Document:

Exihibit
10.6

 

Execution
Copy

 

 

AMENDED AND
RESTATED CREDIT AGREEMENT

 

among

 

INFRASOURCE
SERVICES, INC.,

 

INFRASOURCE INCORPORATED,

 

as Borrower,

 

The Several
Lenders from Time to Time Parties Hereto,

 

LASALLE BANK NATIONAL ASSOCIATION,

 

as Syndication
Agent,

 

and

 

BARCLAYS BANK PLC,

 

as
Administrative Agent

 

Dated as of May 12, 2004

 

 

 

BARCLAYS
CAPITAL, as Lead Arranger and Bookrunner

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
   

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF LOANS AND
  COMMITMENTS

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  Term
  Loans

  	
   

  
	
  2.2

  	
  Repayment
  of Term Loans

  	
   

  
	
  2.3

  	
  Revolving
  Commitments

  	
   

  
	
  2.4

  	
  Procedure
  for Revolving Loan Borrowing

  	
   

  
	
  2.5

  	
  Swingline
  Commitment

  	
   

  
	
  2.6

  	
  Procedure
  for Swingline Borrowing; Refunding of Swingline Loans

  	
   

  
	
  2.7

  	
  Commitment
  Fees, etc.

  	
   

  
	
  2.8

  	
  Termination
  or Reduction of Revolving Commitments

  	
   

  
	
  2.9

  	
  Optional
  Prepayments

  	
   

  
	
  2.10

  	
  Mandatory
  Prepayments and Commitment Reductions

  	
   

  
	
  2.11

  	
  Conversion
  and Continuation Options

  	
   

  
	
  2.12

  	
  Limitations
  on Eurodollar Tranches

  	
   

  
	
  2.13

  	
  Interest
  Rates and Payment Dates

  	
   

  
	
  2.14

  	
  Computation
  of Interest and Fees

  	
   

  
	
  2.15

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
  2.16

  	
  Pro
  Rata Treatment and Payments

  	
   

  
	
  2.17

  	
  Requirements
  of Law

  	
   

  
	
  2.18

  	
  Taxes

  	
   

  
	
  2.19

  	
  Indemnity

  	
   

  
	
  2.20

  	
  Change
  of Lending Office

  	
   

  
	
  2.21

  	
  Replacement
  of Lenders

  	
   

  
	
  2.22

  	
  Prepayment
  Fees

  	
   

  
	
  2.23

  	
  Increase
  of Revolving Commitments

  	
   

  
	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  L/C
  Commitment

  	
   

  
	
  3.2

  	
  Procedure
  for Issuance of Letter of Credit

  	
   

  
	
  3.3

  	
  Fees
  and Other Charges

  	
   

  
	
  3.4

  	
  L/C
  Participations

  	
   

  
	
  3.5

  	
  Reimbursement
  Obligation of the Borrower

  	
   

  
	
  3.6

  	
  Obligations
  Absolute

  	
   

  
	
  3.7

  	
  Letter
  of Credit Payments

  	
   

  
	
  3.8

  	
  Applications

  	
   

  
				

 

 

	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  Financial
  Condition

  	
   

  
	
  4.2

  	
  No
  Change

  	
   

  
	
  4.3

  	
  Existence;
  Compliance with Law

  	
   

  
	
  4.4

  	
  Power;
  Authorization; Enforceable Obligations

  	
   

  
	
  4.5

  	
  No
  Legal Bar

  	
   

  
	
  4.6

  	
  Litigation

  	
   

  
	
  4.7

  	
  No
  Default

  	
   

  
	
  4.8

  	
  Ownership
  of Property; Liens

  	
   

  
	
  4.9

  	
  Intellectual
  Property

  	
   

  
	
  4.10

  	
  Taxes

  	
   

  
	
  4.11

  	
  Federal
  Regulations

  	
   

  
	
  4.12

  	
  Labor
  Matters

  	
   

  
	
  4.13

  	
  ERISA

  	
   

  
	
  4.14

  	
  Investment
  Company Act; Other Regulations

  	
   

  
	
  4.15

  	
  Subsidiaries

  	
   

  
	
  4.16

  	
  Use
  of Proceeds

  	
   

  
	
  4.17

  	
  Environmental
  Matters

  	
   

  
	
  4.18

  	
  Accuracy
  of Information, etc.

