be payable to such Lender purchasing same from and after such date of purchase. Each
Lender’s obligations pursuant to the preceding sentence shall be absolute and unconditional.
Notwithstanding the foregoing provisions of this Section 1.1(c), there shall be no
Swingline Loans outstanding on the last day of any calendar quarter.

          1.2. Minimum Borrowing Amounts, etc. The aggregate principal amount of each Borrowing
under a Facility shall not be less than the Minimum Borrowing Amount for such Facility (except that
Mandatory Borrowings shall be made in the amounts required by Section 1.1(c)). More than one
Borrowing may be incurred on any day, provided that at no time shall there be outstanding
more than twelve Borrowings of Eurodollar Loans.

          1.3. Notice of Borrowing. (a) Whenever the Borrower desires to incur Loans under any
Facility (other than the Swingline Facility and any Mandatory Borrowings), it shall give the
Administrative Agent at its Notice Office, prior to 12:00 Noon (New York time), at least three
Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) of each
Borrowing of Eurodollar Loans and at least one Business Day’s prior written notice (or telephonic
notice promptly confirmed in writing) of each Borrowing of ABR Loans to be made hereunder;
provided that the Loans made on the Effective Date shall initially be ABR Loans. Each such
notice (each a “Notice of Borrowing”) shall be in the form of Exhibit A and shall specify
(i) the Facility pursuant to which such Borrowing is being made, (ii) the aggregate principal
amount of the Loans to be made pursuant to such Borrowing, (iii) the date of Borrowing (which shall
be a Business Day) and (iv) whether the respective Borrowing shall consist of ABR Loans or
Eurodollar Loans and, if Eurodollar Loans, the Interest Period to be initially applicable thereto.
The Administrative Agent shall promptly give each applicable Lender written notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing, of such Lender’s proportionate
share thereof and of the other matters covered by the Notice of Borrowing.

          (b) Whenever the Borrower desires to incur Swingline Loans hereunder, it shall give the
Swingline Lender no later than 12:00 Noon (New York time) on the day such Swingline Loan is to be
made, written notice (or telephonic notice promptly confirmed in writing) of such incurrence. Each
such notice shall specify in each case (i) the date of Borrowing (which shall be a Business Day)
and (ii) the aggregate principal amount of the Swingline Loans to be made pursuant to such
Borrowing.

 

 

 4

          (c) Mandatory Borrowings shall be made upon the notice specified in Section 1.1(c), with the
Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of Mandatory
Borrowings as set forth in such Section.

          (d) Without in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice permitted to be given hereunder, the Administrative Agent may act prior to
receipt of written confirmation without liability upon the basis of such telephonic notice believed
by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower as a
person entitled to give telephonic notices under this Agreement on behalf of the Borrower. In each
such case, the Administrative Agent’s record of the terms of such telephonic notice shall be
conclusive absent manifest error.

          1.4. Disbursement of Funds. (a) No later than 1:00 P.M. (2:00 P.M. in the case of
Swingline Loans) (New York time) on the date specified in each Notice of Borrowing, each Lender
with a Commitment under the respective Facility will make available
its pro rata share of each
Borrowing requested to be made on such date in the manner provided below. All amounts shall be
made available to the Administrative Agent in Dollars and immediately available funds at the
Payment Office, and the Administrative Agent promptly will make available to the Borrower by
depositing to its account at the Payment Office the aggregate of the amounts so made available in
the type of funds received. Unless the Administrative Agent shall have been notified by any Lender
prior to the date of Borrowing that such Lender does not intend to make available to the
Administrative Agent its portion of the Borrowing or Borrowings to be made on such date, the
Administrative Agent may assume that such Lender has made such amount available to the
Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon such
assumption, may (in its sole discretion and without any obligation to do so) make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact made available to the
Administrative Agent by such Lender and the Administrative Agent has made available same to the
Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such
Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative
Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the
Borrower shall immediately pay such corresponding amount to the Administrative Agent. The
Administrative Agent shall also be entitled to recover from such Lender or the Borrower, as the
case may be, interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the Borrower to the date
such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to
(x) if paid by such Lender, the overnight Federal Funds Effective Rate or (y) if paid by the
Borrower, the then applicable rate of interest, calculated in accordance with Section 1.8, for the
respective Loans.

          (b) Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its
commitments hereunder or to prejudice any rights which the Borrower may have against any Lender as
a result of any default by such Lender hereunder.

          1.5. Evidence of Indebtedness
(a) Each Lender shall maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of the Borrower to such Lender resulting from each Loan of such
Lender from time to time, including the amounts of principal and interest payable and paid to such
Lender from time to time under this Agreement.

          (b) The Administrative Agent, on behalf of the Borrower, shall maintain the Register pursuant
to Section 12.4(c), and a subaccount therein for each Lender, in which shall be recorded (i) the
amount of each Loan made hereunder and any Note evidencing such Loan, the Type thereof and each
Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or
to

 

 

 5

become due and payable from the Borrower to each Lender hereunder and (iii) both the amount of
any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

          (c) The accounts of each Lender and the entries made in the Register maintained pursuant to
Sections 1.5(a) and (b), respectively, shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of the Borrower therein recorded;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Loans made to such Borrower by
such Lender in accordance with the terms of this Agreement.

          (d) The Borrower agrees that, upon the request to the Administrative Agent by any Lender, the
Borrower will execute and deliver to such Lender a promissory note of the Borrower evidencing any
Term Loans or Revolving Loans, as the case may be, of such Lender, substantially in the form of
Exhibit B-1 or B-2, respectively, with appropriate insertions as to date and principal amount.

          1.6. Conversions. The Borrower shall have the option to convert on any Business Day
all or a portion at least equal to the applicable Minimum Borrowing Amount of the outstanding
principal amount of the Loans owing pursuant to a single Facility (other than under the Swingline
Facility, with all Swingline Loans to at all times be maintained as ABR Loans) into a Borrowing or
Borrowings pursuant to such Facility of another Type of Loan, provided that (i) except as
otherwise provided in Section 1.10(b), Eurodollar Loans may be converted into ABR Loans only on the
last day of an Interest Period applicable thereto and no partial conversion of a Borrowing of
Eurodollar Loans shall reduce the outstanding principal amount of the Eurodollar Loans made
pursuant to such Borrowing to less than the Minimum Borrowing Amount applicable thereto, (ii) ABR
Loans may only be converted into Eurodollar Loans if no Default or Event of Default is in existence
on the date of the conversion or, if a Default or an Event of Default is in existence on the date
of the conversion, if neither the Administrative Agent nor any Lender objects to such conversion,
and (iii) Borrowings of Eurodollar Loans resulting from this Section 1.6 shall be limited in
numbers as provided in Section 1.2. Each such conversion shall be effected by the Borrower giving
the Administrative Agent at its Notice Office, prior to 12:00 Noon (New York time), at least three
Business Days’ (or one Business Day’s, in the case of a conversion into ABR Loans) prior written
notice (or telephonic notice promptly confirmed in writing) (each a “Notice of Conversion”)
specifying the Loans to be so converted, the Type of Loans to be converted into and, if to be
converted into a Borrowing of Eurodollar Loans, the Interest Period to be initially applicable
thereto. The Administrative Agent shall give each Lender prompt notice of any such proposed
conversion affecting any of its Loans. Notwithstanding the foregoing or the provisions of Section
1.9, if a Default under Section 9.1 or an Event of Default is in existence at the time any Interest
Period in respect of any Borrowing of Eurodollar Loans is to expire and the Administrative Agent or
the Required Lenders have determined that a continuation of Eurodollar Loans as such is not
appropriate, such Loans may not be continued as Eurodollar Loans but instead shall be automatically
converted on the last day of such Interest Period into ABR Loans.

          1.7. Pro Rata Borrowings. All Borrowings of Term Loans and Revolving Loans under this
Agreement shall be made by the Lenders pro rata on the basis of their Term Commitments or Revolving
Commitments, respectively. It is understood that no Lender shall be responsible for any default by
any other Lender in its obligation to make Loans hereunder and that each Lender shall be obligated
to make the Loans provided to be made by it hereunder, regardless of the failure of any other
Lender to fulfill its commitments hereunder.

          1.8. Interest. (a) The unpaid principal amount of each ABR Loan shall bear interest
from the date of the Borrowing thereof until maturity (whether by acceleration or otherwise) at a
rate per

 

 

 6

annum
which shall at all times be the Applicable Margin plus the
Alternate Base Rate in effect from time to time.

          (b) The
unpaid principal amount of each Eurodollar Loan shall bear interest
from the date of the Borrowing thereof until maturity (whether by
acceleration or otherwise) at a rate per annum which shall at all
times be the Applicable Margin plus the relevant Eurodollar
Rate.

          (c) All overdue principal and, to the extent permitted by law, overdue interest in respect of
each Loan and any other overdue amount payable hereunder shall bear interest at a rate per annum
equal to the Alternate Base Rate in effect from time to time plus the sum of (i) 2% and
(ii) the Applicable Margin, provided that each Eurodollar Loan shall bear interest after
maturity (whether by acceleration or otherwise) until the end of the Interest Period then
applicable thereto at a rate per annum equal to 2% in excess of the rate of interest applicable
thereto at maturity.

          (d) Interest shall accrue from and including the date of any Borrowing to but excluding the
date of any repayment thereof and shall be payable (i) in respect of each ABR Loan, quarterly in
arrears on the last Business Day of each March, June, September and December, commencing September
2004, (ii) in respect of each Eurodollar Loan, on the last day of each Interest Period applicable
thereto and, in the case of an Interest Period of six, nine or twelve months, on the date occurring
every three months after the first day of such Interest Period during such Interest Period and
(iii) in respect of each Loan (x) other than a Revolving Loan that is an ABR Loan, on any
prepayment or conversion (on the amount prepaid or converted) and (y) at maturity (whether by
acceleration or otherwise) and, after such maturity, on demand.

          (e) All computations of interest hereunder shall be made in accordance with Section 12.7(b).

          (f) The Administrative Agent, upon determining the interest rate for any Borrowing of
Eurodollar Loans for any Interest Period, shall promptly notify the Borrower and the Lenders
thereof.

          1.9. Interest Periods. (a) At the time the Borrower gives a Notice of Borrowing or
Notice of Conversion in respect of the making of, or conversion into, a Borrowing of Eurodollar
Loans (in the case of the initial Interest Period applicable thereto) or prior to 12:00 Noon (New
York time) on the third Business Day prior to the expiration of an Interest Period applicable to a
Borrowing of Eurodollar Loans, the Borrower shall have the right to elect by giving the
Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of the
Interest Period applicable to such Borrowing, which Interest Period shall, at the option of the
Borrower, be a one, two, three or six month period (or, with the unanimous written
consent of the Lenders under the applicable Facility, a nine or twelve month period).
Notwithstanding anything to the contrary contained above:

     (i) the initial Interest Period for any Borrowing of Eurodollar Loans shall commence on
the date of such Borrowing (including the date of any conversion from a Borrowing of ABR
Loans), and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

     (ii) if any Interest Period begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period, such Interest
Period shall end on the last Business Day of such calendar month;

     (iii) if any Interest Period would otherwise expire on a day which is not a Business
Day, such Interest Period shall expire on the next succeeding Business Day, provided
that if any

 

 

 7

Interest Period would otherwise expire on a day which is not a Business Day but
is a day of the month after which no further Business Day occurs in such month, such
Interest Period shall expire on the next preceding Business Day;

     (iv) no Interest Period shall extend beyond the applicable Final Maturity Date;

     (v) no Interest Period with respect to any Borrowing of Term Loans may be elected that
would extend beyond any date upon which a Scheduled Repayment in respect of such Term Loans
is required to be made if, after giving effect to the selection of such Interest Period, the
aggregate principal amount of Term Loans maintained as Eurodollar Loans with Interest
Periods ending after such date would exceed the aggregate principal amount of Term Loans
permitted to be outstanding after such Scheduled Repayment; and

     (vi) no Interest Period may be elected at any time when both (x) a Default under
Section 9.1 or an Event of Default is then in existence, and (y) the Administrative Agent or
any Lender objects to such an election.

          (b) If upon the expiration of any Interest Period, the Borrower has failed to (or may not)
elect a new Interest Period to be applicable to the respective Borrowing of Eurodollar Loans as
provided above, the Borrower shall be deemed to have elected to convert such Borrowing into a
Borrowing of ABR Loans effective as of the expiration date of such current Interest Period.

          1.10. Increased Costs, Illegality, etc. (a) In the event that (x) in the case of
clause (i) below, the Administrative Agent or (y) in the case of clauses (ii) and (iii) below, any
Lender shall have determined (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto):

     (i) on any date for determining the Eurodollar Rate for any Interest Period that, by
reason of any changes arising after the date of this Agreement affecting the interbank
Eurodollar market, adequate and fair means do not exist for ascertaining the applicable
interest rate on the basis provided for in the definition of Eurodollar Rate; or

     (ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder in an amount which such Lender deems material with
respect to any Eurodollar Loans (other than any increased cost or reduction in the amount
received or receivable resulting from the imposition of or a change in the rate of taxes or
similar
charges) because of any change since the Effective Date in any applicable law,
governmental rule, regulation, guideline or order (or in the interpretation or
administration thereof and including the introduction of any new law or governmental rule,
regulation, guideline or order) (such as, for example, but not limited to, a change in
official reserve requirements, but, in all events, excluding reserves required under
Regulation D to the extent included in the computation of the Eurodollar Rate); or

     (iii) at any time, that the making or continuance of any Eurodollar Loan has become
unlawful by compliance by such Lender in good faith with any change since the Effective Date
in any law, governmental rule, regulation, guideline or order (or interpretation or
application thereof);

then, and in any such event, such Lender (or the Administrative Agent in the case of clause (i)
above) shall (x) on such date and (y) within ten Business Days of the date on which such event no
longer exists give notice (by telephone confirmed in writing) to the Borrower and to the
Administrative Agent of such

 

 

 8

determination (which notice the Administrative Agent shall promptly
transmit to each of the other Lenders). Thereafter (x) in the case of clause (i) above, Eurodollar
Loans shall no longer be available until such time as the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative
Agent no longer exist, and any Notice of Borrowing or Notice of Conversion given by the Borrower
with respect to Eurodollar Loans which have not yet been incurred shall be deemed rescinded by the
Borrower or, in the case of a Notice of Borrowing, shall, at the option of the Borrower, be deemed
converted into a Notice of Borrowing for ABR Loans to be made on the date of Borrowing contained in
such Notice of Borrowing, (y) in the case of clause (ii) above, the Borrower shall pay to such
Lender, upon written demand therefor, such additional amounts (in the form of an increased rate of,
or a different method of calculating, interest or otherwise as such Lender in its sole discretion
shall determine) as shall be required to compensate such Lender for such increased costs or
reductions in amounts receivable hereunder (a written notice as to the additional amounts owed to
such Lender, showing the basis for the calculation thereof, submitted to the Borrower by such
Lender shall, absent manifest error, be final and conclusive and binding upon all parties hereto)
and (z) in the case of clause (iii) above, the Borrower shall take one of the actions specified in
Section 1.10(b) as promptly as possible and, in any event, within the time period required by law.

          (b) At any time that any Eurodollar Loan is affected by the circumstances described in Section
1.10(a)(ii) or (iii), the Borrower may (and in the case of a Eurodollar Loan affected pursuant to
Section 1.10(a)(iii) the Borrower shall) either (i) if the affected Eurodollar Loan is then being
made pursuant to a Borrowing, by giving the Administrative Agent telephonic notice (confirmed
promptly in writing) thereof on the same date that the Borrower was notified by a Lender pursuant
to Section 1.10(a)(ii) or (iii), cancel said Borrowing or convert the related Notice of Borrowing
into one requesting a Borrowing of ABR Loans, or (ii) if the affected Eurodollar Loan is then
outstanding, upon at least one Business Day’s notice to the Administrative Agent, require the
affected Lender to convert each such Eurodollar Loan into a ABR Loan, provided that if more
than one Lender is affected at any time, then all affected Lenders must be treated the same
pursuant to this Section 1.10(b).

          (c) If any Lender shall have determined that after the Effective Date, the adoption or
effectiveness of any applicable law, rule or regulation regarding capital adequacy, or any change
therein, or any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by such Lender or its holding company with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, in each case made subsequent to the Effective Date, has or would have
the effect of reducing by an amount deemed by such Lender to be material the rate of return on such
Lender’s or holding company’s capital or assets as a
consequence of its commitments or obligations hereunder to a level below that which such
Lender or holding company could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender’s policies with respect to capital adequacy),
then from time to time, within 15 days after demand by such Lender (with a copy to the
Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as
will compensate such Lender or holding company for such reduction. Each Lender, upon determining
in good faith that any additional amounts will be payable pursuant to this Section 1.10(c), will
give prompt written notice thereof to the Borrower, which notice shall set forth the basis of the
calculation of such additional amounts, although the failure to give any such notice shall not
release or diminish any of the Borrower’s obligations to pay additional amounts pursuant to this
Section 1.10(c) upon the subsequent receipt of such notice.

          (d) Notwithstanding any other provision of Section 1.10 or 2.5, no Lender shall demand
compensation for any increased cost or reduction or other amount referred to above or in Section
2.5 if it shall not at the time be the general policy or practice of such Lender to demand such
compensation in similar circumstances under comparable provisions of other credit agreements.

 

 

 9

          1.11. Compensation. (a) The Borrower shall compensate each Lender, upon its written
request (which request shall set forth the basis for requesting and the method of calculating such
compensation), for all reasonable losses, expenses and liabilities (including, without limitation,
any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or
other funds required by such Lender to fund its Eurodollar Loans) which such Lender may sustain:
(i) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing
of Eurodollar Loans does not occur on a date specified therefor in a Notice of Borrowing or Notice
of Conversion (whether or not withdrawn by the Borrower or deemed withdrawn pursuant to Section
1.10(a)); (ii) if any repayment or conversion of any of its Eurodollar Loans occurs on a date which
is not the last day of an Interest Period applicable thereto; (iii) if any prepayment of any of its
Eurodollar Loans is not made on any date specified in a notice of prepayment given by the Borrower;
or (iv) as a consequence of (x) any other default by the Borrower to repay its Eurodollar Loans
when required by the terms of this Agreement or (y) an election made pursuant to Section 1.10(b).

          (b) Notwithstanding anything in this Agreement to the contrary, to the extent any notice
required by Section 1.10, 2.5 or 4.4 is given by any Lender more than 60 days after such Lender
obtained, or reasonably should have obtained, knowledge of the occurrence of the event giving rise
to the additional costs of the type described in such Section, such Lender shall not be entitled to
compensation under Section 1.10, 2.5 or 4.4 for any amounts incurred or accruing prior to the
giving of such notice to the Borrower.

          1.12. Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 1.10(a)(ii) or (iii), 2.5 or 4.4 with respect to such
Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another lending office for any Loans affected by such
event, provided that such designation is made on such terms that such Lender and its
lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding
the consequence of the event giving rise to the operation of any such Section. Nothing in this
Section 1.12 shall affect or postpone any of the obligations of the Borrower or the right of any
Lender provided in Section 1.10 or 4.4.

          1.13. Replacement of Lenders. If any Lender is owed increased costs or additional amounts, or the Borrower receives
notice from any Lender or the Administrative Agent, under Section 1.10, 2.5 or 4.4, or any Lender
becomes a Defaulting Lender, then the Borrower shall have the right, unless such Lender has
theretofore removed or cured the conditions which resulted in the obligation to pay such increased
costs or additional amounts or which caused it to be a Defaulting Lender, to replace in its
entirety such Lender (the “Replaced Lender”), on ten Business Days’ prior written notice to
the Administrative Agent and such Replaced Lender, with one or more other Persons (collectively,
the “Replacement Lender”) reasonably acceptable to the Administrative Agent and, to the
extent required by Section 12.4(b), reasonably acceptable to the Borrower (which acceptance in
either case shall not be unreasonably withheld); provided, that: (i) at the time of any
replacement pursuant to this Section 1.13, the Replaced Lender and the Replacement Lender shall
enter into one or more Assignment Agreements, substantially in the form of Exhibit D (appropriately
completed), pursuant to which the Replacement Lender shall acquire all of the Commitment and
outstanding Loans of the Replaced Lender and, in connection therewith, shall pay to the Replaced
Lender in respect thereof an amount equal to the sum of (a) an amount equal to the principal of,
and all accrued but unpaid interest on, all outstanding Loans of the Replaced Lender and (b) an
amount equal to all accrued, but theretofore unpaid, Fees owing to the Replaced Lender pursuant to
Section 3.1 and (c) any other amounts payable to the Replaced Lender under this Agreement
(including, without limitation, amounts payable under Section 1.11) and (ii) a Defaulting Lender
shall be a Replaced Lender only to the extent permitted by law. Upon the execution of the
respective assignment documentation, the payment of amounts referred to in the preceding sentence
and, if so requested by the Replacement Lender, delivery to the Replacement Lender of appropriate
Notes

 

 

 10

executed by the Borrower, the Replacement Lender shall become a Lender hereunder, and the
Replaced Lender shall cease to constitute a Lender hereunder, except with respect to
indemnification provisions under this Agreement, which shall survive as to such Replaced Lender.

          SECTION 2. LETTERS OF CREDIT.

          2.1. Letters of Credit. (a) Subject to and upon the terms and conditions herein set
forth, the Borrower may request the Letter of Credit Issuer at any time and from time to time on
any Business Day on or after the Effective Date and prior to the Revolving Facility Final Maturity
Date to issue, for the account of the Borrower and in support of (i) obligations of the Borrower
and/or its Subsidiaries, contingent or otherwise, incurred in the ordinary course of their
respective businesses, (ii) obligations of the Borrower and its Subsidiaries under insurance
policies or related to self-insurance obligations, (iii) obligations of the Borrower and its
Subsidiaries related to surety bonds and (iv) such other obligations of the Borrower and its
Subsidiaries to any other Person that are reasonably acceptable to the Administrative Agent, and
subject to and upon the terms and conditions herein set forth the Letter of Credit Issuer agrees to
issue from time to time, irrevocable letters of credit in such form as may be approved by the
Letter of Credit Issuer and the Administrative Agent (each such letter of credit, a “Letter of
Credit” and collectively, the “Letters of Credit”). Letters of Credit issued under the
Existing Credit Agreement shall continue to constitute Letters of Credit hereunder.

          (b) Notwithstanding the foregoing, (i) each Letter of Credit shall be denominated in Dollars,
(ii) no Letter of Credit shall be issued the Stated Amount of which, when added to the Letter of
Credit Outstandings (exclusive of Unpaid Drawings which are repaid on the date of, and prior to or
at the time of, the issuance of the relevant Letter of Credit) at such time, would exceed either
(x) $55,000,000 or (y) when added to the aggregate principal amount of all Revolving Loans and
Swingline Loans then outstanding, an amount equal to the Total Revolving Commitment at such time
(after giving effect to any reductions to the Total Revolving Commitment on such date), and (iii)
each Letter of Credit shall have an expiry date occurring not later than the earlier of (x) one
year after such Letter of Credit’s date of issuance
although any Letter of Credit may be automatically renewable for successive periods, which
shall in no event extend beyond the date referred to in clause (y) below, of up to 12 months
(unless notice of non-renewal is given to the Borrower by the Letter of Credit Issuer, or such
Letter of Credit does not include an automatic renewal provision) and (y) five Business Days prior
to the Revolving Facility Final Maturity Date, on terms acceptable to the Administrative Agent and
the Letter of Credit Issuer.

          2.2. Letter of Credit Requests; Notices of Issuance. (a) Whenever it desires that a
Letter of Credit be issued, the Borrower shall give the Administrative Agent and the Letter of
Credit Issuer written notice (including by way of telecopier) in the form of Exhibit C prior to
1:00 P.M. (New York time) at least five Business Days (or such shorter period as may be acceptable
to the Letter of Credit Issuer) prior to the proposed date of issuance (which shall be a Business
Day) (each a “Letter of Credit Request”), which Letter of Credit Request shall include an
application for such Letter of Credit and any other documents that the Letter of Credit Issuer
customarily requires in connection therewith. The Administrative Agent shall promptly notify each
Revolving Lender of each Letter of Credit Request.

          (b) The Letter of Credit Issuer shall, on the date of each issuance of a Letter of Credit by
it, give the Administrative Agent, each Revolving Lender and the Borrower written notice of the
issuance of such Letter of Credit, accompanied by a copy to the Administrative Agent of the Letter
of Credit or Letters of Credit issued by it.

          2.3. Agreement to Repay Letter of Credit Drawings. (a) The Borrower hereby agrees to
reimburse the Letter of Credit Issuer, by making payment to the Administrative Agent in immediately
available funds at the Payment Office, for any payment or disbursement made by the Letter of Credit

 

 

 11

Issuer under any Letter of Credit (each such amount so paid or disbursed until reimbursed, an
“Unpaid Drawing”), not later than 1:00 P.M. (New York time), on the Business Day
immediately following the day that the Borrower receives notice from the Letter of Credit Issuer of
such Unpaid Drawing, with interest on the amount so paid or disbursed by such Letter of Credit
Issuer, to the extent not reimbursed prior to 1:00 P.M. (New York time) on the date of such payment
or disbursement, from and including the date paid or disbursed to but not including the date the
Letter of Credit Issuer is reimbursed therefor at a rate per annum which shall be the rate then
applicable to Revolving Loans that are ABR Loans pursuant to Section 1.8(a) (plus an
additional 2% per annum if not reimbursed by the third Business Day after the date of such payment
or disbursement), such interest also to be payable on demand.

          (b) The Borrower’s obligation under this Section 2.3 to reimburse the Letter of Credit Issuer
with respect to Unpaid Drawings (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff, counterclaim or
defense to payment which the Borrower may have or have had against the Letter of Credit Issuer, the
Administrative Agent or any Lender, including, without limitation, any defense based upon the
failure of any drawing under a Letter of Credit to conform to the terms of the Letter of Credit or
any non-application or misapplication by the beneficiary of the proceeds of such drawing;
provided that, to the extent the Borrower has derived no benefit therefrom, the Borrower
shall not be obligated to reimburse the Letter of Credit Issuer for any wrongful payment made by
such Letter of Credit Issuer under a Letter of Credit as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of such Letter of Credit Issuer, and
provided, further, that the foregoing shall not impair the Borrower’s right to
claim damages suffered as a result of such wrongful payment made.

          2.4. Letter of Credit Participations. (a) Immediately upon the issuance by the Letter of Credit Issuer of any Letter of Credit,
the Letter of Credit Issuer shall be deemed to have sold and transferred to each Revolving Lender,
and each Revolving Lender (each a “Participant”) shall be deemed irrevocably and
unconditionally to have purchased and received from such Letter of Credit Issuer, without recourse
or warranty, an undivided interest and participation, to the extent of such Revolving Lender’s
Revolving Percentage, in such Letter of Credit, each substitute letter of credit, each drawing made
thereunder and the obligations of the Borrower under this Agreement with respect thereto (although
Letter of Credit Fees shall be payable directly to the Administrative Agent for the account of the
Revolving Lenders as provided in Section 3.1(b) and the Participants shall have no right to receive
any portion of any Fronting Fees) and any security therefor or guaranty pertaining thereto. Upon
any change in the Revolving Commitments of the Revolving Lenders pursuant to Section 12.4(b), it is
hereby agreed that, with respect to all then outstanding Letters of Credit and Unpaid Drawings,
there shall be an automatic adjustment to the participations pursuant to this Section 2.4 to
reflect the new Revolving Percentages of the assigning and assignee Revolving Lender.

          (b) In determining whether to pay under any Letter of Credit, the Letter of Credit Issuer
shall not have any obligation relative to the Participants other than to determine that any
documents required to be delivered under such Letter of Credit have been delivered and that they
appear to comply on their face with the requirements of such Letter of Credit. Any action taken or
omitted to be taken by the Letter of Credit Issuer under or in connection with any Letter of
Credit, if taken or omitted in the absence of gross negligence or willful misconduct, shall not
create for the Letter of Credit Issuer any resulting liability.

          (c) In the event that the Letter of Credit Issuer makes any payment under any Letter of Credit
and the Borrower shall not have reimbursed such amount in full to the Letter of Credit Issuer
pursuant to Section 2.3(a), the Letter of Credit Issuer shall promptly notify the Administrative
Agent, and the Administrative Agent shall promptly notify each Participant of such failure, and
each Participant shall promptly and unconditionally pay to the Administrative Agent for the account
of the Letter of Credit Issuer,

 

 

 12

the amount of such Participant’s Revolving Percentage of such
payment in Dollars and in same day funds. If the Administrative Agent so notifies any Participant
required to fund a payment under a Letter of Credit prior to 11:00 A.M. (New York time) on any
Business Day, such Participant shall make available to the Administrative Agent for the account of
the Letter of Credit Issuer such Participant’s Revolving Percentage of the amount of such payment
on such Business Day in same day funds. If and to the extent such Participant shall not have so
made its Revolving Percentage of the amount of such payment available to the Administrative Agent
for the account of the Letter of Credit Issuer, such Participant agrees to pay to the
Administrative Agent for the account of the Letter of Credit Issuer, forthwith on demand such
amount, together with interest thereon, for each day from such date until the date such amount is
paid to the Administrative Agent for the account of the Letter of Credit Issuer at the overnight
Federal Funds Effective Rate. The failure of any Participant to make available to the
Administrative Agent for the account of the Letter of Credit Issuer its Revolving Percentage of any
payment under any Letter of Credit shall not relieve any other Participant of its obligation
hereunder to make available to the Administrative Agent for the account of the Letter of Credit
Issuer its Revolving Percentage of any payment under any Letter of Credit on the date required, as
specified above, but no Participant shall be responsible for the failure of any other Participant
to make available to the Administrative Agent for the account of the Letter of Credit Issuer such
other Participant’s Revolving Percentage of any such payment.

          (d) Whenever the Letter of Credit Issuer receives a payment of a reimbursement obligation as
to which the Administrative Agent has received for the account of the Letter of Credit Issuer any
payments from the Participants pursuant to Section 2.4(c), the Letter of Credit Issuer shall pay to
the Administrative Agent and the Administrative Agent shall promptly pay to each Participant which
has paid
its Revolving Percentage thereof, in Dollars and in same day funds, an amount equal to such
Participant’s Revolving Percentage of the principal amount thereof and interest thereon accruing
after the purchase of the respective participations.

          (e) The obligations of the Participants to make payments to the Administrative Agent for the
account of the Letter of Credit Issuer with respect to Letters of Credit shall be irrevocable and
not subject to counterclaim, set-off or other defense or any other qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this Agreement under
all circumstances, including, without limitation, any of the following circumstances:

     (i) any lack of validity or enforceability of this Agreement or any of the other Credit
Documents;

     (ii) the existence of any claim, set-off, defense or other right which the Borrower may
have at any time against a beneficiary named in a Letter of Credit, any transferee of any
Letter of Credit (or any Person for whom any such transferee may be acting), the
Administrative Agent, the Letter of Credit Issuer, any Lender, or other Person, whether in
connection with this Agreement, any Letter of Credit, the transactions contemplated herein
or any unrelated transactions (including any underlying transaction between the Borrower and
the beneficiary named in any such Letter of Credit);

     (iii) any draft, certificate or other document presented under the 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;

     (iv) the surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents; or

 

 

 13

     (v) the occurrence of any Default or Event of Default.

          2.5. Increased Costs. If after the Effective Date, the adoption or effectiveness of
any applicable law, rule or regulation, or any change therein, or any change in the interpretation
or administration thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by the Letter of Credit Issuer or
any Lender with any request or directive (whether or not having the force of law) by any such
authority, central bank or comparable agency (in each case made subsequent to the Effective Date)
shall either (i) impose, modify or make applicable any reserve, deposit, capital adequacy or
similar requirement against Letters of Credit issued by the Letter of Credit Issuer or such
Lender’s participation therein, or (ii) shall impose on the Letter of Credit Issuer or any Lender
any other conditions affecting this Agreement, any Letter of Credit or such Lender’s participation
therein; and the result of any of the foregoing is to increase the cost to the Letter of Credit
Issuer or such Lender of issuing, maintaining or participating in any Letter of Credit, or to
reduce the amount of any sum received or receivable by the Letter of Credit Issuer or such Lender
hereunder (other than any increased cost or reduction in the amount received or receivable
resulting from the imposition of or a change in the rate of taxes or similar charges), then, upon
demand to the Borrower by the Letter of Credit Issuer or such Lender (a copy of which notice shall
be sent by the Letter of Credit Issuer or such Lender to the Administrative Agent), the Borrower,
subject to Section 1.11(b), shall pay to the Letter of Credit Issuer or such Lender such additional
amount or amounts as will compensate the Letter of Credit Issuer or such Lender for such increased
cost or reduction. A certificate submitted to the Borrower by the Letter of Credit Issuer or any
Lender, as the case may be (a copy of which certificate
shall be sent by the Letter of Credit Issuer or such Lender to the Administrative Agent),
setting forth the basis for the determination of such additional amount or amounts necessary to
compensate the Letter of Credit Issuer or any such Lender as aforesaid shall be conclusive and
binding on the Borrower absent manifest error, although the failure to deliver any such certificate
shall not release or diminish any of the Borrower’s obligations to pay additional amounts pursuant
to this Section 2.5.

          SECTION 3. FEES; COMMITMENTS.

          3.1. Fees. (a) The Borrower agrees to pay to the Administrative Agent a Commitment
Fee (“Commitment Fee”) for the account of each Lender for the period from and including the
Effective Date to but not including the date the Total Commitment has been terminated, computed at
a rate for each day equal to 1/2 of 1% per annum for such day on such Lender’s Unutilized Commitment.
Such Commitment Fee shall be due and payable in arrears on the last Business Day of each March,
June, September and December and on the first date upon which all Commitments shall have been
terminated, commencing in September 2004.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of each Lender pro
rata on the basis of its Revolving Percentage, a fee in respect of each outstanding Letter of
Credit (the “Letter of Credit Fee”) for each day computed at the rate equal to the
Applicable Margin for Revolving Loans that are Eurodollar Loans for such day on the Stated Amount
of such Letter of Credit on such day. Accrued Letter of Credit Fees shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and December of each
year and on the date upon which the Total Revolving Commitment is terminated, commencing in
September 2004.

          (c) The Borrower agrees to pay to the Administrative Agent for the account of the Letter of
Credit Issuer a fee in respect of each Letter of Credit (the “Fronting Fee”) computed at
the rate of 1/4 of 1% per annum on the average daily Stated Amount of such Letter of Credit. Accrued
Fronting Fees shall be due and payable quarterly in arrears on the last Business Day of each March,
June, September and December of each year and on the date upon which the Total Revolving Commitment
is terminated, commencing in September 2004.

 

 

 14

          (d) The Borrower agrees to pay directly to the Letter of Credit Issuer upon each issuance of,
drawing under, and/or amendment or transfer by a beneficiary of, a Letter of Credit such amount as
shall at the time of such issuance, drawing, transfer or amendment be the administrative charge
which the Letter of Credit Issuer is customarily charging for issuances of, drawings under or
amendments or transfers of, letters of credit issued by it.

          (e) The Borrower shall pay to the Administrative Agent (x) on the Effective Date for its own
account and/or for distribution to the Lenders such fees as have heretofore been agreed to by the
Borrower and the Administrative Agent and (y) for its own account such other fees as may be agreed
to from time to time between the Borrower and the Administrative Agent, when and as due.

          (f) All computations of Fees shall be made in accordance with Section 12.7(b).

          3.2. Voluntary Reduction of Commitments. Upon at least three Business Days’ prior
written notice (or telephonic notice confirmed in writing) to the Administrative Agent at its
Notice Office (which notice the Administrative Agent shall promptly transmit to each of the
Lenders), the Borrower shall have the right, without premium or penalty,
to terminate or partially reduce the Total Unutilized Revolving Commitment, provided
that (x) any such termination shall apply to proportionately and permanently reduce the Revolving
Commitment of each of the Lenders with such a Commitment and (y) any partial reduction pursuant to
this Section 3.2 shall be in the amount of at least $1,000,000 or a whole multiple thereof.

          3.3. Mandatory Adjustments of Commitments, etc. (a) The Total Commitment (and the
Term Commitment, Revolving Commitment and Swingline Commitment of each Lender) shall terminate on
the Expiration Date unless the Effective Date has occurred on or before such date.

          (b) The Term Commitment shall terminate in its entirety on the Effective Date (after giving

effect to the making of the Term Loans on such date).

          (c) The Total Revolving Commitment (and the Revolving Commitment of each Lender) shall
terminate on the Revolving Facility Final Maturity Date.

          (d) The Swingline Commitment shall terminate on the Swingline Expiry Date.

          (e) The Total Revolving Commitment shall be permanently reduced at the times and in the
amounts required under Section 4.2(b)(iii).

          SECTION 4. PAYMENTS.

          4.1. Voluntary Prepayments. The Borrower shall have the right to prepay Term Loans
and/or Revolving Loans and/or Swingline Loans, in whole or in part, without premium or penalty,
from time to time on the following terms and conditions: (i) the Borrower shall give the
Administrative Agent at the Payment Office written notice (or telephonic notice promptly confirmed
in writing) of its intent to prepay the Loans, whether such Loans are Term Loans, Revolving Loans
or Swingline Loans, the amount of such prepayment and (in the case of Eurodollar Loans) the
specific Borrowing(s) pursuant to which made, which notice shall be received by the Administrative
Agent by 11:00 A.M. (New York time) one Business Day prior to the date of such prepayment (or 11:00
A.M. on the date of prepayment, in the case of Swingline Loans), which notice shall promptly be
transmitted by the Administrative Agent to each of the Lenders; (ii) each partial prepayment of any
Borrowing shall be in an aggregate principal amount of at least $1,000,000 in the case of
Eurodollar Loans, $500,000 in the case of ABR Loans or $100,000 in the case of Swingline Loans,
provided that no partial prepayment of Eurodollar Loans made

 

 

 15

pursuant to a Borrowing shall
reduce the aggregate principal amount of the Loans outstanding pursuant to such Borrowing to an
amount less than the Minimum Borrowing Amount applicable thereto; (iii) each prepayment in respect
of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans; and (iv) each
prepayment of Term Loans pursuant to this Section 4.1 shall be applied to the then remaining
Scheduled Repayments thereof as directed by the Borrower.

          4.2. Mandatory Prepayments.

          (a) Requirements:

     (i) If on any date (after giving effect to any other repayments or prepayments on such
date) the sum of (i) the aggregate outstanding principal amount of Revolving Loans and
Swingline Loans plus (ii) the aggregate amount of Letter of Credit Outstandings
exceeds the
Total Revolving Commitment as then in effect, the Borrower shall repay on such date
that principal amount of Swingline Loans and, after Swingline Loans have been paid in full,
Unpaid Drawings and, after Unpaid Drawings have been paid in full, Revolving Loans, in an
aggregate amount equal to such excess. If, after giving effect to the prepayment of all
outstanding Swingline Loans, Unpaid Drawings and Revolving Loans, the aggregate amount of
Letter of Credit Outstandings exceeds the Total Revolving Commitment as then in effect (any
such excess, a “Total Revolving Commitment Excess Amount”), the Borrower shall pay
to the Administrative Agent an amount in cash and/or Cash Equivalents equal to such Total
Revolving Commitment Excess Amount, and the Administrative Agent shall hold such payment as
security for the obligations of the Borrower hereunder pursuant to a cash collateral
agreement to be entered into in form and substance reasonably satisfactory to the
Administrative Agent and the Borrower which shall permit certain investments in Cash
Equivalents satisfactory to the Administrative Agent and the Borrower, until the proceeds
are applied to the Obligations, and which shall provide that a portion of the balance, if
any, held in a cash collateral account established under such cash collateral agreement
equal to the amount by which such balance exceeds the Total Revolving Commitment Excess
Amount from time to time, shall be released to the Borrower, provided that (x) as a
result of such release, a mandatory prepayment shall not be required under the first
sentence of this paragraph (a)(i) unless such prepayment is made concurrently with such
release, and (y) immediately after giving effect thereto, no Default or Event of Default
shall have occurred or be continuing or would result from such release.

     (ii) The Borrower shall be required to repay the principal amount of the Term Loans on
the last day of March, June, September and December of each year and on the Term Facility
Final Maturity Date, commencing September 30, 2004 (each such repayment, as the same may be
reduced as provided in Sections 4.1 and 4.2(b), a “Scheduled Repayment”), each such
installment on any such date to be in the amount set forth below opposite such date:

	 	 	 	 	 
	Date	 	Installment Amount	 
	September 30, 2004
	 	$	750,000	 
	December 31, 2004
	 	$	750,000	 
	March 31, 2005
	 	$	750,000	 
	June 30, 2005
	 	$	750,000	 
	September 30, 2005
	 	$	750,000	 
	December 31, 2005
	 	$	750,000	 
	March 31, 2006
	 	$	750,000	 
	June 30, 2006
	 	$	750,000	 
	September 30, 2006
	 	$	750,000	 

 

 

 16

	 	 	 	 	 
	Date	 	Installment Amount	 
	December 31, 2006
	 	$	750,000	 
	March 31, 2007
	 	$	750,000	 
	June 30, 2007
	 	$	750,000	 
	September 30, 2007
	 	$	750,000	 
	December 31, 2007
	 	$	750,000	 
	March 31, 2008
	 	$	750,000	 
	June 30, 2008
	 	$	750,000	 
	September 30, 2008
	 	$	750,000	 
	December 31, 2008
	 	$	750,000	 
	March 31, 2009
	 	$	750,000	 
	June 30, 2009
	 	$	750,000	 
	September 30, 2009
	 	$	750,000	 
	December 31, 2009
	 	$	750,000	 
	March 31, 2010
	 	$	750,000	 
	June 30, 2010
	 	$	750,000	 
	September 30, 2010
	 	$	750,000	 
	December 31, 2010
	 	$	750,000	 
	March 31, 2011
	 	$	750,000	 
	June 30, 2011
	 	$	750,000	 
	September 30, 2011
	 	$	750,000	 
	December 31, 2011
	 	$	750,000	 
	March 31, 2012
	 	$	750,000	 
	Term Facility Final Maturity Date
	 	All amounts outstanding in respect of the Term Loans

     (iii) On or before the third Business Day following the date of receipt thereof by
Holdings and/or any of its Subsidiaries of the Cash Proceeds from any Asset Sale, Qualified
Sale/Leaseback Transaction or Recovery Event occurring after the Original Borrowing Date, an
amount equal to 100% of the Net Cash Proceeds then received from such Asset Sale, Recovery
Event or Qualified Sale/Leaseback Transaction shall be applied as a mandatory repayment of
principal of the then outstanding Term Loans and then in accordance with Section
4.2(b)(iii), provided that Net Cash Proceeds from Asset Sales or Recovery Events
from and after the Original Borrowing Date shall not be required to be used to so repay Term
Loans or applied in accordance with Section 4.2(b)(iii) to the extent the Borrower elects,
as hereinafter provided, to cause such Net Cash Proceeds to be reinvested in Reinvestment
Assets (a “Reinvestment Election”) on or prior to the Reinvestment Prepayment Date;
provided, further, that if any such Net Cash Proceeds are not so reinvested
on or prior to the Reinvestment Prepayment Date, such Net Cash Proceeds shall promptly
thereafter be applied toward prepayments of the Term Loans in accordance with this paragraph
and then in accordance with Section 4.2(b)(iii); provided further that no
such repayment pursuant to this Section 4.2(a)(iii) will be required to be made until the
aggregate Net Cash Proceeds required to be applied pursuant to this Section 4.2(a)(iii) and
not yet so applied equals $750,000, at which time all such Net Cash Proceeds in excess of
such $750,000 shall be so applied. The Borrower may exercise its Reinvestment Election
(within the parameters specified in the preceding sentence) with respect to an Asset Sale or
Recovery Event if (x) the Reinvestment Test is satisfied on the date of delivering the
Reinvestment Notice referred to below and (y) the Borrower delivers a Reinvestment Notice to
the Administrative Agent by the third Business Day following the date of the consummation of
the respective Asset Sale or the date of such Recovery Event, with such Reinvestment
Election being effective with respect to the Net Cash Proceeds of such Asset Sale or
Recovery Event equal to the Anticipated Reinvestment

 

 

 17

Amount specified in such Reinvestment
Notice, provided that the Borrower shall not be required to deliver a Reinvestment
Notice to the Administrative Agent with respect to reinvestments in Reinvestment Assets
unless and until the aggregate Net Cash Proceeds required to be applied pursuant to this
Section 4.2(a)(iii) equals at least $750,000.

     (iv) On or before the third Business Day following the date of the receipt thereof by
Holdings and/or any of its Subsidiaries, an amount equal to 100% of the cash proceeds (net
of reasonable and documented underwriting discounts and commissions, other banking and
investment banking fees, attorneys’, advisors’, consultants’ and accountants’ fees and other
customary fees and other costs associated therewith) of the incurrence of Indebtedness by
Holdings and/or any of its Subsidiaries (other than Indebtedness permitted by Section 8.4),
shall be applied as a mandatory repayment of principal of the then outstanding Term Loans
and then in accordance with Section 4.2(b)(iii).

     (v) On or before the third Business Day following the date of the receipt thereof by
Holdings and/or any of its Subsidiaries, an amount equal to 50% of the cash proceeds (net of
reasonable and documented discounts and commissions, other banking and investment banking
fees, attorneys’, advisors’, consultants’ and accounts’ fees and other customary fees and
other costs associated therewith) of the sale or issuance after the Effective Date of
capital stock of Holdings or any of its Subsidiaries by Holdings and/or any of its
Subsidiaries in an initial public offering, shall be applied as a mandatory repayment of
principal of the then outstanding Term Loans and then in accordance with Section
4.2(b)(iii).

     (vi) On or before each date which is three Business Days after the earlier of (i) the
date on which the financial statements of Holdings referred to in Section 7.1(a), for the
fiscal year of Holdings and its Subsidiaries with respect to such prepayment is made, are
required to be delivered to the Lenders and (ii) the date such financial statements are
actually delivered (commencing with the fiscal year ending on June 30, 2005), an amount
equal to the excess, if any, of (x) Excess Cash Flow for such fiscal year,
multiplied by the Applicable Prepayment Percentage for such fiscal year of Holdings
and its Subsidiaries over (y) the aggregate principal amount of Term Loans prepaid
during such fiscal year pursuant to Section 4.1, shall be applied as a mandatory repayment
of principal of the then outstanding Term Loans and then in accordance with Section
4.2(b)(iii).

     (vii) On the Reinvestment Prepayment Date with respect to a Reinvestment Election, an
amount equal to the Reinvestment Prepayment Amount, if any, for such Reinvestment Election
shall be applied as a repayment of the principal amount of the then outstanding Term Loans
and then in accordance with Section 4.2(b)(iii).

     (viii) Two Business Days after the Borrower receives a cash refund of the Adjusted
Purchase Price pursuant to Section 1.06 of the Acquisition Agreement in connection with an
increase in the amount of the Deferred Compensation Liability, an amount equal to 100% of
such cash refund shall be applied as a mandatory prepayment of the principal of the then
outstanding Term Loans.

     (b) Application:

     (i) Each mandatory repayment of Term Loans required to be made pursuant to Sections
4.2(a)(iii), (iv), (v), (vii) or (viii) shall be applied to the repayment of the then
remaining applicable Scheduled Repayments on a pro rata basis (based upon the then remaining
principal amount of each such Scheduled Repayment). Each mandatory prepayment of Term Loans

 

 

 18

required to be made pursuant to Section 4.2(a)(vi) shall be applied to the repayment of the
then remaining applicable Scheduled Repayments in the direct order of maturity.

     (ii) With respect to each prepayment of Loans required by Section 4.2, the Borrower may
designate the Types of Loans which are to be prepaid and the specific Borrowing(s) under the
affected Facility pursuant to which made, provided that (i) the Borrower shall first
so designate all ABR Loans and Eurodollar Loans under an affected Facility with Interest
Periods ending on the date of repayment prior to designating any other Eurodollar Loans and
(ii) each prepayment of any Loans made pursuant to a Borrowing shall be applied pro
rata among such Loans. If the Borrower is required by this Section 4.2 (other than
pursuant to Section 4.2(a)(ii)) to repay any Eurodollar Loans and such prepayment will
result in the Borrower being required to pay breakage costs under Section 1.11 (any such
Eurodollar Loans, “Affected Loans”), the Borrower may elect, by notice to the
Administrative Agent, to have the provisions of the following sentence be applicable. At
the time any Affected Loans are otherwise required to be
prepaid, the Borrower may elect to deposit 100% (or such lesser percentage elected by
the Borrower) of the principal amounts that otherwise would have been paid in respect of the
Affected Loans with the Administrative Agent to be held as security for the obligations of
the Borrower hereunder pursuant to a cash collateral agreement to be entered into in form
and substance reasonably satisfactory to the Administrative Agent, with such cash collateral
to be released from such cash collateral account (and applied to repay the principal amount
of such Loans) upon each occurrence thereafter of the last day of an Interest Period
applicable to the relevant Loans (or such earlier date or dates as shall be requested by the
Borrower), with the amount to be so released and applied on the last day of each Interest
Period to be the amount of the relevant Loans to which such Interest Period applies (or, if
less, the amount remaining in such cash collateral account). In the absence of a
designation and/or election by the Borrower as described in the preceding sentences, the
Administrative Agent shall, subject to the first sentence of this paragraph, make such
designation in its sole discretion with a view, but no obligation, to minimize breakage
costs owing under Section 1.11.

     (iii) If the Term Loans shall have been prepaid in full, then, on each occasion that a
mandatory prepayment under Sections 4.2(a)(iii), (iv), (v), (vi) or (vii) would have been
required if Term Loans were outstanding, the Revolving Commitments shall be reduced by the
amount of the prepayment that would have been so required. Any such reduction shall be
accompanied by a prepayment of the Revolving Loans and/or Swingline Loans and/or a cash
collateralization of Letter of Credit Outstandings to the extent required by Section
4.2(a)(i).

     4.3. Method and Place of Payment. Except as otherwise specifically provided herein,
all payments under this Agreement shall be made to the Administrative Agent for the ratable (based
on its pro rata share) account of the Lenders entitled thereto, not later than 1:00
P.M. (New York time) on the date when due and shall be made in immediately available funds and in
lawful money of the United States of America at the Payment Office, it being understood that
written notice by the Borrower to the Administrative Agent to make a payment from the funds in the
Borrower’s account at the Payment Office shall constitute the making of such payment to the extent
of such funds held in such account. Any payments made by the Borrower under this Agreement which
are made later than 1:00 P.M. (New York time) shall be deemed to have been made by the Borrower on
the next succeeding Business Day. Whenever any payment to be made hereunder shall be stated to be
due on a day which is not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day, and, with respect to payments of principal, interest shall be payable
during such extension at the applicable rate in effect immediately prior to such extension.

 

 

 19

          4.4. Net Payments. (a) All payments made by the Borrower hereunder, under any Note
or any other Credit Document, will be made without setoff, counterclaim or other defense. Except
as provided for in this Section 4.4(a), all such payments will be made free and clear of, and
without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by
any political subdivision or taxing authority thereof or therein (but excluding, with respect to
the Administrative Agent, the Arrangers, the Syndication Agent, any Lender or any other recipient
of any such payment, (i) any tax imposed on or measured by the net income (or any franchise tax
based on net or gross income) of such recipient pursuant to the laws of the United States or of the
jurisdiction (or any political subdivision or taxing authority thereof or therein) under which such
recipient is organized or in which the principal office or applicable lending office of such
recipient is located or (ii) any branch profits taxes imposed by the United States or any similar
tax imposed under the laws of any political subdivision or taxing authority of any such
jurisdiction in which
the Borrower is located) and all interest, penalties or similar liabilities with respect
thereto (collectively, “Taxes”). If any Taxes are so levied or imposed, the Borrower
agrees to pay the full amount of such Taxes and such additional amounts (after payment of all
Taxes) as may be necessary so that every payment of all amounts due hereunder, under any Note or
under any other Credit Document, after withholding or deduction for or on account of any Taxes,
will not be less than the amount provided for herein or in such Note or in such other Credit
Document, provided, however, that the Borrower shall not be required to increase
any such amounts payable to any Lender with respect to any Taxes (i) that are attributable to such
Lender’s failure to comply with the requirements of Section 4.4(b) or (ii) that are United States
withholding taxes imposed on amounts payable to such Lender at the time the Lender becomes a party
to this Agreement (or designates a new lending office), except to the extent that such Lender (or
its assignor, if any) was entitled, at the time of assignment (or designation of a new lending
office), to receive additional amounts from the Borrower with respect to such Taxes pursuant to
this Section 4.4(a). The Borrower will furnish to the Administrative Agent within 45 days after
the date the payment of any Taxes, or any withholding or deduction on account thereof, is due
pursuant to applicable law certified copies of tax receipts evidencing such payment by the
Borrower. The Borrower will indemnify and hold harmless the Administrative Agent and each Lender,
and reimburse the Administrative Agent or such Lender upon its written request, for the amount of
any Taxes levied or imposed and paid or withheld by the Administrative Agent or such Lender,
provided however, that the Borrower shall not be obligated to reimburse the
Administrative Agent or such Lender in respect of penalties, interest or similar liabilities
attributable to any such Taxes if (i) such penalties, interest or similar liabilities are
attributable to a failure or delay by the Administrative Agent or such Lender to make a written
request therefor or (ii) such penalties, interest or similar liabilities have accrued after the
Borrower had indemnified the Administrative Agent or such Lender for the Taxes to which such
penalties, interest or similar liabilities are attributable.

          (b) Each Lender that is not a United States person as such term is defined in Section
7701(a)(30) of the Code (a “Non-U.S. Lender”) agrees to deliver to the Borrower and the
Administrative Agent (i) on or prior to the date the Lender becomes a Lender two accurate and
complete original signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or successor
forms) certifying to such Lender’s entitlement to a reduced rate or complete exemption from United
States withholding tax with respect to payments to be made under this Agreement and under any Note
and under any other Credit Document, or (ii) if the Non-U.S. Lender is not a “bank” within the
meaning of Section 881(c)(3)(A) of the Code and is claiming an exemption from U.S. withholding tax
under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest,” (x) a
duly executed certificate substantially in the form of Exhibit F (any such certificate, an
“Exemption Certificate”) and (y) two accurate and complete original signed copies of
Internal Revenue Service Form W-8BEN (or successor form). In addition, each Non-U.S. Lender agrees
that from time to time upon the reasonable request by the Borrower or the Administrative Agent when
a lapse in time or change in circumstances renders the previous certification obsolete or
inaccurate in any material respect, it will deliver to the

 

 

 20

Borrower and the Administrative Agent
two new accurate and complete original signed copies of the relevant form or Exemption Certificate,
as the case may be, and such other forms as may be required in order to conform or establish the
entitlement of such Non-U.S. Lender to a continued complete exemption from United States
withholding tax with respect to payments under this Agreement and any Note, or it shall immediately
notify the Borrower and the Administrative Agent of its inability to deliver any such form or
Exemption Certificate. Notwithstanding any other provision of this Section 4.4, a Non-U.S. Lender
shall not be required to deliver any form pursuant to this Section 4.4(b) that such Non-U.S. Lender
is not legally able to deliver.

          (c) If the Administrative Agent, any Arranger, the Syndication Agent or any Lender receives a
refund in respect of any Taxes to which it has been indemnified by the Borrower or with respect to
which the Borrower has paid additional amounts pursuant to this Section 4.4, it shall within
30 days from the date of such receipt pay over such refund to the Borrower (but only to the
extent of indemnity payments made, or additional amounts paid by the Borrower under this Section
4.4 with respect to the Taxes or other taxes giving rise to such refund), net of all out-of-pocket
expenses with respect to such refund and without interest (other than interest paid by the relevant
Governmental Authority with respect to such refund); provided, however, that the
Borrower, upon the reasonable request of such Lender, the Administrative Agent, any Arranger or the
Syndication Agent, agrees to repay the amount paid over to the Borrower (plus penalties,
interest or other charges imposed by the relevant taxing authority) to such person in the event
such person is required to repay such refund to such Governmental Authority.

          SECTION 5. CONDITIONS PRECEDENT.

          5.1. Conditions Precedent to Effectiveness. The effectiveness of this Agreement is
subject to the satisfaction of each of the following conditions:

     (a) Execution of Agreement. On or prior to the Effective Date, (i) this
Agreement shall have been executed and delivered as provided in Section 12.10 and (ii) there
shall have been delivered to the Administrative Agent, for the account of each Lender that
has requested Notes pursuant to Section 1.5(d), Notes conforming to the requirements hereof
and executed by a duly authorized officer of the Borrower.

     (b) Opinions of Counsel. On the Effective Date, the Administrative Agent shall
have received opinions, addressed to the Administrative Agent and each of the Lenders and
dated the Effective Date, from:

     (i) Cravath, Swaine & Moore LLP, special New York counsel to Holdings and the Borrower,
which opinion shall cover the matters covered in Exhibit G-1;

     (ii) Bell Davis & Pitt, North Carolina counsel to the Credit Parties, which opinion
shall cover the matters covered in Exhibit G-2;

     (iii) the legal opinion of local counsel in Alabama, Florida, Georgia, Louisiana,
Oklahoma and Texas and of special FAA counsel (as described in Section 5.1(h)(iii)) as may
be required by the Administrative Agent, each of which shall cover such matters with respect
to the Security Documents as shall reasonably be requested by the Administrative Agent in
form and substance satisfactory to the Administrative Agent; and

     (iv) to the extent reasonably available, legal opinions delivered in connection with
the Acquisition, accompanied by reliance letters in favor of the Lenders.

 

 

 21

     (c) Proceedings. (i) On the Effective Date, the Administrative Agent shall
have received from each Credit Party a certificate, dated the Effective Date, signed by the
President or any Vice-President and the Secretary of such Credit Party in the form of
Exhibit E with appropriate insertions and
deletions, together with (x) copies of the certificate of incorporation, the limited
liability company agreement, any certificate of designation, the by-laws, or other
organizational documents of each such Credit Party, (y) the resolutions, or such other
administrative approval, of each such Credit Party referred to in such certificate to be
reasonably satisfactory to the Administrative Agent and (z) in the case of the certificate
delivered by the Borrower, a statement that all of the applicable conditions set forth in
Sections 5.1(g) and 5.2 have been satisfied as of such date.

     (ii) On the Effective Date, all corporate, limited liability company and legal
proceedings and all instruments and agreements in connection with the transactions
contemplated by this Agreement and the other Documents shall be reasonably satisfactory in
form and substance to the Administrative Agent, and the Administrative Agent shall have
received all information and copies of all certificates, documents and papers, including
long-form good standing certificates and any other records of corporate or limited liability
company proceedings and governmental approvals, if any, which the Administrative Agent may
have reasonably requested in connection therewith, such documents and papers, where
appropriate, to be certified by proper corporate or governmental authorities.

     (d) Shareholders’ Agreements. On or prior to the Effective Date, there shall
have been delivered to the Administrative Agent copies, certified as true and correct by an
appropriate officer of Holdings, of all agreements entered into by Holdings or any of its
Subsidiaries (other than those that are no longer effective) governing the terms and
relative rights of its capital stock, and any agreements (other than those that are no
longer effective) entered into by members or shareholders relating to any such entity with
respect to their capital stock (collectively, the “Shareholders’ Agreements”), all

of which Shareholders’ Agreements shall be in form and substance reasonably satisfactory to
the Administrative Agent. The Administrative Agent acknowledges that it is satisfied with
the form and substance of each Shareholders’ Agreement delivered to it on or prior to the
date hereof in the form so delivered.

     (e) Adverse Change, etc. During the period from December 31, 2003 to the
Effective Date, there shall have been no development or event that has had or could
reasonably be expected to have a Material Adverse Effect.

     (f) Litigation. On the Effective Date, there shall be no actions, suits or
proceedings pending or, to the knowledge of Holdings or the Borrower, threatened against any
Credit Party (a) with respect to this Agreement or any other Document or the transactions
contemplated hereby or thereby (including the Acquisition) which could be reasonably
expected to have a material adverse effect on the rights or remedies of the Lenders under
the Credit Documents or (b) which the Administrative Agent or the Required Lenders shall
determine could reasonably be expected to have a Material Adverse Effect.

     (g) Consummation of the Acquisition. (i) On or prior to the Effective Date,
there shall have been delivered to the Administrative Agent true and correct copies of the
Acquisition Agreement and the other Acquisition Documents, certified by the Borrower to be
true and correct copies of such
Documents, and such Documents shall not have been amended or waived in any respect that
is material and adverse to the Lenders from the forms of such Documents previously delivered
to the Arrangers without the approval of the Arrangers. The Arrangers acknowledge that they
are satisfied with the form and substance of the Acquisition Agreement and the other

 

 

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Acquisition Documents delivered to them on or prior to the date hereof in the form so
delivered. The Acquisition, including all of the terms and conditions thereof, shall have
been duly approved by the board of directors, the stockholders and partners, as applicable,
of the Borrower and Holdings, and all Acquisition Documents shall have been duly executed
and delivered by the parties thereto and shall be in full force and effect. Each of the
material conditions precedent to the Borrower’s and the other parties to the Acquisition
Agreement obligation to consummate the Acquisition as set forth in the Acquisition Documents
shall have been satisfied, or waived, all to the reasonable satisfaction of the
Administrative Agent, and concurrently with the making of the Term Loans on the Effective
Date the Acquisition shall have been consummated and the aggregate cash consideration
payable in connection therewith (other than in respect of fees and expenses described in
paragraph (g)(ii) below and refinancing of Indebtedness described in paragraph (g)(iv)
below) shall not exceed $194,100,000 (consisting of $181,100,000 payable for the purchase of
stock and $13,000,000 payable in respect of amounts owing by Red Simpson on account of
deferred compensation and minority interests) plus the aggregate amount of any
increase in the consideration payable pursuant to the Acquisition Agreement resulting from
the Working Capital Adjustment, the AEP Amount and the Federal Project Cash Flow Amount (as
such terms are defined in the Acquisition Agreement), all in accordance with the Acquisition
Documents, any amendments, waivers or other modifications relating thereto (which, if
material and adverse to the Lenders, have been approved by the Arrangers, such approval not
to be unreasonably withheld), if any, and all applicable laws, rules and regulations.

     (ii) The Administrative Agent shall have received reasonably satisfactory evidence that
the aggregate fees and expenses relating to the Acquisition and the financing thereof shall
not exceed $18,000,000.

     (iii) The Administrative Agent shall have received evidence that on or prior to the
Effective Date, LGB, its Affiliates, the Sellers or members of management of the Borrower or
Red Simpson (or trusts for their benefit) shall have made investments in the common equity
of Holdings aggregating at least $71,000,000, and Holdings shall, immediately thereafter,
have made a contribution to the capital of the Borrower, or acquired the common equity of
the Borrower, in an equal amount.

     (iv) The Administrative Agent shall have received reasonably satisfactory evidence
that, other than Indebtedness permitted pursuant to Section 8.4, the Indebtedness of Red
Simpson existing prior to the Effective Date shall have been repaid in full and that all
documentation representing such Indebtedness shall have been terminated (other than
provisions that survive such termination) and all guarantees, liens and security interests
associated therewith have been released, or that adequate measures shall have been taken to
terminate such documentation and release such guarantees, liens and security interests.

     (h) Security Documents. (i) On the Effective Date, (x) each of Holdings, the
Borrower and the Domestic Subsidiaries shall have duly authorized, executed and delivered
the Amended and Restated Guarantee and Collateral Agreement substantially in the form of
Exhibit H (as modified, amended or supplemented from time to time in accordance with the
terms thereof and hereof, the “Guarantee and Collateral Agreement”), and each shall
have delivered to the Administrative
Agent, to be held in pledge as pledgee thereunder, to the extent not previously
delivered, all of the certificates representing the Pledged Securities referred to therein,
endorsed in blank or accompanied by executed and undated stock powers, and the Guarantee and
Collateral Agreement shall be in full force and effect and (y) each Issuer (as defined in
the Guarantee and Collateral Agreement), if any, that is not a Credit Party, shall have
executed and delivered an Acknowledgment and Consent in the form attached to the Guarantee
and Collateral Agreement.

 

 

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     (ii) On the Effective Date, each of Holdings, the Borrower and the Domestic Subsidiaries
shall have delivered to the Administrative Agent:

	 	(w)  	executed copies of Financing Statements (Form
UCC-1) in appropriate form for filing under the UCC of each
jurisdiction as may be necessary to perfect the security
interests purported to be created by the Guarantee and
Collateral Agreement that have not been so perfected prior to
the Effective Date;
	 
	 	(x)  	certified copies of Requests for Information or
Copies (Form UCC-11), or equivalent reports, each of recent
date listing all effective financing statements that name each
such Credit Party as debtor and that are filed in the
jurisdictions in which filing of a financing statement is
necessary to perfect the security interests purported to be
created by the Guarantee and Collateral Agreement, together
with copies of such financing statements (none of which shall
cover the Collateral except (x) those with respect to which
appropriate termination statements executed by the secured
lender thereunder have been delivered to the Administrative
Agent and (y) to the extent evidencing Liens permitted pursuant
to Section 8.3);
	 
	 	(y)  	subject to Section 7.14(a), evidence of the
completion of, or arrangements to complete, all other
recordings and filings of, or with respect to, the Guarantee
and Collateral Agreement as may be necessary or, in the
reasonable opinion of the Administrative Agent, desirable to
perfect the security interests intended to be created by the
Guarantee and Collateral Agreement; and
	 
	 	(z)  	evidence that all other actions reasonably
necessary or, in the reasonable opinion of the Administrative
Agent, desirable to perfect and protect the security interests
purported to be created by the Guarantee and Collateral
Agreement have been, or are in the process of being, taken.

     (iii) On the Effective Date, the Administrative Agent shall have received (A) certified
copies of a diligent search of the Aircraft Registry of the Federal Aviation Administration
(the “FAA”) conducted by the FAA for any and all records pertaining to the aircraft
and engines described on Annex 5.1(h)(iii) (collectively, the “Aircraft”) advising
the Administrative Agent that the Aircraft is free and clear of all Liens, (B) fully
executed counterparts of the Amended and Restated Aircraft Mortgage and Security Agreement
in form and substance reasonably satisfactory to the Administrative Agent and substantially
in the form of Exhibit J (the “Aircraft Mortgage”) covering the Aircraft, and
arrangements shall be in place to provide that counterparts of the Aircraft Mortgage shall
be recorded with the FAA on the Effective Date or promptly
thereafter, effectively to create a valid and enforceable first priority Lien, subject
only to Permitted Liens, on the Aircraft in favor of the Administrative Agent for the
benefit of the Secured Creditors and (C) a legal opinion of Dougherty, Fowler, Peregrin &
Haught, special FAA counsel, covering such matters incident to the Aircraft Mortgage as the
Administrative Agent may reasonably require.

 

 

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     (i) Mortgaged Properties. The Administrative Agent shall have received (A)
fully executed counterparts of deeds of trust, leasehold deeds of trust, mortgages,
leasehold mortgages and similar documents in each case in form and substance reasonably
satisfactory to the Administrative Agent and substantially in the form of Exhibit I (each a
“Mortgage” and collectively, the “Mortgages”) covering all the Mortgaged
Properties, and arrangements reasonably satisfactory to the Administrative Agent shall be in
place to provide that counterparts of such Mortgages shall be recorded promptly after the
Effective Date in all places to the extent necessary or desirable, in the judgment of the
Administrative Agent, effectively to create a valid and enforceable first priority Lien,
subject only to Permitted Liens, on each Mortgaged Property in favor of the Administrative
Agent (or such other trustee as may be required or desired under local law) for the benefit
of the Secured Creditors, (B) a lender’s title insurance policy with respect to each
Mortgaged Property (without any survey exception) paid for by the Borrower, issued by a
nationally recognized title insurance company, together with such endorsements, coinsurance,
affirmative coverage and reinsurance as may be reasonably requested by the Administrative
Agent, in form and substance acceptable to the Administrative Agent, insuring each Mortgage
as a first lien on the relevant Mortgaged Property in an amount at least equal to the
aggregate of the land value and insurable value of such Mortgaged Property (or such other
amount as may reasonably be requested by Administrative Agent) and subject only to Liens
permitted under the Credit Agreement (the “Title Policies”), and (C) other documents
and legal opinions as shall be reasonably requested by the Administrative Agent.

     (j) Solvency. On the Effective Date, the Administrative Agent shall have
received from the chief financial officer or another senior financial or accounting officer
of the Borrower a customary solvency certificate with respect to each of Holdings and its
Subsidiaries, taken as a whole, after giving effect to the Acquisition and the other
transactions contemplated hereby and in form reasonably satisfactory to the Administrative
Agent.

     (k) Insurance Policies. On the Effective Date, the Administrative Agent shall
have received evidence of insurance complying with the requirements of Section 7.3 and the
applicable provisions of the Security Documents for the business and properties of the
Borrower and its Subsidiaries, in form and substance reasonably satisfactory to the
Administrative Agent, and, with respect to all casualty insurance, naming the Administrative
Agent as an additional insured and loss payee. In addition, on the Effective Date the
Administrative Agent shall have received an insurance broker’s or agent’s certificate
certifying that the insurance coverage to be maintained by Holdings and its Subsidiaries
after the Effective Date will be usual and customary for similarly situated companies in the
same lines of business and that the insurance policies maintained by Holdings and its
Subsidiaries pursuant to this Agreement and the applicable provisions of the Security
Documents are endorsed or amended to include a “standard” or “New York” lender’s loss
payable endorsement and name the Administrative Agent as additional insured.

     (l) Fees. On the Effective Date, the Borrower shall have paid to the
Arrangers, the Administrative Agent and the Lenders all Fees and expenses agreed upon by
such parties to be paid on or prior to such date.

     (m) Financial Information. The Arrangers shall have received copies of:

     (i) the audited consolidated balance sheets of the Borrower and its Subsidiaries as of
June 30, 2001 and of Holdings and its Subsidiaries as of June 30, 2002 and June 30, 2003 and
the related consolidated statements of income and retained earnings and cash flows for the
fiscal years ended on such dates, each prepared in accordance with GAAP applied on a
consistent basis

 

 

 25

in accordance with past practice except for any changes required by GAAP or
as noted in the notes to the financial statements, accompanied by an unqualified report of
Ernst & Young LLP;

     (ii) the audited consolidated balance sheet of Red Simpson and its Subsidiaries as of
December 31, 2003 and the related consolidated statements of earnings and cash flows for the
fiscal year ended on such date, each prepared in accordance with GAAP applied on a
consistent basis except for any changes required by GAAP or as noted in the notes to the
financial statement, accompanied by an unqualified report of Grant Thornton LLP;

     (iii) the unaudited consolidated balance sheet of Holdings and its Subsidiaries as of
March 31, 2004, and the related unaudited consolidated statement of income for the
nine-month period ended on such date, prepared in accordance with GAAP applied on a
consistent basis in accordance with past practice except for any change required by GAAP and
except for the absence of footnotes and subject to normal year-end adjustments;

     (iv) the unaudited consolidated balance sheet of Red Simpson and its Subsidiaries as of
March 31, 2004, and the related unaudited consolidated statement of earnings for the
three-month period ended on such date;

     (v) as soon as available to management, monthly financial data generated by each of the
Borrower’s internal accounting systems for use by senior and financial management for each
month ended after the latest fiscal quarter required in clause (iii) above ending on or
prior to the date that is 45 days before the Effective Date;

     (vi) as soon as available to management, monthly financial data generated by each of
Red Simpson’s internal accounting systems for use by senior and financial management for
each month ended after the latest fiscal quarter referred to in clause (iv) above ending on
or prior to the date that is 45 days before the Effective Date; and

     (vii) the Pro Forma Balance Sheet, together with a reconciliation thereof to the
balance sheet of the Borrower and its consolidated Subsidiaries as at the Pro Forma Date.

The monthly reports relating to the Borrower referred to in clause (v) above delivered after May 4,
2004 shall not be materially inconsistent in an adverse manner with any of the financial statements
and monthly reports delivered on or prior to May 4, 2004. The monthly reports relating to Red
Simpson referred to in clause (vi) above delivered after May 4, 2004 shall not be materially
inconsistent in an adverse manner with any of the financial statements and monthly reports
delivered on or prior to May 4, 2004. The
Arrangers acknowledge receipt of the financial statements referred to in clauses (i), (ii), (iii),
(iv) and (vii) above.

     (n) Projections. The Lenders shall have received financial projections of the
Borrower through the 2012 fiscal year, in form and substance not materially inconsistent in
an adverse manner with any comparable financial statements delivered to the Arrangers prior
to the date hereof.

     (o) Pro Forma Consolidated EBITDA. The Arrangers shall be reasonably satisfied
that pro forma Consolidated EBITDA of the Borrower (after giving effect to
the Acquisition and any other adjustments agreed upon by the Arrangers) for the 12-month
period ended April 30, 2004 shall equal at least $93,000,000 from planned continuing
operations, and the Borrower shall have provided support for such calculation reasonably
satisfactory to the Arrangers (and, in any event, in conformity with Regulation S-X or as
otherwise agreed upon).

 

 

 26

     (p) Approvals. Except as set forth on Annex 5.1(p), all material governmental
and third party approvals (including landlords’ and other consents) necessary in connection
with the Acquisition, the continuing operations of the Borrower and its Subsidiaries and the
transactions contemplated hereby shall have been obtained and be in full force and effect,
and all applicable waiting periods shall have expired without any action being taken or
threatened by any competent authority that would restrain, prevent or otherwise impose
adverse conditions on the Acquisition or the financing contemplated hereby that the
Arrangers reasonably deem to be material.

     (q) Repayment of Indebtedness Under Existing Credit Agreement. The principal
amount of all Loans outstanding on the Effective Date under the Existing Credit Agreement
shall have been paid in full or continued as Loans hereunder, together with all interest and
fees accrued and unpaid thereunder to and including the Effective Date.

          5.2. Conditions Precedent to All Credit Events. The obligation of the Lenders to make
each Loan hereunder, and the obligation of the Letter of Credit Issuer to issue Letters of Credit
hereunder, is subject, at the time of each such Credit Event, to the satisfaction of the conditions
that at the time of each Credit Event and also after giving effect thereto, (i) there shall exist
no Default or Event of Default and (ii) all representations and warranties contained herein or in
the other Credit Documents in effect at such time shall be true and correct in all material
respects with the same effect as though such representations and warranties had been made on and as
of the date of such Credit Event, except to the extent that such representations and warranties
expressly relate to an earlier date.

          The acceptance of the benefits of each Credit Event shall constitute a representation and
warranty by Holdings and the Borrower to each of the Lenders that all of the applicable conditions
specified in Section 5.1 and/or 5.2, as the case may be (other than the required satisfaction of
the Administrative Agent or any Lender as specified therein), exist as of that time. All of the
certificates, legal opinions and other documents and papers referred to in this Section 5, unless
otherwise specified, shall be delivered to the Administrative Agent at its Notice Office for the
account of each of the Lenders.

          SECTION 6. REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

          To induce the Lenders to enter into this Agreement and to make the Loans and issue and/or
participate in Letters of Credit provided for herein, each of Holdings and the Borrower makes the
following representations and warranties to, and agreements with, the Lenders, all of which shall
survive the execution and delivery of this Agreement and the making of the Loans (with the making
of each Credit Event thereafter being deemed to constitute a representation and warranty that the
matters specified in this Section 6 are true and correct in all material respects on and as of the
date of each such Credit Event unless such representation and warranty expressly indicates that it
is being made as of any specific date and with the representations and warranties made on the
Effective Date to be made as if the Acquisition had already occurred on that date):

          6.1. Corporate Status; Compliance with Law. Each of Holdings and its Subsidiaries (i)
is a duly organized and validly existing corporation or limited liability company in good standing
under the laws of the jurisdiction of its organization and has the corporate or limited liability
company power and authority to own its property and assets and to transact the business in which it
is engaged and presently proposes to engage on the date hereof, (ii) has duly qualified and is
authorized to do business and is in good standing in all jurisdictions where it is required to be
so qualified and where the failure to be so qualified would have a Material Adverse Effect and
(iii) is in compliance with all Requirements of Law, except to the extent that the failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

 

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          6.2. Power and Authority. Each Credit Party has the corporate or limited liability
company power and authority to execute, deliver and carry out the terms and provisions of the
Documents to which it is a party and has taken all necessary corporate or limited liability company
action to authorize the execution, delivery and performance of the Documents to which it is a
party. Each Credit Party has duly executed and delivered each Document to which it is a party, and
each such Document constitutes the legal, valid and binding obligation of such Person enforceable
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

          6.3. No Violation. Neither the execution, delivery and performance by any Credit
Party of the Documents to which it is a party nor compliance with the terms and provisions thereof,
nor the consummation of the transactions contemplated therein (i) will contravene any applicable
provision of any law, statute, rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality, (ii) will conflict or be inconsistent with or result in any breach
of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or
(other than pursuant to the Security Documents) result in the creation or imposition of (or the
obligation to create or impose) any Lien upon any of the property or assets of Holdings, the
Borrower or any of their Subsidiaries pursuant to the terms of any indenture, mortgage, deed of
trust, agreement or other instrument to which Holdings, the Borrower or any of their Subsidiaries
is a party or by which it or any of its property or assets are bound or to which it may be subject
or (iii) will violate any provision of the charter or by-laws or limited liability company
agreement of Holdings, the Borrower or any of their Subsidiaries, other than, in the case of
clauses (i) and (ii), any contravention, conflict, inconsistency, breach, default or Lien which
could not reasonably be expected to have a Material Adverse Effect.

          6.4. Litigation. Except as set forth on Annex 6.4, there are no actions, suits or
proceedings pending or threatened with respect to Holdings, the Borrower or any of their
Subsidiaries (i) that are likely to have a material adverse effect on the business, property,
operations or financial condition of Holdings and its Subsidiaries taken as a whole, in each case
after giving effect to the Acquisition or (ii) that could reasonably be expected to have a material
adverse effect on (a) the Acquisition or (b) the validity or enforceability of this Agreement or
any of the other Credit Documents or the rights or remedies of the Administrative Agent or the
Lenders hereunder or thereunder.

          6.5. Use of Proceeds; Margin Regulations. (a) The proceeds of Term Loans and the new
cash equity described in Section 5.1(g)(iii) shall be utilized (i) to pay the consideration to be
paid in connection with the Acquisition, including the Adjusted AEP Amount, (ii) to refinance
Indebtedness of Red Simpson existing on the Effective Date, (iii) to refinance Term Loans
outstanding on the Effective Date under the Existing Credit Agreement and (iv) to pay costs and
expenses related to the Acquisition.

          (b) The proceeds of all Revolving Loans shall be utilized for working capital and other
general corporate purposes of the Borrower and its Subsidiaries including to pay the Federal
Project Cash Flow Amount, to the extent required by the Acquisition Agreement, and the Deferred
Compensation Liability; provided that, up to $5,000,000 of Revolving Loans may be used to
repurchase Series A Preferred pursuant to Section 8.9(a)(vi). Up to $5,000,000 of Revolving Loans
may be borrowed on the Effective Date to pay the consideration to be paid in connection with the
Acquisition, including the Federal Project Cash Flow Amount.

          (c) No part of the proceeds of any Loans will be used for any purpose which violates the
provisions of the Regulations of the Board of Governors of the Federal Reserve System and any
successor thereto.

 

 

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          6.6. Governmental Approvals. Except for any filings required under the Security
Documents, no order, consent, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, any foreign or domestic governmental or public
body or authority, or any subdivision thereof, is required to authorize or is required in
connection with (i) the execution, delivery and performance of any Credit Document or (ii) the
legality, validity, binding effect or enforceability of any Credit Document.

          6.7. Investment Company Act. None of Holdings, the Borrower or any of their
Subsidiaries is an “investment company” within the meaning of the Investment Company Act of 1940,
as amended (the “ICA”) or a company “controlled” by an “investment company” within the
meaning of the ICA (other than any investment company (including, without limitation, LGB and its
Affiliates) which has been exempted from all provisions of the ICA pursuant to an order of the SEC
under Section 6(c) of the ICA).

          6.8. Public Utility Holding Company Act. None of Holdings, the Borrower or any of
their Subsidiaries is a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, as amended.

          6.9. True and Complete Disclosure. (a) All information and data (excluding
projections) concerning each of Holdings and the Borrower and its Subsidiaries and the transactions
contemplated herein which have been prepared by Holdings and the Borrower and that have been made
available to the Administrative Agent or any Lender by or on behalf of Holdings and the Borrower
prior to the Effective Date in connection with the transactions contemplated herein (including the
Confidential Information Memorandum), when taken as a whole, do not and will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements contained therein not materially misleading, provided that as to any such
information that is specified as having been supplied by third parties other than third parties
that are Affiliates of the Borrower at the time such information is supplied, Holdings and the
Borrower represent only that it is not aware of any material misstatement therein or omission
therefrom. All financial projections that have been prepared by Holdings and the Borrower and that
have been made available prior to the Effective Date to the Administrative Agent and/or any Lender
by Holdings and the Borrower have been prepared in good faith based upon assumptions believed by
Holdings and the Borrower at the time to be reasonable.

          (b) All other factual information (taken as a whole) furnished on or after the Effective Date
by or on behalf of Holdings, the Borrower or any of their Subsidiaries in writing to the
Administrative Agent or any Lender (including, without limitation, all information contained in the
Documents) for purposes of or in connection with this Agreement or any transaction contemplated
herein is, and will be, true and accurate in all material respects on the date as of which such
information is dated or certified and not incomplete by omitting to state any material fact
necessary to make such information (taken as a whole) not misleading at such time in light of the
circumstances under which such information was provided. The projections and pro forma financial
information contained in such materials are based on good faith estimates and assumptions believed
by such Persons to be reasonable at the time made, it being recognized by the Lenders that such
projections as to future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected results. There is
no fact known to any Credit Party which materially and adversely affects the business, operations,
property, assets or condition (financial or otherwise) of any such Credit Party and its respective
Subsidiaries, taken as a whole, which has not been disclosed herein or in such other documents,
certificates and statements furnished to the Lenders for use in connection with the transactions
contemplated hereby.

 

 

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          6.10. Financial Condition; Financial Statements. (a) On and as of the Effective
Date, on a pro forma basis after giving effect to the Acquisition and to all Indebtedness incurred,
and to be incurred, and Liens created, and to be created, by each Credit Party and its respective
Subsidiaries taken as a whole in connection therewith, (x) the sum of the assets, at a fair market
valuation, of each Credit Party and its respective Subsidiaries taken as a whole will exceed its
debts, (y) no such Credit Party and its Subsidiaries taken as a whole will have incurred or
intended to, or believes that it will, incur debts beyond its ability to pay such debts as such
debts mature and (z) each such Credit Party and its Subsidiaries taken as a whole will have
sufficient capital with which to conduct its business. For purposes of this Section 6.10, “debt”
means any liability on a claim, and “claim” means (i) right to payment whether or not such a right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured or unsecured; or (ii) right to an equitable remedy for breach
of performance if such breach gives rise to a payment, whether or not
such right to an equitable remedy is reduced to judgment, fixed, contingent, matured,
unmatured, disputed, undisputed, secured or unsecured.