  	
   

  
	
  4.19

  	
  Security
  Documents

  	
   

  
	
  4.20

  	
  Solvency

  	
   

  
	
  4.21

  	
  Regulation
  H

  	
   

  
	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  Condition
  to Amendment of Section 8(l)(v) of Existing Credit Agreement

  	
   

  
	
  5.2

  	
  Conditions
  to Effectiveness

  	
   

  
	
  5.3

  	
  Conditions
  to Each Extension of Credit

  	
   

  
	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  
	
  6.1

  	
  Financial
  Statements

  	
   

  
	
  6.2

  	
  Certificates;
  Other Information

  	
   

  
	
  6.3

  	
  Payment
  of Obligations

  	
   

  
	
  6.4

  	
  Maintenance
  of Existence; Compliance

  	
   

  
	
  6.5

  	
  Maintenance
  of Property; Insurance

  	
   

  
	
  6.6

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  
	
  6.7

  	
  Notices

  	
   

  
	
  6.8

  	
  Environmental
  Laws

  	
   

  
	
  6.9

  	
  Interest
  Rate Protection

  	
   

  
	
  6.10

  	
  Additional
  Collateral, etc.

  	
   

  
	
  6.11

  	
  Vehicles

  	
   

  
				

 

 

	
  SECTION 7.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  
	
  7.1

  	
  Financial
  Condition Covenants

  	
   

  
	
  7.2

  	
  Indebtedness

  	
   

  
	
  7.3

  	
  Liens

  	
   

  
	
  7.4

  	
  Fundamental
  Changes

  	
   

  
	
  7.5

  	
  Disposition
  of Property

  	
   

  
	
  7.6

  	
  Restricted
  Payments

  	
   

  
	
  7.7

  	
  Capital
  Expenditures

  	
   

  
	
  7.8

  	
  Investments

  	
   

  
	
  7.9

  	
  Transactions
  with Affiliates

  	
   

  
	
  7.10

  	
  Sales
  and Leasebacks

  	
   

  
	
  7.11

  	
  Swap
  Agreements

  	
   

  
	
  7.12

  	
  Changes
  in Fiscal Periods

  	
   

  
	
  7.13

  	
  Negative
  Pledge Clauses

  	
   

  
	
  7.14

  	
  Clauses
  Restricting Subsidiary Distributions

  	
   

  
	
  7.15

  	
  Lines
  of Business

  	
   

  
	
  7.16

  	
  Amendments
  to Acquisition Documents

  	
   

  
	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  SECTION 9.

  	
  THE AGENTS

  	
   

  
	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
   

  
	
  9.2

  	
  Delegation
  of Duties

  	
   

  
	
  9.3

  	
  Exculpatory
  Provisions

  	
   

  
	
  9.4

  	
  Reliance
  by Administrative Agent

  	
   

  
	
  9.5

  	
  Notice
  of Default

  	
   

  
	
  9.6

  	
  Non-Reliance
  on Agents and Other Lenders

  	
   

  
	
  9.7

  	
  Indemnification

  	
   

  
	
  9.8

  	
  Agent
  in Its Individual Capacity

  	
   

  
	
  9.9

  	
  Successor
  Administrative Agent

  	
   

  
	
  9.10

  	
  Syndication
  Agent

  	
   

  
	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  10.1

  	
  Amendments
  and Waivers

  	
   

  
	
  10.2

  	
  Notices

  	
   

  
	
  10.3

  	
  No
  Waiver; Cumulative Remedies

  	
   

  
	
  10.4

  	
  Survival
  of Representations and Warranties

  	
   

  
	
  10.5

  	
  Payment
  of Expenses and Taxes

  	
   

  
	
  10.6

  	
  Successors
  and Assigns; Participations and Assignments

  	
   

  
	
  10.7

  	
  Adjustments;
  Set-off

  	
   

  
	
  10.8

  	
  Counterparts

  	
   

  
	
  10.9

  	
  Severability

  	
   

  
				

 

 

	
  10.10

  	
  Integration

  	
   

  
	
  10.11

  	
  GOVERNING
  LAW

  	
   

  
	
  10.12

  	
  Submission
  To Jurisdiction; Waivers

  	
   

  
	
  10.13

  	
  Acknowledgements

  	
   

  
	
  10.14

  	
  Releases
  of Guarantees and Liens

  	
   