          (b) (i) The audited consolidated balance sheet of Holdings and its Subsidiaries dated as of
June 30, 2003, and the unaudited consolidated balance sheet of Holdings and its Subsidiaries dated
March 31, 2004, copies of which have been heretofore furnished to the Administrative Agent, were
prepared in accordance with GAAP applied on a consistent basis in accordance with the past practice
of Holdings and its Subsidiaries except for any changes required by GAAP (except for the absence of
footnotes and subject to normal year-end adjustments in the unaudited balance sheet) or as noted in
the notes to the financial statements and fairly present (in respect of such audited balance sheet
only) in all material respects the consolidated financial position of Holdings and its Subsidiaries
as of their respective dates.

     (ii) The audited consolidated statement of income, statement of retained earnings and statement
of cash flows of Holdings and its Subsidiaries for the 12-month period ended June 30, 2003, and the
unaudited consolidated statement of income of Holdings and its Subsidiaries for the nine-month
period ended March 31, 2004, copies of which have been heretofore furnished to the Administrative
Agent, were prepared in accordance with GAAP applied on a consistent basis in accordance with the
past practice of Holdings and its Subsidiaries except for any changes required by GAAP (except for
the absence of footnotes and subject to normal year-end adjustments in the unaudited statements)
and fairly present in all material respects the consolidated results of income, cash flows (in
respect of such audited financial statements only) and retained earnings (in respect of such
audited financial statements only) of Holdings and its Subsidiaries for such periods.

     (iii) The pro forma consolidated balance sheet of Holdings and its Subsidiaries (the “Pro
Forma Balance Sheet”), dated as of March 31, 2004 (the “Pro Forma Date”), copies of
which have heretofore been furnished to the Administrative Agent, present a good faith estimate of
the consolidated pro forma financial condition of Holdings and its Subsidiaries as of the Pro Forma
Date (after giving effect to the Acquisition and the related financing thereof).

     (iv) The audited consolidated balance sheet of Red Simpson and its Subsidiaries as of
December 31, 2003, a copy of which has been heretofore furnished to the Administrative Agent, was
prepared in accordance with GAAP, applied on a consistent basis except for any changes required by
GAAP or as noted in the notes to the financial statements and fairly presents in all material
respects the consolidated financial position of Red Simpson and its Subsidiaries as of its date.

     (v) The audited consolidated statements of earnings and cash flows of Red Simpson and its
Subsidiaries for the fiscal year ended December 31, 2003, copies of which have been heretofore
furnished to the Administrative Agent, were prepared in accordance with GAAP and fairly present in
all material

 

 

 30

respects the consolidated results of earnings and cash flows of Red Simpson and its
Subsidiaries for such period.

     (vi) Except for the incurrence of Indebtedness under this Agreement, nothing has occurred since
December 31, 2003 that has had or could reasonably be expected to have a Material Adverse Effect.

          (c) Except as fully reflected in the financial statements and the notes thereto described in
Section 6.10(b), there was as of the Effective Date no material Contingent Obligation, contingent
liability or liability for taxes, or any long-term lease or unusual forward or long-term
commitment, including, without limitation, any interest rate or foreign currency swap or exchange
transaction with respect to Holdings or any of its Subsidiaries which, either individually or in
aggregate,
would be material to Holdings, the Borrower and its Subsidiaries taken as a whole, except as
incurred in the ordinary course of business consistent with past practices subsequent to June 30,
2003.

          6.11. Security Interests. On and after the Effective Date, each of the Security
Documents creates, as security for the Obligations purported to be secured thereby, a valid and
enforceable (and, to the extent perfection thereof can be accomplished pursuant to the filings or
other actions required by the Security Documents, perfected) security interest in and Lien on all
of the Collateral subject thereto, superior to and prior to the rights of all third Persons and
subject to no other Liens (except that the Collateral may be subject to Permitted Liens relating
thereto), in favor of the Administrative Agent for the benefit of the Lenders. No filings or
recordings are required in order to perfect the security interests created under any Security
Document that are required by the Security Documents to be perfected except for filings or
recordings which shall have been made, or for which satisfactory arrangements have been made, upon
or prior to the execution and delivery thereof.

          6.12. Tax Returns and Payments. Except as set forth on Annex 6.12, each of Holdings
and its Subsidiaries has filed all federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all material taxes and assessments
payable by it which have become due, other than those not yet delinquent and except for those
contested in good faith. Holdings and each of its Subsidiaries have paid, or have provided
adequate reserves in accordance with GAAP (in the good faith judgment of the management of
Holdings) for the payment of, all federal, state and foreign income taxes applicable for all prior
fiscal years and for the current fiscal year to the date hereof.

          6.13. Compliance with ERISA. Except as set forth on Annex 6.13, each Plan is in
substantial compliance with ERISA and the Code; no Reportable Event has occurred with respect to a
Plan; no Plan is insolvent or in reorganization; no Plan has an Unfunded Current Liability; no Plan
has an accumulated or waived funding deficiency or has applied for an extension of any amortization
period within the meaning of Section 412 of the Code; all contributions required to be made with
respect to a Plan have been timely made; neither a Credit Party, nor any Subsidiary of a Credit
Party, nor any ERISA Affiliate has incurred any material liability to or on account of a Plan
pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or
Section 4971 or 4975 of the Code or expects to incur any liability (including any indirect,
contingent or secondary liability) under any of the foregoing Sections with respect to any Plan; no
proceedings have been instituted to terminate or appoint a trustee to administer any Plan; no
condition exists which presents a material risk to a Credit Party or any Subsidiary of a Credit
Party or any ERISA Affiliate of incurring a liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code; no lien imposed under the Code or ERISA on the assets
of a Credit Party, or any Subsidiary of a Credit Party or any ERISA Affiliate exists or is
reasonably likely to arise on account of any Plan; and the Credit Parties and their Subsidiaries do
not maintain or contribute to any employee welfare benefit plan (as defined in Section 3(1) of
ERISA) which provides benefits to retired employees (other than as required by Section 601 of
ERISA) or any employee pension benefit plan (as defined in Section 3(2) of ERISA) the obligations
with respect to which could

 

 

 31

reasonably be expected to have a Material Adverse Effect on the ability of Holdings, the Borrower or any other Credit Party to perform its obligations under this Agreement
and the other Documents to which it is a party, except to the extent that all events described in
the preceding clauses of this Section 6.13 and then in existence would not, in the aggregate, be
likely to have a Material Adverse Effect. With respect to Plans that are multiemployer plans
(within the meaning of Section 4001(a)(3) of ERISA) the representations and warranties in this Section
6.13 are made to the best knowledge of Holdings and the Borrower.

          6.14. Subsidiaries. (a) Annex 6.14 hereto lists each Subsidiary of Holdings and of
the Borrower (and the direct and indirect ownership interest of Holdings therein), in each case
existing on the Effective Date. Holdings and the Borrower will at all times own directly or
indirectly the percentages specified in said Annex 6.14 of the outstanding capital stock of all of
said entities except to the extent otherwise permitted pursuant to Section 8.2 or 8.6.

          (a) There are no restrictions on Holdings or any of its Subsidiaries which prohibit or
otherwise restrict the transfer of cash or other assets from any Subsidiary of the Borrower to the
Borrower, other than prohibitions or restrictions permitted by Section 8.9(b).

          6.15. Intellectual Property. The Borrower and each of its Subsidiaries owns, or is
licensed to use, all material trademarks, trade names, copyrights, technology, know-how, patents,
servicemarks, licenses and processes and other rights (“Intellectual Property”) free from
burdensome restrictions that are necessary for the conduct of their business taken as a whole as
currently conducted and as proposed to be conducted except for those the failure to own or license
which could not reasonably be expected to have a Material Adverse Effect.

          6.16. Pollution and Other Regulations. Except as set forth on Annex 6.16, (a) each of
Holdings and its Subsidiaries is, and has been, in compliance with all Environmental Laws governing
or relating to its business, and to the knowledge of Holdings and its Subsidiaries, there is no
condition or circumstance that would be likely to prevent or interfere with such compliance in the
future, except in each case, individually or in the aggregate, as could not reasonably be expected
to have a Material Adverse Effect, (b) all licenses, permits, registrations or approvals required
for the business of Holdings and each of its Subsidiaries, as conducted as of the Effective Date,
under any Environmental Law have been secured, and Holdings and each of its Subsidiaries is, and
has been, in substantial compliance therewith, except for such failure to secure or to comply
therewith that individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, (c) neither Holdings nor any of its Subsidiaries has received any written
communication from any Person alleging that it is in noncompliance with, breach of or default
under, any applicable writ, order, judgment, injunction, or decree to which Holdings or such
Subsidiary is a party or which would affect the ability of Holdings or such Subsidiary to operate
its business or any Real Property, except in each such case, such noncompliance, breaches or
defaults that individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect, (d) there are no facts, circumstances, conditions or occurrences relating to the
business of Holdings or any of its Subsidiaries or on or relating to any Real Property that could
reasonably be expected (i) to form the basis of an Environmental Claim against Holdings, any of its
Subsidiaries or any Real Property of Holdings or any of its Subsidiaries, or (ii) to cause Real
Property of Holdings or any of its Subsidiaries to be subject to any restrictions on the ownership,
occupancy, use or transferability of Real Property of Holdings or any of its Subsidiaries under any
Environmental Law, except in each such case, such Environmental Claims or restrictions that
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

          6.17. Properties. Holdings, the Borrower and each of their Subsidiaries have good and marketable title to all
material properties owned by them, including all property reflected in the most

 

 

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recent consolidated
balance sheet of Holdings and its Subsidiaries as referred to in Section 6.10(b), free and clear of
all Liens, other than (i) as referred to in such consolidated balance sheet or in the notes thereto
or (ii) otherwise permitted by Section 8.2 or 8.3. Annex 1.1B contains a true and complete list of
each Real Property owned or leased by Holdings or any of its Subsidiaries on the Effective Date,
that has, in the reasonable judgment of the Borrower on such date, a fair market value in excess of
$750,000 and the type of interest therein held by Holdings or the respective Subsidiary.

          6.18. Labor Matters. Except as, in the aggregate, could not reasonably be expected to
have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any
Credit Party pending or, to the knowledge of Holdings or the Borrower, threatened; (b) hours worked
by and payments made to employees of the Credit Parties have not been in violation of the Fair
Labor Standards Act or any other applicable Requirement of Law dealing with such matters; and (c)
all payments due from the Credit Parties on account of employee health and welfare insurance have
been paid or accrued as a liability on the books of the Credit Parties.

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

          6.20. No Default. None of Holdings, the Borrower or any of their Subsidiaries is in
default under or with respect to any of its Contractual Obligations in any respect that could
reasonably be expected to have a Material Adverse Effect. No Default or Event of Default has
occurred and is continuing.

          6.21. Regulation H. Except as set forth on Annex 6.21, no Mortgage encumbers improved
real property that is located in an area that has been identified by the Secretary of Housing and
Urban Development as an area having special flood hazards and in which flood insurance has been
made available under the National Flood Insurance Act of 1968.

          6.22. Certain Agreements. The Borrower has delivered to each Arranger a complete and
correct copy of the Acquisition Agreement, the Management Advisory Agreement and the Deferred
Compensation Plan.

          6.23. Indebtedness to be Refinanced. All Indebtedness of Red Simpson outstanding
immediately prior to the Effective Date shall either be repaid on the Effective Date pursuant to
Section 5.1(g)(iv) or is permitted pursuant to Section 8.4.

          6.24. Vehicles . Not more than 200 Vehicles in the aggregate owned by Red Simpson and its Subsidiaries to be
acquired by the Borrower in the Acquisition are located in Arkansas, Missouri and Mississippi.

          SECTION 7. AFFIRMATIVE COVENANTS. Each of Holdings and the Borrower
covenants and agrees that on the Effective Date and thereafter and until the Commitments have
terminated, no Letters of Credit or Notes are outstanding and the Loans and Unpaid Drawings,
together with interest, Fees and all other Obligations incurred hereunder, are paid in full:

          7.1. Information Covenants. Holdings will furnish to each Lender:

     (a) Annual Financial Statements. Within 90 days after the close of each fiscal
year of Holdings, the consolidated balance sheet of Holdings and its Subsidiaries as at the
end of such fiscal year and the related consolidated statements of operations and of changes
in shareholder’s

 

 

 33

deficit and of cash flows for such fiscal year, in each case setting forth
comparative consolidated figures for the preceding fiscal year, and examined by independent
certified public accountants of recognized national standing whose opinion shall not be
qualified as to the scope of audit and as to the status of Holdings or any of its
Subsidiaries as a going concern, together with a certificate of such accounting firm stating
that in the course of its regular audit of the business of Holdings, which audit was
conducted in accordance with generally accepted auditing standards, such accounting firm has
obtained no knowledge of any Default or Event of Default which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or Event of Default
has occurred and is continuing, a statement as to the nature thereof (which certificate may
be limited to the extent required by accounting rules or guidelines).

     (b) Quarterly Financial Statements. As soon as available and in any event (i)
within 60 days after the close of the quarterly accounting period ending on September 30,
2004 and (ii) within 45 days after the close of each of the first three quarterly accounting
periods in each fiscal year thereafter, the consolidated balance sheet of Holdings and its
Subsidiaries as at the end of such quarterly period and the related consolidated statements
of operations and of changes in shareholder’s equity (deficit) and of cash flows for such
quarterly period, and for the elapsed portion of the fiscal year ended with the last day of
such quarterly period, and in each case setting forth comparative consolidated figures for
the related periods in the prior fiscal year, all of which shall be certified by the chief
financial officer, controller, chief accounting officer or other Authorized Officer of
Holdings, except for the absence of footnotes and subject to changes resulting from audit
and normal year-end audit adjustments.

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

     (c) Budgets; etc. Not more than 75 days after the commencement of each fiscal
year of Holdings, annual budgets of Holdings and its Subsidiaries for such fiscal year in
reasonable detail, as customarily prepared by management for its internal use, setting
forth, in reasonable detail, the principal assumptions upon which such budgets are based.

     (d) Officer’s Certificates. At the time of the delivery of the financial
statements provided for in Section 7.1(a) and (b), a certificate of the chief financial
officer, controller, chief accounting officer or other Authorized Officer of Holdings,
substantially in the form of Exhibit K, to the effect that no Default or Event of Default
exists or, if any Default or Event of Default does exist, specifying the nature and extent
thereof, which certificate shall set forth (A) the calculations required to establish (I)
the Leverage Ratio then in effect for the Test Period ending on the last day of such fiscal
period or year, (II) whether Holdings and its Subsidiaries were in compliance with the
provisions of Sections 8.5, 8.7, 8.9(a) (but only to the extent Holdings has made
redemptions or repurchases of the type described in clause (ii) thereof in such period or
year), 8.13 and 8.14 as at the end of such fiscal period or year, as the case may be and
(III) in the case of any certificate delivered with the financial statements referred to in
Section 7.1(a), the amount of Excess Cash Flow for the Test Period and (B) the book value of
the Vehicles owned by the Credit Parties as of the first and last day of such fiscal period
and the aggregate number of Vehicles owned by the Credit Parties on such dates, the
aggregate number of Vehicles acquired

 

 

 34

by the Credit Parties during such fiscal period and
the aggregate number of Vehicles disposed of during such fiscal period.

     (e) Notice of Default or Litigation. Promptly, and in any event within three
Business Days after Holdings or any of its Subsidiaries obtains knowledge thereof, notice of
(x) the occurrence of any event which constitutes a Default or Event of Default, which
notice shall specify the nature thereof, the period of existence thereof and what action
Holdings or such Subsidiary proposes to take with respect thereto and (y) the commencement
of or any material development in any litigation or governmental proceeding pending against
Holdings or any of its Subsidiaries in which the amount involved is $3,000,000 or more or is
reasonably likely to have a material adverse effect on the ability of Holdings or any Credit
Party to perform its obligations hereunder or under any other Credit Document.

     (f) Other Information. Promptly upon transmission thereof, copies of any
filings and registrations with, and reports to, the Securities and Exchange Commission or
any successor thereto (the “SEC”) by Holdings or any of its Subsidiaries and, with
reasonable promptness, such other information or documents (financial or otherwise) as the
Administrative Agent on its own behalf or on behalf of the Required Lenders may reasonably
request from time to time.

          7.2. Books, Records and Inspections . Holdings will, and will cause its Subsidiaries to, permit, upon notice to the chief
financial officer, controller or any other Authorized Officer of Holdings, officers and designated
representatives of the Administrative Agent or the Syndication Agent (and, during the continuance
of an Event of Default, designated representatives of the Required Lenders) to visit and inspect
any of the properties or assets of Holdings and any of its Subsidiaries in whomsoever’s possession,
and to examine the books of account of Holdings and any of its Subsidiaries and discuss the
affairs, finances and accounts of Holdings and of any of its Subsidiaries with, and be advised as
to the same by, its and their officers and (if the Borrower so requests, with an officer of the
Borrower present) independent accountants, all at such reasonable times and intervals and to such
reasonable extent as the Administrative Agent or the Syndication Agent or, if applicable, the
Required Lenders may desire, including, without limitation, at such time as the Borrower notifies
the Administrative Agent or the Syndication Agent that it expects to request a Borrowing to fund a
Permitted Business Acquisition.

          7.3. Maintenance of Insurance. Holdings will, and will cause each of its Subsidiaries
to, at all times maintain in full force and effect insurance in such amounts, covering such risks
and liabilities and with such deductibles or self-insured retentions as are in accordance with
normal industry practice or otherwise as are acceptable to the Administrative Agent in its
reasonable discretion. Holdings will, and will cause each of its Subsidiaries to, furnish on the
Effective Date and annually thereafter to the Administrative Agent certificates of insurance
carried and other evidence of such insurance, if any, naming the Administrative Agent as an
additional insured and/or loss payee to the extent appropriate.

          7.4. Payment of Taxes. Holdings will pay and discharge, and will cause each of its
Subsidiaries to pay and discharge, all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits, or upon any properties belonging to it, prior to the
date on which penalties attach thereto, and all lawful claims which, if unpaid, might become a Lien
or charge upon any properties of Holdings or any of its Subsidiaries, provided that neither
Holdings nor any Subsidiary shall be required to pay any such tax, assessment, charge, levy or
claim which is being contested in good faith and by proper proceedings if it has maintained
adequate reserves (in the good faith judgment of the management of Holdings) with respect thereto
in accordance with GAAP.

 

 

 35

          7.5. Franchises. Holdings will do, and will cause each Subsidiary to do, or cause to
be done, all things necessary to preserve and keep in full force and effect its existence, material
rights and material authority, provided that any transaction permitted by Section 8.2 will
not constitute a breach of this Section 7.5.

          7.6. Compliance with Contractual Obligations and Laws, Statutes, etc. Holdings will,
and will cause each Subsidiary to, comply with all Contractual Obligations, applicable laws,
statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental
bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its
property, other than those the non-compliance with which could not reasonably be expected to have a
Material Adverse Effect.

          7.7. ERISA . As soon as possible and, in any event, within 15 days after a Credit Party or any of its
Subsidiaries or any ERISA Affiliate knows or has reason to know of the occurrence of any of the
following, Holdings will deliver to each of the Lenders a certificate of the chief financial
officer of Holdings setting forth details as to such occurrence and such action, if any, which the
Credit Party, such Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices required or proposed to be given to or filed with or by the Credit Party, the
Subsidiary, the ERISA Affiliate, the PBGC, a Plan participant (other than notices relating to an
individual participant’s benefits) or the Plan administrator with respect thereto: that a
Reportable Event has occurred; that an accumulated funding deficiency has been incurred or an
application is reasonably likely to be or has been made to the Secretary of the Treasury for a
waiver or modification of the minimum funding standard (including any required installment
payments) or an extension of any amortization period under Section 412 of the Code with respect to
a Plan; that a contribution required to be made to a Plan has not been timely made; that a Plan
which has an Unfunded Current Liability has been or is likely to be terminated, reorganized,
partitioned or declared insolvent under Title IV of ERISA; that a Plan has an Unfunded Current
Liability and there is a failure to make a required contribution, which gives rise to a lien under
ERISA or the Code; that proceedings are reasonably likely to be or have been instituted to
terminate a Plan which has an Unfunded Current Liability or to appoint a trustee to administer a
Plan; that a proceeding has been instituted pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Plan; that a Credit Party, any Subsidiary of a Credit Party or any
ERISA Affiliate will or is reasonably likely to incur any material liability (including any
indirect, contingent or secondary liability) to or on account of the termination of or withdrawal
from a Plan under Section 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or with respect to a
Plan under Section 401(a)(29), 4971, 4975 or 4980 of the Code or Section 409, 502(1) or 502(i) of
ERISA, or that a Credit Party or any Subsidiary of a Credit Party is reasonably likely to incur any
material liability pursuant to any employee welfare benefit plan (as defined in Section 3(1) of
ERISA) that provides benefits to retired employees (other than as required by Section 601 of ERISA)
or any employee pension benefit plan (as defined in Section 3(2) of ERISA). Notwithstanding the
foregoing, Holdings will not be required to deliver any notice otherwise required by this Section
7.7 if it relates to an ERISA Affiliate (other than Holdings and it Subsidiaries), unless the event
or other subject of such notice could reasonably be expected to result in a liability material to
Holdings and its Subsidiaries, taken as a whole. Upon request of a Lender, Holdings will deliver
to such Lender a complete copy of the annual report (Form 5500) of each Plan required to be filed
with the Internal Revenue Service. In addition to any certificates or notices delivered to the
Lenders pursuant to the previous sentences hereof, copies of any material notices received by a
Credit Party or any Subsidiary of a Credit Party or any ERISA Affiliate, with respect to a Plan
shall be delivered to the Lenders no later than 15 days after such are received by Holdings, the
Subsidiary or the ERISA Affiliate, as applicable.

          7.8. Good Repair. Holdings will, and will cause each of its Subsidiaries to, ensure
that its properties and equipment used or useful in its business in whomsoever’s possession they
may be, are kept in good repair, working order and condition, normal wear and tear excepted, and,
subject to Section 8.5, that from time to time there are made in such properties and equipment all
needful and proper

 

 

 36

repairs, renewals, replacements, extensions, additions, betterments and
improvements thereto, to the extent and in the manner useful or customary for companies in similar
businesses.

          7.9. Payment of Obligations. Holdings will, and will cause each of its Subsidiaries
to, pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations (other than Indebtedness) of whatever nature, except
where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of the relevant Credit Party.

          7.10. Environmental Laws. Holdings will, and will cause each of its Subsidiaries to,
(a) comply in all material respects with, and ensure compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply in
all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws and (b) conduct and complete all
investigations, studies, sampling and testing, and all remedial, removal and other actions required
under Environmental Laws and comply in all material respects with all lawful orders and directives
of all Governmental Authorities regarding Environmental Laws.

          7.11. Use of Proceeds. All proceeds of the Loans shall be used as provided in Section
6.5.

          7.12. Additional Collateral. (a) With respect to any property acquired after the
Effective Date by any Credit Party (other than (x) any property described in paragraph (b), (c) or
(d) below and (y) any property subject to a Lien expressly permitted by Section 8.3(k)) as to which
the Administrative Agent, for the benefit of the Lenders, does not have a perfected Lien, each of
Holdings and its Domestic Subsidiaries agrees to promptly (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement or such other
Security Documents as the Administrative Agent reasonably requests in order to grant to the
Administrative Agent, for the benefit of the Lenders, a security interest in such property and (ii)
take all actions reasonably requested by the Administrative Agent to grant to the Administrative
Agent, for the benefit of the Lenders, a perfected security interest in such property having the
priority required by the Guarantee and Collateral Agreement, including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be reasonably requested by the Administrative Agent.

          (b) With respect to any fee interest in any real property having a value (together with
improvements thereof) of at least $750,000 acquired after the Effective Date by any Credit Party
(other than any such real property subject to a Lien expressly permitted by Section 8.3(k)), each
of Holdings and its Domestic Subsidiaries agrees to promptly (i) cause each Credit Party which is
the fee owner of such real property to execute and deliver a deed of trust, mortgage or similar
document, in each case, substantially in the form of Exhibit I or otherwise in form and substance
reasonably satisfactory to the Administrative Agent (each a “Mortgage”), in favor of the
Administrative Agent, for the benefit of the Lenders, covering such real property, (ii) if
reasonably requested by the Administrative Agent, provide the Lenders with (x) title and extended
coverage insurance covering such real property in an amount at least equal to the purchase price of
such real property (or such other amount as shall be reasonably specified by the Administrative
Agent) as well as a current ALTA survey thereof, together with a surveyor’s certificate and (y) any
consents or estoppels reasonably deemed necessary or advisable by the Administrative Agent in
connection with such Mortgage, each of the foregoing in form and substance reasonably satisfactory
to the Administrative Agent, and (iii) if reasonably requested by the Administrative Agent, deliver
to the Administrative Agent legal opinions relating to the matters described

 

 

 37

above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

          (c) With respect to any new Domestic Subsidiary created or acquired after the Effective Date
by any Credit Party, promptly (i) execute and deliver to the Administrative Agent such amendments
to the Guarantee and Collateral Agreement as the Administrative Agent reasonably deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in the capital stock of such new Domestic Subsidiary that is owned by
any Credit Party, (ii) deliver to the Administrative Agent the certificates representing such
capital stock, together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Credit Party, (iii) cause such new Domestic Subsidiary (A) to
become a party to the Guarantee and Collateral Agreement, (B) to take such actions reasonably
deemed necessary or advisable by the Administrative Agent to grant to the Administrative Agent for
the benefit of the Lenders a perfected security interest in the Collateral described in the
Guarantee and Collateral Agreement with respect to such new Subsidiary having the priority required
by the Guarantee and Collateral Agreement, including the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by law or as may be reasonably requested by the Administrative Agent and (C) to
deliver to the Administrative Agent a certificate of such Subsidiary, substantially in the form of
Exhibit E, with appropriate insertions and attachments, and (iv) if reasonably requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters
described

above, which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.

          (d) With respect to any new Foreign Subsidiary created or acquired after the Effective Date by
any Credit Party, promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement as the Administrative Agent reasonably deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in the capital stock of such new Foreign Subsidiary that is owned by any
such Credit Party (provided that in no event shall more than 66% of the total outstanding
voting capital stock of any such new Foreign Subsidiary be required to be so pledged), (ii) deliver
to the Administrative Agent the certificates representing such capital stock, together with undated
stock powers, in blank, executed and delivered by a duly authorized officer of the relevant Credit
Party, and take such other action as may be necessary or, in the reasonable opinion of the
Administrative Agent, desirable to perfect the Administrative Agent’s security interest therein,
and (iii) if reasonably requested by the Administrative Agent, deliver to the Administrative Agent
legal opinions relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative Agent.

          7.13. Interest Rate Agreements. The Borrower shall no later than 180 days following
the Effective Date enter into Interest Rate Agreements, reasonably acceptable to the Administrative
Agent, establishing a fixed or maximum interest rate in respect of at least 35% of the aggregate
principal amount of Term Loans for a period of at least two years or any shorter period which shall
be satisfactory to the Administrative Agent.

          7.14. Post-Closing Covenants. (a) Within 60 days after the Effective Date, the
Borrower shall have delivered to the Administrative Agent reasonably satisfactory evidence of the
completion of, or arrangements to complete, all recordings and filings necessary to perfect the
security interests in the Vehicles owned by Red Simpson and its Subsidiaries. Notwithstanding the
foregoing, the Administrative Agent may, in its reasonable discretion, extend the date for the
foregoing deliveries for a period of up to an additional 60 days.

 

 

 38

          (b) On or prior to September 30, 2004, the Borrower shall have delivered to the Administrative
Agent the unaudited consolidated balance sheet of Red Simpson and its Subsidiaries as of June 30,
2004 and the related consolidated statement of earnings for the six-month period ended on such
date.

          (c) On or prior to September 30, 2004, the Borrower shall have caused the letters of credit
described on Annex 8.4(d) to be cancelled and all obligations of the Borrower and its Subsidiaries
in connection therewith to have been terminated and released.

          SECTION 8. NEGATIVE COVENANTS. Each of Holdings and the Borrower hereby
covenants and agrees that as of the Effective Date and thereafter until the Commitments have
terminated, no Letters of Credit or Notes are outstanding and the Loans and Unpaid Drawings,
together with interest, Fees and all other Obligations incurred hereunder, are paid in full:

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

          8.2. Consolidation, Merger, Sale of Assets, etc. Holdings will not, and will not
permit any Subsidiary to, wind up, liquidate or dissolve its affairs, or enter into any transaction
of merger or consolidation, sell or otherwise dispose of all or any part of its property or assets
(other than inventory, equipment or Cash Equivalents sold in the ordinary course of business) or
agree to do any of the foregoing at any future time, except that the following shall be permitted:

     (a) except as otherwise provided in the Security Documents, any Subsidiary of the
Borrower may be merged or consolidated with or into, or be liquidated into, the Borrower or
a Wholly-Owned Subsidiary of the Borrower (so long as (i) the Borrower or such Wholly-Owned
Subsidiary is the surviving entity and (ii) if any such merger or consolidation involves a
Domestic Subsidiary, a Domestic Subsidiary is the surviving entity), or all or any part of
its business, properties and assets may be conveyed, leased, sold or transferred to the
Borrower or a Wholly-Owned Subsidiary of the Borrower (which must be a Domestic Subsidiary
if the transaction involves the conveyance, lease, sale or transfer of all or substantially
all the properties and assets of a Domestic Subsidiary), provided that the Borrower
may not be a party to any merger, consolidation or liquidation otherwise permitted by this
clause (a) involving a Subsidiary that is not a Wholly-Owned Subsidiary, and
provided further that in each case all Liens created pursuant to a Security
Document on any assets of a Subsidiary affected by any of the foregoing events (other than
(i) Liens on the capital stock issued by a Subsidiary that does not survive such event
if, in connection therewith, such capital stock is cancelled and (ii) Liens on assets
sold to a Foreign Subsidiary) shall remain in full force and effect after giving effect
thereto;

     (b) the investments, acquisitions and transfers or dispositions of properties permitted
pursuant to Sections 8.6 and 8.9;

 

 

 39

     (c) sales of assets pursuant to any sale and leaseback transaction permitted by Section
8.11;

     (d) other sales or dispositions of assets by the Borrower and its Subsidiaries,
provided that (i) the aggregate fair market value of the assets so sold or disposed
shall not exceed $7,500,000 in any fiscal year (such fair market value as determined by the
Board of Directors of Holdings), (ii) each such transaction results in consideration at
least 80% of which shall be in the form of cash and the remainder, if any, of which shall
consist of promissory notes issued by the relevant purchaser and pledged to the
Administrative Agent for the benefit of the Lenders pursuant to the relevant Security
Document, and (iii) the Net Cash Proceeds of any such sale are applied to repay the Loans as
and to the extent provided in Section 4.2(a)(iii), and, provided further,
that the sale or disposition of the capital stock of (i) the Borrower shall be prohibited
and (ii) any Subsidiary of the Borrower shall be prohibited unless it is for all of the
outstanding capital stock of such Subsidiary owned (directly or indirectly) by the Borrower;

     (e) the license of intellectual property in the ordinary course of business of the
Borrower or any of its Subsidiaries;

     (f) leases or subleases granted to others not interfering in any material respect with
the business of Holdings or any of its Subsidiaries; and

     (g) sales of investment assets acquired in connection with the Deferred Compensation
Plan or any Deferred Compensation Agreement, the proceeds of which are used to acquire other
investment assets or to make deferred compensation payments to current and former officers
and employees of the Borrower and its Subsidiaries pursuant to such Plan.

          8.3. Liens. Holdings will not, and will not permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets of
any kind (real or personal, tangible or intangible) of Holdings or any such Subsidiary, whether now
owned or hereafter acquired, or sell any such property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase such property or assets (including sales of
accounts receivable or notes with recourse to Holdings or any of its Subsidiaries) or assign any
right to receive income, or file or authorize the filing of any financing statement under the UCC
or any other similar notice of Lien under any similar recording or notice statute, except:

     (a) Liens for taxes and assessments not yet due and payable or Liens for taxes being
contested in good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of Holdings) have been established;

     (b) Liens in respect of property or assets of Holdings or any of its Subsidiaries
imposed by law which were incurred in the ordinary course of business, such as carriers’,
warehousemen’s and mechanics’ Liens, statutory landlord’s Liens, and other similar Liens
arising in the ordinary course of business, and (x) which do not in the aggregate materially
detract from the value of such property or assets or materially impair the use thereof in the
operation of the business of Holdings or any Subsidiary or (y) which are being contested in
good faith by appropriate proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or asset subject to such Lien;

     (c) Liens created by or pursuant to this Agreement or the other Credit Documents;

 

 

 40

     (d) Liens on assets of Holdings and its Subsidiaries existing on the Effective Date and
listed on Annex 8.3(d) hereto and extensions, renewals and replacements thereof;
provided that no such Lien is spread to cover any additional property after the
Effective Date and that the principal amount of Indebtedness secured thereby shall not
exceed the principal amount of Indebtedness so secured at the time of such extension,
renewal or replacement;

     (e) Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Section 9.9;

     (f) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the
ordinary course of business in connection with workers’ compensation, unemployment insurance
and other types of social security, or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, trade contracts, leases, government contracts,
performance and return-of-money bonds and other similar obligations incurred in the ordinary
course of business (exclusive of obligations in respect of the payment for borrowed money);

     (g) leases or subleases granted to others not interfering in any material respect with
the business of Holdings or any of its Subsidiaries;

     (h) easements, encroachments, covenants, rights-of-way, restrictions, minor defects or
irregularities in title and other similar charges or encumbrances not interfering in any
material respect with the ordinary conduct of the business of Holdings or any of its
Subsidiaries and municipal and zoning ordinances;

     (i) Liens arising from UCC financing statements regarding leases permitted by this
Agreement;

     (j) any interest or title of a lessor under any lease permitted by this Agreement;

     (k) Liens on assets of the Borrower or any Subsidiary thereof, each of which Liens (i)
existed on such assets before the time of their acquisition by the Borrower or such
Subsidiary, were not created in contemplation thereof and secure Indebtedness permitted by
Section 8.4(c)(i), or (ii) existed on such assets of any Subsidiary before the time it
became a Subsidiary, were not created in contemplation of the owner thereof becoming a
Subsidiary and secure Indebtedness permitted by Section 8.4(c)(i), or (iii) was created
solely for the purpose of securing Indebtedness representing, or incurred to finance, the
cost of such assets and secure Indebtedness permitted by Section 8.4(c)(ii);
provided that, with respect to Liens referred to in this clause (iii), (A) such
Liens and the Indebtedness secured thereby are incurred within 90 days of the acquisition of
such asset, (B) such Liens shall at all times be confined to the assets (or, with respect to
any such asset, the group of assets together with which it is acquired) so acquired and
improvements, alterations, replacements and modifications thereto and (C) the principal
amount of the Indebtedness secured by such Liens shall in no case exceed 100% of the cost of
the assets (or group of assets) subject thereto at the time of acquisition thereof, and
provided, further that with respect to each Lien referred to in this
paragraph (k), any extension, renewal or replacement thereof shall be permitted
only to the extent that the principal amount of Indebtedness secured thereby shall not
exceed the principal amount of Indebtedness so secured at the time of such extension,
renewal or replacement;

     (l) Liens on cash reserves securing Indebtedness in respect of letters of credit or
bonds permitted by Section 8.4(g);

 

 

41

     (m) Liens on assets sold pursuant to a Qualified Sale/Leaseback Transaction securing
Capital Lease Obligations arising therefrom permitted by Section 8.4(l);

     (n) Liens not otherwise permitted by this Section so long as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair
market value (determined as of the date such Lien is incurred) of the assets subject thereto
exceeds (as to the Borrower and all Subsidiaries) $4,000,000 at any one time; and

     (o) Liens on the Escrow Amount (as defined in the Acquisition Agreement) pursuant to
Section 1.03(d) of the Acquisition Agreement.

          8.4. Indebtedness. Holdings will not, and will not permit any of its Subsidiaries to,
contract, create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness incurred pursuant to this Agreement and the other Credit Documents,
including Letters of Credit;

     (b) Indebtedness of the Borrower to any Subsidiary and of any Wholly-Owned Subsidiary
Guarantor to the Borrower or any other Subsidiary;

     (c) Indebtedness (including, without limitation, in the case of clause (ii) below,
Capital Lease Obligations) secured by Liens permitted by (i) Section 8.3(k)(i) or (ii) in an
aggregate principal amount not to exceed $10,000,000 at any one time outstanding or (ii)
Section 8.3(k)(iii) in an aggregate principal amount not to exceed $40,000,000 at any one
time outstanding;

     (d) existing Indebtedness listed on Annex 8.4(d) hereto (“Existing
Indebtedness”) and any renewals, extensions, refundings or refinancings of such
Indebtedness, provided the amount thereof is not increased and the maturity of
principal thereof is not shortened (unless to a maturity occurring after the Term Facility
Final Maturity Date);

     (e) Indebtedness under Interest Rate Agreements entered into after the Original
Borrowing Date (provided that such Agreements are entered into to hedge actual
amounts and not for speculative purposes);

     (f) Indebtedness of Holdings represented by the obligations of Holdings to make
payments with respect to the cancellation or repurchase of certain stock or stock options or
warrants in respect of Holdings Common Stock granted to management investors pursuant to the
Shareholders’ Agreements;

     (g) Indebtedness in respect of letters of credit or bonds backing obligations under
insurance policies or related to self-insurance obligations or related to surety bonds in an
aggregate amount not to exceed $15,000,000;

     (h) guarantees by the Borrower or any of its Subsidiaries of the obligations of joint
ventures in which the Borrower or any of its Subsidiaries is a party, not exceeding
$3,000,000 in aggregate amount at any time outstanding;

     (i) guarantees by any Credit Party of any Indebtedness of any other Credit Party
permitted pursuant to the other provisions of this Section 8.4;

 

 

42

     (j) Indebtedness in respect of performance bonds, bid bonds, appeal bonds, bankers
acceptances, letters of credit, surety bonds or other similar obligations arising in the
ordinary course of business, and any refinancings thereof to the extent not provided to
secure the repayment of other Indebtedness;

     (k) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business,
provided that such Indebtedness is extinguished within two Business Days of its
incurrence;

     (l) Capital Lease Obligations arising out of Qualified Sale/Leaseback Transactions;

     (m) additional unsecured Indebtedness of the Borrower or any of its Subsidiaries in an
aggregate principal amount (for the Borrower and all Subsidiaries) not to exceed $10,000,000
at any one time outstanding; and

     (n) Indebtedness arising from post-closing obligations related to the Acquisition
permitted by Section 8.6(i).

          8.5. Capital Expenditures. (a) Except for expenditures permitted pursuant to Section
8.6, Holdings will not, and will not permit any of its Subsidiaries to, make Consolidated Capital
Expenditures, provided that the Borrower and its Subsidiaries may make Consolidated Capital
Expenditures during each fiscal year of the Borrower set forth below in an aggregate amount not in
excess of the amount set forth opposite such fiscal year below (the amount so set forth for any
such fiscal year, the “Yearly Amount” for such fiscal year).

	 	 	 	 	 
	 	 	Capital Expenditure	 
	Fiscal Year	 	Amount	 
	2005
	 	$	60,000,000	 
	2006
	 	$	60,000,000	 
	2007
	 	$	60,000,000	 
	2008 and thereafter
	 	$	70,000,000	 

          (b) Notwithstanding anything to the contrary contained in Section 8.5(a), to the extent the
Yearly Amount is not expended in any fiscal year pursuant to Section 8.5(a) above, 50% of such
unused amount may be carried forward to the succeeding fiscal year (it being understood and agreed
that amounts expended in any fiscal year pursuant to Section 8.5(a) shall be applied against the
Yearly Amount for such fiscal year before being applied against amounts carried forward from the
prior fiscal year).

          (c) Notwithstanding the foregoing, in addition to the Consolidated Capital Expenditures
permitted pursuant to Sections 8.5(a) and (b), the Borrower and its Subsidiaries may make (i)
Consolidated Capital Expenditures at any time in an amount not in excess of the Available Amount at
such time and (ii) Consolidated Capital Expenditures in an aggregate amount subsequent to the
Original Borrowing Date not in excess of $8,000,000.