  
	
  10.15

  	
  Confidentiality

  	
   

  
	
  10.16

  	
  WAIVERS
  OF JURY TRIAL

  	
   

  

 

 

	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  
	
  1.1A

  	
  Revolving
  Commitments

  	
   

  
	
  1.1B

  	
  Mortgaged
  Property

  	
   

  
	
  4.4

  	
  Consents,
  Authorizations, Filings and Notices

  	
   

  
	
  4.5

  	
  Orders
  and Decrees

  	
   

  
	
  4.15

  	
  Subsidiaries

  	
   

  
	
  4.19(a)

  	
  UCC
  Filing Jurisdictions

  	
   

  
	
  4.19(b)

  	
  Mortgage
  Filing Jurisdictions

  	
   

  
	
  7.2(d)

  	
  Existing
  Indebtedness

  	
   

  
	
  7.3(f)

  	
  Existing
  Liens

  	
   

  
	
  7.5(g)

  	
  Disposed
  Property

  	
   

  
	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  
	
  A

  	
  Guarantee
  and Collateral Agreement

  	
   

  
	
  B

  	
  Form of
  Compliance Certificate

  	
   

  
	
  C

  	
  Form of
  Closing Certificate

  	
   

  
	
  D

  	
  Form of
  Mortgage

  	
   

  
	
  E

  	
  Form of
  Assignment and Assumption

  	
   

  
	
  F

  	
  Form of
  Legal Opinion of Skadden, Arps, Slate, Meagher & Flom LLP

  	
   

  
	
  G

  	
  Form of
  Exemption Certificate

  	
   

  
				

 

 

AMENDED AND
RESTATED CREDIT AGREEMENT (as amended, restated, supplemented or otherwise
modified from time to time, this “Agreement”), dated as of May 12, 2004,
among INFRASOURCE SERVICES, INC. (f/k/a Dearborn Holdings Corporation), a
Delaware corporation (“Holdings”), INFRASOURCE INCORPORATED, a Delaware
corporation (the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”),
LASALLE BANK NATIONAL ASSOCIATION, as syndication agent (in such capacity, the “Syndication
Agent”), and BARCLAYS BANK PLC, as administrative agent.

 

WITNESSETH:

 

WHEREAS, the Borrower is a party to the Credit
Agreement, dated as of September 24, 2003 (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 banks and other financial institutions or entities parties
thereto, the Syndication Agent referred to therein and the Administrative
Agent;

 

WHEREAS, Holdings and the Borrower have requested
that the Existing Credit Agreement be amended and restated as provided herein;
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 (as defined below) the Existing Credit
Agreement shall be, and hereby is, amended and restated in its entirety as
follows:

 

SECTION 1.                                DEFINITIONS

 

1.1                                 Defined
Terms.  As used in this Agreement,
the terms listed in this Section 1.1 shall have the respective meanings set
forth in this Section 1.1.

 

“ABR”: 
for any day, a rate per annum 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 Barclays
Bank PLC as its prime rate in effect at its principal office in New York City
(the Prime Rate not being intended to be the lowest rate of interest charged by
Barclays Bank PLC in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

 

“ABR Loans”: 
Loans the rate of interest applicable to which is based upon the ABR.

 

“Acquisition”:  the acquisition by Holdings of the Borrower
and certain businesses and assets of the Borrower from the Seller pursuant to
the Acquisition Documentation.

 

“Acquisition Agreement”:  the Agreement and Plan of Merger, dated as of
June 17, 2003 (as amended pursuant to a letter agreement, dated as of September
24, 2003), among Holdings, Dearborn Merger Sub Inc., the Borrower and the
Seller.

 

 

“Acquisition Documentation”:  collectively, the Acquisition Agreement and
all schedules, exhibits and annexes thereto and all side letters and agreements
affecting the terms thereof or entered into in connection therewith, including,
without limitation, the Volume Agreement.

 

“Adjustment Date”:  as defined in the Pricing Grid.

 

“Administrative Agent”:  Barclays Bank PLC, as the administrative
agent for the Lenders under this Agreement and the other Loan Documents,
together with any of its successors.

 

“Affiliate”: 
as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition,
“control” of a Person means the power, directly or indirectly, either to (a)
vote 10% or more of the securities having ordinary voting power for the
election of directors (or persons performing similar functions) of such Person
or (b) direct or cause the direction of the management and policies of such
Person, whether by contract or otherwise.

 

“Agents”: 
the collective reference to the Syndication Agent and the Administrative
Agent.

 

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to the sum of (a) the aggregate then unpaid principal amount of
such Lender’s Term Loans and (b) the amount of such Lender’s Revolving
Commitment then in effect or, if the Revolving Commitments have been
terminated, the amount of such Lender’s Revolving Extensions of Credit then
outstanding.

 

“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.

 

“Agreement”: 
as defined in the preamble hereto.

 

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

 

	
   

  	
   

  	
  ABR Loans

  	
   

  	
  Eurodollar Loans

  	
   

  
	
  Revolving Loans and Swingline Loans

  	
   

  	
  2.00

  	
  %

  	
  3.00

  	
  %

  
	
  Term Loans

  	
   

  	
  2.00

  	
  %

  	
  3.00

  	
  %;

  

 

provided, that on and
after the first Adjustment Date occurring after the completion of two full
fiscal quarters of the Borrower after the Effective Date, the Applicable Margin
with respect to Term Loans, Revolving Loans and Swingline Loans will be
determined pursuant to the Pricing Grid.

 

“Application”:  an application and agreement, in such form as
the Issuing Lender may specify from time to time, requesting the Issuing Lender
to open one or more Letters of Credit and, subject to Section 3.8, governing
one or more such Letters of Credit.

 

“Approved Fund”:  as defined in Section 10.6(b).

 

“Asset Sale”: 
any Disposition of property or series of related Dispositions of
property (excluding any such Disposition permitted by clause (a), (b), (c),
(d), (e), (f), (h) or, to the extent the Net Cash Proceeds thereof do not
exceed $5,000,000 in the aggregate, (g)) of Section 7.5) that yields gross

 

2

 

proceeds to any Group Member
(valued at the initial principal amount thereof in the case of non-cash
proceeds consisting of notes or other debt securities and valued at fair market
value in the case of other non-cash proceeds) in excess of $75,000.

 

“Assignee”: 
as defined in Section 10.6(b).

 

“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit E.

 

“Available Revolving Commitment”:  as to any Revolving Lender at any time, an
amount equal to the excess, if any, of (a) such Lender’s Revolving Commitment
then in effect minus (b) such Lender’s Revolving Extensions of Credit
then outstanding; provided, that in calculating any Lender’s Revolving
Extensions of Credit for the purpose of determining such Lender’s Available
Revolving Commitment pursuant to Section 2.7(a), the aggregate principal amount
of Swingline Loans then outstanding shall be deemed to be zero.

 

“Benefitted Lender”:  as defined in Section 10.7(a).

 

“Board”: 
the Board of Governors of the Federal Reserve System of the United
States (or any successor).

 

“Bonded Contracts”:  as defined in Section 7.3(s).

 

“Borrower”: 
as defined in the preamble hereto.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the relevant Lenders to make Loans
hereunder.

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar deposits
in the interbank eurodollar market.

 

“Capital
Expenditures”:  for any period, with
respect to any Person, the aggregate of all expenditures by such Person 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) that should be
capitalized under GAAP on a consolidated balance sheet of such Person and its
Subsidiaries.  Notwithstanding the
foregoing, Capital Expenditures shall not include (i) expenditures with Net
Cash Proceeds of substantially concurrent sales or issuances of Capital Stock
to the extent such Net Cash Proceeds are not required to prepay the Loans or
reduce the Revolving Commitments (and are not used for other permitted
purposes), (ii) expenditures with Reinvestment Deferred Amounts, (iii) amounts
expended in connection with Permitted Acquisitions, (iv) equipment or other
property purchased simultaneously or substantially concurrently with the
trade-in of existing equipment or property owned by the Borrower and its
Subsidiaries to the extent of the trade-in credit with respect to the equipment
or property being traded-in, and (v) expenditures made with then available Free
Excess Cash Flow.