          8.6. Advances, Investments and Loans. Holdings will not, and will not permit any of
its Subsidiaries to, lend money or credit or make advances to any Person, or purchase or acquire
any stock, obligations or securities of, or any other interest in, or make any capital contribution
to, any Person, except:

 

 

43

     (a) Holdings or any of its Subsidiaries may invest in cash and Cash Equivalents;

     (b) the Borrower and any of its Subsidiaries may acquire and hold receivables owing to
them, if created or acquired in the ordinary course of business and payable or dischargeable
in accordance with customary trade terms;

     (c) the intercompany Indebtedness described in Section 8.4(b) shall be permitted to the
extent evidenced by promissory notes (if owed to Holdings, the Borrower or another Domestic
Subsidiary) that are pledged pursuant to the Guarantee and Collateral Agreement;

     (d) the investments owned by the Borrower and each of its Subsidiaries on the Effective
Date and set forth in Annex 8.6(d) may continue to be owned by the Borrower and such
Subsidiary;

     (e) loans and advances to officers and employees in the ordinary course of business in
an aggregate principal amount not to exceed $250,000 at any time outstanding;

     (f) the Borrower and any of its Subsidiaries may acquire and own investments (including
debt obligations) received in connection with the bankruptcy or reorganization of suppliers
and customers and in settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;

     (g) Interest Rate Agreements permitted by Section 8.4(e);

     (h) Holdings may make capital contributions to the Borrower, and the Borrower and its
Subsidiaries may make capital contributions to, or purchase additional shares of capital
stock of, any Wholly-Owned Subsidiary Guarantor;

     (i) the Acquisition and the transactions contemplated by the Acquisition Documents,
including the Escrow Amount (as defined in the Acquisition Agreement), the Adjusted AEP
Amount, the Federal Project Cash Flow Amount and any post-closing adjustments to the extent
that the Adjusted Purchase Price (as defined in the Acquisition Agreement) exceeds the
Estimated Purchase Price (as defined in the Acquisition Agreement);

     (j) Permitted Business Acquisitions; provided that neither the Borrower nor any
of its Subsidiaries shall be permitted to make any Permitted Business Acquisition if, after
giving effect thereto, the sum of (A) the aggregate amount of consideration (whether cash or
property, as valued in good faith by the Board of Directors of the Borrower but excluding
Earnout Payments) given by the Borrower and its Subsidiaries for all Permitted Business
Acquisitions made after the Effective Date (net of any return representing return of capital
of (but not return on) any such investment) plus (B) the sum of (i) the aggregate
amount of Earnout Payments theretofore made subsequent to the Effective Date and (ii) the
aggregate then maximum amount of the Earnout Payments that the Borrower and its Subsidiaries
could be required to pay in the future under agreements with respect thereto then in effect
would exceed the sum of (x) $25,000,000 plus (y) the Available Amount at the time of

such Permitted Business Acquisition, plus (z) an additional $5,000,000 for Earnout
Payments, provided that, in no event may payments of consideration of a type
described in clause (A) above utilize the basket described in clause (z) above and in no
event may consideration consisting of Earnout Payments described in clause (B) above utilize
the basket described in clause (y) above;

 

 

44

     (k) the redemption or repurchase by Holdings of Holdings Common Stock, Series A
Preferred or Additional Permitted Preferred (and any options or warrants relating thereto)
in accordance with clauses (ii), (iv), (v), (vi) and (vii) of Section 8.9(a);

     (l) promissory notes issued to the Borrower or any of its Subsidiaries by the
purchasers of assets sold in accordance with Section 8.2(d);

     (m) guarantees expressly permitted by Sections 8.4(h) and (i);

     (n) investments made by the Borrower in investment assets in amounts equal to the
amounts of compensation payable to current and former officers and employees of the Borrower
and its Subsidiaries that are deferred pursuant to the Deferred Compensation Plan and any
Deferred Compensation Agreements (plus amounts equal to the earnings or gains on
such investment assets); and

     (o) in addition to investments otherwise expressly permitted by this Section,
investments by the Borrower or any of its Subsidiaries in an aggregate amount (valued at
cost and net of any return representing return of (but not return on) any such investment)
not to exceed $7,500,000 (less the aggregate amount of all payments made pursuant to
clause (x)(B) of the proviso to Section 8.9(a)(iv)) outstanding at any time.

          8.7. Leases. Holdings will not permit the aggregate payments (including, without
limitation, any property taxes paid by Holdings and its Subsidiaries as additional rent or lease
payments) by Holdings and its Subsidiaries on a consolidated basis under agreements in effect as of
the Effective Date and/or entered into after the Effective Date (including any such agreement that
is an extension, replacement, substitution, or renewal of any agreement entered into prior to such
date) to rent or lease any real or personal property (exclusive of Capitalized Lease Obligations
and leases arising out of any Qualified Sale/Leaseback Transaction) to exceed $20,000,000 in any
fiscal year of Holdings.

          8.8. Prepayments of Indebtedness; Amendments to Documents, etc. Holdings will not,
and will not permit any of its Subsidiaries to:

     (a) make (or give any notice in respect thereof) any voluntary or optional payment or
prepayment or redemption or defeasance or acquisition for value of (including, without
limitation, by way of depositing with the agent or lenders with respect thereto money or securities
before due for the purpose of paying when due) or exchange of any material Indebtedness
(other than Indebtedness under this Agreement) other than refinancings of Indebtedness in
accordance with Section 8.4;

     (b) after the Effective Date, amend or modify, or permit the amendment or modification
of, any provisions of any Acquisition Documents in any manner materially adverse to the
interests of the Lenders; or

     (c) amend, modify or change in any manner adverse to the interests of the Lenders the
Certificate of Incorporation (including, without limitation, by the filing or amendment of
any certificate of designation or, with respect to the Series A Preferred), By-Laws or
limited liability company agreement of Holdings, the Borrower or any other Credit Party, or
any agreement entered into by Holdings, the Borrower or any other Credit Party with respect
to its capital stock, or enter into any new agreement in any manner adverse to the interests
of the Lenders with respect to the capital stock of Holdings, the Borrower or any other
Credit Party.

 

 

45

          8.9. Dividends, etc. (a) Holdings will not, and will not permit any of its
Subsidiaries to, declare or pay any dividends (other than dividends payable solely in capital stock
of such Person) or return any capital to, its stockholders or authorize or make any other
distribution, payment or delivery of property or cash to its stockholders as such, or redeem,
retire, purchase or otherwise acquire, directly or indirectly, for consideration, any shares of any
class of its capital stock now or hereafter outstanding (or any warrants for or options or stock
appreciation rights in respect of any of such shares), or set aside any funds for any of the
foregoing purposes, or permit any of its Subsidiaries to purchase or otherwise acquire for
consideration any shares of any class of the capital stock of the Borrower or any other Subsidiary
(excluding any purchase by any Subsidiary of capital stock of any of its Subsidiaries), as the case
may be, now or hereafter outstanding (or any options or warrants or stock appreciation rights
issued by such Person with respect to its capital stock) (all of the foregoing
“Dividends”), except that:

     (i) any Subsidiary of the Borrower may pay Dividends to its shareholders;

     (ii) Holdings may redeem or repurchase Holdings Common Stock and Series A Preferred
(and any options or warrants relating thereto) from any present or former member of
management or other key employee upon the death, permanent disability, retirement or
termination of employment of any such Person (any such event in respect of a present or
former member of management or a key employee, a “Repurchase Triggering Event”),
provided that (x) no Default under Section 9.1 or Event of Default is then in
existence or would arise therefrom, (y) the aggregate amount of all cash paid in respect of
such shares so redeemed or repurchased from all such Persons (other than pursuant to the
Pike Holdings 2004 Employee Stock Purchase Plan) shall not exceed $1,000,000 in any fiscal
year of Holdings or $5,000,000 in the aggregate after the Original Borrowing Date and (z)
the aggregate amount of all cash paid in respect of such shares so redeemed or repurchased
in accordance with the Pike Holdings 2004 Employee Stock Purchase Plan shall not exceed
$1,500,000 in the aggregate after the Effective Date and; provided further
that in the event that Holdings subsequently resells to any member of its, the Borrower’s or
any Subsidiary’s management, to any key employee or to a party acceptable to the
Administrative Agent (provided that any such party shall simultaneously transfer all
such shares purchased by it to a member of management of Holdings, the Borrower or such
Subsidiary or a key employee, or for the benefit of one or more members of management or key
employees (to the extent that such shares are, simultaneously with such transfer, reserved
for issuance to such members of management or such key employees pursuant to an employee incentive plan))
any shares redeemed or repurchased pursuant to this clause (ii), the amount of repurchases
Holdings may make pursuant to this clause (ii) shall be increased by an amount equal to any
cash received by Holdings upon the resale of such shares or upon the issuance of shares to
members of management or other key employees;

     (iii) the Borrower may pay cash Dividends to Holdings at such times and in such amounts
as are necessary to enable Holdings to (A) make required tax payments, (B) pay normal
operating expenses incurred in the ordinary course of business, (C) effect the payments
permitted pursuant to Sections 8.9(a)(ii) and 8.10, and/or (D) use the proceeds of
Borrowings made on the Effective Date for any of the purposes permitted by Section 6.5,
provided that in the event that Holdings has not utilized the proceeds of such
Dividend for the purposes for which such dividend was paid within 30 days after the receipt
of proceeds of such Dividend, Holdings shall be required to immediately utilize the proceeds
of such Dividend to make a capital contribution in the Borrower;

     (iv) Holdings may, in accordance with the terms of the Series A Preferred and if no
Event of Default shall have occurred and then be continuing, repurchase shares of the Series
A Preferred transferred in violation of the transfer restrictions applicable to such shares
set forth in

 

 

46

Section 10(c) of the Certificate of Designations for the Series A Preferred,
provided that (x) no such repurchase shall be for an amount in excess of the sum of
(A) the Available Amount plus (B) the unused amount permitted by Section 8.6(o), in
each case, at the time of such repurchase and (y) the aggregate amount expended subsequent
to the Original Borrowing Date in connection with all such repurchases shall not exceed
$5,000,000;

     (v) Holdings may effect adjustments to the adjusted base value of (a) the Series A
Preferred in accordance with the terms of the Series A Preferred and (b) the Additional
Permitted Preferred in accordance with the terms of the Additional Permitted Preferred;

     (vi) Holdings may (A) so long as the Leverage Ratio is then less than or equal to 2.75
to 1.00, redeem or repurchase Holdings Common Stock held by LGB and its Affiliates in
exchange for the issuance by Holdings of preferred stock of Holdings having terms not less
favorable to the Lenders than the terms of the Series A Preferred, provided that the
inclusion in such preferred stock of (x) a higher dividend rate than that included in the
Series A Preferred or (y) voting rights different from those granted to the Series A
Preferred shall be deemed not to be less favorable to the Lenders, and (B) redeem or
repurchase Series A Preferred pursuant to the conversion of Series A Preferred into Holdings
Common Stock in accordance with the terms of the Series A Preferred; and

     (vii) in addition to the Series A Preferred repurchased pursuant to Sections 8.9(a)(ii)
and (iv), Holdings may at any time, in accordance with the terms of the Series A Preferred
and if no Event of Default shall have occurred and then be continuing, repurchase shares of
the Series A Preferred in an aggregate amount expended subsequent to the Effective Date not
exceeding the sum of (x) $5,000,000 and (y) the aggregate amount of Equity Contributions not
previously utilized pursuant to clauses (y)(1), (y)(2) and (y)(3) of the definition of
“Available Amount” prior to the date of such repurchase.

          (b) Holdings will not, and will not permit any of its Subsidiaries to, create or otherwise
cause or suffer to exist any encumbrance or restriction which prohibits or otherwise restricts (A)
the ability of any other Subsidiary to (a) pay Dividends or make other distributions or pay any
Indebtedness owed to the Borrower or any other Subsidiary, (b) make loans or advances to the
Borrower or any other Subsidiary or (c) transfer any of its properties or assets to the Borrower or any
Subsidiary or (B) the ability of the Borrower or any other Subsidiary of Holdings to create, incur,
assume or suffer to exist any Lien upon its property or assets to secure the Obligations, other
than prohibitions or restrictions existing under or by reason of:

     (i) this Agreement and the other Credit Documents;

     (ii) applicable law;

     (iii) customary non-assignment provisions entered into in the ordinary course of
business and consistent with past practices;

     (iv) any restriction or encumbrance with respect to a Subsidiary of the Borrower
imposed pursuant to an agreement which has been entered into for the sale or disposition of
all or substantially all of the capital stock or assets of such Subsidiary, so long as such
sale or disposition is permitted under this Agreement;

     (v) any restriction or encumbrance with respect to any assets of the Borrower or any of
its Subsidiaries imposed pursuant to an agreement which has been entered into for the sale
or

 

 

47

disposition of such assets, provided that such sale or disposition is permitted
under this Agreement and such restriction or encumbrance shall only be effective against the
assets to be sold or disposed of;

     (vi) Liens permitted under Section 8.3 and any documents or instruments governing the
terms of any Indebtedness or other obligations secured by any such Liens, provided
that such prohibitions or restrictions apply only to the assets subject to such Liens; and

     (vii) restrictions on the ability of the Borrower to create Liens on investment assets
acquired by the Borrower with amounts constituting deferred compensation owing to current
and former employees pursuant to the Deferred Compensation Plan or any Deferred Compensation
Agreement (or amounts equal to the earnings or gains on such investment assets).

          8.10. Transactions with Affiliates. Holdings will not, and will not permit any
Subsidiary to, enter into any transaction or series of transactions, whether or not in the ordinary
course of business, with any Affiliate other than on terms and conditions substantially as
favorable to Holdings or such Subsidiary as would be obtainable by Holdings or such Subsidiary at
the time in a comparable arm’s length transaction with a Person other than an Affiliate,
provided that the foregoing restrictions shall not apply to (i) transactions set forth in
Annex 8.10 hereto, provided that no amount shall be paid by Holdings or any Subsidiary in
connection with such transactions with LGB and its Affiliates during the continuation of an Event
of Default, (ii) payments pursuant to the Management Advisory Agreement, without giving effect to
any amendments, supplements or other modifications thereto after the Effective Date (other than
those that reduce the amounts of such payments), (iii) employment arrangements entered into in the
ordinary course of business with employees and officers of Holdings and its Subsidiaries, (iv)
customary fees paid or other compensation arrangements provided to members of the Board of
Directors of Holdings and of its Subsidiaries, (v) transactions between or among any of the
Borrower and its Wholly-Owned Subsidiaries, (vi) transactions between or among the Borrower and its
Subsidiaries in the ordinary course of business and (vii) transactions contemplated by the
Acquisition Documents (including payment of the Adjusted AEP Amount and the Federal Project Cash
Flow Amount) and payments pursuant to the Deferred Compensation Agreements.

          8.11. Sales and Leasebacks. Holdings will not, and will not permit any Subsidiary to,
enter into any arrangement with any Person providing for the leasing by any Credit Party of real or
personal property that has been or is to be sold or transferred by such Credit Party to such Person
or to any other Person to whom funds have been or are to be advanced by such Person on the security
of such property or rental obligations of such Credit Party, other than (a) any such arrangement
entered into in connection with (x) the financing of the acquisition of such property with the
proceeds of purchase money Indebtedness incurred as permitted by Section 8.4(c)(ii) or (y) the sale
and leaseback of such property pursuant to an operating lease permitted by Section 8.7 within 90
days of the acquisition of such property by the Borrower and its Subsidiaries, and (b) a Qualified
Sale/Leaseback Transaction, provided that, the aggregate Net Cash Proceeds received from
all Qualified Sale/Leaseback Transactions entered into subsequent to the Original Borrowing Date
shall not exceed $30,000,000.

          8.12. Changes in Fiscal Periods. The Borrower shall not change the fiscal year of the
Borrower to end on a day other than June 30 or change the Borrower’s method of determining fiscal
quarters, except that the Borrower may change the fiscal year of the Borrower to end on or about
December 31 and make corresponding changes to the Borrower’s method of determining fiscal quarters.

          8.13. Cash Interest Coverage Ratio. Holdings will not permit the Cash Interest
Coverage Ratio for any Test Period to be less than 3.50 to 1.00.

 

 

48

          8.14. Leverage Ratio. Holdings will not permit the Leverage Ratio at the end of any
Test Period ending on or about any date set forth below to be more than the ratio set forth
opposite such date:

	 	 	 
	Fiscal Quarter End Date	 	Leverage Ratio
	September 30, 2004
	 	3.90 to 1.00
	December 31, 2004
	 	3.90 to 1.00
	March 31, 2005
	 	3.90 to 1.00
	June 30, 2005
	 	3.70 to 1.00
	September 30, 2005
	 	3.70 to 1.00
	December 31, 2005
	 	3.70 to 1.00
	March 31, 2006
	 	3.70 to 1.00
	June 30, 2006
	 	3.30 to 1.00
	September 30, 2006
	 	3.30 to 1.00
	December 31, 2006
	 	3.30 to 1.00
	March 31, 2007
	 	3.30 to 1.00
	June 30, 2007
	 	3.00 to 1.00
	September 30, 2007
	 	3.00 to 1.00
	December 31, 2007
	 	3.00 to 1.00
	March 31, 2008
	 	3.00 to 1.00
	June 30, 2008
	 	2.50 to 1.00
	September 30, 2008
	 	2.50 to 1.00
	December 31, 2008
	 	2.50 to 1.00
	March 31, 2009
	 	2.50 to 1.00
	June 30, 2009 and thereafter
	 	2.00 to 1.00

          8.15. Deferred Compensation Liability. (a) Holdings will not, and will not permit
any of its Subsidiaries to, make any payments on account of the Deferred Compensation Liability
during any fiscal year of the Borrower in an aggregate amount exceeding the amount set forth
opposite such fiscal year below (the amount so set forth for any such fiscal year, the “Deferred
Compensation Liability Annual Amount” for such fiscal year):

	 	 	 	 	 
	 	 	Deferred Compensation	 
	Fiscal Year	 	Liability Annual Amount	 
	2005
	 	$	13,500,000	 
	2006
	 	$	13,500,000	 
	2007
	 	$	13,000,000	 
	2008
	 	$	6,500,000	 
	2009 and thereafter
	 	$	13,000,000	 

; provided that, the Deferred Compensation Liability Annual Amount for any fiscal year may
be increased upon the delivery of a certificate of an Authorized Officer of the Borrower certifying
that the Deferred Compensation Liability has been finally determined pursuant to Section 1.06 of
the Acquisition Agreement and specifying the increased amount of the Deferred Compensation
Liability Annual Amount for each fiscal year, together with supporting calculations thereto, in an
aggregate amount equal to the tax adjusted amount of any cash refund of the Adjusted Purchase Price
applied to prepay the Term Loans pursuant to Section 4.2(a)(viii).

          (b) Notwithstanding anything to contrary contained in Section 8.15(a), to the extent the
Deferred Compensation Liability Annual Amount is not expended in any fiscal year pursuant to
Section 8.15(a) above, 100% of such unused amount may be carried forward to the succeeding fiscal
year

 

 

49

(it being understood and agreed that amounts expended in any fiscal year pursuant to Section
8.15(a) shall be applied against the Deferred Compensation Liability Annual Amount for such fiscal
year before being applied against amounts carried forward from the prior fiscal year).

          (c) Notwithstanding anything to the contrary contained in Section 8.15(a), if, pursuant to any
Pike Employment Agreement, the Borrower shall be required to make any payment on account of the
Deferred Compensation Liability during any fiscal year (the “Payment Year”) of any amount
otherwise scheduled to be paid subsequent to such fiscal year pursuant to such Pike Employment
Agreement, the Deferred Compensation Liability Annual Amount for the Payment Year shall be
increased by the amount of such payment and the Deferred Compensation Liability Annual Amount for
subsequent fiscal years shall be reduced by the amounts scheduled to be paid in such years which
were paid during the Payment Year.

          SECTION 9. EVENTS OF DEFAULT.

          Upon the occurrence of any of the following specified events (each an “Event of
Default”):

          9.1. Payments. The Borrower shall (i) default in the payment when due of any
principal of the Loans or (ii) default, and such default shall continue for five or more days, in
the payment when due of any Unpaid Drawing, any interest on the Loans or any Fees or any other amounts owing hereunder or under
any other Credit Document; or

          9.2. Representations etc. Any representation, warranty or statement made by any
Credit Party herein or in any other Credit Document or in any statement or certificate delivered or
required to be delivered pursuant hereto or thereto shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

          9.3. Covenants. Any Credit Party shall (a) default in the due performance or
observance by it of any term, covenant or agreement contained in Sections 7.1(e), 7.11 or Section
8, or (b) default in the due performance or observance by it of any term, covenant or agreement
(other than those referred to in Section 9.1, 9.2 or clause (a) of this Section 9.3) contained in
this Agreement and such default shall continue unremedied for a period of at least 30 days after
notice to the defaulting party by the Administrative Agent or the Required Lenders; or

          9.4. Default Under Other Agreements. Any Credit Party or any of their Subsidiaries
shall (i) default in any payment with respect to any Indebtedness (other than the Obligations) or
(ii) default in the observance or performance of any agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto,
or any other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause, any such Indebtedness to become due prior to
its stated maturity; provided that it shall not constitute an Event of Default pursuant to
this Section 9.4 unless at the time of such default, defaults, events or conditions of the type
described in clauses (i) and (ii) of this Section 9.4 shall have occurred and be continuing with
respect to Indebtedness the outstanding principal amount of which exceeds in the aggregate
$10,000,000; or

          9.5. Bankruptcy, etc. Any Credit Party or any of its Material Subsidiaries shall
commence a voluntary case concerning itself under Title 11 of the United States Code entitled
“Bankruptcy”, as now or hereafter in effect, or any successor thereto (the “Bankruptcy
Code”); or an involuntary case is commenced against any Credit Party or any of its Material
Subsidiaries and the

 

 

50

petition is not controverted within ten days, or is not dismissed within 60
days, after commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of the property of any Credit Party or
any of its Material Subsidiaries; or any Credit Party or any of its Material Subsidiaries commences
any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter
in effect relating to any Credit Party or any of its Material Subsidiaries; or there is commenced
against any Credit Party or any of its Material Subsidiaries any such proceeding which remains
undismissed for a period of 60 days; or any Credit Party or any of its Material Subsidiaries is
adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or any Credit Party or any of its Material Subsidiaries suffers any
appointment of any custodian or the like for it or any substantial part of its property to continue
undischarged or unstayed for a period of 60 days; or any Credit Party or any of its Material
Subsidiaries makes a general assignment for the benefit of creditors; or
any corporate action is taken by any Credit Party or any of its Material Subsidiaries for the
purpose of effecting any of the foregoing; or

          9.6. ERISA. (a) A Plan which is a single-employer plan (as defined in Section
4001(a)(15) of ERISA) shall fail to satisfy the minimum funding standard required by Section 412 of
the Code for any plan year or a waiver of such standard or extension of any amortization period is
sought or granted under Section 412 of the Code or shall provide security to induce the issuance of
such waiver or extension, (b) any Plan is or shall have been or is likely to be terminated or the
subject of termination proceedings under ERISA or an event has occurred entitling the PBGC to
terminate a Plan under Section 4042(a) of ERISA, (c) any Plan shall have had or is likely to have a
trustee appointed to administer such Plan, (d) a contribution required to be made to a Plan has not
been timely made, (e) any Plan shall have an Unfunded Current Liability or (f) a Credit Party or a
Subsidiary of a Credit Party or any ERISA Affiliate has incurred or is likely to incur a material
liability to or on account of a termination of or a withdrawal from a Plan under Section 4062,
4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29) of the Code; and there shall
result from any such event or events described in the preceding clauses of this Section 9.6 the
imposition of a lien upon the assets of Holdings or any Subsidiary of a Credit Party, the granting
of a security interest, or a liability or a material risk of incurring a liability to the PBGC or a
Plan or a trustee appointed under ERISA or a penalty under Section 4971 of the Code, which lien,
security interest, liability or penalty would have a Material Adverse Effect; or

          9.7. Security Documents. Any Security Document shall cease to be in full force and
effect, or shall cease to give the Administrative Agent the Liens purported to be created thereby
with respect to assets that are material, individually or in the aggregate, to Holdings and its
Subsidiaries, taken as a whole (except to the extent resulting from the failure of the
Administrative Agent to maintain possession of Collateral as to which the Liens thereon are
perfected solely by possession or from a sale or other disposition of such Collateral permitted
hereby), and, in each case, such default shall continue for 30 or more days, or any Credit Party
shall default (after, in the case of Mortgages only, the expiration of any applicable grace period
contained in any such Mortgage) in any material respect in the due performance or observance of any
term, covenant or agreement on its part to be performed or observed pursuant to any such Security
Document; or

          9.8. Guaranty. Any Guaranty or any provision thereof shall cease to be in full force
or effect, except in each case to the extent resulting from a sale or liquidation of the applicable
Guarantor permitted hereby, or any Guarantor or any Person acting by or on behalf of such Guarantor
shall deny or disaffirm such guarantor’s obligations under such Guaranty or any Guarantor shall
default in the due performance or observance of any material term, covenant or agreement on its
part to be performed or observed pursuant to the relevant Guaranty; or

 

 

51

          9.9. Judgments. One or more judgments or decrees shall be entered against any Credit
Party or any of their respective Subsidiaries involving in the aggregate a liability (not paid or
fully covered by insurance as to which the relevant insurance company has not disputed coverage) of
$10,000,000 or more and (i) such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 30 days from the entry thereof or (ii) enforcement proceedings shall have been
commenced by any creditor upon such judgment or order; or

          9.10. Change of Control. A Change of Control shall have occurred.

then, and in any such event, and at any time thereafter, if any Event of Default shall then be
continuing, the Administrative Agent shall, upon the written request of the Required Lenders, by
written notice to the Borrower, take any or all of the following actions, without prejudice to the
rights of the Administrative Agent or any Lender to enforce its claims against the Borrower, except
as otherwise specifically provided for in this Agreement (provided that, if an Event of
Default specified in Section 9.5 shall occur with respect to the Borrower, the result which would
occur upon the giving of written notice by the Administrative Agent as specified in clauses (i) and
(ii) below shall occur automatically without the giving of any such notice): (i) declare the Total
Commitment terminated, whereupon the Commitment of each Lender shall forthwith terminate
immediately and any Commitment Fee shall forthwith become due and payable without any other notice
of any kind; (ii) declare the principal of and any accrued interest in respect of all Loans and all
obligations owing hereunder (including Unpaid Drawings) and thereunder to be, whereupon the same
shall become, forthwith due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by Holdings and the Borrower; (iii) enforce, as Administrative
Agent (or direct the Administrative Agent to enforce), any or all of the Liens and security
interests created pursuant to the Security Documents; (iv) terminate any Letter of Credit which may
be terminated in accordance with its terms; and (v) direct the Borrower to pay (and the Borrower
hereby agrees upon receipt of such notice, or upon the occurrence of any Event of Default specified
in Section 9.5 in respect of the Borrower, it will pay) to the Administrative Agent at the Payment
Office such additional amounts of cash, to be held as security for the Borrower’s reimbursement

obligations in respect of Letters of Credit then outstanding equal to the aggregate Stated Amount
of all Letters of Credit then outstanding.

          Except as expressly provided in this Section and in the Security Documents, presentment,
demand, protest and all other notices of any kind are hereby expressly waived with respect to the
exercise of remedies upon an Event of Default.

          SECTION 10. DEFINITIONS

          As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms in this Agreement shall include in the singular number
the plural and in the plural the singular:

          “ABR Loans” shall mean Loans the rate of interest applicable to which is based upon
the Alternate Base Rate.

          “Acquisition” shall have the meaning provided in the recitals to this Agreement.

          “Acquisition Agreement” shall have the meaning provided in the recitals to this
Agreement.

 

 

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52

          “Acquisition Documents” shall mean the Acquisition Agreement and all other documents
entered into or delivered by the Borrower or any of its Subsidiaries with or to Red Simpson or any
of the Sellers in connection with the Acquisition Agreement.

          “Additional Permitted Preferred” shall mean any preferred stock of Holdings issued
pursuant to clause (A) of Section 8.9(a)(vi).

          “Adjusted AEP Amount” shall have the meaning provided in the Acquisition Agreement.

          “Adjusted Purchase Price” shall have the meaning provided in the Acquisition
Agreement.

          “Administrative Agent” shall have the meaning provided in the first paragraph of this
Agreement and shall include any successor to the Administrative Agent appointed pursuant to Section
11.9.

          “Affected Loan” shall have the meaning provided in Section 4.2(b)(ii).

          “Affiliate” shall mean, as to any Person, (a) any other Person which, directly or
indirectly, is in control of, is controlled by, or is under common control with, such Person or (b)
any Person who is a director, officer, shareholder, member or partner (i) of such Person, (ii) of
any Subsidiary of such Person or (iii) of any Person described in the preceding clause (a). For
purposes of this definition, “control” of a Person means the power, directly or indirectly, either
to (i) vote 10% or more of the securities having ordinary voting power for the election of
directors of such Person or (ii) direct or cause the direction of the management and policies of
such Person whether by contract or otherwise; provided, however, that members and
Affiliates of the Parent that would not be Affiliates of Holdings other than by reason of being a
member or Affiliate of the Parent and that neither in fact participate in the management of any of
the Parent or Holdings, nor control or are controlled by the Parent or any of their Affiliates or
are controlled by Holdings or any of its Affiliates, who in fact participate in the management of
any of the Parent or Holdings, shall be deemed not to be Affiliates of Holdings or any of its
Subsidiaries.

          “Agreement” shall mean this Amended and Restated Credit Agreement, as the same may be
from time to time further modified, amended and/or supplemented.

          “Aircraft” shall have the meaning provided in Section 5.1(h)(iii).

          “Aircraft Mortgage” shall mean the Aircraft Mortgage and Security Agreement, dated as
of April 18, 2002 made by the Borrower in favor of the Administrative Agent, as the same may be
from time to time further modified, amended and/or supplemented.

          “Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on such day
and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes
hereof: “Prime Rate” shall mean the rate of interest per annum publicly announced from
time to time by the Administrative Agent as its prime rate in effect at its principal office in New
York City, and “Federal Funds Effective Rate” shall mean, for any day, the weighted average
of the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for the day of such transactions received by the Administrative Agent
from three federal funds brokers of recognized standing selected by it. If for any reason the
Administrative Agent shall have determined (which

 

 

53

determination shall be conclusive absent manifest
error) that it is unable to ascertain the Federal Funds Effective Rate, for any reason, including
the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance
with the terms hereof, the Alternate Base Rate shall be determined without regard to clause (b) of
the first sentence of this definition, as appropriate, until the circumstances
giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a
change in the Prime Rate or the Federal Funds Effective Rate shall be effective on the effective
day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Anticipated Reinvestment Amount” shall mean, with respect to any Reinvestment
Election, the amount specified in the Reinvestment Notice delivered by the Borrower in connection
therewith as the amount of the Net Cash Proceeds from the related Asset Sale or Recovery Event that
the Borrower intends to use to purchase, construct or otherwise acquire Reinvestment Assets.

          “Applicable Margin” shall mean, for each Type and category of Loan, the rate per annum
set forth under the relevant column heading and opposite the relevant category below:

	 	 	 	 	 	 	 	 	 
	 	 	ABR Loans	 	 	Eurodollar Loans	 
	Term Loans
	 	 	1.25	%	 	 	2.25	%
	Revolving Loans
	 	 	1.50	%	 	 	2.50	%
	Swing Line Loans
	 	 	1.50	%	 	 	—	 

provided, that commencing with the date of delivery of financial statements pursuant to
Section 7.1(b) for the fiscal quarter of the Borrower ended December 31, 2004, the Applicable
Margin for any day shall be calculated in accordance with the Pricing Grid.

          “Applicable Prepayment Percentage” shall mean, for any fiscal year, 75% or, if the
Leverage Ratio as of the last day of such fiscal year is not greater than 2.5 to 1.0, 50%.

          “Approved Fund” shall mean (a) a CLO and (b) with respect to any Lender that is a fund
which invests in bank loans and similar extensions of credit, any other fund that invests in bank
loans and similar extensions of credit and is managed by the same investment advisor as such Lender
or by an Affiliate of such investment advisor.

          “Arrangers” shall have the meaning set forth in the preamble hereto.

          “Asset Sale” shall mean the sale, transfer or other disposition by Holdings or any
Subsidiary of any asset or property to any Person other than Holdings or any Subsidiary (other than
sales, transfers or other dispositions in the ordinary course of business and sales of assets
pursuant to Sections 8.2(g) and 8.11) (including any sale and leaseback of assets and any sale of a
mortgage of real property held by Holdings or any of its Subsidiaries as mortgagee) if the assets
subject thereto have an aggregate book value or sales price in excess of $100,000 (it being
understood that if said aggregate book value or sales price exceeds $100,000, the entire Net Cash
Proceeds of such Asset Sale or disposition shall be deemed Net Cash Proceeds of such Asset Sale).

          “Authorized Officer” shall mean any senior officer of Holdings or the Borrower, as the
case may be, designated as such in writing to the Administrative Agent by Holdings or the Borrower,
as the case may be, in each case to the extent reasonably acceptable to the Administrative Agent.

 

 

54

          “Available Amount” shall mean, on any date of determination, an amount equal to the
excess, if any, of:

     (x) the sum of (i) the sum of the Borrower’s Share of Excess Cash Flow for each full
fiscal year of Holdings commencing with the fiscal year ending June 30, 2005 and completed
at or prior to such time for which financial statements are available plus (ii)
aggregate amount of Equity Contributions at such time over

     (y) the sum of (1) the greater of:

     (A) the excess, if any, of (i) the aggregate amount of consideration given by
the Borrower and its Subsidiaries at or prior to such time (whether cash or
property, as valued in good faith by the Board of Directors of the Borrower, but
excluding Earnout Payments), net of any return representing return of capital of
(but not return on) any such investment, in connection with Permitted Business
Acquisitions (excluding the Acquisition) made pursuant to Section 8.6(j) (all such
consideration referred to in this clause (i), “Non-Earnout Consideration”)
over (ii) $25,000,000, and

     (B) the excess, if any, of (i) the sum of (I) the aggregate amount of
Non-Earnout Consideration given by the Borrower and its Subsidiaries at or prior to
such time plus (II) the aggregate amount of Earnout Payments made subsequent
to the Effective Date and obligations in respect to future Earnout Payments to the
extent of the then maximum amount that the Borrower and its Subsidiaries could be
required to pay in the future under agreements with respect thereto then in effect
over (ii) $30,000,000, and

(2) the aggregate amount of Consolidated Capital Expenditures made at or prior to
such time pursuant to Section 8.5(c)(i), (3) the aggregate amount of payments made
at or prior to such time to repurchase shares of Series A Preferred pursuant to
clause (x)(A) of Section 8.9(a)(iv) and (4) the aggregate amount of Equity
Contributions used at or prior to such time to repurchase shares of Series A
Preferred pursuant to clause (y) of Section 8.9(a)(vii).

     For the purpose of determining pursuant to Section 8.9(a)(vii), at any time, the
aggregate amount of Equity Contributions that have been utilized for permitted uses of the
Available Amount, such amount of Equity Contributions shall be the excess, if any, of the
sum of clauses (y)(1), (y)(2) and (y)(3) above at such time over clause (x)(i) above at such
time.

          “Bankruptcy Code” shall have the meaning provided in Section 9.5.

          “Barclays” shall mean Barclays Bank PLC.

          “Borrower” shall have the meaning provided in the first paragraph of this Agreement.

          “Borrower’s Share of Excess Cash Flow” shall mean, for any fiscal year of Holdings,
the product of (A) Excess Cash Flow for such fiscal year multiplied by (B) a percentage
equal to 100% minus the Applicable Prepayment Percentage for such fiscal year.

          “Borrowing” shall mean the incurrence of one Type of Loan pursuant to a single
Facility by the Borrower from all of the Lenders having Commitments with respect to such Facility
on a pro rata basis on a given date (or resulting from conversions on a given date), having in the
case of Eurodollar

 

 

55

Loans the same Interest Period; provided that ABR Loans incurred
pursuant to Section 1.10(b) shall be considered part of any related Borrowing of Eurodollar Loans.

          “Business Day” shall mean (i) for all purposes other than as covered by clause (ii)
below, any day excluding Saturday, Sunday and any day which shall be in the City of New York a
legal holiday or a day on which banking institutions are authorized by law or other governmental
actions to close and (ii) with respect to all notices and determinations in connection with, and payments of
principal and interest on, Eurodollar Loans, any day which is a Business Day described in clause
(i) and which is also a day for trading by and between banks in Dollar deposits in the interbank
Eurodollar market.

          “capital stock” of any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests in (however
designated) equity of such Person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership interest.

          “Capital Lease” as applied to any Person shall mean any lease of (or arrangement
conveying the right to use) any property (whether real, personal or mixed) by that Person as lessee
which, in conformity with GAAP, is classified and accounted for as a capital lease on the balance
sheet of that Person.

          “Capitalized Lease Obligations” shall mean all obligations under Capital Leases of
Holdings or any of its Subsidiaries in each case taken at the amount thereof accounted for as
liabilities in accordance with GAAP.

          “Cash Equivalents” shall mean (i) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is pledged in
support thereof) having maturities of not more than six months from the date of acquisition, (ii)
Dollar denominated demand or time deposits, certificates of deposit and bankers’ acceptances of (x)
any domestic commercial bank of recognized standing having capital and surplus in excess of
$500,000,000 or (y) any bank whose short-term commercial paper rating from Standard & Poor’s
Ratings Service or its successor or assign which remains in the business of rating creditworthiness
of commercial paper (“S&P”) is at least A-1 or the equivalent thereof or from Moody’s
Investors Service or its successor or assign which remains in the business of rating
creditworthiness of commercial paper (“Moody’s”) is at least P-1 or the equivalent thereof
(any such bank, an “Approved Lender”), in each case with maturities of not more than six
months from the date of acquisition, (iii) commercial paper issued by any Lender or Approved Lender
or by the parent company of any Lender or Approved Lender and commercial paper issued by, or
guaranteed by, any industrial or financial company with a short-term commercial paper rating of at
least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s, or
guaranteed by any industrial company with a long term unsecured debt rating of at least A or A2, or
the equivalent of each thereof, from S&P or Moody’s, as the case may be, and in each case maturing
within six months after the date of acquisition and (iv) money market funds that (x) comply with
the criteria set forth in SEC Rule 2a-7 under the ICA, (y) are rated at least AA+ by S&P and at
least, Aa1 by Moody’s and (z) have portfolio assets of at least $5,000,000,000.

          “Cash Interest Coverage Ratio” shall mean for any period the ratio of Consolidated
EBITDA for such period to Consolidated Cash Interest Expense for such period.

          “Cash Proceeds” shall mean, with respect to any Asset Sale or any Recovery Event, the
aggregate cash payments (including any cash received by way of deferred payment pursuant to a note
or installment receivable or purchase price adjustment receivable or otherwise issued in connection
with

 

 

56

such Asset Sale or Recovery Event, other than the portion of such deferred payment
constituting interest, but only as and when so received) received by Holdings and/or any Subsidiary
from such Asset Sale or Recovery Event.

          “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq.

          “Change of Control” shall mean and include (i) the LGB Group shall cease to have the
power to vote or direct the voting of securities having at least 51% of the ordinary voting power
for the election of directors of Holdings, provided that after the initial public offering
of capital stock of Holdings such percentage shall be 30%; or (ii) Holdings shall cease to own and
control, of record and beneficially, directly, 100% of each class of outstanding capital stock of
the Borrower; or (iii) the Borrower shall issue any capital stock (or any security convertible into
any of its capital stock) which is not pledged to the Administrative Agent for the benefit of the
Lenders; or (iv) a “Change of Control” under the Series A Preferred.

          “CLO” shall mean any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered or managed by a
Lender or an Affiliate of such Lender.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and the rulings issued thereunder. Section references to the Code are
to the Code, as in effect at the Effective Date and any subsequent provisions of the Code,
amendatory thereof, supplemental thereto or substituted therefor.

          “Collateral” shall mean all of the Collateral as defined in each of the Security
Documents.

          “Commitment” shall mean, with respect to each Lender, such Lender’s Term Commitment
and Revolving Commitment and, in the case of Barclays, the Swingline Commitment.

          “Commitment Fee” shall have the meaning provided in Section 3.1(a).

          “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum dated June 2004 with respect to the Facilities.

          “Consolidated Capital Expenditures” shall mean, for any period and with respect to
Holdings, the aggregate of all expenditures by Holdings and its Subsidiaries for the acquisition or
leasing (pursuant to a Capital Lease) of fixed or capital assets or additions to equipment
(including replacements, capitalized repairs and improvements during such period) which should be
capitalized under GAAP on a consolidated balance sheet of Holdings and its Subsidiaries
plus consulting fees and related expenses, excluding (a) any such expenditure to the extent
made with the proceeds of any sale of fixed or capital assets, so long as such proceeds are so
applied within twelve months of such sale, (b) any such expenditure made to restore, replace or
rebuild property to the condition of such property immediately prior to any damage, loss,
destruction or condemnation of such property, to the extent such expenditure is made with insurance
proceeds or condemnation awards relating to any such damage, loss, destruction or condemnation, (c)
all such expenditures in connection with Permitted Business Acquisitions and (d) any such
expenditures made in connection with any Qualified Sale/Leaseback Transaction. For the purpose of
this definition, the purchase price of equipment which is purchased simultaneously with the
trade-in of existing equipment owned by Holdings or any of its Subsidiaries shall be included in
Consolidated

 

 

57

Capital Expenditures only to the extent of the gross amount of such purchase price
less the credit granted by the seller of such equipment for such equipment being traded in
at such time.

          “Consolidated Cash Interest Expense” shall mean, for any period, Consolidated Interest
Expense, but excluding, however, interest expense not payable in cash.

          “Consolidated Current Assets” shall mean, at a particular date, with respect to any
Person, all amounts (other than cash and Cash Equivalents) which would, in conformity with GAAP, be
set forth opposite the caption “total current assets” (or any like caption) on a consolidated
balance sheet of such Person and its Subsidiaries at such date.

          “Consolidated Current Liabilities” shall mean, at a particular date, with respect to
any Person, all amounts which would, in conformity with GAAP, be set forth opposite the caption
“total current liabilities” (or any like caption) on a consolidated balance sheet of such Person
and its Subsidiaries at such date, but excluding (a) the current portion of any Consolidated Total
Funded Debt (including Term Loans) of such Person and its Subsidiaries, (b) without duplication of
clause (a) above, all Indebtedness consisting of Revolving Loans or Swing Line Loans to the extent
otherwise included therein and (c) any current portion of deferred taxes.

          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income of such
Person for such period plus, without duplication and to the extent reflected as a charge in
the statement of such Consolidated Net Income for such period, the sum of (i) total income tax
expense, (ii) interest expense, amortization or writeoff of debt discount and debt issuance costs
and commissions, discounts and other fees and charges associated with Indebtedness (including the
Loans), (iii) depreciation and amortization expense, (iv) amortization of intangibles (including,
but not limited to, goodwill), capitalized consulting fees and organization costs, (v) any
extraordinary expenses or losses (including, whether or not otherwise includable as a separate item
in the statement of such Consolidated Net Income for such period, losses on sales of assets outside
of the ordinary course of business), (vi) any non-cash compensation and related expenses, (vii)
expenses attributable to any step-up in the value of inventory as a result of the application of
purchase accounting in connection with any acquisition or recapitalization (including the
Recapitalization) or as a result of any LIFO adjustment, (viii) any contingent or deferred
payments (including Earnout Payments, noncompete payments and consulting payments) made to sellers
in Permitted Business Acquisitions, (ix) any payment of fees owing to LGB and/or its Affiliates
permitted pursuant to Section 8.10, (x) non-cash write-offs (including write-offs of goodwill, but
excluding provisions for restructuring charges) and (xi) any nonrecurring charge or expense arising
in connection with the Recapitalization or the Acquisition and the transactions contemplated
thereby, including the incurrence of the Loans hereunder (including, without limitation, fees and
expenses in connection with the financing of the Recapitalization or the Acquisition (including
consulting fees)) and minus any extraordinary income or gains (including, whether or not
otherwise includable as a separate item in the statement of such Consolidated Net Income for such
period, gains on the sales of assets outside of the ordinary course of business).