 

“Capital Lease Obligations”:  as to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the

 

3

 

amount of such obligations at
any time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

 

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

 

“Cash Equivalents”:  (a) marketable direct obligations issued by,
or unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition; (b)
certificates of deposit, time deposits, eurodollar time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any Lender or by any commercial bank organized under the
laws of the United States or any state thereof having combined capital and
surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least A-1 (or the equivalent) by S&P or P-1 (or the equivalent) by Moody’s,
or carrying an equivalent rating by a nationally recognized rating agency, if
both of the two named rating agencies cease publishing ratings of commercial
paper issuers generally, and maturing within six months from the date of
acquisition; (d) repurchase obligations of any Lender or of any commercial bank
satisfying the requirements of clause (b) of this definition, having a term of
not more than 30 days, with respect to securities issued or fully guaranteed or
insured by the United States government; (e) securities with maturities of one
year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A (or the equivalent) by S&P or A (or
the equivalent) by Moody’s; (f) securities with maturities of six months or
less from the date of acquisition backed by standby letters of credit issued by
any Lender or any commercial bank satisfying the requirements of clause (b) of
this definition; (g) money market mutual or similar funds that invest primarily
in assets satisfying the requirements of clauses (a) through (f) of this
definition; or (h) money market funds that (i) comply with the criteria set
forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended,
(ii) are rated AAA (or the equivalent) by S&P or Aaa (or the equivalent) by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000.  If any asset described in this definition
which constitutes a Cash Equivalent on the date of acquisition thereof by the
Borrower or any Subsidiary thereof shall thereafter cease to satisfy any of the
applicable criteria described above in this definition (the date on which such
cessation shall occur, the “Non-Qualification Date”), such asset shall,
nevertheless, be deemed to constitute a Cash Equivalent until the date which is
thirty days after a Responsible Officer of the Borrower obtains knowledge of
such Non-Qualification Date.

 

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

 

“Collateral”: 
all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

 

“Commitment Fee Rate”:  1⁄2 of 1% per annum.

 

“Commitment Increase Amount”:  as defined in Section 2.23(a).

 

“Commitment Increase Supplement”:  as defined in Section 2.23(c).

 

4

 

“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001 of
ERISA or is part of a group that includes the Borrower and that is treated as a
single employer under Section 414 of the Code.

 

“Compliance Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit B.

 

“Conduit Lender”:  any special purpose corporation organized and
administered by any Lender for the purpose of making Loans otherwise required
to be made by such Lender and designated by such Lender in a written
instrument; provided, that the designation by any Lender of a Conduit
Lender shall not relieve the designating Lender of any of its obligations to
fund a Loan under this Agreement if, for any reason, its Conduit Lender fails
to fund any such Loan, and the designating Lender (and not the Conduit Lender)
shall have the sole right and responsibility to deliver all consents and
waivers required or requested under this Agreement with respect to its Conduit
Lender, and provided, further, that no Conduit Lender shall (a)
be entitled to receive any greater amount pursuant to Section 2.17, 2.18, 2.19
or 10.5 than the designating Lender would have been entitled to receive in
respect of the extensions of credit made by such Conduit Lender or (b) be
deemed to have any Revolving Commitment.

 

“Confidential Information Memorandum”:  the Confidential Information Memorandum dated
April 2004 and furnished to certain Lenders.

 

“Connecticut Mortgage:  the Open-End Mortgage, Security Agreement,
Assignment of Leases and Rents, and Fixture Filing, dated as of September 24,
2003, made by Electric Services, Inc., as mortgagor, in favor of the
Administrative Agent.

 

“Consolidated Adjusted EBITDA”:  for any period, Consolidated Net Income 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 (a) income tax expense, (b) 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), (c)
depreciation and amortization expense, (d) amortization of intangibles
(including, but not limited to, goodwill (including any writedown of goodwill
pursuant to FASB 142)) and organization costs, (e) any extraordinary, unusual
or non-recurring 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), provided, that the amounts referred to in this clause (e)
shall not, in the aggregate, exceed $10,000,000 for any fiscal year of the
Borrower, (f) expenses or fees incurred in connection with the Acquisition, the
IPO and any Permitted Acquisitions, (g) losses or expenses associated with the
extinguishment of Indebtedness, (h) expenses relating to the grant of stock
options or payments or distributions in compliance with Section 7.6(b), (i)
severance costs and one-time retention bonuses payable in connection with the
Acquisition, and (j) for any period that includes any or all of the fiscal
quarters ended March 31, 2003, June 30, 2003 or September 30, 2003, $1,600,000,
$1,600,000 and $1,600,000, respectively, and minus, to the extent
included in the statement of such Consolidated Net Income for such period, the
sum of (i) interest income, (ii) any extraordinary, unusual or non-recurring
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) and (iii)
income tax credits (to the extent not netted from income tax expense), all as
determined on a consolidated basis.  For
the purposes of calculating Consolidated Adjusted EBITDA for any period of four
consecutive fiscal quarters (each, a “Reference Period”), (i) if at any
time during such Reference Period the Borrower or any Subsidiary shall have
made any Material Disposition, the Consolidated Adjusted EBITDA for such
Reference Period shall be reduced by an amount equal to the Consolidated
Adjusted EBITDA (if positive) attributable to the property that is the subject
of such