          Notwithstanding the foregoing, for purposes of calculating the Cash Interest Coverage Ratio
and the Leverage Ratio (a) Consolidated EBITDA shall be deemed to be $1,000,000 greater for each
quarter ended during the period beginning on September 30, 2003 through and including June 30, 2004
(reflecting, without duplication, expenses included in the determination of Consolidated EBITDA
above) and (b) as of the last day of any fiscal quarter in any Test Period occurring during the
twelve consecutive months following the Acquisition or a Permitted Business Acquisition,
Consolidated EBITDA shall be the Acquisition or calculated for the relevant Test Period as if (i)
solely for the purpose of calculating the Leverage Ratio, the Acquisition or such Permitted
Business Acquisition, as the case may be, had been consummated and (ii) the cost savings expected,
in the good faith judgment of the

 

 

58

management of Holdings at such time, had been achieved, in each
case, on the first day of such Test Period.

          “Consolidated Interest Expense” shall mean, for any period, total interest expense
determined in accordance with GAAP net of interest income and, without duplication, receipts under
Interest Rate Agreements (including that attributable to Capital Leases in accordance with GAAP) of
Holdings and its Subsidiaries on a consolidated basis with respect to all outstanding
Indebtedness of Holdings and its Subsidiaries, including, without limitation, all commissions,
discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance
financing, but excluding, however, any amortization of deferred financing costs and any costs paid
in connection with the establishment of Interest Rate Agreements (whether paid at inception or on a
delayed basis).

          “Consolidated Net Income” shall mean for any period, the net income (or loss) of
Holdings and its Subsidiaries on a consolidated basis for such period taken as a single accounting
period determined in conformity with GAAP, provided that there shall be excluded (i) the
income (or loss) of any Person (other than the Borrower or Subsidiaries of the Borrower) in which
any other Person (other than the Borrower or any of its Subsidiaries) has a joint interest, except
to the extent of the amount of dividends or other distributions actually received by Holdings or
any of its Subsidiaries by such Person during such period and (ii) the income of any Subsidiary of
the Borrower to the extent that the declaration or payment of dividends or similar distributions by
that Subsidiary of that income is not at the time permitted by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Subsidiary.

          “Consolidated Total Funded Debt” shall mean, as at any date of determination, the
aggregate stated balance sheet amount of all Indebtedness (other than Indebtedness described in
clauses (f) (other than in respect of (i) drawings under any letter of credit to the extent not
reimbursed within two Business Days after the date thereof and (ii) acceptance facilities) and (g)
of the definition of Indebtedness), of Holdings and its Subsidiaries determined on a consolidated
basis in accordance with GAAP and, in the case of the Borrower, Indebtedness in respect of the
Loans.

          “Consolidated Working Capital” shall mean the excess of Consolidated Current Assets
over Consolidated Current Liabilities.

          “Contingent Obligations” shall mean as to any Person (the “guaranteeing person”), any
obligation of (a) the guaranteeing person or (b) another Person (including, without limitation, any
bank under any letter of credit) to induce the creation of which the guaranteeing person has issued
a reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect
guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”)
of any other third Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of the guaranteeing person, whether or
not contingent, (i) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any
such primary obligation or (2) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary obligation
or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Contingent Obligation shall
not include endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Contingent Obligation of any guaranteeing person shall be deemed to be
the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in
respect of which such Contingent Obligation is made and (b) the maximum amount for which such
guaranteeing person

 

 

59

may be liable pursuant to the terms of the instrument embodying such Contingent
Obligation, unless such primary obligation and the maximum amount for which such guaranteeing
person may be liable are not stated or determinable, in which case the amount of such Contingent
Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

          “Credit Documents” shall mean this Agreement, the Notes and the Security Documents.

          “Credit Event” shall mean and include the making of a Loan or the issuance of a Letter
of Credit.

          “Credit Party” shall mean Holdings, the Borrower and each Subsidiary Guarantor.

          “Default” shall mean any event, act or condition which with notice or lapse of time,
or both, would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

          “Deferred Compensation Agreement” shall mean any agreement providing for the payment
of Profit Sharing Interest or Minority Interest to the related holder thereof, including any
Employment Agreement Amendment and any Pike Employment Agreement.

          “Deferred Compensation Liability” shall mean the Borrower’s obligation to pay Profit
Sharing Interest or Minority Interest to the related holder thereof pursuant to a Deferred
Compensation Agreement.

          “Deferred Compensation Plan” shall mean the Amended and Restated Pike Electric, Inc.
Officers’ Deferred Compensation Plan, effective January 1, 2000, for officers and employees of the
Borrower and its Subsidiaries, as such plan is in effect on the Original Borrowing Date without
giving effect to any amendments, supplements or other modifications thereto that are materially
adverse to the interests of the Lenders (it being understood that any amendment thereto that
permits the early termination of such Plan shall not be deemed to be materially adverse to the
interests of the Lenders).

          “Dividends” shall have the meaning provided in Section 8.9.

          “Documents” shall mean, collectively, (a) the Credit Documents and (b) the Acquisition
Documents.

          “Dollars” and “$” shall mean dollars in lawful currency of the United States.

          “Domestic Subsidiary” shall mean each Subsidiary of Holdings other than the Foreign
Subsidiaries.

          “Earnout Payments” shall mean payments made by the Borrower and/or any of its
Subsidiaries under a contractual arrangement entered into with a seller in connection with a
Permitted Business Acquisition as part of the consideration given to such seller for such Permitted
Business Acquisition where the amounts of such payments are based upon, and are dependent upon, the
business acquired pursuant to such Permitted Business Acquisition achieving meaningful revenue,
earnings or other performance target levels agreed upon in good faith by the Borrower and such
seller.

 

 

60

          “Effective Date” shall have the meaning provided in Section 12.10.

          “Employment Agreement Amendments” shall be the Employment Agreement Amendments as
defined in, and entered into in connection with, the Acquisition Agreement.

          “Environmental Claims” means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations or proceedings relating in any way to any Environmental Law or any permit issued, or
any written approval given, under any such Environmental Law (hereafter, “Claims”),
including, without limitation, (a) any and all Claims by governmental or regulatory authorities for
enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any
Environmental Law, and (b) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous
Materials arising from alleged injury or threat of injury to health, safety or the environment.

          “Environmental Law” means any applicable Federal, state, foreign or local statute,
law, rule, regulation, ordinance, code and rule of common law now or hereafter in effect and in
each case as amended, including any judicial or administrative order, consent decree or judgment,
relating to the environment, health, safety or Hazardous Materials, including, without limitation,
CERCLA; RCRA; the Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251 et seq.; the
Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et
seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Oil Pollution Act of 1990, 33
U.S.C. § 2701 et seq. and any applicable state and local or foreign counterparts or equivalents.

          “Equity Contributions” shall mean, at any time, all equity contributions to Holdings
and by Holdings to the Borrower made at any time after the Original Borrowing Date through such
time (other than equity contributions made pursuant to Section 5.1(g)(iii) and equity contributions
consisting of the purchase of shares by management as described in Section 8.9(a)(ii)).

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder. Section
references to ERISA are to ERISA, as in effect at the Effective Date and any subsequent provisions
of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

          “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which
together with a Credit Party or a Subsidiary of a Credit Party would be deemed to be a “single
employer” within the meaning of Section 414 of the Code.

          “Eurocurrency Reserve Requirements” shall mean, for any day as applied to a Eurodollar
Loan, the aggregate (without duplication) of the rates (expressed as a decimal) of the maximum
reserve requirements in effect on such day (including, without limitation, basic, supplemental,
marginal and emergency reserves under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve requirements prescribed for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of such
Board) maintained by a member bank of such System.

          “Eurodollar Base Rate” shall mean, with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum equal to the rate at which Barclays is
offered Dollar deposits at or about 10:00 A.M., New York City time, two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where the eurodollar and
foreign currency and exchange operations in respect of its Eurodollar Loans are then being
conducted for delivery on the first

 

 

61

day of such Interest Period for the number of days comprised
therein and in an amount comparable to the amount of its Eurodollar Loan to be outstanding during
such Interest Period.

          “Eurodollar Loans” shall mean Loans the rate of interest applicable to which is based
upon the Eurodollar Rate.

          “Eurodollar Rate” shall mean, with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined for such day in accordance with the
following formula (rounded upward to the nearest 1/16th of 1%):

	 	 	 	 	 
	

	 	Eurodollar Base Rate
	 	 
	
	 	 	 	 
	
	 	1.00 — Eurocurrency Reserve Requirements	 	 

          “Eurodollar Tranche” shall mean the collective reference to Eurodollar Loans the
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

          “Event of Default” shall have the meaning provided in Section 9.

          “Excess Cash Flow” shall mean, for any fiscal year, the excess of (a) the sum, without
duplication, of (i) Consolidated Net Income for such period, (ii) an amount equal to the amount of
all non-cash charges deducted in arriving at such Consolidated Net Income, (iii) the amount of
returned surplus assets of any Plan during such period to the extent not included in arriving at
such Consolidated Net Income, (iv) decreases in Consolidated Working Capital of Holdings and its
Subsidiaries for such period, and (v) any net amounts received by Holdings and its Subsidiaries in
settlement of, or in payment of any judgments resulting from, legal proceedings with respect to
Holdings or any such Subsidiary during such fiscal year over (b) the sum, without
duplication, of (i) an amount equal to the amount of all non-cash credits included in arriving at
such Consolidated Net Income, (ii) the aggregate amount actually paid by Holdings and its
Subsidiaries in cash during such period on account of Consolidated Capital Expenditures (determined
without regard to clauses (a), (b), (c) and (d) of the definition of “Consolidated Capital
Expenditures”), Permitted Business Acquisitions and the Acquisition (reduced by the principal
amount of Indebtedness incurred in connection with such expenditures and, reduced, in the case of
Consolidated Capital Expenditures, by the amount of such expenditures constituting application of
insurance proceeds or proceeds of sales of assets in connection with the replacement of such
assets, except to the extent that clause (a) of this definition includes a corresponding amount
directly attributable to such insurance proceeds or such sales) and Deferred Compensation
Liabilities, (iii) the aggregate amount of all prepayments of Revolving Loans to the extent of
accompanying permanent reductions of the Total Revolving Commitments and all payments or
prepayments of the Term Loans during such period pursuant to Sections 4.2(a)(ii) or (iii) (to the
extent that clause (a) of this definition includes a corresponding amount directly attributable to
the event giving rise to such mandatory prepayment, in the case of Section 4.2(a)(iii)), (iv) the
aggregate amount of all repayments during such period of Capitalized Lease Obligations of Holdings
and its Subsidiaries (other than any portion thereof allocable to Consolidated Cash Interest
Expense), all repayments during such period of the principal of Indebtedness of Holdings and its
Subsidiaries (other than (x) under this Agreement and (y) in respect of any revolving credit
facility to the extent there is not an equivalent reduction in commitments thereunder), (v)
increases in Consolidated Working Capital of Holdings and its Subsidiaries for such period, (vi) an
amount equal to the aggregate net non-cash gain on the sale, lease, transfer or other disposition
of assets by Holdings and its Subsidiaries during such period (other than sales of inventory in the
ordinary course of business), to the extent included in arriving at such Consolidated Net Income,
(vii) costs paid in cash during such period in connection with the establishment of Interest Rate
Agreements but not deducted in determining Consolidated Net Income in such period, and (viii) cash
expenditures of Holdings during such period

 

 

62

pursuant to Section 8.9(a)(ii) (less the amount
of cash received by Holdings during such period from the sale of shares of Holdings Common Stock to
or for the benefit of management investors) and Section 8.10(i) hereof and (ix) the aggregate
amount of cash reserves securing letters of credit or bonds pursuant to Section 8.3(l) on the last
day of such fiscal year.

          “Existing Credit Agreement” shall have the meaning provided in the recitals to this
Agreement.

          “Existing Indebtedness” shall have the meaning provided in Section 8.4(d).

          “Existing Term Loans” shall mean the “Term Loans” as defined in the Existing Credit
Agreement.

          “Expiration Date” shall mean the earlier to occur of (i) July 1, 2004 and (ii) the
date of termination (taking into account any extensions thereof) of the Acquisition Agreement.

          “FAA” shall have the meaning given in Section 5.1(h)(iii).

          “Facility” shall mean any of the credit facilities established under this Agreement,
i.e., the Term Facility, the Revolving Facility or the Swingline Facility.

          “Federal Project Cash Flow Amount” shall have the meaning provided in the Acquisition
Agreement.

          “Fees” shall mean all amounts payable pursuant to, or referred to in, Section 3.1.

          “Final Maturity Date” shall mean the collective reference to the Term Facility Final
Maturity Date and the Revolving Facility Final Maturity Date.

          “Foreign Subsidiary” shall mean each Subsidiary of Holdings incorporated or organized,
and doing business, in a jurisdiction other than the United States or any state or territory
thereof.

          “Fronting Fee” shall have the meaning provided in Section 3.1(c).

          “GAAP” shall mean generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board and the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial Accounting Standards Board
(or agencies with similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such other entity as may be in general use by
significant segments of the accounting profession, as in effect from time to time; it being
understood and agreed that determinations in accordance with GAAP for purposes of Section 8,
including defined terms as used therein, are subject (to the extent provided therein) to Section
12.7(a).

          “Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining government.

          “Guarantee and Collateral Agreement” shall have the meaning set forth in Section
5.1(h)(i).

 

 

63

          “Guaranties” shall mean the guaranties provided by Holdings and the Subsidiary
Guarantors pursuant to the Guarantee and Collateral Agreement.

          “Guarantor” shall mean each of Holdings and the Subsidiary Guarantors.

          “Hazardous Materials” means (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation,
transformers or other equipment that contains polychlorinated biphenyls, and radon gas and (b)
any chemicals, materials or substances defined as or included in the definition of “hazardous
substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous waste,” “restricted
hazardous waste,” “toxic substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words
of similar import, under any Environmental Law.

          “Hedge Agreements” shall mean all interest rate swaps, caps or collar agreements or
similar arrangements dealing with interest rates or currency exchange rates or the exchange of
nominal interest obligations, either generally or under specific contingencies.

          “Holdings” shall have the meaning provided in the first paragraph of this Agreement.

          “Holdings Common Stock” shall mean the common stock of Holdings.

          “ICA” shall have the meaning provided in Section 6.7.

          “Indebtedness” of any Person shall mean without duplication (a) all indebtedness of
such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price
of property or services (other than trade payables not overdue by more than 60 days incurred in the
ordinary course of such Person’s business and other than obligations under deferred compensation
plans, including the Deferred Compensation Liability), excluding any obligations in respect of
Earnout Payments and any other contingent obligations with respect to any deferred payments in
connection with the Recapitalization, the Acquisition or any Permitted Business Acquisitions, (c)
all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all indebtedness created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are limited to repossession or
sale of such property), (e) all Capitalized Lease Obligations of such Person, (f) all obligations,
contingent or otherwise, of such Person as an account party to reimburse any bank or other Person
under acceptance, letter of credit or similar facilities, (g) all obligations of such Person to
purchase, redeem, retire or otherwise acquire for value any capital stock of such Person or any
warrants, rights or options to acquire such capital stock other than such repurchases from former
directors, officers or employees made pursuant to the Shareholders’ Agreement, the Pike Holdings
2004 Employee Stock Purchase Plan or stock option agreements, (h) all Contingent Obligations of
such Person in respect of Indebtedness of a primary obligor, (i) all Indebtedness referred to in
clauses (a) through (h) above secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness and (j) for the purposes of Section
8.4 and Section 9.4 only, all obligations of such Person in respect of Hedge Agreements. The
Indebtedness of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness expressly provide that such Person is not liable
therefore.

 

 

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          “Interest Period” with respect to any Loan shall mean the interest period applicable
thereto, as determined pursuant to Section 1.9.

          “Interest Rate Agreement” shall mean any interest rate swap agreement, any interest
rate cap agreement, any interest rate collar agreement or other similar agreement or arrangement
designed to protect against fluctuations in interest rates.

          “Leasehold” of any Person means all of the right, title and interest of such Person as
lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures.

          “Lender” shall have the meaning provided in the first paragraph of this Agreement.

          “Lender Affiliate” shall mean (a) any Affiliate of any Lender, (b) any Person that is
administered or managed by any Lender or any Affiliate of any Lender and that is engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
the ordinary course of its business and (c) with respect to any Lender which is a fund that invests
in commercial loans and similar extensions of credit, any other fund that invests in commercial
loans and similar extensions of credit and is managed or advised by the same investment advisor as
such Lender or by an Affiliate of such Lender or investment advisor.

          “Lender Default” shall mean (i) the refusal (which has not been retracted) of a Lender
to make available its portion of any incurrence of Revolving Loans or to fund its portion of any
unreimbursed payment under Section 2.4(c) or (ii) a Lender having notified the Administrative Agent
and/or the Borrower that it does not intend to comply with its obligations under Section 1.1 or
under Section 2.4(c), in the case of either (i) or (ii) as a result of the appointment of a
receiver or conservator with respect to such Lender at the direction or request of any regulatory
agency or authority.

          “Letter of Credit” shall have the meaning provided in Section 2.1(a).

          “Letter of Credit Fee” shall have the meaning provided in Section 3.1(b).

          “Letter of Credit Issuer” shall mean and include Barclays or, at the option of
Barclays, any affiliate of Barclays.

          “Letter of Credit Outstandings” shall mean, at any time, the sum of, without
duplication, (i) the aggregate Stated Amount of all outstanding Letters of Credit and (ii) the
aggregate amount of all Unpaid Drawings in respect of all Letters of Credit.

          “Letter of Credit Request” shall have the meaning provided in Section 2.2(a).

          “Leverage Ratio” shall mean at any date the ratio of Consolidated Total Funded Debt at
such date to Consolidated EBITDA for the four consecutive fiscal quarters ending on or immediately
preceding such date.

          “LGB” shall mean Lindsay Goldberg & Bessemer L.P., a Delaware limited partnership.

          “LGB Group” shall mean LGB Pike LLC, LGB Pike II LLC and (a) any Affiliate of LGB Pike
LLC or LGB Pike II LLC (collectively, the “LGB Pike LLC Affiliates”), (b) any officer or
employee of LGB Pike LLC, LGB Pike II LLC or any LGB Pike LLC Affiliate (collectively, the “LGB
Pike LLC Associates”), (c) the heirs, executors, administrators, testamentary trustees,
legatees or beneficiaries of any LGB Pike LLC Associate and (d) a trust, the beneficiaries of
which, or a corporation or partnership,

 

 

65

the stockholders or general or limited partners of which,
include only LGB Pike LLC, LGP Pike II LLC, LGB Pike LLC Affiliates, LGB Pike LLC Associates, their
spouses, their lineal descendants and any other members of their families.

          “Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien or charge
of any kind (including any agreement to give any of the foregoing, any conditional sale or other
title retention agreement or any lease in the nature thereof).

          “Loan” shall have the meaning provided in Section 1.1.

          “Management Advisory Agreement” shall mean the Management Advisory Services Agreement,
dated as of April 18, 2002, as amended as of July 1, 2004, between Goldberg Lindsay & Co. LLC and
the Borrower.

          “Mandatory Borrowing” shall have the meaning provided in Section 1.1(c).

          “Margin Stock” shall have the meaning provided in Regulation U.

          “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
property, operations or financial condition of Holdings and its Subsidiaries taken as a whole,
after giving effect to the Acquisition or, solely with respect to Section 5.1(e), Red Simpson and
its Subsidiaries, taken as a whole, (b) the Acquisition and the financing contemplated hereby or
(c) the validity or enforceability of this Agreement or any of the other Credit Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or thereunder.

          “Material Subsidiary” shall mean and include, at any time, any Subsidiary of Holdings
that (x) has assets at such time comprising 5% or more of the consolidated assets of Holdings or
(y) had net income in the then most recently ended fiscal year of Holdings comprising 5% or more of
the consolidated net income of the Borrower for such fiscal year and shall in any event include (x)
the Borrower and (y) any other Subsidiary of Holdings that at such time would constitute a
“Significant Subsidiary” as defined in SEC Rule 1-02 promulgated under SEC Regulation S-X, as
amended or any replacement rule.

          “Minimum Borrowing Amount” shall mean (i) for ABR Loans, $500,000 or a whole multiple
in excess thereof (ii) for Eurodollar Loans, $1,000,000 or a whole multiple in excess thereof and
(iii) for Swingline Loans, $100,000 or a whole multiple of $25,000 in excess thereof.

          “Minority Interest” shall have the meaning provided in the Acquisition Agreement.

          “Mortgage” shall have the meaning provided in Section 7.12(b).

          “Mortgaged Properties” shall mean the Real Properties listed on Annex 1.1B, as to
which the Administrative Agent for the benefit of the Lenders shall be granted a Lien pursuant to
the Mortgages.

          “Net Cash Proceeds” shall mean, with respect to any Asset Sale, Recovery Event or
Qualified Sale/Leaseback Transaction, the Cash Proceeds resulting therefrom net of expenses of sale
or recovery (including, without limitation, reasonable and documented attorneys’, accountants’,
other advisors’ and banking and investment banking fees, environmental and solvency related fees,
all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and
all Federal, state, provincial, foreign and local taxes paid or reasonably estimated to be payable,
as a consequence of such Asset Sale, Recovery Event or Qualified Sale/Leaseback Transaction and the
payment of principal,

 

 

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premium and interest of Indebtedness secured by the asset which is the
subject of the Asset Sale, Recovery Event or Qualified Sale/Leaseback Transaction and required to
be, and which is, repaid under the terms thereof as a result of such Asset Sale, Recovery Event or
Qualified Sale/Leaseback Transaction (other than any Lien in favor of the Administrative Agent for
the benefit of the Lenders), and incremental income taxes paid or payable as a result thereof
(after taking into account any available tax credits or deductions and any tax sharing
arrangements).

          “Non-Defaulting Lender” shall mean each Lender other than a Defaulting Lender.

          “Notes” shall be a collective reference to any promissory notes evidencing the Loans.

          “Notice of Borrowing” shall have the meaning provided in Section 1.3.

          “Notice of Conversion” shall have the meaning provided in Section 1.6.

          “Notice Office” shall mean the office of the Administrative Agent at 200 Park Avenue,
New York, New York or such other office as the Administrative Agent may designate to the Borrower
from time to time.

          “Obligations” shall mean the unpaid principal of and interest on (including interest
accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after
the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the
Borrower to the Administrative Agent or to any Lender (or, in the case of Specified Hedge
Agreements, any Lender Affiliate), whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, any other Credit Document, the Letters of Credit or any Specified Hedge
Agreement whether on account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses (including all fees, charges and disbursements of counsel to the Administrative
Agent or to any Lender that are required to be paid by the Borrower pursuant hereto) or otherwise.

          “Original Borrowing Date” shall mean April 18, 2002.

          “Participant” shall have the meaning provided in Section 2.4(a).

          “Payment Office” shall mean the office of the Administrative Agent at 200 Park Avenue,
New York, New York or such other office as the Administrative Agent may designate to the Borrower
from time to time.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

          “Permitted Business Acquisition” shall mean any acquisition by the Borrower or any of
its Subsidiaries of all or substantially all the assets of, or shares or other equity interests in,
a Person or division or line of business of a Person or other significant assets of a Person (other
than inventory, leases, materials and equipment in the ordinary course of business) if immediately
after giving effect thereto: (a) no Default or Event of Default shall have occurred and be
continuing or would result therefrom, (b) all transactions related thereto shall be consummated in
all material respects in accordance with applicable laws, (c) at least 90% of the capital stock of
any acquired or newly formed corporation, partnership, association or other business entity are
owned directly by the Borrower or a Domestic

 

 

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Subsidiary and all actions required to be taken, if
any, with respect to such acquired or newly formed subsidiary under Section 7.12 shall have been
taken, (d) no Material Adverse Effect would be likely to result therefrom and (e)(i) Holdings shall
be in compliance, on a pro forma basis after giving effect to (A) such acquisition or formation and
(B) the cost savings expected, in the good faith judgment of the management of Holdings at such
time, to be achieved during the relevant period for testing such compliance, with the covenants
contained in Sections 8.13 and 8.14 recomputed as at the last day of the most recently ended fiscal
quarter of Holdings as if such acquisition had occurred on the first day of each relevant period
for testing such compliance and the savings had been achieved on the first day of such relevant
period, and Holdings shall have delivered to the Administrative Agent an officers’ certificate to
such effect, together with all relevant financial information for such subsidiary or assets
(to the extent reasonably available), and (ii) after giving effect to such transaction, any
acquired or newly formed subsidiary shall not be liable for any Indebtedness (except for
Indebtedness permitted by Section 8.4).

          “Permitted Liens” shall mean all Liens permitted pursuant to Section 8.3.

          “Person” shall mean any individual, partnership, joint venture, firm, corporation,
association, trust or other enterprise or any government or political subdivision or any agency,
department or instrumentality thereof.

          “Pike Employment Agreements” shall be the Pike Employment Agreements as defined in,
and entered into in connection with, the Acquisition Agreement.

          “Plan” shall mean any multiemployer or single-employer plan as defined in Section 4001
of ERISA, which is maintained or contributed to by (or to which there is an obligation to
contribute of) a Credit Party, a Subsidiary of a Credit Party or an ERISA Affiliate, and each such
plan for the five year period immediately following the latest date on which a Credit Party, a
Subsidiary of a Credit Party or an ERISA Affiliate maintained, contributed to or had an obligation
to contribute to such plan. For the avoidance of doubt, the Deferred Compensation Agreements,
individually and in the aggregate, and the Deferred Compensation Liability shall not constitute a
Plan or Plans.

          “Pledged Securities” shall mean all the Pledged Securities as defined in the Guarantee
and Collateral Agreement.

          “Pricing Grid” shall mean the table set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Applicable Margin for	 	 	 	Applicable Margin for	 	 
	 	 	 	 	Eurodollar Loans	 	 	 	ABR Loans	 	 
	 	 	 	 	Revolving	 	 	 	 	 	 	 	 	Revolving Loans and	 	 	 	 	 	 
	 	Leverage Ratio	 	 	Loans	 	 	 	Term Loans	 	 	 	Swingline Loans	 	 	 	Term Loans	 	 
	 	Greater than 2.75x
	 	 	 	2.50	%	 	 	 	2.25	%	 	 	 	1.50	%	 	 	 	1.25	%	 
	 	Less than or
equal to 2.75x but
greater than or
equal to 2.50x
	 	 	 	2.25	%	 	 	 	2.00	%	 	 	 	1.25	%	 	 	 	1.00	%	 
	 	Less than 2.50x
	 	 	 	2.00	%	 	 	 	2.00	%	 	 	 	1.00	%	 	 	 	1.00	%	 
	 

          For the purposes of the Pricing Grid, changes in the Applicable Margin resulting from changes
in the Leverage Ratio shall become effective on the date (the “Adjustment Date”) that is
three Business Days after the date on which financial statements are delivered to the Lenders
pursuant to

 

 

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Section 7.1 and shall remain in effect until the next change to be effected pursuant to
this paragraph. If any financial statements referred to above are not delivered within the time
periods specified in Section 7.1, then, until the date that is three Business Days after the date
on which such financial statements are delivered, the highest rate set forth in each column of the
Pricing Grid shall apply. In addition, at all times while an Event of Default shall have occurred
and be continuing, the highest rate set forth in each column of the Pricing Grid shall apply. Each
determination of the Leverage Ratio pursuant to the Pricing Grid shall be made in a manner
consistent with the determination thereof pursuant to Section 8.14.

          “Pro Forma Balance Sheet” shall have the meaning provided in Section 6.10(b)(iii).

          “Pro Forma Date” shall be as defined in Section 6.10(b)(iii).

          “Profit Sharing Interest” shall have the meaning provided in the Acquisition
Agreement.

          “Qualified Sale/Leaseback Transactions” shall mean sale-leaseback transactions
involving the fleet of commercial vehicles, the Aircraft or any Real Property owned by the Borrower
or any Subsidiary (other than any such transaction entered into to acquire any such assets of a
type described in Section 8.11(a)), provided that (i) the consideration received by the
Borrower or any Subsidiary in connection therewith shall consist solely of cash in an amount not
less than the fair market value of the assets sold, (ii) the Net Cash Proceeds of any such sale
shall be applied as and to the extent required by Section 4.2(a)(iii) (provided that the
Borrower shall have no right to make a Reinvestment Election with respect thereto) and (iii) the
resulting lease shall be permitted by Section 8.4(l) or 8.7, as the case may be.

          “RCRA” shall mean the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §
6901 et seq.

          “Real Property” of any Person shall mean all of the right, title and interest of such
Person in and to land, improvements and fixtures, including Leaseholds.

          “Recapitalization” shall mean the recapitalization of Holdings and the Borrower
pursuant to the terms of the Recapitalization Agreement.

          “Recapitalization Agreement” shall mean the Recapitalization and Investment Agreement
dated March 15, 2002 (as amended by the Amendment Agreement and Consent, dated as of April 11,
2002), among LGB Pike LLC, LGB Acquisition Corp., the Borrower, Holdings, Pike Merger Sub, Inc.,
Joe B. Pike, as Shareholder Representative, and the stockholders of the Borrower named therein.

          “Recapitalization Documents” shall mean the Recapitalization Agreement and all other
documents entered into or delivered by Holdings or any of its Subsidiaries in connection with the
Recapitalization Agreement.

          “Recovery Event” shall mean any settlement of or payment in respect of any property or
casualty insurance claim or any condemnation proceeding relating to any asset of Holdings and/or
any of its Subsidiaries.

          “Red Simpson” shall have the meaning provided in the recitals to this Agreement.

          “Register” shall have the meaning set forth in Section 12.4(d).

 

 

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          “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

          “Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements.

          “Reimbursement Obligation” shall mean the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 2.3 for amounts drawn under Letters of Credit.

          “Reinvestment Assets” shall mean any assets to be employed in the business of the
Borrower and its Subsidiaries.

          “Reinvestment Election” shall have the meaning provided in Section 4.2(a)(iii).

          “Reinvestment Notice” shall mean a written notice signed by an Authorized Officer of
the Borrower stating that the Borrower, in good faith, intends and expects to use all or a
specified portion of the Net Cash Proceeds of an Asset Sale or Recovery Event to purchase,
construct or otherwise acquire Reinvestment Assets as provided in Section 4.2(a)(iii).

          “Reinvestment Prepayment Amount” shall mean, with respect to any Reinvestment
Election, the amount, if any, on the Reinvestment Prepayment Date relating thereto by which (a) the
Anticipated Reinvestment Amount in respect of such Reinvestment Election exceeds (b) the aggregate
amount thereof expended by the Borrower and its Subsidiaries to acquire Reinvestment Assets as
provided in Section 4.2(a)(iii).

          “Reinvestment Prepayment Date” shall mean, with respect to any Reinvestment Election,
the earliest of (i) the date, if any, upon which the Administrative Agent, on behalf of the
Required Lenders, shall have delivered a written termination notice with respect to such
Reinvestment Election to the Borrower, provided that such notice may only be given while an
Event of Default exists, (ii) the date occurring one year after such Reinvestment Election if the
related reinvestment in Reinvestment Assets has not been completed by such date and (iii) the date
on which the Borrower shall have determined not to, or shall have otherwise ceased to, proceed with
the purchase, construction or other acquisition of Reinvestment Assets with the related Anticipated
Reinvestment Amount.

          “Reinvestment Test” shall be satisfied if no Default or Event of Default then exists.

          “Replaced Lender” shall have the meaning provided in Section 1.13.

          “Replacement Lender” shall have the meaning provided in Section 1.13.

          “Reportable Event” shall mean an event described in Section 4043(c) of ERISA with
respect to a Plan as to which the 30-day notice requirement has not been waived by the PBGC.

          “Repurchase Triggering Event” shall have the meaning provided in Section 8.9(a)(ii).

          “Required Lenders” shall mean Non-Defaulting Lenders whose outstanding Term Loans (or,
if prior to the Effective Date, Term Commitments), and Revolving Commitments (or, if after the
Total Revolving Commitment has been terminated, Total Revolving Extensions of Credit) constitute at
least a majority of the sum of (i) the total outstanding Term Loans of Non-Defaulting Lenders (or,
if prior

 

 

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to the Effective Date, the Total Term Commitment) and (ii) the Total Revolving Commitment
less the aggregate Revolving Commitments of Defaulting Lenders (or, if after the Total
Revolving Commitment has been terminated, the Total Revolving Extensions of Credit of
Non-Defaulting Lenders).

          “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation
and By-Laws or other organizational or governing documents of such Person, and any law, treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

          “Revolving Commitment” shall mean, with respect to each Lender, (x) the amount set
forth opposite such Lender’s name in Annex 1.1A hereto directly below the column entitled
“Revolving Commitment”, as the same may be reduced from time to time pursuant to Section 3.2, 3.3
and/or Section 9 or (y) adjusted from time to time as a result of assignments to or from such
Lender pursuant to Section 12.4.

          “Revolving Extensions of Credit” shall mean as to any Revolving Lender at any time, an
amount equal to the sum of (a) the aggregate principal amount of all Revolving Loans held by such
Lender then outstanding, (b) such Lender’s Revolving Percentage of the Letter of Credit
Outstandings then outstanding and (c) such Lender’s Revolving Percentage of the aggregate principal
amount of Swingline Loans then outstanding.

          “Revolving Facility” shall mean the Facility evidenced by the Total Revolving
Commitment.

          “Revolving Facility Final Maturity Date” shall mean the date which is the sixth
anniversary of the Effective Date or, if earlier, the date on which the Revolving Commitments are
terminated pursuant to Section 9 hereof.

          “Revolving Lender” shall mean each Lender that has a Revolving Commitment or that
holds Revolving Loans.

          “Revolving Loan” shall have the meaning provided in Section 1.1(b).

          “Revolving Percentage” shall mean at any time for each Lender with a Revolving
Commitment, the percentage obtained by dividing such Lender’s Revolving Commitment by the Total
Revolving Commitment or, at any time after the Revolving Commitments shall have expired or
terminated, the percentage which the aggregate amount of such Lender’s Revolving Extensions of
Credit then outstanding constitutes of the aggregate amount of the Total Revolving Extensions of
Credit then outstanding.

          “Scheduled Repayment” shall have the meaning provided in Section 4.2(a)(ii).

          “SEC” shall have the meaning provided in Section 7.1(f).

          “SEC Regulation D” shall mean Regulation D as promulgated under the Securities Act of
1933, as amended, as the same may be in effect from time to time.

          “Secured Creditors” shall have the meaning provided in the Security Documents.

 

 

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          “Security Documents” shall mean the Guarantee and Collateral Agreement, each Mortgage,
the Aircraft Mortgage and all other security documents hereafter delivered to the Administrative
Agent granting a Lien on any property of any Person to secure the obligations and liabilities of
any Credit Party under any Credit Document.

          “Sellers” shall have the meaning provided in the recitals hereto.

          “Series A Preferred” shall mean the Series A Preferred Stock of Holdings, par value
$.01 per share, issued in connection with the Recapitalization.

          “Shareholders’ Agreement” shall have the meaning provided in Section 5.1(d).

          “Specified Hedge Agreement” shall mean any Hedge Agreement entered into by the
Borrower and any Lender or Lender Affiliate.

          “Stated Amount” of each Letter of Credit shall mean the maximum available to be drawn
thereunder (regardless of whether any conditions for drawing could then be met).

          “Subsidiary” of any Person shall mean and include (i) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time stock of
any 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 owned by such Person directly or indirectly through
Subsidiaries and (ii) any partnership, association, joint venture or other entity in which such
Person directly or indirectly through Subsidiaries, has more than a 50% equity interest at the
time. Unless otherwise expressly provided, all references herein to “Subsidiary” shall mean a
Subsidiary of Holdings, including the Borrower and, on the Effective Date (except where such term
is used with reference to dates occurring prior to the Effective Date), Red Simpson and its
Subsidiaries.

          “Subsidiary Guarantor” shall mean any Subsidiary of Holdings which is a party to the
Guarantee and Collateral Agreement.

          “Swingline Commitment” shall mean $10,000,000.

          “Swingline Expiry Date” shall mean the date which is one Business Day prior to the
Revolving Facility Final Maturity Date.

          “Swingline Facility” shall mean the Facility evidenced by the Swingline Commitment.

          “Swingline Lender” shall mean Barclays.

          “Swingline Loan” shall have the meaning provided in Section 1.1(c).

          “Taxes” shall have the meaning provided in Section 4.4.

          “Term Commitment” shall mean, with respect to each Lender, the amount set forth
opposite such Lender’s name in Annex 1.1A hereto directly below the column entitled “Term
Commitment”, as the same may be reduced or terminated pursuant to Section 3.3.

          “Term Facility” shall mean the Facility evidenced by the Term Commitment.

 

 

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          “Term Facility Final Maturity Date” shall mean the date which is the eighth
anniversary of the Effective Date.

          “Term Loan” shall have the meaning provided in Section 1.1(a).

          “Test Period” shall mean for any determination the four consecutive fiscal quarters of
Holdings (taken as one accounting period) then last ended.

          “Total Commitment” shall mean the sum of the Total Term Commitment and the Total
Revolving Commitment.

          “Total Revolving Commitment” shall mean the sum of the Revolving Commitments of each
of the Lenders.

          “Total Revolving Commitment Excess Amount” shall have the meaning provided in Section
4.2(a)(i).

          “Total Revolving Extensions of Credit” shall mean at any time, the aggregate amount of
the Revolving Extensions of Credit of the Revolving Lenders outstanding at such time.

          “Total Term Commitment” shall mean the sum of the Term Commitments of each of the
Lenders.

          “Total Unutilized Revolving Commitment” shall mean, at any time, (i) the Total
Revolving Commitment at such time less (ii) the sum of the aggregate principal amount of
all Revolving Loans at such time plus the Letter of Credit Outstandings at such time.

          “Type” shall mean any type of Loan determined with respect to the interest option
applicable thereto, i.e., a ABR Loan or Eurodollar Loan.

          “UCC” shall mean the Uniform Commercial Code.

          “Unfunded Current Liability” of any Plan shall mean the amount, if any, by which the
projected benefit obligation under the Plan as of the close of its most recent plan year exceeds
the fair market value of the assets allocable thereto, each determined in accordance with Statement
of Financial Accounting Standards No. 87, based upon the actuarial assumptions used by the Plan’s
actuary in the most recent annual valuation of the Plan.

          “Unpaid Drawing” shall have the meaning provided in Section 2.3(a).

          “Unutilized Commitment” for any Lender at any time shall mean the excess of (i) the
Commitment of such Lender over (ii) the sum of (x) the aggregate outstanding principal amount of
Loans made by such Lender plus (y) an amount equal to such Lender’s Revolving Percentage,
if any, of the Letter of Credit Outstandings at such time, provided that solely for
purposes of calculating the Commitment Fee pursuant to Section 3.1(a) Swingline Loans shall be
deemed not to be outstanding and the Swingline Commitment shall not constitute a “Commitment”.

          “Vehicles” shall have the meaning assigned to such term in the Guarantee and
Collateral Agreement.

 

 

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          “Wholly-Owned Subsidiary” of any Person shall mean any Subsidiary of such Person to
the extent all of the capital stock or other ownership interests in such Subsidiary, other than
directors’ qualifying shares, is owned directly or indirectly by such Person.

          “Wholly-Owned Subsidiary Guarantor”: any Subsidiary Guarantor that is a Wholly Owned
Subsidiary of the Borrower.

          “Written” or “in writing” shall mean any form of written communication or a
communication by means of telex, facsimile transmission, telegraph or cable.

          SECTION 11. THE ADMINISTRATIVE AGENT.

          11.1. Appointment . Each Lender hereby irrevocably designates and appoints Barclays as Administrative Agent of
such Lender (such term to include for purposes of this Section 11, Barclays acting as
Administrative Agent) to act as specified herein and in the other Credit Documents, and each such
Lender hereby irrevocably authorizes Barclays as the Administrative Agent for such Lender, to take
such action on its behalf under the provisions of this Agreement and the other Credit Documents and
to exercise such powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of this Agreement and the other Credit Documents, together with such other
powers as are reasonably incidental thereto. The Administrative Agent agrees to act as such upon
the express conditions contained in this Section 11. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein or in the other Credit Documents, or any
fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement or otherwise exist against the
Administrative Agent. The provisions of this Section 11 are solely for the benefit of the
Administrative Agent and the Lenders, and, except as provided in Section 11.9, no Credit Party
shall have any rights as a third party beneficiary of any of the provisions hereof. In performing
its functions and duties under this Agreement, the Administrative Agent shall act solely as agent
of the Lenders and does not assume and shall not be deemed to have assumed any obligation or
relationship of agency or trust with or for any Credit Party.

          11.2. Delegation of Duties. The Administrative Agent may execute any of its duties
under this Agreement or any other Credit Document by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care except to the extent otherwise required by
Section 11.3.

          11.3. Exculpatory Provisions. Neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement (except for its or such Person’s own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements, representations or
warranties made by Holdings or any Subsidiary or any of their respective officers contained in this
Agreement, any other Document or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Document or for any failure of Holdings or any Subsidiary or any of their
respective officers to perform its obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement, or to inspect
the properties, books or records of Holdings, the Borrower or any Subsidiary. The Administrative
Agent shall not be responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any other Credit Document or for
any

 

 

74

representations, warranties, recitals or statements made herein or therein or made in any
written or oral statement or in any financial or other statements, instruments, reports,
certificates or any other documents in connection herewith or therewith furnished or made by the
Administrative Agent to the Lenders or by or on behalf of the Borrower to the Administrative Agent
or any Lender or be required to ascertain or inquire as to the performance or observance of any of
the terms, conditions, provisions, covenants or agreements contained herein or therein or as to the
use of the proceeds of the Loans or of the existence or possible existence of any Default or Event
of Default.

          11.4. Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, facsimile transmission, telex or teletype
message, statement, order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the Credit Parties),
independent accountants and other experts selected by the Administrative Agent. The Administrative
Agent shall be fully justified in failing or refusing to take any action under this Agreement or
any other Credit Document unless it shall first receive such advice or concurrence of the Required
Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement and the other Credit Documents in
accordance with a request of the Required Lenders, and such request and any action taken or failure
to act pursuant thereto shall be binding upon all the Lenders.

          11.5. Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower or any other Credit Party
referring to this Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”. In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders, provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

          11.6. Non-Reliance on Administrative Agent and Other Lenders. Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates have made any representations or warranties to it and that
no act by the Administrative Agent hereinafter taken, including any review of the affairs of
Holdings or any Subsidiary, shall be deemed to constitute any representation or warranty by the
Administrative Agent to any Lender. Each Lender represents to the Administrative Agent that it
has, independently and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, assets, operations, property, financial and other conditions,
prospects and creditworthiness of Holdings and its Subsidiaries and made its own decision to make
its Loans hereunder and enter into this Agreement. Each Lender also represents 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
credit analysis, appraisals and decisions in taking or not taking action under this Agreement, and
to make such investigation as it deems necessary to inform itself as to the business, assets,
operations, property, financial and other conditions, prospects and creditworthiness of Holdings
and its Subsidiaries. The Administrative Agent shall not have any duty or

 

 

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responsibility to
provide any Lender with any credit or other information concerning the business, operations,
assets, property, financial and other conditions, prospects or creditworthiness of Holdings or any
Subsidiary which may come into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.

          11.7. Indemnification. The Lenders agree to indemnify the Administrative Agent in its
capacity as such ratably according to their respective percentages of Loans and Commitments used in
determining Required Lenders at such time (with such percentages to be determined as if there are
no Defaulting Lenders), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, reasonable expenses or disbursements of any kind
whatsoever which may at any time (including without limitation at any time following the payment of
the Obligations) be imposed on, incurred by or asserted against the Administrative Agent in its
capacity as such in any way relating to or arising out of this Agreement or any other Credit
Document, or any documents contemplated by or referred to herein or the transactions contemplated
hereby or any action taken or omitted to be taken by the Administrative Agent under or in
connection with any of the foregoing, but only to the extent that any of the foregoing is not paid
by Holdings or any of its Subsidiaries; provided that no Lender shall be liable to the
Administrative Agent for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely
from the Administrative Agent’s gross negligence or willful misconduct. The agreements in this
Section 11.7 shall survive the payment of all Obligations.

          11.8. The Administrative Agent in its Individual Capacity. The Administrative Agent,
its Affiliates and each may make loans to, accept deposits from and generally engage in any kind of
business with Holdings and its Subsidiaries as though the Administrative Agent were not the
Administrative Agent hereunder. With respect to the Loans made by it and all Obligations owing to
it, the Administrative Agent shall have the same rights and powers under this Agreement as any
Lender and may exercise the same as though it were not the Administrative Agent, and the terms
“Lender” and “Lenders” shall include the Administrative Agent in their individual capacity.

          11.9. Successor Administrative Agent. The Administrative Agent may resign as the
Administrative Agent upon 20 days’ notice to Holdings and the Lenders. The Required Lenders shall
appoint from among the Lenders a successor Administrative Agent for the Lenders subject to prior
approval by Holdings (such approval not to be unreasonably withheld), whereupon such successor
agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall include such successor agent effective upon its appointment, and the
resigning Administrative Agent’s rights, powers and duties as the Administrative Agent shall be
terminated, without any other or further act or deed on the part of such former Administrative
Agent or any of the parties to this Agreement. After the retiring Administrative Agent’s
resignation hereunder as the Administrative Agent, the provisions of this Section 11 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent
under this Agreement.

          SECTION 12. MISCELLANEOUS.

          12.1. Payment of Expenses, etc. The Borrower agrees to: (i) whether or not the
transactions herein contemplated are consummated, pay all reasonable out-of-pocket costs and
expenses of the Administrative Agent and the Arrangers in connection with the syndication of the
Facilities, the negotiation, preparation, execution and delivery of the Credit Documents and the
documents and instruments referred to therein and any amendment, waiver or consent relating thereto
(including, without limitation, the reasonable fees and disbursements of Simpson Thacher & Bartlett
LLP, counsel to the Administrative Agent and the Arrangers) and the creation and perfection of the Liens created under the Security Documents;
(ii) pay all out-of-pocket costs and expenses of the Administrative Agent, the

 

 

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Arrangers and each
of the Lenders in connection with the enforcement (including pursuant to the administration of any
bankruptcy proceeding relating to Holdings or the Borrower) or preservation of any rights under the
Credit Documents and the documents and instruments referred to therein (including, without
limitation, the reasonable fees and disbursements of counsel for the Administrative Agent, the
Letter of Credit Issuer and for each of the Lenders); (iii) pay and hold each of the Lenders
harmless from and against any and all present and future stamp, court or documentary taxes or any
other excise or property taxes or charges and other similar taxes with respect to the foregoing
matters and save each of the Lenders and the Letter of Credit Issuer harmless from and against any
and all liabilities with respect to or resulting from any delay or omission (other than to the
extent attributable to such Lender or such Letter of Credit Issuer) to pay such taxes; and (iv)
indemnify each Lender and the Letter of Credit Issuer, its officers, directors, employees,
advisors, trustees, representatives and agents (collectively, the “Indemnities”) from and
hold each of them harmless against any and all losses, costs, liabilities, claims, damages or
expenses, including without limitation, those incurred under Environmental Law, incurred by any of
them as a result of, or arising out of, or in any way related to, or by reason of, any
investigation, litigation or other proceeding (whether or not any Lender or the Letter of Credit
Issuer is a party thereto) related to the entering into and/or performance of any Document or the
use of the proceeds of any Loans or Letters of Credit hereunder or the Recapitalization, the
Acquisition or the consummation of any transactions contemplated in any Credit Document, including,
without limitation, the reasonable fees, charges and disbursements of counsel incurred in
connection with any such investigation, litigation or other proceeding (but excluding any such
losses, costs, liabilities, claims, damages or expenses to the extent incurred by reason of the
gross negligence or willful misconduct of the Person to be indemnified or of any other Indemnitee
who is such Person or an affiliate, agent or representative of such Person).

          12.2. Right of Setoff. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights, during the
continuance of an Event of Default, the Administrative Agent and each Lender is hereby authorized
at any time or from time to time, without presentment, demand, protest or other notice of any kind
to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set
off and to appropriate and apply any and all deposits (general or special) and any other
Indebtedness at any time held or owing by the Administrative Agent or such Lender (including,
without limitation, by branches and agencies of the Administrative Agent or such Lender wherever
located) to or for the credit or the account of any Credit Party against and on account of the
Obligations and liabilities of such Credit Party then due and payable to the Administrative Agent
or such Lender under this Agreement or under any of the other Credit Documents, including, without
limitation, all interests in Obligations of such Credit Party purchased by such Lender pursuant to
Section 12.6(b), and all other claims of any nature or description then due and payable arising out
of or connected with this Agreement or any other Credit Document, irrespective of whether or not
the Administrative Agent or such Lender shall have made any demand hereunder and although said
deposits or Indebtedness owing by the Administrative Agent or such Lender, or any of them, shall be
contingent or unmatured.

          12.3. Notices. (a) Except as otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including telecopier
communication) and mailed, telecopied or delivered, if to a Credit Party, at the address specified
opposite its signature below or in the other relevant Credit Documents, as the case may be; if to
any Lender, at its address specified for such Lender on Annex 1.1A hereto; or, at such other
address as shall be designated by any party in a
written notice to the other parties hereto. All such notices and communications shall be
mailed, telecopied or (subject to Section 12.3(b)) electronically communicated or sent by overnight
courier, and shall be effective when received.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;

 

 

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provided that the foregoing shall not apply to notices pursuant to Section 1 unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

          12.4. Benefit of Agreement. (a) This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective successors and assigns of the parties hereto,
provided that the Borrower may not assign or transfer any of its rights or obligations
hereunder without the prior written consent of all the Lenders. Each Lender may, in accordance
with applicable law, at any time grant participations in any of its rights hereunder or under any
of the Notes to another financial institution or any fund that regularly invests in bank loans,
provided that in the case of any such participation, the participant shall not have any
rights under this Agreement or any of the other Credit Documents (the participant’s rights against
such Lender in respect of such participation to be those set forth in the agreement executed by
such Lender in favor of the participant relating thereto) and all amounts payable by the Borrower
hereunder shall be determined as if such Lender had not sold such participation, except that the
participant shall be entitled to the benefits of Sections 1.10, 1.11, 2.5 and 4.4 of this Agreement
to the extent that such Lender would be entitled to such benefits if the participation had not been
entered into or sold and the participant shall, to the maximum extent permitted by applicable law,
be deemed to have the right of setoff in respect of its participation in amounts owing under this
Agreement to the same extent as if the amount of its participation were owing directly to it as a
Lender under this Agreement provided that, in purchasing such participation, such
participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as
provided in Section 12.6(b) as fully as if it were a Lender hereunder, and, provided,
further, that no Lender shall transfer, grant or assign any participation under which the
participant shall have rights to approve any amendment to or waiver of this Agreement or any other
Credit Document except to the extent such amendment or waiver would (i) waive any Scheduled
Repayment or extend the final scheduled maturity of any Loan or Note in which such participant is
participating (it being understood that any waiver of the application of any prepayment or the
method of any application of any prepayment to, the amortization of the Term Loans shall not
constitute a waiver of any Scheduled Repayment or an extension of the final maturity date), or
reduce the rate or extend the time of payment of interest or Fees thereon (except in connection
with a waiver of the applicability of any post-default increase in interest rates), or reduce the
principal amount thereof, or increase such participant’s participating interest in any Commitment
over the amount thereof then in effect (it being understood that a waiver of any Default or Event
of Default or of a mandatory reduction in the Total Commitment, or a mandatory prepayment, shall
not constitute a change in the terms of any Commitment), (ii) release all or substantially all of
the Subsidiary Guarantors from their obligations under their respective Guaranties except in
accordance with the terms thereof, (iii) release all or substantially all of the Collateral except
in accordance with the Credit Documents or (iv) consent to the assignment or transfer by the
Borrower of any of its rights and obligations under this Agreement or any other Credit Document.

          (b) Notwithstanding the foregoing, in accordance with applicable law at any time and from time
to time, any Lender may assign all or a portion of its Loans and/or Commitments and its
rights and obligations under this Agreement to one or more other Persons with the prior
written consent (such consent not to be unreasonably withheld or delayed) of:

     (i) the Borrower, provided that, other than in the case of an assignment of any
Revolving Commitment to an assignee that is not a Lender with a Revolving Commitment
immediately prior to giving effect to such assignment, no consent of the Borrower shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default under Section 9.1 or 9.5 has occurred and is continuing, any other
assignee;

 

 

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     (ii) the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment (x) of any Revolving Commitment to an assignee
that is a Lender with a Revolving Commitment immediately prior to giving effect to such
assignment and (y) any Term Loan to a Lender, an affiliate of a Lender or an Approved Fund;
and

     (iii) in the case of any assignment of any Revolving Commitment, the Letter of Credit
Issuer.

          Any assignment pursuant to this Section 12.4(b) need not be ratable as among the Term Loans
and the Revolving Commitments of the assigning Lender except as provided in the next sentence.
Unless the Borrower and the Administrative Agent otherwise agree, no assignment pursuant to the
immediately preceding sentence shall to the extent such assignment represents an assignment to an
institution other than one or more Lenders hereunder, be in an aggregate amount (treating multiple,
simultaneous assignments to two or more Approved Funds managed by the same investment advisor or
affiliates of the assigning Lender as a single assignment) less than $5,000,000 (in the case of the
Revolving Commitments) or $1,000,000 (in the case of the Term Loans) unless the entire Commitment
and Loans and other interests of the assigning Lender (and of all Lenders which are Approved Funds
managed by the same investment advisor as the assigning Lender) are so assigned. In the case of an
assignment by a Lender to its CLO, the assigning Lender shall retain the sole right to approve any
amendment, modification or waiver of any provision of this Agreement, provided that the
Assignment Agreement between such Lender and such CLO may provide that such Lender will not,
without the consent of such CLO, agree to any amendment, modification or waiver described in the
second proviso to the second sentence of Section 12.4(a) that affects such CLO. If any Lender so
sells or assigns all or a part of its interests hereunder or under the Notes, any reference in this
Agreement or the Notes to such assigning Lender shall thereafter refer to such Lender and to the
respective assignee to the extent of their respective interests, and the respective assignee shall
have, to the extent of such assignment (unless otherwise provided therein), the same rights and
benefits as it would if it were such assigning Lender. Each assignment pursuant to this Section
12.4(b) shall be effected by the assigning Lender and the assignee Lender executing an Assignment
Agreement substantially in the form of Exhibit D (appropriately completed). In the event of any
such assignment to a Person not previously a Lender hereunder (other than an assignment by a Lender
to its CLO or by a CLO to an affiliate CLO), either the assigning or the assignee Lender shall pay
to the Administrative Agent a nonrefundable assignment fee of $3,500, and at the time of any
assignment pursuant to this Section 12.4(b), (i) Annex 1.1A shall be deemed to be amended to
reflect the Commitment of the respective assignee (which shall result in a direct reduction to the
Commitment of the assigning Lender) and of the other Lenders, and (ii) if any such assignment
occurs after the Effective Date, the Borrower will, if requested by the assignee or assignor, issue
new Notes to the respective assignee and to the assigning Lender in conformity with the
requirements of Section 1.5. Each Lender and the Borrower agree to execute such documents
(including, without limitation, amendments to this Agreement) as shall be necessary to effect the
foregoing. Nothing in this clause (b) shall prevent or prohibit any Lender from pledging its Notes
or Loans, including, without limitation, to a Federal Reserve Bank in support of borrowings made by
such Lender from such Federal Reserve Bank.

          (c) The Administrative Agent acting on behalf of the Borrower shall maintain at its Payment
Office a copy of each Assignment Agreement delivered to it (as required hereby) and a register (the
“Register”) for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time (whether
or not evidenced by a Note). The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register as the owner of the Loan or Note evidencing a Loan recorded
therein for all purposes of this Agreement, notwithstanding any notice to the contrary. Any
assignment of any Loan whether or not

 

 

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evidenced by a Note shall be effective only upon appropriate
entries with respect thereto being made in the Register (and each Note shall expressly so provide).
Any assignment or transfer of all or part of a Loan evidenced by a Note shall be registered on the
Register only upon surrender for registration of assignment or transfer of the Note evidencing such
Loan, accompanied by a duly executed Assignment Agreement, and thereupon one or more new Notes in
the same aggregate principal amount shall be issued to the designated assignee and the old Notes
shall be returned by the Administrative Agent to the Borrower marked “cancelled”. The Register
shall be available for inspection by the Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice.

          (d) In the event any Revolving Lender’s long-term credit rating is downgraded to BBB+ or lower
by S&P or Baa1 or lower by Moody’s, the Letter of Credit Issuer may replace such Revolving Lender
with another Person. Such assignment shall be effected in accordance with the terms of Section
12.4(b).

          12.5. No Waiver; Remedies Cumulative. No failure or delay on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under
any other Credit Document and no course of dealing between any Credit Party and the Administrative
Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, power or privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege hereunder or
thereunder. The rights and remedies herein expressly provided are cumulative and not exclusive of
any rights or remedies which the Administrative Agent or any Lender would otherwise have. No
notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or
further notice or demand in similar or other circumstances or constitute a waiver of the rights of
the Administrative Agent or the Lenders to any other or further action in any circumstances without
notice or demand.

          12.6. Payments Pro Rata. (a) The Administrative Agent agrees that promptly after its
receipt of each payment from or on behalf of any Credit Party in respect of any Obligations of such
Credit Party hereunder, it shall distribute such payment to the Lenders (other than any Lender that
has expressly waived its right to receive its pro rata share
thereof) pro rata based upon their
respective shares, if any, of the Obligations with respect to which such payment was received.

          (b) Each of the Lenders agrees that, if it should receive any amount hereunder (whether by
voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents,
or otherwise) which is applicable to the payment of the principal of, or interest on, the Loans,
Fees or reimbursement obligations in respect of the Letters of Credit, of a sum which with respect
to the related sum or sums received by other Lenders is in a greater proportion than the total of
such Obligation then owed and due to such Lender bears to the total of such Obligation then owed
and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment
shall purchase for cash without recourse or warranty from the other Lenders an interest in the
Obligations of the respective Credit Party to such Lenders in such amount as shall result in a
proportional participation by all of the Lenders in such amount, provided that if all or
any portion of such excess amount is thereafter recovered from such Lender, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest.

          12.7. Calculations; Computations. (a) The financial statements to be furnished to
the Lenders pursuant hereto shall be made and prepared in accordance with GAAP consistently applied
throughout the periods involved (except as set forth in the notes thereto or as otherwise disclosed
in writing by Holdings to the Lenders), provided that, except as otherwise specifically
provided herein, all computations determining compliance with Section 8, including definitions used
therein, shall utilize

 

 

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accounting principles and policies in effect at the time of the preparation
of, and in conformity with those used to prepare, the June 30, 2003 historical financial statements
of Holdings delivered to the Lenders pursuant to Section 6.10, but shall not give effect to (i)
adjustments in component amounts required or permitted by APB 16 or 17 as a result of the
Recapitalization, provided that in determining gains and losses from the sale or
disposition of assets such adjustment shall be given effect, (ii) amortization of intangible assets
resulting from the Recapitalization, and (iii) the amortization or write-off of any expenses
incurred in connection with the Recapitalization or the financing thereof, provided that
the computations under Section 8 may utilize FAS 96, but shall not give effect to any cumulative
effect adjustment relating to the adoption thereof, and, provided, further, that if
at any time the computations determining compliance with Section 8 utilize accounting principles
different from those utilized in the financial statements furnished to the Lenders, such financial
statements shall be accompanied by reconciliation work-sheets.

          (b) Whenever calculated on the basis of the Prime Rate component of the ABR, interest and fees
shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual
days elapsed; otherwise, interest and fees shall be calculated on the basis of a 360-day year for
the actual days elapsed. Any change in the interest rate on a Loan resulting from a change in the
Alternate Base Rate or the Eurocurrency Reserve Requirements shall become effective as of the
opening of business on the day on which such change in the Alternate Base Rate is announced or such
change in the Eurocurrency Reserve Requirements becomes effective, as the case may be.

          12.8. Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW
OF THE STATE OF NEW YORK. Any legal action or proceeding with respect to this Agreement or any
other Credit Documents may be brought in the courts of the State of New York or of the United
States for the Southern District of New York, and, by execution and delivery of this Agreement,
each Credit Party hereby irrevocably accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts. Each Credit Party further
irrevocably consents to the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or certified mail, postage
prepaid, to each Credit Party located outside New York City and by hand delivery to each Credit
Party located within New York City, at its address for notices pursuant to Section 12.3, such
service to become effective 30 days after such mailing. Each Credit Party hereby irrevocably
appoints Holdings as its agent for service of process in respect of any such action or proceeding.
Nothing herein shall affect the right of the Administrative Agent or any Lender to serve process in any other manner permitted
by law or to commence legal proceedings or otherwise proceed against any Credit Party in any other
jurisdiction.

          (b) Each Credit Party hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in
connection with this Agreement or any other Credit Document brought in the courts referred to in
clause (a) above and hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been brought in an
inconvenient forum.

          (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          12.9. Counterparts. This Agreement may be executed in any number of counterparts and
by the different parties hereto on separate counterparts, each of which when so executed and

 

 

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delivered shall be an original, but all of which shall together constitute one and the same
instrument. A set of counterparts executed by all the parties hereto shall be lodged with Holdings
and the Administrative Agent.

          12.10. Effectiveness. This Agreement shall become effective on the date (the
“Effective Date”) on which (a) each of Holdings and the Borrower and each of the Lenders
shall have signed a copy hereof (whether the same or different copies) and shall have delivered the
same to the Administrative Agent at the Payment Office of the Administrative Agent or, in the case
of the Lenders, shall have given to the Administrative Agent telephonic (confirmed in writing),
written or facsimile transmission notice (actually received) at such office that the same has been
signed and mailed to it and (b) each of the conditions precedent set forth in Section 5.1 shall
have been satisfied.

          12.11. Headings. The headings of the several sections and subsections of this
Agreement are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

          12.12. Amendment or Waiver. Neither this Agreement nor any other Credit Document nor
any terms hereof or thereof may be changed, waived, discharged or terminated unless such change,
waiver, discharge or termination is in writing signed by each applicable Credit Party and the
Required Lenders, provided that no such change, waiver, discharge or termination shall:

     (i) waive any Scheduled Repayment, defer any Scheduled Repayment or extend the Final
Maturity Date (it being understood that any waiver of the application of any prepayment of,
or the method of application of any prepayment to the amortization of, the Loans shall not
constitute a waiver of any such Scheduled Repayment or any such extension), or reduce the
rate or extend the time of payment of interest (other than as a result of waiving the
applicability of any post-default increase in interest rates) or Fees payable hereunder, or
forgive or reduce the principal amount thereof, or increase the Commitment of any Lender
over the amount thereof then in effect (it being understood that a waiver of any Default or Event of Default or
of a mandatory reduction in the Total Commitment shall not constitute a change in the terms
of any Commitment of any Lender), without the consent of each Lender (other than a
Defaulting Lender) directly affected thereby;

     (ii) release all or substantially all of the Collateral or release all or substantially
all of the Subsidiary Guarantors from their respective Guaranties (in each case except as
expressly provided in the Credit Documents) without the consent of each Lender (other than a
Defaulting Lender) directly affected thereby;

     (iii) amend, modify or waive any provision of this Section 12.12 without the consent of
each Lender (other than a Defaulting Lender) directly affected thereby;

     (iv) reduce the percentage specified in, or otherwise modify, the definition of
Required Lenders without the consent of each Lender (other than a Defaulting Lender)
directly affected thereby;

     (v) consent to the assignment or transfer by any Credit Party of any of its rights and
obligations under this Agreement without the consent of each Lender (other than a Defaulting
Lender) directly affected thereby;

     (vi) alter any allocation of mandatory prepayments under Section 4.2 among the Term
Loans or the Revolving Facility without the consent of a majority in interest of the Lenders

 

 

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of the Term Loans or the Revolving Facility, as the case may be, adversely affected thereby
(provided that, with the written consent of the Required Lenders, mandatory
prepayments under Section 4.2 may be reduced or eliminated); or

     (vii) amend, modify or waive any provision of Section 2 or Section 11 without the
consent of the Letter of Credit Issuer or the Administrative Agent, respectively.

Any such waiver and any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Credit Parties, the Lenders, the Administrative Agent and
all future holders of the Loans. In the case of any waiver, the Credit Parties, the Lenders and
the Administrative Agent shall be restored to their former position and rights hereunder and under
the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

          Notwithstanding the foregoing, this Agreement, including this Section 12.12, may be amended
(or amended and restated) with the written consent of the Required Lenders, the Administrative
Agent and the Borrower (a) to add one or more additional credit facilities to this Agreement and to
permit the extensions of credit from time to time outstanding thereunder and the accrued interest
and fees in respect thereof to share ratably in the benefits of this Agreement (including the
rights of the lenders under additional term facilities to share ratably with the Term Facility in
prepayments pursuant to Sections 4.1 and 4.2) and the other Credit Documents with the Term Loans
and Total Revolving Extensions of Credit and the accrued interest and fees in respect thereof and
(b) to include appropriately the Lenders holding such credit facilities in any determination of the
Required Lenders.

          In addition, notwithstanding the foregoing, this Agreement may be amended with the written
consent of the Arrangers, the Administrative Agent, the Borrower and the Lenders providing the
relevant Replacement Term Loans (as defined below) to permit the refinancing or modification of all
outstanding Term Loans (“Refinanced Term Loans”) with a replacement term loan tranche
hereunder (“Replacement Term Loans”), provided that (a) the aggregate principal
amount of such Replacement Term Loans shall not exceed the aggregate principal amount of such
Refinanced Term Loans, (b) the Applicable Margin for such Replacement Term Loans shall not be
higher than the Applicable Margin for such Refinanced Term Loans, (c) the weighted average life to
maturity of such Replacement Term Loans shall not be shorter than the weighted average life to
maturity of such Refinanced Term Loans at the time of such refinancing and (d) all other terms
applicable to such Replacement Term Loans shall be substantially identical to, or less favorable to
the Lenders providing such Replacement Term Loans than, those applicable to such Refinanced Term
Loans, except to the extent necessary to provide for covenants and other terms applicable to any
period after the latest final maturity of the Term Loans in effect immediately prior to such
refinancing.

          12.13. Survival. All indemnities set forth herein including, without limitation, in
Section 1.10, 1.11, 2.5, 4.4, 11.7 or 12.1 shall survive the execution and delivery of this
Agreement and the making and repayment or assignment of the Loans.

          12.14. Domicile of Loans. Each Lender may transfer and carry its Loans at, to or for
the account of any branch office, subsidiary or affiliate of such Lender, provided that the
Borrower shall not be responsible for costs arising under Section 1.10, 2.5 or 4.4 resulting from
any such transfer (other than a transfer pursuant to Section 1.12) to the extent not otherwise
applicable to such Lender prior to such transfer.

 

 

83

          12.15. Confidentiality. Each of the Administrative Agent and each Lender agrees to
keep confidential all non-public information provided to it by any Credit Party pursuant to this
Agreement that is designated by such Credit Party as confidential; provided that nothing
herein shall prevent the Administrative Agent or any Lender from disclosing any such information
(a) to the Administrative Agent, any other Lender or, subject to an agreement to comply with the
provisions of this Section, any Lender Affiliate, (b) subject to an agreement to comply with the
provisions of this Section, to any assignee or participant or prospective assignee or participant
or any actual or prospective direct or indirect counterparty to any Hedge Agreement (or any
professional advisor to such counterparty), (c) on a need-to-know basis, to its employees involved
in the administration of this Agreement or any other Credit Document, directors, agents, attorneys,
accountants, consultants and other professional advisors or those of any of its Affiliates (each of
whom shall be instructed to hold the same in confidence), (d) upon the request or demand of any
Governmental Authority having jurisdiction over such Lender, (e) in response to any order of any
court or other Governmental Authority or as may otherwise be required pursuant to any Requirement
of Law, (f) that has been publicly disclosed other than in breach of this Agreement, (g) to the
National Association of Insurance Commissioners or any similar organization or any nationally
recognized rating agency that requires access to information about a Lender’s investment portfolio
in connection with ratings issued with respect to such Lender, or (h) in connection with the
exercise of any remedy hereunder or under any other Credit Document.

          12.16. Release of Liens and Guarantees. In the event that Holdings, the Borrower or
any Subsidiary conveys, sells, leases, assigns, transfers or otherwise disposes of all or any
portion of any of the capital stock, assets or property of Holdings, the Borrower or any of the
Subsidiaries in a transaction not prohibited by this Agreement or
any other Credit Document, the Administrative Agent shall promptly (and the Lenders hereby
authorize the Administrative Agent to) take such action and execute any such documents as may be
reasonably requested by the Borrower and at the Borrower’s expense to release any Liens created by
any Credit Document in respect of such capital stock, assets, property, including the release and
satisfaction of record of any mortgage or deed or trust granted in connection herewith, and, in the
case of a disposition of all or substantially all the capital stock or assets of any Subsidiary
Guarantor, terminate such Subsidiary Guarantor’s obligations under the Guarantee and Collateral
Agreement and release all Liens on the assets of such Subsidiary Guarantor. In addition, the
Administrative Agent agrees to take such actions as are reasonably requested by the Borrower and at
the Borrower’s expense to terminate the Liens and security interests created by the Credit
Documents when all the Obligations are paid in full (other than obligations under or in respect of
Hedge Agreements) and all Letters of Credit and Commitments are terminated. Any representation,
warranty or covenant contained in any Credit Document relating to any such capital stock, assets,
property or Subsidiary shall no longer be deemed to be made once such Capital Stock, assets or
property is conveyed, sold, leased, assigned, transferred or disposed of.

          12.17. Integration. This Agreement and the other Credit Documents represent the
agreement of Holdings, the Borrower, the other Credit Parties, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the other Credit Documents.

          12.18. Acknowledgments. Each of Holdings and the Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Credit Documents;

 

 

84

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to Holdings or the Borrower arising out of or in connection with this Agreement or
any of the other Credit Documents, and the relationship between Administrative Agent and
Lenders, on one hand, and Holdings and the Borrower, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Credit Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among
Holdings, the Borrower and the Lenders.

 

 

          IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	Address:
	 	 	 	 
	c/o Goldberg Lindsay & Co.
	 	PIKE HOLDINGS, INC.
	630 Fifth Avenue	 
	New York, New York 10111
	 	 	 	 
	Attention: General Partner
	 	 	 	 
	E-mail:

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	Telecopy:	 	  Title:
President & Chief Executive Officer

            J. Eric Pike
	 
	 	 	 	 
	c/o Goldberg Lindsay & Co.	 	PIKE ELECTRIC, INC.
	630 Fifth Avenue
	 	 	 	 
	New York, New York 10111
	 	 	 	 
	Attention: General Partner
	 	 	 	 
	E-mail:

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	Telecopy:	 	  Title:
President & Chief Executive Officer

            J. Eric Pike
	 
	 	 	 	 
	222 Broadway	 	BARCLAYS BANK PLC, as Administrative
	New York, NY 10038	 	Agent, as Letter of Credit Issuer and as Lender
	Attention: May Wong
	 	 	 	 
	Email:
may.wong@barcap.com
	 	 	 	 
	Telecopy: 212-412-5308

	 	By:	 	/s/ John Giannone
	

	 	 	 	 
	With a copy to:	 	  Title: Director
	 
	 	 	 	 
	200 Park Avenue
	 	 	 	 
	New York, NY 10166
	 	 	 	 
	Attention: John Giannone
	 	 	 	 
	Email:
john.giannone@barcap.com
	 	 	 	 
	Telecopy: 212-412-7511
	 	 	 	 
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 
	 	 	 	 
	

	 	By:	 	/s/ Gary L. Spevack
	

	 	 	 	 
	 	 	  Title: Vice
President

            JPMorgan
Chase Bank

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	National City Bank
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel R. Raynor
	

	 	 	 	 
	

	 	 	 	Name: Daniel R. Raynor

Title: Vice President

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	MERRILL LYNCH CAPITAL,
a division of

Merrill Lynch Business Financial Services Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Julia F. Maslanka
	

	 	 	 	 
	

	 	 	 	Name: Julia F. Maslanka

Title: Vice President

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	Allied Irish plc
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Rima Terradista
	

	 	 	 	 
	

	 	 	 	Name: Rima Terradista

Title: Senior Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Margaret Brennan
	

	 	 	 	 
	

	 	 	 	Name: Margaret Brennan

Title: Vice President

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	ERSTE BANK DER
OESTERREICHISCHEN SPARKASSEN AG
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Bryan J. Lynch
	

	 	 	 	 
	

	 	 	 	Name: Bryan J. Lynch

Title: First Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick W. Kunkel
	

	 	 	 	 
	

	 	 	 	Name: Patrick W. Kunkel

Title: Director

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	PB CAPITAL

(Name of Lender)
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christopher J. Ruzzi
	

	 	 	 	 
	

	 	 	 	Name: Christopher J. Ruzzi

Title: Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Cameron
	

	 	 	 	 
	

	 	 	 	Name: Richard Cameron

Title: Vice President

[Signature Page to
Amended and Restated Credit Agreement]

 

	 	 	 	 	 
	

	 	Webster Bank, National
Association
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gail Bruhn
	

	 	 	 	 
	

	 	 	 	Name: Gail Bruhn

Title: Sr. Vice President

[Signature Page to
Amended and Restated Credit Agreement]

 

Exhibit H

AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT

made by

PIKE HOLDINGS, INC.,

PIKE ELECTRIC, INC.

and certain of its Subsidiaries

in favor of

BARCLAYS BANK PLC,

as Administrative Agent

Dated as of July 1, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 1.
	 	DEFINED TERMS	 	 	2	 
	1.1.
	 	Definitions	 	 	2	 
	1.2.
	 	Other Definitional Provisions	 	 	5	 
	 
	 	 	 	 	 	 
	Section 2.
	 	GUARANTEE	 	 	5	 
	2.1.
	 	Guarantee	 	 	5	 
	2.2.
	 	Right of Contribution	 	 	6	 
	2.3.
	 	No Subrogation	 	 	6	 
	2.4.
	 	Amendments, etc., with respect to the Borrower Obligations	 	 	7	 
	2.5.
	 	Guarantee Absolute and Unconditional	 	 	7	 
	2.6.
	 	Reinstatement	 	 	8	 
	2.7.
	 	Payments	 	 	8	 
	 
	 	 	 	 	 	 
	Section 3.
	 	GRANT OF SECURITY INTEREST	 	 	8	 
	 
	 	 	 	 	 	 
	Section 4.
	 	REPRESENTATIONS AND WARRANTIES	 	 	9	 
	4.1.
	 	Title; No Other Liens	 	 	9	 
	4.2.
	 	Perfected First Priority Liens	 	 	10	 
	4.3.
	 	Jurisdiction of Organization	 	 	10	 
	4.4.
	 	Inventory and Equipment	 	 	10	 
	4.5.
	 	Farm Products	 	 	10	 
	4.6.
	 	Investment Property	 	 	10	 
	4.7.
	 	Receivables	 	 	11	 
	4.8.
	 	Intellectual Property	 	 	11	 
	4.9.
	 	Vehicles	 	 	11	 
	 
	 	 	 	 	 	 
	Section 5.
	 	COVENANTS	 	 	11	 
	5.1.
	 	Delivery of Instruments, Certificated Securities and Chattel Paper	 	 	11	 
	5.2.
	 	Maintenance of Insurance	 	 	11	 
	5.3.
	 	Maintenance of Perfected Security Interest; Further Documentation	 	 	12	 
	5.4.
	 	Changes in Locations, Name, etc.	 	 	12	 
	5.5.
	 	Notices	 	 	12	 
	5.6.
	 	Investment Property	 	 	13	 
	5.7.
	 	Receivables	 	 	13	 
	5.8.
	 	Intellectual Property	 	 	14	 
	5.9.
	 	Vehicles	 	 	16	 
	 
	 	 	 	 	 	 
	Section 6.
	 	REMEDIAL PROVISIONS	 	 	16	 
	6.1.
	 	Certain Matters Relating to Receivables	 	 	16	 
	6.2.
	 	Communications with Obligors; Grantors Remain Liable	 	 	16	 
	6.3.
	 	Pledged Stock	 	 	17	 
	6.4.
	 	Proceeds to be Turned Over To Administrative Agent	 	 	18	 
	6.5.
	 	Application of Proceeds	 	 	18	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	6.6.
	 	Code and Other Remedies	 	 	18	 
	6.7.
	 	Registration Rights	 	 	19	 
	6.8.
	 	Deficiency	 	 	20	 
	 
	 	 	 	 	 	 
	Section 7.
	 	THE ADMINISTRATIVE AGENT	 	 	20	 
	7.1.
	 	Administrative Agent’s Appointment as Attorney-in-Fact, etc.	 	 	20	 
	7.2.
	 	Duty of Administrative Agent	 	 	22	 
	7.3.
	 	Execution of Financing Statements	 	 	22	 
	7.4.
	 	Authority of Administrative Agent	 	 	23	 
	 
	 	 	 	 	 	 
	Section 8.
	 	MISCELLANEOUS	 	 	23	 
	8.1.
	 	Amendments in Writing	 	 	23	 
	8.2.
	 	Notices	 	 	23	 
	8.3.
	 	No Waiver by Course of Conduct; Cumulative Remedies	 	 	23	 
	8.4.
	 	Enforcement Expenses; Indemnification	 	 	23	 
	8.5.
	 	Successors and Assigns	 	 	24	 
	8.6.
	 	Setoff	 	 	24	 
	8.7.
	 	Counterparts	 	 	25	 
	8.8.
	 	Severability	 	 	25	 
	8.9.
	 	Section Headings	 	 	25	 
	8.10.
	 	Integration	 	 	25	 
	8.11.
	 	GOVERNING LAW	 	 	25	 
	8.12.
	 	Submission To Jurisdiction; Waivers	 	 	25	 
	8.13.
	 	Acknowledgments	 	 	26	 
	8.14.
	 	Additional Grantors	 	 	26	 
	8.15.
	 	Releases	 	 	26	 
	8.16.
	 	WAIVER OF JURY TRIAL	 	 	27	 

	 	 	 
	SCHEDULES	 	 
	Schedule 1

	 	Notice Addresses
	Schedule 2

	 	Investment Property
	Schedule 3

	 	Perfection Matters
	Schedule 4

	 	Jurisdictions of Organization and Chief Executive Offices
	Schedule 5

	 	Inventory and Equipment Locations
	Schedule 6

	 	Intellectual Property
	Schedule 7

	 	Vehicles

	 	 	 
	ANNEX	 	 
	Annex 1

	 	Form of Assumption Agreement

ii

 

          AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of July 1, 2004, made by
each of the signatories hereto (together with any other entity that may become a party hereto as
provided herein, the “Grantors”), in favor of BARCLAYS BANK PLC, as Administrative Agent
(in such capacity, the “Administrative Agent”) for the lending and other financial
institutions (the “Lenders”) from time to time parties to the Amended and Restated Credit
Agreement, dated as of July 1, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Pike Holdings, Inc., a North Carolina corporation
(f/k/a Pike Equipment and Supply Company, and referred to herein as “Holdings”), Pike
Electric, Inc., a North Carolina corporation (the “Borrower”), the Lenders and the
Administrative Agent.

W I T N E S S E T H:

          WHEREAS, Holdings, the Borrower, the Lenders and the Administrative Agent were parties to that
certain Credit Agreement, dated as of April 18, 2002 (the “Existing Credit Agreement”);

          WHEREAS, Holdings, the Borrower, the Lenders and the Administrative Agent have entered into to
the Credit Agreement, pursuant to which the Lenders have severally agreed to make extensions of
credit to the Borrower upon the terms and subject to the conditions set forth therein;

          WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other
Grantor;

          WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

          WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of the extensions of
credit under the Credit Agreement;

          WHEREAS, pursuant to the Existing Credit Agreement the Grantors executed and delivered that
certain Guarantee and Collateral Agreement, dated as of April 18, 2002 (the “Existing Guarantee
and Collateral Agreement”), to the Administrative Agent; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have
executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the
Lenders;

          NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, and
in order to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and
in order to induce the Lenders to make their respective extensions of credit to the Borrower
thereunder, each Grantor hereby agrees with the Administrative Agent, for the ratable benefit of
the Lenders, that on the Effective Date, the Existing Guarantee and Collateral Agreement shall be,
and hereby is, amended and restated in its entirety as follows:

 

 

2

SECTION 1. DEFINED TERMS

          1.1.
Definitions. (a) Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and
the following terms are used herein as defined in the New York UCC: Accounts, Certificated
Security, Chattel Paper, Documents, Equipment, Farm Products, General Intangibles, Instruments,
Inventory, Letter of Credit Rights and Supporting Obligations.

          (b) The following terms shall have the following meanings:

     “Agreement”: this Amended and Restated Guarantee and Collateral Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

     “Applicable Governmental Authority”: as defined in Section 5.7(c).

     “Borrower Obligations”: the collective reference to the unpaid principal of
and interest on the Loans and Reimbursement Obligations and all other obligations and
liabilities of the Borrower (including, without limitation, (i) interest accruing at the
then applicable rate provided in the Credit Agreement after the maturity of the Loans and
Reimbursement Obligations and interest accruing at the then applicable rate provided in the
Credit Agreement after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding, and (ii) the
due and punctual payment and performance of all obligations in respect of overdrafts and
related liabilities owed to the Administrative Agent or any of its Affiliates and arising
from treasury, depository and cash management services in connection with any
automated-clearing-house transfers of funds) to the Administrative Agent or any Lender (or,
in the case of any Lender Hedge Agreement, any Affiliate of any Lender), whether direct or
indirect, absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, or pursuant to, the Credit Agreement, this Agreement, the
other Credit Documents, any Letter of Credit, any Lender Hedge Agreement or any other
document made, delivered or given in connection with any of the foregoing, in each case
whether on account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and disbursements of
counsel to the Administrative Agent or to the Lenders that are required to be paid by the
Borrower pursuant to the terms of any of the foregoing agreements).

     “Collateral”: as defined in Section 3.

     “Collateral Account”: any collateral account established by the Administrative
Agent as provided in Section 6.1 or 6.4.

     “Copyrights”: (i) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished (including, without limitation,
those listed in Schedule 6), all registrations and recordings thereof, and all applications in
connection

 

 

3

therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to obtain all
renewals thereof.

     “Copyright Licenses”: any written agreement naming any Grantor as licensor or
licensee (including, without limitation, those listed in Schedule 6), granting any
right under any Copyright, including, without limitation, the grant of rights to
manufacture, distribute, exploit and sell materials derived from any Copyright.

     “Deposit Account”: as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including, without limitation, any demand, time savings,
passbook or like account maintained with a depositary institution.

     “Foreign Subsidiary”: any Subsidiary organized under the laws of any
jurisdiction outside the United States of America.

     “Foreign Subsidiary Voting Stock”: the voting capital stock of any Foreign
Subsidiary.

     “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Credit Document to which such
Guarantor is a party, in each case whether on account of guarantee obligations,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel to the Administrative Agent or to
the Lenders that are required to be paid by such Guarantor pursuant to the terms of this
Agreement or any other Credit Document).

     “Guarantors”: the collective reference to each Grantor other than the
Borrower.

     “Intellectual Property”: the collective reference to all rights, priorities
and privileges relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, without limitation, the Copyrights,
the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark
Licenses, and all rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

     “Intercompany Note”: any promissory note evidencing loans made by any Grantor
to Holdings or any of its Subsidiaries.

     “Investment Property”: the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than
any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”) and
(ii) whether or not constituting “investment property” as so defined, all Pledged Notes and
all Pledged Stock.

     “Issuers”: the collective reference to each issuer of any Investment Property.

 

 

4

     “Lender Hedge Agreements”: all Hedge Agreements entered into by the Borrower
with any Lender (or any Affiliate of any Lender).

     “New York UCC”: the Uniform Commercial Code as from time to time in effect in
the State of New York.

     “Obligations”: (i) in the case of the Borrower, the Borrower Obligations and
(ii) in the case of each Guarantor, its Guarantor Obligations.

     “Patents”: (i) all letters patent of the United States, any other country or
any political subdivision thereof, all reissues and extensions thereof and all goodwill
associated therewith, including, without limitation, any of the foregoing referred to in
Schedule 6, (ii) all applications for letters patent of the United States or any
other country and all divisions, continuations and continuations-in-part thereof, including,
without limitation, any of the foregoing referred to in Schedule 6, and (iii) all
rights to obtain any reissues or extensions of the foregoing.

     “Patent License”: all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use or sell any invention covered in
whole or in part by a Patent, including, without limitation, any of the foregoing referred
to in Schedule 6.

     “Pledged Notes”: all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other promissory notes issued
to or held by any Grantor (other than promissory notes issued in connection with extensions
of trade credit by any Grantor in the ordinary course of business).

     “Pledged Securities”: the collective reference to the Pledged Stock and the
Pledged Notes.

     “Pledged Stock”: the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the capital stock of any Person that may be issued or granted to,
or held by, any Grantor while this Agreement is in effect; provided that in no event
shall more than 66% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign
Subsidiary be required to be pledged hereunder.

     “Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of
the New York UCC and, in any event, shall include, without limitation, all dividends or
other income from the Investment Property, collections thereon or distributions or payments
with respect thereto.

     “Receivable”: any right to payment for goods sold or leased or for services
rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and
whether or not it has been earned by performance (including, without limitation, any
Account).

     “Securities Act”: the Securities Act of 1933, as amended.

 

 

5

     “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other
source or business identifiers, and all goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any State thereof or any
other country or any political subdivision thereof, or otherwise, and all common-law rights
related thereto, including, without limitation, any of the foregoing referred to in
Schedule 6, and (ii) the right to obtain all renewals thereof.

     “Trademark License”: any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including, without limitation,
any of the foregoing referred to in Schedule 6.

     “Vehicles”: all cars, trucks, trailers, construction and earth-moving
equipment and other vehicles covered by a certificate-of-title law of any state and, in any
event including, without limitation, the vehicles listed on Schedule 7 and all tires
and other appurtenances to any of the foregoing.

          1.2. Other Definitional Provisions. (a) The words “hereof,” “herein, ” “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.

          (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (c) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

SECTION 2. GUARANTEE

          2.1. Guarantee. (a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of
the Lenders and their respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

          (b) Anything herein or in any other Credit Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Credit Documents shall in no
event exceed the amount which can be guaranteed by such Guarantor under applicable federal and
state laws relating to the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

          (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without

 

 

6

impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of the Administrative Agent or any
Lender hereunder.

          (d) The guarantee contained in this Section 2 shall remain in full force and effect until all
the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in
this Section 2 and the other Guarantor Obligations shall have been satisfied by payment in full, no
Letter of Credit shall be outstanding and the Commitments shall be terminated, notwithstanding that
from time to time during the term of the Credit Agreement the Borrower may be free from any
Borrower Obligations.

          (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other
Person or received or collected by the Administrative Agent or any Lender from the Borrower, any of
the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or
any setoff, appropriation or application at any time or from time to time in reduction of or in
payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or any payment received
or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the
Borrower Obligations up to the maximum liability of such Guarantor hereunder until the Borrower
Obligations are paid in full, no Letter of Credit is outstanding and the Commitments are
terminated.

          2.2. Right of Contribution. Each Subsidiary Guarantor hereby agrees that to the
extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment
made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from
and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of
such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and
conditions of Section 2.3. The provisions of this Section 2.2 shall in no respect limit the
obligations and liabilities of any Subsidiary Guarantor to the Administrative Agent and the
Lenders, and each Subsidiary Guarantor shall remain liable to the Administrative Agent and the
Lenders for the full amount guaranteed by such Subsidiary Guarantor hereunder.

          2.3. No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or
any setoff or application of funds of any Guarantor by the Administrative Agent or any Lender, no
Guarantor shall be entitled to be subrogated to any of the rights of the Administrative Agent or
any Lender against the Borrower or any other Guarantor or any collateral security, guarantee or
right of offset held by the Administrative Agent or any Lender for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement
from the Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder,
until all amounts owing to the Administrative Agent and the Lenders by the Borrower on account of
the Borrower Obligations are paid in full, no Letter of Credit is outstanding and the Commitments are terminated. If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower Obligations shall not
have been paid in full, such amount shall be held by such Guarantor in trust for the Administrative
Agent and the Lenders, segregated from other funds of such Guarantor, and shall, forthwith upon
receipt by such Guarantor, be turned over to the Administrative Agent in the exact form received by
such Guarantor (duly indorsed by such

 

 

7

Guarantor to the Administrative Agent, if required), to be
applied against the Borrower Obligations, whether matured or unmatured, in such order as the
Administrative Agent may determine.

          2.4. Amendments, etc., with respect to the Borrower Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Borrower Obligations made by the Administrative Agent or any Lender may be rescinded by the
Administrative Agent or such Lender and any of the Borrower Obligations continued, and the Borrower
Obligations, or the liability of any other Person upon them or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Administrative Agent or any Lender, and the Credit Agreement
and the other Credit Documents and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in part, as the
Administrative Agent (or the Required Lenders or all Lenders, as the case may be) may reasonably
deem advisable from time to time, and any collateral security, guarantee or right of offset at any
time held by the Administrative Agent or any Lender for the payment of the Borrower Obligations may
be sold, exchanged, waived, surrendered or released. Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the Borrower Obligations or for the guarantee contained in this Section 2 or any
property subject thereto.

          2.5. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or
proof of reliance by the Administrative Agent or any Lender upon the guarantee contained in this
Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all
dealings between the Borrower and any of the Guarantors, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, likewise shall be conclusively presumed to have been had
or consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Borrower or any of the Guarantors with respect to the Borrower Obligations. Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or
enforceability of the Credit Agreement or any other Credit Document, any of the Borrower
Obligations or any other collateral security therefor or guarantee or right of offset
with respect thereto at any time or from time to time held by the Administrative Agent or any
Lender, (b) any defense, setoff or counterclaim (other than a defense of payment or performance)
which may at any time be available to or be asserted by the Borrower or any other Person against
the Administrative Agent or any Lender or (c) any other circumstance whatsoever (with or without
notice to or knowledge of the Borrower or such Guarantor) which constitutes, or might be construed
to constitute, an equitable or legal discharge of the Borrower for the Borrower Obligations, or of
such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When

 

 

8

making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any Lender may, but shall be under no obligation
to, make a similar demand on or otherwise pursue such rights and remedies as it may have against
the Borrower, any other Guarantor or any other Person or against any collateral security or
guarantee for the Borrower Obligations or any right of offset with respect thereto, and any failure
by the Administrative Agent or any Lender to make any such demand, to pursue such other rights or
remedies or to collect any payments from the Borrower, any other Guarantor or any other Person or
to realize upon any such collateral security or guarantee or to exercise any such right of offset,
or any release of the Borrower, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or
liability hereunder, and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of the Administrative Agent or any Lender against any
Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any
legal proceedings.

          2.6. Reinstatement. The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the
Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any
Guarantor or any substantial part of its property, or otherwise, all as though such payments had
not been made.

          2.7. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Administrative Agent without setoff or counterclaim in Dollars at the Payment Office.

SECTION 3. GRANT OF SECURITY INTEREST

          Each Grantor hereby assigns and transfers to the Administrative Agent, and hereby grants to
the Administrative Agent, for the ratable benefit of the Lenders, a security interest in, all of
the following property now owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
such Grantor’s Obligations:

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Deposit Accounts;

          (d) all Documents;

          (e) all Equipment;

 

 

9

          (f) all General Intangibles;

          (g) all Instruments;

          (h) all Intellectual Property;

          (i) all Inventory;

          (j) all Investment Property;

          (k) all Letter of Credit Rights;

          (l) all Vehicles and title documents with respect to Vehicles;

          (m) all other property not otherwise described above;

          (n) all books and records pertaining to the Collateral; and

   (o) to the extent not otherwise included, all Proceeds, Supporting Obligations and
products of any and all of the foregoing and all collateral security and guarantees given by
any Person with respect to any of the foregoing;

provided, however, that notwithstanding any of the other provisions set forth in
this Section 3, this Agreement shall not constitute a grant of a security interest in (x) any
property to the extent that such grant of a security interest is prohibited by any Requirements of
Law of a Governmental Authority, requires a consent not obtained of any Governmental Authority
pursuant to such Requirement of Law or is prohibited by, or constitutes a breach or default under
or gives rise to a right on the part of the parties thereto other than Holdings and its
Subsidiaries to terminate (or to materially modify), or requires any consent not obtained under,
any contract, license, agreement, instrument or other document or, in the case of any Investment
Property, Pledged Stock or Pledged Note, any applicable shareholder or similar agreement, except to
the extent that such Requirement of Law or the term in such contract, license, agreement,
instrument or other document or shareholder or similar agreement providing for such prohibition,
breach, default or right of termination or modification or requiring such consent is ineffective
under applicable law, or (y) any Investment Property acquired pursuant to Section 8.6(n) of the
Credit Agreement.

SECTION 4. REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each
Grantor hereby represents and warrants to the Administrative Agent and each Lender that:

          4.1. Title; No Other Liens. Except for the security interest granted to the
Administrative Agent for the ratable benefit of the Lenders pursuant to this Agreement and the
other Liens permitted to exist on the Collateral by the Credit Agreement, such Grantor owns each
item of the Collateral free and clear of any and all Liens. No financing statement or other public

 

 

10

notice with respect to all or any part of the Collateral is on file or of record in any public
office, except such as have been filed in favor of the Administrative Agent, for the ratable
benefit of the Lenders, pursuant to this Agreement or as are permitted by the Credit Agreement or
as to which documentation to terminate the same shall have been delivered to the Administrative
Agent. For the avoidance of doubt, it is understood and agreed that any Grantor may, as part of
its business, grant licenses to third parties to use Intellectual Property owned or developed by a
Grantor.

          4.2. Perfected First Priority Liens. The security interests granted pursuant to this
Agreement (i) upon completion of the filings and other actions specified on Schedule 3
(which, in the case of all filings and other documents referred to on said Schedule, have been
delivered to the Administrative Agent in completed and, where required, duly executed form) will
constitute valid perfected security interests in all of the Collateral in favor of the
Administrative Agent, for the ratable benefit of the Lenders, as collateral security for such
Grantor’s Obligations, enforceable in accordance with the terms hereof against all creditors of
such Grantor and any Persons purporting to purchase any Collateral from such Grantor except (A)
with respect to any Intellectual Property, to the extent the Administrative Agent has not perfected
its security interest therein under applicable foreign law, (B) fixtures in any location in
connection with which no Grantor has Mortgaged Property, (C) Deposit Accounts and (D) Letter of
Credit Rights, and (ii) are prior to all other Liens on the Collateral in existence on the date
hereof except for Liens permitted by the Credit Agreement which have priority over the Liens on the
Collateral by operation of law (including the priority rules under the New York UCC).

          4.3. Jurisdiction of Organization. On the date hereof, such Grantor’s jurisdiction of
organization is specified on Schedule 4. Such Grantor has furnished to the Administrative
Agent a certified charter, certificate of incorporation or other organization document and other
long-form good standing certificate as of a date which is recent to the date hereof.

          4.4. Inventory and Equipment. On the date hereof, the Inventory and the Equipment
with greater than de minimis value are kept at the locations listed on Schedule 5.

          4.5. Farm Products. None of the Collateral constitutes, or is the Proceeds of, Farm
Products.

          4.6. Investment Property. (a) The shares of Pledged Stock pledged by such Grantor hereunder
constitute all the issued and outstanding shares of all classes of the capital stock of each Issuer
owned by such Grantor or, in the case of Issuers that are Foreign Subsidiaries, the shares of such
Foreign Subsidiaries pledged by such Grantor constitute 66% of the outstanding Foreign Subsidiary
Voting Stock of each Issuer (or, if such Grantor owns less than 66% of the outstanding Foreign
Subsidiary Voting Stock of any Foreign Subsidiary, constitute all the Foreign Subsidiary Voting
Stock of such Foreign Subsidiary owned by Grantor).

          (b) All the shares of the Pledged Stock as to which the Borrower or a Subsidiary of the
Borrower is the Issuer have been duly and validly issued and are fully paid and nonassessable.

 

 

11

          (c) To the best of such Grantor’s knowledge, each of the Pledged Notes constitutes the legal,
valid and binding obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, general
equitable principles (whether considered in a proceeding in equity or at law) and an implied
covenant of good faith and fair dealing.

          (d) Such Grantor is the beneficial owner of, and has good and marketable title to, the
Investment Property pledged by it hereunder, free of any and all Liens or options in favor of any
other Person, except the security interest created by this Agreement or Liens permitted pursuant to
the Credit Agreement; and such Grantor is the record owner of such Investment Property except for
any securities held for such Grantor through intermediaries.

          4.7. Receivables. (a) No amount payable to such Grantor under or in connection with
any Receivable of an amount greater than $100,000 is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Administrative Agent.

          (b) As of the Effective Date, the aggregate amount of Receivables owed by Governmental
Authorities to the Grantors does not exceed $1,000,000.

          4.8. Intellectual Property. Schedule 6 lists all material Intellectual
Property owned by such Grantor in its own name on the date hereof.

          4.9. Vehicles. Schedule 7 is a complete and correct list of all Vehicles owned by such Grantor on the date
hereof.

SECTION 5. COVENANTS

          Each Grantor covenants and agrees with the Administrative Agent and the Lenders that, from and
after the date of this Agreement until the Obligations (except any Obligations arising out of
Lender Hedge Agreements or in respect of overdrafts and related liabilities owed to the
Administrative Agent or any of its Affiliates and arising from treasury, depository and
cash-management services in connection with any automated-clearing-house transfers of funds) shall
have been paid in full, no Letter of Credit shall be outstanding and the Commitments shall have
terminated:

          5.1. Delivery of Instruments, Certificated Securities and Chattel Paper. If any
amount in excess of $100,000 payable under or in connection with any of the Collateral shall be or
become evidenced by any Instrument, Certificated Security or Chattel Paper, such Instrument,
Certificated Security or Chattel Paper shall be delivered as soon as reasonably practicable to the
Administrative Agent, duly indorsed in a manner satisfactory to the Administrative Agent, to be
held as Collateral pursuant to this Agreement.

          5.2. Maintenance of Insurance. (a) Such Grantor will maintain the insurance required
by Section 7.3 of the Credit Agreement.

          (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least 30 days or, in the

 

 

12

case of
insurance existing as of the date hereof, at least 10 days after receipt by the Administrative
Agent of written notice thereof and (ii) name the Administrative Agent as insured party or loss
payee.

          5.3. Maintenance of Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the security interest created by this Agreement as a security interest
having at least the perfection and priority described in Section 4.2 and shall defend such security
interest against the claims and demands of all Persons whomsoever, subject to the rights of such
Grantor under the Credit Documents to dispose of the Collateral.

          (b) Such Grantor will furnish to the Administrative Agent from time to time statements and
schedules further identifying and describing the assets and property of such Grantor and such other
reports in connection therewith as the Administrative Agent may reasonably request, all in
reasonable detail.

          (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver,
and have recorded, such further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of
obtaining or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) filing any financing or continuation statements
under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with
respect to the security interests created hereby and (ii) in the case of Investment Property not
issued by the Borrower or its Subsidiaries, Deposit Accounts, Letter of Credit Rights and any other
relevant Collateral, taking, at any time after the occurrence and during the continuation of a
Default, any actions necessary to enable the Administrative Agent to obtain “control” (within the
meaning of the applicable Uniform Commercial Code) with respect thereto.

          5.4. Changes in Locations, Name, etc. Such Grantor will not, except upon 10 days’
prior written notice to the Administrative Agent and delivery to the Administrative Agent of all
additional executed financing statements and other documents reasonably requested by the
Administrative Agent to maintain the validity, perfection and priority of the security interests
provided for herein:

     (i) change its jurisdiction of organization from that referred to in Section 4.3; or

     (ii) change its name to such an extent that any financing statement filed by the
Administrative Agent in connection with this Agreement would become misleading.

     5.5. Notices. Such Grantor will advise the Administrative Agent promptly, in
reasonable detail, of:

     (a) any Lien (other than security interests created hereby or Liens permitted under the
Credit Agreement) on any of the Collateral which would adversely affect the ability of the
Administrative Agent to exercise any of its remedies hereunder; and

 

 

13

     (b) the occurrence of any other event which could reasonably be expected to have a
material adverse effect on the aggregate value of the Collateral or on the security
interests created hereby.

          5.6. Investment Property. (a) If such Grantor shall become entitled to receive or
shall receive any stock certificate (including, without limitation, any certificate representing a
stock dividend or a distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option or rights in
respect of the capital stock of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Administrative Agent and the
Lenders, hold the same in trust for the Administrative Agent and the Lenders and deliver the same
forthwith to the Administrative Agent in the exact form received, duly indorsed by such Grantor to
the Administrative Agent, if required, together with an undated stock power covering such
certificate duly executed in blank by such Grantor, to be held by the Administrative Agent, subject to the terms hereof, as
additional collateral security for the Obligations.

          (b) Without the prior written consent of the Administrative Agent, such consent not to be
unreasonably withheld, such Grantor will not (i) sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Investment Property or Proceeds thereof
(except pursuant to a transaction expressly permitted by the Credit Agreement), (ii) create, incur
or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any
of the Investment Property or Proceeds thereof, or any interest therein, except for the security
interests created by this Agreement or permitted under the Credit Agreement or (iii) except as
permitted by the Credit Agreement, enter, subsequent to the date upon which such Investment
Property becomes Collateral hereunder, into any agreement (other than the Credit Agreement) or
undertaking restricting the right or ability of such Grantor or the Administrative Agent to sell,
assign or transfer any of the Investment Property or Proceeds thereof.

          (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Investment Property issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 5.6(a) with respect to the Investment Property issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) and 6.7 with respect to the Investment
Property issued by it.

          5.7. Receivables. (a) Other than in the ordinary course of business, such Grantor
will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or
settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially,
any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever
on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could
adversely affect the value thereof.

 

 

14

          (b) Such Grantor will deliver to the Administrative Agent a copy of each material demand,
notice or document received by it that questions or calls into doubt the validity or enforceability
of more than 10% of the aggregate amount of the then-outstanding Receivables.

          (c) If such Grantor shall enter into any contract or other transaction with an Applicable
Governmental Authority (as defined below) which will result in an Applicable Governmental Authority
becoming an obligor on any Receivable of an amount greater than $100,000, such Grantor shall (i)
promptly thereafter notify the Administrative Agent thereof, (ii) provide to the Administrative
Agent all such documents and instruments, and take all such actions, as shall be reasonably
requested by the Administrative Agent to enable the Administrative Agent to comply with the
requirements of the Federal Assignment of Claims Act or any other applicable Requirement of Law to
perfect its security interest in such Receivables and obtain the benefits of such Act or Law with
respect thereto and (iii) otherwise comply with its obligations under Section 5.3(c) with respect
thereto. As used in this paragraph, the term “Applicable Governmental Authority” shall mean any Governmental Authority the
Requirements of Law applicable to which provide that, for a creditor of a Person to which such
Governmental Authority has an obligation to pay money, whether pursuant to a Receivable, a General
Intangible or otherwise, to perfect such creditor’s Lien on such obligation and/or to obtain the
full benefits of such Lien and such Requirements of Law, certain notice, filing, recording or other
similar actions other than the filing of a financing statement under the Uniform Commercial Code
must be given, executed, filed, recorded, delivered or completed, including, without limitation,
any Federal Governmental Authority to which the Federal Assignment of Claims Act of 1940 is
applicable.

          5.8. Intellectual Property. (a) Such Grantor (either itself or through licensees)
will (i) continue to use each Trademark material to Holdings and its Subsidiaries taken as a whole
on each and every trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark in full force free
from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and
services offered under such Trademark, (iii) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable Requirements of Law, (iv) not
adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark
unless the Administrative Agent, for the ratable benefit of the Lenders, shall obtain a perfected
security interest in such mark pursuant to this Agreement and (v) not (and not permit any licensee
or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may
become invalidated or impaired in any way.

          (b) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any Patent material to Holdings and its Subsidiaries taken as a whole may become
forfeited, abandoned or dedicated to the public.

          (c) Such Grantor (either itself or through licensees) (i) will employ each Copyright material
to Holdings and its Subsidiaries taken as a whole and (ii) will not (and will not permit any
licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any portion
of the Copyrights material to Holdings and its Subsidiaries taken as a whole may become invalidated
or otherwise impaired. Such Grantor will not (either itself or through

 

 

15

licensees) do any act
whereby any portion of the Copyrights material to Holdings and its Subsidiaries taken as a whole
may fall into the public domain.

          (d) Such Grantor (either itself or through licensees) will not do any act that knowingly uses
any Intellectual Property material to Holdings and its Subsidiaries taken as a whole to infringe
the intellectual property rights of any other Person.

          (e) Such Grantor will notify the Administrative Agent immediately if it knows, or has reason
to know, that any application or registration relating to any Intellectual Property material to
Holdings and its Subsidiaries taken as a whole may become forfeited, abandoned or dedicated to the
public, or of any adverse determination or development (including, without limitation, the
institution of, or any such determination or development in, any proceeding in the United States
Patent and Trademark Office, the United States Copyright Office or any court or
tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any such
Intellectual Property or such Grantor’s right to register the same or to own and maintain the same.

          (f) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within five Business Days after the last day of the fiscal
quarter in which such filing occurs. Upon request of the Administrative Agent, such Grantor shall
execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers
as the Administrative Agent may request to evidence the Administrative Agent’s and the Lenders’
security interest in any Copyright, Patent or Trademark and the goodwill and general intangibles of
such Grantor relating thereto or represented thereby.

          (g) Such Grantor will take all reasonable and necessary steps, including, without limitation,
in any proceeding before the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency in any other country or any political subdivision thereof,
to maintain and pursue each application (and to obtain the relevant registration) and to maintain
each registration of the Intellectual Property material to Holdings and its Subsidiaries taken as a
whole, including, without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

          (h) In the event that any Intellectual Property material to Holdings and its Subsidiaries
taken as a whole is infringed, misappropriated or diluted by a third party, such Grantor shall (i)
take such actions as such Grantor shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property and (ii) if such Intellectual Property is of material economic
value, promptly notify the Administrative Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution.

          (i) Notwithstanding anything to the contrary in this Agreement, subject to the provisions of
the Credit Agreement, nothing shall prevent any Grantor in the ordinary course of business from
abandoning, ceasing to use or otherwise impairing or disposing of any Intellectual

 

 

16

Property that is
not material to the conduct of the business of Holdings and its Subsidiaries taken as a whole if
such Grantor reasonably believes that doing so is in its business interests.

          5.9. Vehicles. With respect to any Vehicles acquired by such Grantor subsequent to
the date hereof, within 30 days after the date of acquisition thereof, all applications for
certificates of title indicating the Administrative Agent’s first priority security interest in the
Vehicle covered by such certificate, and any other necessary documentation, shall be filed in each
office in each jurisdiction in which filing is required and which the Administrative Agent shall
reasonably require to perfect its security interests in the Vehicles.

SECTION 6. REMEDIAL PROVISIONS

          6.1. Certain Matters Relating to Receivables. (a) The Administrative Agent shall
have the right annually (or, if an Event of Default has occurred and is continuing, at any time) to
make test verifications of the Receivables in any manner and through any medium that it reasonably
considers advisable, and each Grantor shall furnish all such assistance and information as the
Administrative Agent may require in connection with such test verifications annually (or, if an
Event of Default has occurred and is continuing, at any time), upon the Administrative Agent’s
request and at the expense of the relevant Grantor, such Grantor shall cause independent public
accountants or others satisfactory to the Administrative Agent to furnish to the Administrative
Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the
Receivables.

          (b) The Administrative Agent hereby authorizes each Grantor to collect such Grantor’s
Receivables and the Administrative Agent may curtail or terminate said authority at any time after
the occurrence and during the continuance of an Event of Default. If required by the
Administrative Agent at any time after the occurrence and during the continuance of an Event of
Default, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and,
in any event, within two Business Days) deposited by such Grantor in the exact form received, duly
indorsed by such Grantor to the Administrative Agent if required, in a Collateral Account
maintained under the sole dominion and control of the Administrative Agent, subject to withdrawal
by the Administrative Agent for the account of the Lenders only as provided in Section 6.5, and
(ii) until so turned over, shall be held by such Grantor in trust for the Administrative Agent and
the Lenders, segregated from other funds of such Grantor. Each such deposit of Proceeds of
Receivables shall be accompanied by a report identifying in reasonable detail the nature and source
of the payments included in the deposit.

          (c) If an Event of Default has occurred and is continuing, at the Administrative Agent’s
request, each Grantor shall deliver to the Administrative Agent all original and other documents
evidencing, and relating to, the agreements and transactions which gave rise to the Receivables,
including, without limitation, all original orders, invoices and shipping receipts.

          6.2. Communications with Obligors; Grantors Remain Liable. (a) The Administrative
Agent in its own name or in the name of others may at any time when an Event of Default has
occurred and is continuing, communicate with obligors under the Receivables to verify with them to
the Administrative Agent’s satisfaction the existence, amount and terms of any Receivables.

 

 

17

          (b) Upon the request of the Administrative Agent at any time after the occurrence and during
the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that
the Receivables have been assigned to the Administrative Agent for the ratable benefit of the
Lenders and that payments in respect thereof shall be made directly to the Administrative Agent.

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables to observe and perform all the conditions and obligations to be observed
and performed by it thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Administrative Agent nor any Lender shall have any obligation or liability
under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Administrative Agent or any Lender of any payment relating thereto,
nor shall the Administrative Agent or any Lender be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any
payment received by it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled at any time or
times.

          6.3. Pledged Stock. (a) Unless an Event of Default shall have occurred and be
continuing and the Administrative Agent shall have given notice to the relevant Grantor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each
Grantor shall be permitted to receive all dividends (other than dividends payable in capital stock)
paid in respect of the Pledged Stock and all payments made in respect of the Pledged Notes, in each
case, to the extent permitted in the Credit Agreement, and to exercise all voting and corporate or
other organizational rights with respect to the Investment Property; provided,
however, that such Grantor will not be entitled to exercise any such right if the result
thereof could materially and adversely affect the rights inuring to a holder of the Investment
Property or the rights and remedies of the Administrative Agent or the Lenders under any Credit
Document or the ability of the Administrative Agent or the Lenders to exercise the same.

          (b) If an Event of Default shall occur and be continuing and the Administrative Agent shall
give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Investment Property and make application thereof to the Obligations
and (ii) any or all of the Investment Property shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such Investment Property at any
meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all rights
of conversion, exchange and subscription and any other rights, privileges or options pertaining to
such Investment Property as if it were the absolute owner thereof (including, without limitation,
the right to exchange at its discretion any and all of the Investment Property upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in the corporate or
other organizational structure of any Issuer, or upon the exercise by any Grantor or the
Administrative Agent of any right, privilege or option pertaining to such Investment Property, and
in connection therewith, the right to deposit and deliver any and all of the

 

 

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Investment Property, and
in connection therewith, the right to deposit and deliver any and all of the Investment Property
with any committee, depositary, transfer agent, registrar or other designated agency upon such
terms and conditions as the Administrative Agent may determine), all without liability except to
account for property actually received by it, but the Administrative Agent shall
have no duty to any Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

          (c) Each Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder to (i) comply with any instruction received by it from the
Administrative Agent in writing that (x) states that an Event of Default has occurred and is
continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other
or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully
protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends
or other payments with respect to the Investment Property directly to the Administrative Agent.

          6.4. Proceeds to be Turned Over To Administrative Agent. If an Event of Default
occurs and is continuing and the Administrative Agent so requests, all Proceeds received by any
Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust
for the Administrative Agent and the Lenders, segregated from other funds of such Grantor, and
shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in the
exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if
required). All Proceeds received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion and control. All
Proceeds while held by the Administrative Agent in a Collateral Account (or by such Grantor in
trust for the Administrative Agent and the Lenders) shall continue to be held as collateral
security for all the Obligations and shall not constitute payment thereof until applied as provided
in Section 6.5.

          6.5. Application of Proceeds. At such intervals as may be agreed upon by the Borrower
and the Administrative Agent, or, if an Event of Default has occurred and is continuing, at any
time at the Administrative Agent’s election, the Administrative Agent may apply all or any part of
Proceeds held in any Collateral Account in payment of the Obligations in such order as the
Administrative Agent may elect, and any part of such funds which the Administrative Agent elects
not so to apply and deems not required as collateral security for the Obligations shall be paid
over from time to time by the Administrative Agent to the Borrower or to whosoever may be lawfully
entitled to receive the same. Any balance of such Proceeds remaining after the Obligations shall
have been paid in full, no Letters of Credit shall be outstanding and the Commitments shall have
terminated shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive
the same.

          6.6. Code and Other Remedies. If an Event of Default occurs and is continuing, the
Administrative Agent, on behalf of the Lenders, may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Obligations, all rights and remedies of a secured party under the New
York UCC or any other applicable law. Without limiting the generality of the foregoing, if an
Event of Default occurs
and is continuing, the Administrative Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any

 

 

19

kind (except any notice required by law
referred to below) to or upon any Grantor or any other Person (all and each of which demands,
defenses, advertisements and notices are hereby waived), may in such circumstances forthwith
collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or office of the
Administrative Agent or any Lender or elsewhere upon such terms and conditions as it may reasonably
deem advisable and at such prices as it may reasonably deem best, for cash or on credit or for
future delivery without assumption of any credit risk. The Administrative Agent or any Lender
shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon
any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in any Grantor, which right or equity is hereby waived and
released. Each Grantor further agrees, at the Administrative Agent’s request following and during
the continuance of an Event of Default, to assemble the Collateral and make it available to the
Administrative Agent at places which the Administrative Agent shall reasonably select, whether at
such Grantor’s premises or elsewhere. The Administrative Agent shall apply the net proceeds of any
action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or safekeeping of any of
the Collateral or in any way relating to the Collateral or the rights of the Administrative Agent
and the Lenders hereunder, including, without limitation, reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Obligations, in such order as the
Administrative Agent may elect, and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of law, including, without
limitation, Section 9-615(a)(3) of the New York UCC, need the Administrative Agent account for the
surplus, if any, to any Grantor. To the extent permitted by applicable law, each Grantor waives
all claims, damages and demands it may acquire against the Administrative Agent or any Lender
arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by law, such notice shall be deemed reasonable
and proper if given at least 10 days before such sale or other disposition.

          6.7. Registration Rights. (a) If the Administrative Agent shall determine to
exercise its right to sell any or all of the Pledged Stock pursuant to Section 6.6, and if in the
opinion of the Administrative Agent it is necessary or advisable to have the Pledged Stock, or that
portion thereof to be sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the directors and
officers of such Issuer to execute and deliver, all such instruments and documents, and do or cause
to be done all such other acts as may be, in the opinion of the Administrative Agent, necessary or
advisable to register the Pledged Stock, or that portion thereof to be sold, under the provisions
of the Securities Act, (ii) use its best efforts to cause the registration statement relating
thereto to become effective and to remain effective for a period of one year from the date of the
first public offering of the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of the Administrative
Agent, are necessary or
advisable, all in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto. Each Grantor agrees to
cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Administrative Agent shall designate and to

 

 

20

make available to its security
holders, as soon as practicable, an earnings statement (which need not be audited) which will
satisfy the provisions of Section 11(a) of the Securities Act.

          (b) Each Grantor recognizes that the Administrative Agent may be unable to effect a public
sale of any or all the Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to resort to one or
more private sales thereof to a restricted group of purchasers which will be obliged to agree,
among other things, to acquire such securities for their own account for investment and not with a
view to the distribution or resale thereof. Each Grantor acknowledges and agrees that any such
private sale may result in prices and other terms less favorable than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to
have been made in a commercially reasonable manner. The Administrative Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time necessary to permit
the Issuer thereof to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if such Issuer would agree to do so.

          (c) Each Grantor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant
to this Section 6.7 valid and binding and in compliance with any and all other applicable
Requirements of Law. Each Grantor further agrees that a breach of any of the covenants contained
in this Section 6.7 will cause irreparable injury to the Administrative Agent and the Lenders, that
the Administrative Agent and the Lenders have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 6.7 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to
assert any defenses against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Credit Agreement.

          6.8. Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the
fees and disbursements of any attorneys employed by the Administrative Agent or any Lender to
collect such deficiency.

SECTION 7. THE ADMINISTRATIVE AGENT

          7.1. Administrative Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor
hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor
and in the name of such Grantor or in its own name, for the purpose of carrying out the terms
of this Agreement, to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the Administrative
Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

 

 

21

     (i) in the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable constituting Collateral hereunder or with respect
to any other Collateral and file any claim or take any other action or proceeding in any
court of law or equity or otherwise deemed appropriate by the Administrative Agent for the
purpose of collecting any and all such moneys due under any Receivable or with respect to
any other Collateral whenever payable;

     (ii) in the case of any Intellectual Property constituting Collateral hereunder,
execute and deliver, and have recorded, any and all agreements, instruments, documents and
papers as the Administrative Agent may request to evidence the Administrative Agent’s and
the Lenders’ security interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premiums therefor and the costs thereof;

     (iv) execute, in connection with any sale provided for in Section 6.6 or 6.7, any
indorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

     (v) (1) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Administrative
Agent or as the Administrative Agent shall direct; (2) ask or demand for, collect, and
receive payment of and receipt for, any and all moneys, claims and other amounts due or to
become due at any time in respect of or arising out of any Collateral; (3) sign and indorse
any invoices, freight or express bills, bills of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications, notices and other documents in
connection with any of the Collateral; (4) commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to collect the
Collateral or any portion thereof and to enforce any other right in respect of any
Collateral; (5) defend any suit, action or proceeding brought against such Grantor with
respect to any Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the
Administrative Agent may reasonably deem appropriate; (7) subject to any licenses (and the
rights granted therein) existing at the time of such assignment, assign any Copyright,
Patent or Trademark (along with the goodwill of the business to which any such Copyright,
Patent or Trademark pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Administrative Agent shall in its sole
discretion determine; and (8) generally, sell, transfer, pledge and make any agreement
with respect to or otherwise deal with any of the Collateral as fully and completely as
though the Administrative Agent were the absolute owner thereof for all purposes, and do, at
the Administrative Agent’s option and such Grantor’s expense, at any time, or from time to
time, all acts and things which the Administrative Agent deems necessary to protect,
preserve or realize upon the Collateral and the Administrative Agent’s and the

 

 

22

Lenders’
security interests therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

          Anything in this Section 7.1(a) to the contrary notwithstanding, the Administrative Agent
agrees that it will not exercise any rights under the power of attorney provided for in this
Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 7.1, together with interest thereon at a rate per annum equal to the
highest rate per annum at which interest would then be payable on any category of past due ABR
Loans under the Credit Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative Agent on
demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          7.2. Duty of Administrative Agent. The Administrative Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its possession, under
Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the
Administrative Agent deals with similar property for its own account. Neither the Administrative
Agent, any Lender nor any of their respective officers, directors, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action whatsoever with regard to
the Collateral or any part thereof. The powers conferred on the Administrative Agent and the
Lenders hereunder are solely to protect the Administrative Agent’s and the Lenders’ interests in
the Collateral and shall not impose any duty upon the Administrative Agent or any Lender to
exercise any such powers. The Administrative Agent and the Lenders shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers, and neither they nor
any of their officers, directors, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful misconduct.

          7.3. Execution of Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Administrative Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the signature of such
Grantor in such form and in such offices as the Administrative Agent determines appropriate to
perfect the security interests of the Administrative Agent under this Agreement. A photographic or
other reproduction of this Agreement shall be sufficient as a financing statement

 

 

23

or other filing
or recording document or instrument for filing or recording in any jurisdiction. Each Grantor
authorizes the Administrative Agent to use the collateral description “all personal property” in
any such financing statements. Each Grantor hereby ratifies and authorizes the filing by the
Administrative Agent of any financing statement with respect to the Collateral made prior to the
date hereof; provided that, at the reasonable request of any Grantor, the Administrative
Agent shall amend any such statement (and any other financing statement filed by the Administrative
Agent in connection with this Agreement) to exclude any property that is released from, or
otherwise not included in, the Collateral.

          7.4. Authority of Administrative Agent. Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect to any action taken
by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any
option, voting right, request, judgment or other right or remedy provided for herein or resulting
or arising out of this Agreement shall, as between the Administrative Agent and the Lenders, be
governed by the Credit Agreement and by such other agreements with respect thereto as may exist
from time to time among them, but, as between the Administrative Agent and the Grantors, the
Administrative Agent shall be conclusively presumed to be acting as agent for the Lenders with full
and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation,
or entitlement, to make any inquiry respecting such authority.

SECTION 8. MISCELLANEOUS

          8.1. Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with Section 12.12 of the
Credit Agreement.

          8.2. Notices. All notices, requests and demands to or upon the Administrative Agent
or any Grantor hereunder shall be effected in the manner provided for in Section 12.3 of the Credit
Agreement; provided that any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor at its notice address set forth on Schedule 1.

          8.3. No Waiver by Course of Conduct; Cumulative Remedies.
Neither the Administrative Agent nor any Lender shall by any act (except by a written
instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the Administrative Agent or any
Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by the
Administrative Agent or any Lender of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy which the Administrative Agent or such Lender would
otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may
be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law.

          8.4. Enforcement Expenses; Indemnification. (a) Each Guarantor agrees to pay or
reimburse each Lender and the Administrative Agent for all its reasonable costs and expenses

 

 

24

incurred in collecting against such Guarantor under the guarantee contained in Section 2 or
otherwise enforcing or preserving any rights under this Agreement and the other Credit Documents to
which such Guarantor is a party, including, without limitation, the reasonable fees and
disbursements of counsel to the Administrative Agent.

          (b) Each Guarantor agrees to pay, and to save the Administrative Agent and the Lenders
harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined to be payable with
respect to any of the Collateral or in connection with any of the transactions contemplated by this
Agreement.

          (c) Each Guarantor agrees to pay, and to save the Administrative Agent and the Lenders
harmless from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement to the
extent the Borrower would be required to do so pursuant to Section 12.1 of the Credit Agreement.

          (d) The agreements in this Section 8.4 shall survive repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Credit Documents.

          8.5. Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of each Grantor and shall inure to the benefit of the Administrative Agent and the Lenders
and their successors and assigns; provided that no Grantor may, except pursuant to a merger
or consolidation permitted by the Credit Agreement, assign, transfer or delegate any of its rights
or obligations under this Agreement without the prior written consent of the Administrative Agent.

          8.6. Setoff. In addition to any rights now or hereafter granted under applicable law or otherwise, and
not by way of limitation of any such rights, during the continuance of an Event of Default, the
Administrative Agent and each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Grantor or to any other Person, any
such notice being hereby expressly waived, to set off and to appropriate and apply any and all
deposits (general or special) and any other Indebtedness at any time held or owing by the
Administrative Agent or such Lender (including, without limitation, by branches and agencies of the
Administrative Agent or such Lender wherever located) to or for the credit or the account of any
Grantor against and on account of the Obligations and liabilities of such Grantor then due and
payable to the Administrative Agent or such Lender under this Agreement or under any of the other
Credit Documents, including, without limitation, all interests in Obligations of the Borrower
purchased by such Lender pursuant to Section 12.6(b) of the Credit Agreement, and all other claims
of any nature or description then due and payable arising out of or connected with this Agreement
or any other Credit Document, irrespective of whether or not the Administrative Agent or such
Lender shall have made any demand hereunder and although said deposits or Indebtedness owing by the
Administrative Agent or such Lender, or any of them, shall be contingent or unmatured. The
Administrative Agent and each Lender shall notify such Grantor promptly of any such setoff and the
application made by the Administrative Agent or such Lender of the proceeds thereof,
provided that the failure to give such notice shall not affect

 

 

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the validity of such setoff
and application. The rights of the Administrative Agent and each Lender under this Section 8.6 are
in addition to other rights and remedies (including, without limitation, other rights of setoff)
which the Administrative Agent or such Lender may have.

          8.7. Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument.

          8.8. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          8.9. Section Headings. The Section headings used in this Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

          8.10. Integration. This Agreement and the other Credit Documents represent the
agreement of the Grantors, the Administrative Agent and the Lenders with respect to the subject
matter hereof and thereof, and there are no promises, undertakings, representations or warranties
by the Administrative Agent or any Lender relative to subject matter hereof and thereof not expressly
set forth or referred to herein or in the other Credit Documents.

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

          8.12. Submission To Jurisdiction; Waivers. Each Grantor hereby irrevocably and
unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Credit Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such
other address of which the Administrative Agent shall have been notified pursuant thereto;

 

 

26

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

          8.13. Acknowledgments. Each Grantor hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Credit Documents to which it is a party;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to any Grantor arising out of or in connection with this Agreement or any of the
other Credit Documents, and the relationship between the
Grantors, on the one hand, and the Administrative Agent and the Lenders, on the other
hand, in connection herewith or therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Credit Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among the
Grantors and the Lenders.

          8.14. Additional Grantors. Each Subsidiary of the Borrower that is required to become
a party to this Agreement pursuant to Section 7.12 of the Credit Agreement shall become a Grantor
for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex 1 hereto.

          8.15. Releases. (a) At such time as the Loans, the Reimbursement Obligations and the
other Obligations (other than Obligations in respect of Lender Hedge Agreements and overdrafts and
related liabilities owed to the Administrative Agent or any of its Affiliates and arising from
treasury, depository and cash-management services in connection with any automated-clearing-house
transfers of funds) shall have been paid in full, the Commitments have been terminated and no
Letters of Credit shall be outstanding, the Collateral shall be released from the Liens created
hereby, and this Agreement and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Grantor hereunder shall terminate, all without
delivery of any instrument or performance of any act by any party, and all rights to the Collateral
shall revert to the Grantors. At the request and sole expense of any Grantor following any such
termination, the Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

          (b) If any of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor in a transaction permitted by the Credit Agreement, then (i) the Liens created hereby on
such collateral shall automatically be released and (ii) the Administrative Agent, at the request
and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created hereby on such
Collateral. In addition, at the request and at the sole expense of the Borrower, the

 

 

27

Administrative Agent agrees to (x) provide to each Grantor a power of attorney to execute any
document reasonably required to permit any sale permitted by the Credit Agreement of any asset, the
perfection of which is governed by a certificate-of-title statute, free of the Liens created by the
Security Documents and (y) with respect to any jurisdiction in which releases executed pursuant to
such power of attorney are insufficient to release such Liens, (1) execute in blank any document
reasonably required to permit any sale permitted by the Credit Agreement of any asset, the
perfection of which is governed by a certificate-of-title statute, free of the Liens created by the
Security Documents and (2) authorize such Grantor to fill in the relevant information to release
such Lien. At the request and sole expense of the Borrower, a Subsidiary Guarantor shall be
released from its obligations hereunder in the event that all the capital stock of such Subsidiary
Guarantor shall be sold, transferred or otherwise disposed of in a transaction
permitted by the Credit Agreement; provided that the Borrower shall have delivered to
the Administrative Agent, at least five Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Subsidiary Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof and any expenses in
connection therewith, together with a certification by the Borrower stating that such transaction
is in compliance with the Credit Agreement and the other Credit Documents.

          8.16. WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

 

          IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement
to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	 	PIKE HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ J. Eric pike
	

	 	 	 	 
	

	 	 	 	Title: President & Chief
Executive Officer
	 
	 	 	 	 
	 	 	PIKE ELECTRIC, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	

	 	 	 	Title: President & Chief
Executive Officer
	 
	 	 	 	 
	 	 	PIKE EQUIPMENT AND SUPPLY COMPANY
	 
	 	 	 	 
	

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	

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

	 	By:	 	/s/ John C. Simpson
	

	 	 	 	 
	

	 	 	 	Title: Chief
Executive Officer
	 
	 	 	 	 
	 	 	AKERMAN FOUNDATION DRILLING, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ John C. Simpson
	

	 	 	 	 
	

	 	 	 	Title: Chief
Executive Officer
	 
	 	 	 	 
	 	 	GILLETTE ELECTRIC CONSTRUCTION, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ John C. Simpson
	

	 	 	 	 
	

	 	 	 	Title: Chief
Executive Officer
	 
	 	 	 	 

 

 

	 	 	 	 	 
	 	 	INDUSTRIAL ELECTRICAL CORPORATION
	 	 	OF TEXAS
	 
	 	 	 	 
	

	 	By:	 	/s/ John C. Simpson
	

	 	 	 	 
	

	 	 	 	Title: Chief
Executive OfficerEX-10.5

 

EXHIBIT 10.5

          FIRST AMENDMENT dated as of December 10, 2004 (the “First Amendment”), to (a) the
Amended and Restated Credit Agreement dated as of July 1, 2004 (the “Credit Agreement”),
among PIKE HOLDINGS, INC. (“Holdings”), PIKE ELECTRIC, INC. (the “Borrower”), the
several banks and other financial institutions from time to time parties thereto (the
“Lenders”), J.P. MORGAN SECURITIES INC., as syndication agent, NATIONAL CITY BANK, as
documentation agent, and BARCLAYS BANK PLC, as administrative agent for the Lenders thereunder (in
such capacity, the “Administrative Agent”) and (b) the Amended and Restated Guarantee and
Collateral Agreement dated as of July 1, 2004 (the “Guarantee and Collateral Agreement”)
made by each of the signatories thereto in favor of the Administrative Agent. All capitalized
terms used herein that are defined in the Credit Agreement and that are not otherwise defined
herein shall have the respective meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H:

          WHEREAS, pursuant to Section 12.12 of the Credit Agreement, the Borrower, with the written
consent of the Required Lenders, may add one or more additional credit facilities to the existing
Facilities;

          WHEREAS, the Borrower has requested that the Lenders agree to amend the Credit Agreement to
add an additional $150,000,000 senior secured term loan facility (the “Tranche C Term
Facility”);

          WHEREAS, the Borrower intends to use the proceeds of the Tranche C Term Facility to (i) pay a
dividend to Holdings to permit Holdings to repurchase Holdings Common Stock and options for
Holdings Common Stock and repurchase shares of the Series A Preferred and (ii) pay related fees and
expenses in connection therewith (collectively, the “Transactions”) and has requested that
the Lenders agree to amend the Credit Agreement to permit the Transactions;

          WHEREAS, the Tranche C Term Loan Lenders (as defined herein) are severally willing to provide
the Tranche C Term Facility on, and subject to, the terms and conditions set forth herein; and

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

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

          SECTION 1.   AMENDMENTS TO THE CREDIT AGREEMENT

     1.1.   Amendment to Table of Contents. The Table of Contents to the Credit Agreement
is hereby amended by amending and restating the reference to Exhibit B-1 in its entirety as
follows: “Form of [Tranche B] [Tranche C] Term Note”.

     1.2.   Amendments to Section 1.1 (Commitment). (a) Section 1.1 of the Credit
Agreement is hereby amended by deleting the phrase “the Term Facility” from the first sentence
thereof and inserting in lieu thereof the phrase “the Tranche B Term Facility, the Tranche C Term
Facility”.

 

 

2

     (b) Section 1.1(a) of the Credit Agreement is hereby amended by deleting such section in its
entirety and substituting in lieu thereof the following new Section 1.1(a):

          (a) Loans under the Tranche B Term Facility (each a “Tranche B Term Loan” and,
collectively, the “Tranche B Term Loans”) were made pursuant to a single borrowing
on the Effective Date. Once repaid, Tranche B Term Loans borrowed on the Effective Date
may not be reborrowed.

     (c) Section 1.1 of the Credit Agreement is hereby amended by inserting the following new
Section 1.1(d) immediately following Section 1.1(c) thereto:

          (d) Loans under the Tranche C Term Facility (each a “Tranche C Term Loan” and,
collectively, the “Tranche C Term Loans”) shall be made pursuant to a single
borrowing on the First Amendment Effective Date. Once repaid, Tranche C Term Loans
borrowed on the First Amendment Effective Date may not be reborrowed.

     1.3.   Amendments to Section 3.3 (Mandatory Adjustments of Commitments, etc.). (a)
Section 3.3(a) of the Credit Agreement is hereby amended by deleting such section in its entirety
and substituting in lieu thereof the words “[Intentionally Omitted.]”.

     (b) Section 3.3(b) of the Credit Agreement is hereby amended by deleting such section in its
entirety and substituting in lieu thereof the following new Section 3.3(b):

          (b) The Tranche C Term Commitment shall terminate in its entirety on the First
Amendment Effective Date (after giving effect to the making of the Tranche C Term Loans on
such date).

     1.4.   Amendment to Section 4.1 (Voluntary Prepayments). Section 4.1 of the Credit
Agreement is hereby amended by inserting immediately following the phrase “shall be applied” in
clause (iv) the phrase “to the Tranche B Term Facility and the Tranche C Term Facility ratably
and”.

     1.5.   Amendments to Section 4.2 (Mandatory Prepayments). (a) Section 4.2(a)(ii) of
the Credit Agreement is hereby amended by (i) renumbering such section as “Section 4.2(a)(ii)(A)”,
(ii) inserting the phrase “Tranche B” immediately preceding the phrase “Term Loans” each time such
phrase appears therein, (iii) inserting the phrase “Tranche B Term Loan” immediately preceding the
phrase “Scheduled Repayment”, (iv) inserting immediately preceding the phrase “Term Facility Final
Maturity Date” the words “Tranche B” and (v) inserting at the end thereof the following new Section
4.2(a)(ii)(B):

          (B) The Borrower shall be required to repay the principal amount of the Tranche C Term
Loans on the last day of March, June, September and December of each year and on the
Tranche C Term Facility Final Maturity Date, commencing March 31, 2005 (each such
repayment, as the same may be reduced as provided in Sections 4.1 and 4.2(b), a
“Tranche C Term Loan Scheduled Repayment”), each such installment on any such date
to be in the amount set forth below opposite such date:

 

 

3

	 	 	 	 	 
	Date	 	Installment Amount
	March 31, 2005

	 	$	375,000	 
	June 30, 2005

	 	$	375,000	 
	September 30, 2005

	 	$	375,000	 
	December 31, 2005

	 	$	375,000	 
	March 31, 2006

	 	$	375,000	 
	June 30, 2006

	 	$	375,000	 
	September 30, 2006

	 	$	375,000	 
	December 31, 2006

	 	$	375,000	 
	March 31, 2007

	 	$	375,000	 
	June 30, 2007

	 	$	375,000	 
	September 30, 2007

	 	$	375,000	 
	December 31, 2007

	 	$	375,000	 
	March 31, 2008

	 	$	375,000	 
	June 30, 2008

	 	$	375,000	 
	September 30, 2008

	 	$	375,000	 
	December 31, 2008

	 	$	375,000	 
	March 31, 2009

	 	$	375,000	 
	June 30, 2009

	 	$	375,000	 
	September 30, 2009

	 	$	375,000	 
	December 31, 2009

	 	$	375,000	 
	March 31, 2010

	 	$	375,000	 
	June 30, 2010

	 	$	375,000	 
	September 30, 2010

	 	$	375,000	 
	December 31, 2010

	 	$	375,000	 
	March 31, 2011

	 	$	375,000	 
	June 30, 2011

	 	$	375,000	 
	September 30, 2011

	 	$	375,000	 
	December 31, 2011

	 	$	375,000	 
	March 31, 2012

	 	$	375,000	 
	June 30, 2012

	 	$	375,000	 
	September 30, 2012

	 	$	375,000	 
	Tranche C Term Facility Final

	 	All amounts outstanding in respect

	Maturity Date

	 	of the Tranche C Term Loans

     (b) Section 4.2(a) of the Credit Agreement is hereby amended by inserting the following new
clause (ix) immediately following clause (viii) thereto:

(ix) On or before April 10, 2005, an amount equal to the excess, if any, of (x)
Tranche C Term Loans made on the First Amendment Effective Date over (y)
the aggregate amount of Tranche C Term Loans used on or prior to such date in
accordance with the terms of Section 8.9(a)(viii) and to pay fees and expenses
incurred in connection therewith, shall be applied as a mandatory repayment of
principal of the then outstanding Tranche C Term Loans; provided, that, (i)
an amount necessary to redeem or repurchase Holdings Common Stock and options for
Holdings Common Stock held by Mick Dubea and Rick Westbrook on the First Amendment
Effective Date (the “Dubea/Westbrook Equity”) (as estimated by the Borrower
in good faith) may be excluded from the foregoing requirement and (ii) on or before
December 31, 2005, an amount equal to the excess, if any,

 

 

4

of (x) the amount withheld pursuant to the foregoing clause (i) over (y)
the portion of such amount used on or prior to such date to effect the redemption
or repurchase of the Dubea/Westbrook Equity, shall be applied as a mandatory
repayment of principal of the then outstanding Tranche C Term Loans.

     (c) Section 4.2(b)(i) of the Credit Agreement is hereby amended and restated in its entirety
as follows:

(i) Each mandatory repayment of Term Loans required to be made pursuant to Sections
4.2(a)(iii), (iv), (v), (vii), (viii) or (ix) shall be applied to the Tranche B
Term Facility and the Tranche C Term Facility ratably (except in the case of
mandatory repayments pursuant to Section 4.2(a)(ix), which shall be applied only to
the repayment of the Tranche C Term Facility) and to the repayment of the then
remaining applicable Scheduled Repayments on a pro rata basis (based upon the then
remaining principal amount of each such Scheduled Repayment). Each mandatory
prepayment of Term Loans required to be made pursuant to Section 4.2(a)(vi) shall
be applied to the repayment of the then remaining applicable Scheduled Repayments
in the direct order of maturity.

     1.6.   Amendment to Section 6.5 (Use of Proceeds; Margin Regulations). Section 6.5(a)
of the Credit Agreement is hereby amended by (a) inserting the phrase “Tranche B” immediately
before the phrase “Term Loans” each time such phrase appears therein and (b) inserting the
following sentence at the end of such section: “The proceeds of the Tranche C Term Loans shall be
utilized by the Borrower (i) to pay a dividend to Holdings to permit Holdings to, and Holdings may,
in accordance with Section 8.9(a)(viii), (A) redeem or repurchase shares of the Series A Preferred
and (B) redeem or repurchase Holdings Common Stock and options for Holdings Common Stock and make
payments for partial cancellation of options for Holdings Common Stock and (ii) to pay related fees
and expenses of up to $2,500,000 in connection therewith.

     1.7.   Amendment to Section 7.13 (Interest Rate Agreements). Section 7.13 of the
Credit Agreement is hereby amended by (a) and inserting the phrase “Tranche B” immediately before
the phrase “Term Loans” and (b) inserting the following sentence at the end thereof: “The Borrower
shall no later than 180 days following the First Amendment Effective Date enter into Interest Rate
Agreements, reasonably acceptable to the Administrative Agent, establishing a fixed or maximum
interest rate in respect of at least 35% of the aggregate principal amount of Tranche C Term Loans
for a period of at least two years or any shorter period which shall be satisfactory to the
Administrative Agent.”.

     1.8.   Amendment to Section 8.6 (Advances, Investments and Loans). Section 8.6(k) of
the Credit Agreement is hereby amended by (a) deleting the word “and” immediately following the
phrase “(vi)” and inserting in lieu thereof a comma and (b) inserting the phrase “ and (viii)”
immediately following the phrase “(vii)”.

     1.9.   Amendment to Section 8.9 (Dividends, etc.). Section 8.9(a) of the Credit
Agreement is hereby amended by (a) deleting the phrase “2004 Employee Stock Purchase Plan” and
inserting in lieu thereof the phrase “2005 Employee Stock Purchase Plan” each time such phrase
appears therein, (b) deleting the word “and” at the end of clause (vi) thereto, (c) deleting the
period at the end of clause (vii) thereto and inserting in lieu thereof a semicolon and (d)
inserting the following new clause (viii) immediately following clause (vii) thereto:

 

 

5

          (viii) on or before April 10, 2005, the Borrower may pay a dividend in one or more
installments to Holdings in an amount not in excess of the Tranche C Term Loans to permit
Holdings to, and Holdings may (A) in addition to the Series A Preferred purchased pursuant
to Sections 8.9(a)(ii), (iv) and (vii), at any time in accordance with the terms of the
Series A Preferred, redeem or repurchase shares of the Series A Preferred in an aggregate
amount expended subsequent to the First Amendment Effective Date not exceeding $20,000,000
and (B) redeem or repurchase Holdings Common Stock and options for Holdings Common Stock
and make payments for partial cancellation of options for Holdings Common Stock in an
aggregate amount expended subsequent to the First Amendment Effective Date, under this
clause (B), not exceeding $127,500,000.

     1.10.   Amendment to Section 8.10 (Transactions with Affiliates). Section 8.10 of the
Credit Agreement is hereby amended by (a) deleting the word “and” at the end of clause (vi) thereto
and inserting in lieu thereof a comma and (b) inserting the following new clause (viii) immediately
following clause (vii) thereto: “and (viii) transactions permitted by Section 8.6(k)”.

     1.11.   Amendment to Section 8.14 (Leverage Ratio). Section 8.14 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

               8.14 Leverage Ratio. Holdings will not permit the Leverage Ratio at the end of any
Test Period ending on or about any date set forth below to be more than the ratio set forth
opposite such date:

	 	 	 
	Fiscal Quarter End Date	 	Leverage Ratio
	December 31, 2004

	 	4.75 to 1.00
	March 31, 2005

	 	4.75 to 1.00
	June 30, 2005

	 	4.75 to 1.00
	September 30, 2005

	 	4.75 to 1.00
	December 31, 2005

	 	4.75 to 1.00
	March 31, 2006

	 	4.75 to 1.00
	June 30, 2006

	 	4.50 to 1.00
	September 30, 2006

	 	4.50 to 1.00
	December 31, 2006

	 	4.50 to 1.00
	March 31, 2007

	 	4.50 to 1.00
	June 30, 2007

	 	4.25 to 1.00
	September 30, 2007

	 	4.25 to 1.00
	December 31, 2007

	 	4.25 to 1.00
	March 31, 2008

	 	4.25 to 1.00
	June 30, 2008

	 	3.75 to 1.00
	September 30, 2008

	 	3.75 to 1.00
	December 31, 2008

	 	3.75 to 1.00
	March 31, 2009

	 	3.75 to 1.00
	June 30, 2009

	 	3.25 to 1.00
	September 30, 2009

	 	3.25 to 1.00
	December 31, 2009

	 	3.25 to 1.00
	March 31, 2010

	 	3.25 to 1.00
	June 30, 2010

	 	3.00 to 1.00
	September 30, 2010

	 	3.00 to 1.00
	December 31, 2010

	 	3.00 to 1.00
	March 31, 2011

	 	3.00 to 1.00

 

 

6

	 	 	 
	Fiscal Quarter End Date	 	Leverage Ratio
	June 30, 2011

	 	2.50 to 1.00
	September 30, 2011

	 	2.50 to 1.00
	December 31, 2011

	 	2.50 to 1.00
	March 31, 2012

	 	2.50 to 1.00
	June 30, 2012 and thereafter

	 	2.25 to 1.00

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

          “Adjustment Date” shall be as defined in the Pricing Grid.

          “First Amendment” shall mean the First Amendment, dated as of December 10,
2004, to the Credit Agreement.

“First Amendment Effective Date”: the date upon which all conditions precedent
specified in Section 4 of the First Amendment shall have been satisfied, which date is
December 10, 2004.

          “Tranche B Term Loan” shall have the meaning provided in Section 1.1(a).

“Tranche B Term Commitment” shall mean, with respect to each Lender, the
amount set forth opposite such Lender’s name in Annex 1.1A hereto directly below the column
entitled “Tranche B Term Loan Commitment”, pursuant to which such Lenders made Tranche B
Term Loans on the Effective Date.

          “Tranche B Term Facility” shall mean the Facility evidenced by the Tranche B
Term Commitments.

          “Tranche B Term Facility Final Maturity Date” shall mean the date which is the
eighth anniversary of the Effective Date.

          “Tranche B Term Loan Scheduled Repayment” shall have the meaning provided in
Section 4.2(a)(ii).

          “Tranche C Term Loan” shall have the meaning provided in Section 1.1(d).

“Tranche C Term Commitment” shall mean, with respect to each Lender, the
amount set forth opposite such Lender’s name in Annex 1.1A hereto directly below the column
entitled “Tranche C Term Commitment”, as the same may be reduced or terminated pursuant to
Section 3.3.

          “Tranche C Term Facility” shall mean the Facility evidenced by the Tranche C
Term Commitments.

“Tranche C Term Facility Final Maturity Date” shall mean the date which is the
eighth anniversary of the First Amendment Effective Date.

          “Tranche C Term Loan Scheduled Repayment” shall have the meaning provided in
Section 4.2(a)(ii)(B).

 

 

7

     (b) Section 10 of the Credit Agreement is hereby further amended by deleting the defined terms
“Applicable Margin,” “Facility,” “Final Maturity Date,” “Pricing Grid,” “Scheduled Repayment,”
“Term Commitment”, “Term Facility” and “Term Loan” and substituting in lieu thereof the following
new definitions in the appropriate alphabetical order:

“Applicable Margin” shall mean, for each Type and category of Loan, the rate
per annum set forth under the relevant column heading and opposite the relevant category
below:

	 	 	 	 	 	 	 	 	 
	 	 	ABR Loan	 	 	Eurodollar Loans	 
	Tranche B Term Loans
	 	 	1.25	%	 	 	2.25	%
	Tranche C Term Loans
	 	 	1.25	%	 	 	2.25	%
	Revolving Loans
	 	 	1.50	%	 	 	2.50	%
	Swingline Loans
	 	 	1.50	%	 	 	—	 

; provided, that (x) commencing with the date of delivery of financial statements
pursuant to Section 7.1(b) for the fiscal quarter of the Borrower ended December 31, 2004,
the Applicable Margin for Tranche B Term Loans, Revolving Loans and Swingline Loans for any
day shall be calculated in accordance with the Pricing Grid and (y) on and after the first
Adjustment Date occurring after the completion of two full fiscal quarters of the Borrower
after the First Amendment Effective Date, the Applicable Margin for Tranche C Term Loans
shall be calculated in accordance with the Pricing Grid.

          “Facility” shall mean any of the credit facilities established under this
Agreement, i.e., the Tranche B Term Facility, the Tranche C Term Facility, the
Revolving Facility or the Swingline Facility.

          “Final Maturity Date” shall mean the collective reference to the Tranche B
Term Facility Final Maturity Date, the Tranche C Term Facility Final Maturity Date and the
Revolving Facility Final Maturity Date.

          “Pricing Grid” shall mean the table set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Margin for	 	 	 	Applicable Margin for	 	 
	 	 	 	 	Eurodollar Loans	 	 	 	ABR Loans	 
	 	Leverage Ratio	 	 	Revolving
 Loans	 	 	 	Tranche
 B Term
 Loans	 	 	 	Tranche 
C Term
 Loans	 	 	 	Revolving
 Loans and
Swingline
 Loans	 	 	 	Tranche
 B Term 
Loans	 	 	 	Tranche 
C Term 
Loans	 	 
	 	Greater than 2.75x
	 	 	 	2.50	%	 	 	 	2.25	%	 	 	 	2.25	%	 	 	 	1.50	%	 	 	 	1.25	%	 	 	 	1.25	%	 
	 	Less than or equal
to 2.75x but
greater than or
equal to 2.50x
	 	 	 	2.25	%	 	 	 	2.00	%	 	 	 	2.00	%	 	 	 	1.25	%	 	 	 	1.00	%	 	 	 	1.00	%	 
	 	Less than 2.50x
	 	 	 	2.00	%	 	 	 	2.00	%	 	 	 	2.00	%	 	 	 	1.00	%	 	 	 	1.00	%	 	 	 	1.00	%	 
	 

 

 

8

          For the purposes of the Pricing Grid, changes in the Applicable Margin resulting from
changes in the Leverage Ratio shall become effective on the date (the “Adjustment
Date”) that is three Business Days after the date on which financial statements are
delivered to the Lenders pursuant to Section 7.1 and shall remain in effect until the next
change to be effected pursuant to this paragraph. If any financial statements referred to
above are not delivered within the time periods specified in Section 7.1, then, until the
date that is three Business Days after the date on which such financial statements are
delivered, the highest rate set forth in each column of the Pricing Grid shall apply. In
addition, at all times while an Event of Default shall have occurred and be continuing, the
highest rate set forth in each column of the Pricing Grid shall apply. Each determination
of the Leverage Ratio pursuant to the Pricing Grid shall be made in a manner consistent
with the determination thereof pursuant to Section 8.14.

          “Scheduled Repayment” shall mean the Tranche B Term Loan Scheduled Repayment
or the Tranche C Term Loan Scheduled Repayment, as applicable.

          “Term Commitment” shall mean, with respect to each Lender, the sum of such
Lender’s Tranche B Term Commitment and Tranche C Term Commitment.

          “Term Facilities” shall be a collective reference to the Tranche B Term
Facility and the Tranche C Term Facility.

          “Term Loans” shall be a collective reference to Tranche B Term Loans and
Tranche C Term Loans.

     (c) The definition of “Consolidated EBITDA” set forth in Section 10 of the Credit Agreement is
hereby amended by (i) deleting the word “and” immediately following clause (x) thereof and
inserting in lieu thereof a comma and (ii) inserting immediately following clause (xi)
thereof the phrase “, (xii) any expense due to any Deferred Compensation Liability during such
period to the extent that such expense is included in the income statement of Holdings and its
Subsidiaries for such period and (xiii) non-cash charges related to or caused by the Pike Holdings
2005 Employee Stock Purchase Plan”. The definition of “Consolidated EBITDA” is hereby further
amended by amending and restating the second full paragraph thereof in its entirety as follows:

          Notwithstanding the foregoing, for purposes of calculating the Cash Interest Coverage
Ratio and the Leverage Ratio (a) Consolidated EBITDA shall be deemed to be $1,000,000
greater for each quarter ended during the period beginning on September 30, 2003 through
and including June 30, 2004 (reflecting, without duplication, expenses included in the
determination of Consolidated EBITDA above) and (b) as of the last day of any fiscal
quarter in any Test Period occurring during the twelve consecutive months following the
Acquisition or a Permitted Business Acquisition, Consolidated EBITDA shall be calculated
for the relevant Test Period as if (i) the Acquisition or such Permitted Business
Acquisition, as the case may be, had been consummated and (ii) the cost savings expected,
in the good faith judgment of the management of Holdings at such time, had been achieved,
in each case, on the first day of such Test Period. In addition, it is understood and
agreed that for purposes of calculating the Cash Interest Coverage Ratio and the Leverage
Ratio for any period including the quarter ended September 30,

 

 

10

     2004, Consolidated EBITDA for the quarter ended September 30, 2004 shall be deemed to
be $33,600,000.

     (d) The definition of “Indebtedness” set forth in Section 10 of the Credit Agreement is hereby
amended by deleting the phrase “2004 Employee Stock Purchase Plan” and inserting in lieu thereof
the phrase “2005 Employee Stock Purchase Plan”.

     (e) Section 10 of the Credit Agreement is hereby further amended by deleting the defined term
“Term Facility Final Maturity Date” in its entirety.

     1.13.   Amendment to Section 12.12 (Amendment or Waiver). Section 12.12 of the Credit
Agreement is hereby amended by (a) deleting the phrase “Term Facility” and inserting in lieu
thereof the phrase “Term Facilities” in the second full paragraph thereof and (b) inserting the
phrase “or of all Tranche B Term Loans or of all Tranche C Term Loans” immediately following the
phrase “to permit the refinancing or modification of all outstanding Term Loans” in the third full
paragraph thereof.

     1.14.   Amendment to Annex 1.1A. Annex 1.1A to the Credit Agreement is hereby amended
by supplementing such Annex with the information contained in Annex 1 hereto.

     1.15.   Amendment to Exhibit B-1. Exhibit B-1 is hereby amended and restated in its
entirety in the form attached as Annex 2 hereto.

SECTION 2.   AMENDMENT TO THE GUARANTEE AND COLLATERAL AGREEMENT

     2.1.   Section 1.2 of the Guarantee and Collateral Agreement is hereby amended by inserting
the following new paragraph (d) in the appropriate alphabetical order:

          (d) Where the context requires, any affiliate of a Lender which is a party to a
Specified Hedge Agreement shall be deemed to be a “Lender” for the purposes of this
Agreement.

SECTION 3.   JOINDER

          From and after the First Amendment Effective Date, pursuant to Section 12.12 of the Credit
Agreement, each Tranche C Term Loan Lender executing and delivering a signature page to this First
Amendment, shall become a party to the Credit Agreement and have the rights and obligations of a
Lender thereunder and under the other Credit Documents and shall be bound by the other provisions
thereof.

SECTION 4.   CONDITIONS PRECEDENT

          This Amendment shall become effective upon the satisfaction of the following conditions
precedent (the “First Amendment Effective Date”):

     4.1.   Amendment. The Administrative Agent shall have received counterparts of this
Amendment duly executed as of the date hereof by Holdings, the Borrower, the Required Lenders (as
defined in the Credit Agreement prior to giving effect to this Amendment) and each Tranche C Term
Loan Lender.

 

 

10

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

     4.3.   Mortgages, etc. (a) The Administrative Agent shall have received a Mortgage
Amendment, substantially in the form of Exhibit B hereto, with respect to each Mortgaged Property,
executed and delivered by a duly authorized officer of each party thereto.

     (b) In respect of each existing policy of title insurance issued to the Administrative Agent
in respect of the Mortgaged Properties as of the Effective Date (the “Existing Title
Policies”), an endorsement or endorsements (collectively, the “Endorsements”) or marked
up unconditional binder for the issuance of such Endorsements dated on or about the First Amendment
Effective Date. Each of the Endorsements shall modify the relevant Existing Title Policy to (A)
insure that each Mortgage (as amended) insured thereby continues to be a valid first Lien on the
relevant Mortgaged Property encumbered thereby free and clear of all defects and encumbrances,
except those permitted by Section 8.3 and as disclosed therein; (B) name the Administrative Agent
for the benefit of the Lenders (as defined in the Guarantee and Collateral Agreement) as the
insured thereunder; and (C) be in form and substance reasonably satisfactory to the Administrative
Agent. The Administrative Agent shall have received evidence reasonably satisfactory to it that
all premiums in respect of each of the Endorsements, and all charges for mortgage recording tax and
all related expenses, if any, have been paid. The Administrative Agent shall have also received a
copy of all recorded documents referred to, or listed as exceptions to title in, the Endorsements
referred to in this subsection and a copy of all other documents affecting the Mortgaged Property
encumbered by the Mortgages (as amended) as shall have been reasonably requested by the
Administrative Agent.

     (c) The Administrative Agent shall have received an Aircraft Mortgage Amendment, substantially
in the form of Exhibit C hereto, with respect to the Aircraft Mortgage, executed and delivered by a
duly authorized officer of each party thereto.

     4.4.   Fees. The Lenders, the Administrative Agent and the Arrangers shall have
received all fees required to be paid by the Borrower or its affiliates, and all expenses required
to be reimbursed by the Borrower or its affiliates for which invoices have been presented, on or
before the First Amendment Effective Date. All such amounts will be paid with proceeds of Tranche
C Term Loans made on the First Amendment Effective Date and will be reflected in the funding
instructions given by the Borrower to the Administrative Agent on or before the First Amendment
Effective Date.

     4.5.   Financial Statements. The Arrangers shall have received a pro
forma consolidated balance sheet of Holdings as of September 30, 2004 (the “Pro Forma
Balance Sheet”), adjusted to give effect to the consummation of the Transactions and the
financings contemplated hereby as if such transactions had occurred on such date.

     4.6.   Legal Opinions. The Administrative Agent shall have received the following
executed legal opinions:

     (a) the executed legal opinion of Cravath, Swaine & Moore LLP, special New York counsel to
Holdings and the Borrower, reasonably satisfactory in form and substance to the Administrative
Agent in all respects;

 

 

11

     (b) the executed legal opinion of Bell Davis & Pitt, North Carolina counsel to the Credit
Parties, reasonably satisfactory in form and substance to the Administrative Agent in all respects;
and

     (c) the executed legal opinion of local counsel to the Credit Parties in Georgia and of
special FAA counsel, reasonably satisfactory in form and substance to the Administrative Agent in
all respects.

     4.7.   Closing Certificates. The Administrative shall have received closing
certificates (including all attachments thereto) of the Credit Parties substantially in the form of
Exhibit E to the Credit Agreement.

     4.8.   Prepayment of Tranche B Term Loans. The Borrower shall have prepaid the
Tranche B Term Loans in accordance with Section 4.1 of the Credit Agreement (together with accrued
interest on the amount prepaid in accordance with Section 1.8(d) of the Credit Agreement) such that
the aggregate principal amount of the outstanding Tranche B Term Loans on the First Amendment
Effective Date does not exceed $260,000,000.

     4.9.   PATRIOT Act. Each Tranche C Term Loan Lender shall have received all
documentation and other information required by bank regulatory authorities under applicable
“know-your-customer” and anti-money laundering rules and regulations, including, without
limitation, the United States PATRIOT Act, to the extent reasonably requested through the
Administrative Agent within a reasonable period of time prior to the First Amendment Effective
Date.

SECTION 5.   REPRESENTATIONS AND WARRANTIES.

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

     5.1.   Each Credit Party has the corporate power and authority, and the legal right, to make
and deliver this First Amendment and the Acknowledgment and Consent (the “Amendment
Documents”) to which it is a party, to perform its obligations under the Credit Agreement, as
amended hereby (the “Amended Credit Agreement”) and, in the case of the Borrower, to borrow
under the Amended Credit Agreement. Each Credit Party has taken all necessary corporate or other
action to authorize the execution, delivery and performance of the Amendment Documents to which it
is a party, the performance of the Amended Credit Agreement and, in the case of the Borrower, to
authorize the borrowings on the terms and conditions of the Amended Credit Agreement. No consent
or authorization of, filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the Amendment Documents, the
borrowings under the Amended Credit Agreement or the execution, delivery, performance, validity or
enforceability of this Amendment, the Acknowledgment and Consent or the Amended Credit Agreement,
except (i) consents, authorizations, filings and notices which have been obtained or made and are
in full force and effect and (ii) the filings referred to in Section 6.6 of the Credit Agreement.
Each Amendment Document has been duly executed and delivered on behalf of each Credit Party that is
a party thereto. Each Amendment Document and the Amended Credit Agreement constitutes a legal,
valid and binding obligation of each Credit Party that is a party thereto, enforceable against each
such Credit Party in accordance with its

 

 

12

terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally
and by general equitable principles (whether enforcement is sought by proceedings in equity or at
law).

     5.2.   The execution, delivery and performance of the Amendment Documents, the performance of
the Amended Credit Agreement, the borrowings under the Amended Credit Agreement and the use of the
proceeds thereof will not violate any Requirement of Law or any contractual obligation of Holdings
or any of its Subsidiaries and will not result in, or require, the creation or imposition of any
Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any
such contractual obligation (other than the Liens created by the Security Documents).

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

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

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

     5.6.   The Pro Forma Balance Sheet presents a good faith estimate of the consolidated
pro forma financial condition of Holdings and its Subsidiaries as of such date
(after giving effect to the Transactions and the Tranche C Term Loans).

SECTION 6.   MISCELLANEOUS.

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

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

     6.3.   Continuing Effect. Except as expressly amended hereby, the Credit Agreement
and the other Credit Documents shall continue to be and shall remain in full force and effect in
accordance with their terms. This First Amendment shall not constitute an amendment or waiver of
any provision of the Credit Agreement or the other Credit Documents not expressly referred to
herein and shall not be construed as an amendment, waiver or consent to any action on the part of
the Borrower that would require an amendment, waiver or consent of the Administrative Agent,

 

 

13

the Lenders or the Tranche C Term Loan Lenders except as expressly stated herein. Any
reference to the “Credit Agreement” in the Credit Documents or any related documents shall be
deemed to be a reference to the Credit Agreement as amended by this First Amendment.

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

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

 

 

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

	 	 	 	 	 
	 	 	PIKE HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	

	 	 	 	Name: J. Eric Pike

Title: President & CEO
	 
	 	 	 	 
	 	 	PIKE ELECTRIC, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ J. Eric Pike
	

	 	 	 	 
	

	 	 	 	Name: J. Eric Pike

Title: President & CEO

First Amendment

 

 

	 	 	 	 	 
	 	 	BARCLAYS BANK PLC,

as Administrative Agent
	 
	 	 	 	 
	

	 	By:	 	/s/ David Barton
	

	 	 	 	 
	

	 	 	 	Name: David Barton
	

	 	 	 	Title: Manager

First Amendment

 

 

	 	 	 	 	 
	 	 	JPMorgan Chase Bank,
N. A.
	 	 	 
	 	 	as a Lender
	 
	 	 	 	 
	

	 	By:	 	/s/ Michael J. De Forge
	

	 	 	 	 
	

	 	 	 	Name: Michael J. De Forge
	

	 	 	 	
Title: Vice President

First Amendment

 

Annex 1

COMMITMENTS AND ADDRESSES

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Lender	 	 	Tranche C Term Commitment	 	 
	 	 	 	 	 	 
	 	Barclays Bank PLC
	 	 	 	 	 	 
	 	200 Park Avenue, 4th Floor
	 	 	 	 	 	 
	 	New York, New York 10166
	 	 	 	 	 	 
	 	Attn: Dhuane Stephens
	 	 	 	 	 	 
	 	Tel: (212) 412 6881
	 	 	 	 	 	 
	 	Fax: (212) 412 2441
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	JPMorgan Chase Bank, N.A.
	 	 	 	 	 	 
	 	270 Park Avenue
	 	 	 	 	 	 
	 	New York, New York 10017
	 	 	 	 	 	 
	 	Attn: Gary L. Spevack
	 	 	 	 	 	 
	 	Tel:
(212) 270-5964
	 	 	 	 	 	 
	 	Fax:
(212) 270-1063
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Total
	 	 	$	150,000,000	 	 
	 	 	 	 	 	 

 

 

Annex 2

EXHIBIT B-1

[FORM OF [TRANCHE B] [TRANCHE C] TERM NOTE]

			
	$                                         
	 	New York, New York

December __, 2004

          FOR VALUE RECEIVED, PIKE ELECTRIC, INC., a North Carolina corporation (the
“Borrower”), hereby promises to pay to                                          (the “Lender”), in
lawful money of the United States of America in immediately available funds, at the office of
Barclays Bank PLC (the “Administrative Agent”) located at 200 Park Avenue, New York, New
York 10166, on the [Tranche B] [Tranche C] Term Facility Final Maturity Date (as defined in the
Credit Agreement referred to below) the principal sum of                                          DOLLARS
($                     ) or, if less, the then unpaid principal amount of all [Tranche B] [Tranche C] Term
Loans (as defined in the Credit Agreement) made by the Lender pursuant to the Credit Agreement.

          The Borrower promises also to pay interest on the unpaid principal amount of each [Tranche B]
[Tranche C] Term Loan made by the Lender in like money at said office from the date hereof until
paid at the rates and at the times provided in Section 1.8 of the Credit Agreement.

          This Note is one of the Notes referred to in the Amended and Restated Credit Agreement, dated
as of July 1, 2004, among Pike Holdings, Inc., a North Carolina corporation, the Borrower, the
lending and other financial institutions from time to time party thereto (including the Lender),
and Barclays Bank PLC, as Administrative Agent (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), and is entitled to the benefits thereof and of the
other Credit Documents (as defined in the Credit Agreement). As provided in the Credit Agreement,
this Note is subject to voluntary and mandatory repayment prior to the [Tranche B] [Tranche C] Term
Facility Final Maturity Date, in whole or in part.

          In case an Event of Default (as defined in the Credit Agreement) shall occur and be
continuing, the principal of and accrued interest on this Note may be declared to be due and
payable in the manner and with the effect provided in the Credit Agreement.

          The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

 

 

          THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	 	PIKE ELECTRIC, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Title:

Tranche C Term Note

 

 

EXHIBIT A

ACKNOWLEDGMENT AND CONSENT

          Reference is hereby made to the First Amendment dated as of December 10, 2004 (the “First
Amendment”) to (a) the Amended and Restated Credit Agreement dated as of July 1, 2004 (the
“Credit Agreement”; terms defined in the Credit Agreement being used in this
Acknowledgement and Consent with the meanings given to such terms in the Credit Agreement) among
PIKE HOLDINGS, INC. (“Holdings”), PIKE ELECTRIC, INC. (the “Borrower”), the several
banks and other financial institutions from time to time parties thereto (the “Lenders”),
J.P. MORGAN SECURITIES INC., as syndication agent, NATIONAL CITY BANK, as documentation agent, and
BARCLAYS BANK PLC, as administrative agent for the Lenders thereunder (in such capacity, the
“Administrative Agent”) and (b) the Amended and Restated Guarantee and Collateral Agreement
dated as of July 1, 2004 (the “Guarantee and Collateral Agreement”) made by each of the
signatories thereto in favor of the Administrative Agent. Each of the undersigned parties to the
Guarantee and Collateral Agreement and/or any Security Document, in each case as amended,
supplemented or otherwise modified from time to time, hereby (a) consents to the First Amendment
and the transactions contemplated thereby and (b) acknowledges and agrees that the guarantees and
grants of security interests contained in the Guarantee and Collateral Agreement and the Security
Documents are, and shall remain, in full force and effect after giving effect to the First
Amendment.

	 	 	 	 	 
	 	 	PIKE EQUIPMENT AND SUPPLY COMPANY
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

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

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	AKERMAN FOUNDATION DRILLING, INC.
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	GILLETTE ELECTRIC CONSTRUCTION, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Title:

Acknowledgment and Consent to First Amendment

 

 

	 	 	 	 	 
	 	 	INDUSTRIAL ELECTRICAL CORPORATION OF TEXAS
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Title:

Acknowledgment and Consent to First Amendment

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