 

5

 

Material Disposition for such
Reference Period or increased by an amount equal to the Consolidated Adjusted
EBITDA (if negative) attributable thereto for such Reference Period, in each
case calculated as if such Material Disposition occurred on the first day of
such Reference Period and (ii) if during such Reference Period the Borrower or
any Subsidiary shall have made a Material Acquisition, Consolidated Adjusted
EBITDA for such Reference Period shall be calculated after giving pro  forma
effect thereto (including pro forma effect to any Permitted Cost-Savings) as if
such Material Acquisition occurred on the first day of such Reference
Period.  As used in this definition, “Material
Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes assets comprising all or
substantially all of an operating unit of a business or constitutes all or
substantially all of the common stock of a Person and (b) involves the payment
of consideration by the Borrower and its Subsidiaries in excess of $500,000;
and “Material Disposition” means any Disposition of property or series
of related Dispositions of property that yields gross proceeds to the Borrower
or any of its Subsidiaries in excess of $500,000.  Notwithstanding anything contained herein to
the contrary, expenses incurred by Holdings under employment contracts referred
to in Section 7.6(c)(iv) shall, for the purposes of calculating Consolidated
Adjusted EBITDA of the Borrower and its Subsidiaries, be deemed to constitute
expenses of the Borrower.

 

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

 

“Consolidated Current Liabilities”:  at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current
liabilities” (or any like caption) on a consolidated balance sheet of the
Borrower and its Subsidiaries at such date, but excluding (a) the current
portion of any Funded Debt of the Borrower and its Subsidiaries and (b) without
duplication of clause (a) above, all Indebtedness consisting of Revolving Loans
or Swingline Loans to the extent otherwise included therein.

 

“Consolidated Fixed Charge Coverage Ratio”:  for any period, the ratio of (a) Consolidated
Adjusted EBITDA for such period less (i) the aggregate amount actually paid by
the Borrower and its Subsidiaries during such period on account of Capital
Expenditures (excluding the principal amount of Indebtedness incurred in
connection with such expenditures), (ii) taxes paid in cash during such period,
and (iii) any increases in Consolidated Working Capital for such period and
plus any decreases in Consolidated Working Capital during such period to (b)
Consolidated Fixed Charges for such period.

 

“Consolidated Fixed Charges”:  for any period, the sum (without duplication)
of (a) Consolidated Interest Expense for such period, (b) Consolidated Lease
Expense for such period and (c) scheduled payments made during such period on
account of principal of Indebtedness of the Borrower or any of its Subsidiaries
(including scheduled principal payments in respect of the Term Loans).

 

“Consolidated Interest Coverage Ratio”:  for any period, the ratio of (a) Consolidated
Adjusted EBITDA for such period to (b) Consolidated Interest Expense for such
period.

 

“Consolidated Interest
Expense”:  for any period, total cash
interest expense (including that attributable to Capital Lease Obligations) of
the Borrower and its Subsidiaries for such period with respect to all
outstanding Indebtedness of the Borrower and its Subsidiaries (including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing and net costs under Swap Agreements
in respect of interest rates to the extent such net costs are allocable to such
period in accordance with GAAP) minus total cash interest income of the
Borrower and its Subsidiaries for such period, all as determined on a
consolidated basis in accordance with GAAP; for

 

6

 

any four-quarter period that
commences prior to the Original Closing Date, Consolidated Interest Expense
shall be computed for the period (the “Stub Period”) from the first day
of such four-quarter period to (but not including) the Original Closing Date on
the assumption that all Indebtedness incurred on the Original Closing Date was
incurred on the first day of the Stub Period and that the rate of interest
applicable thereto on the Original Closing Date was in effect throughout the
Stub Period.

 

“Consolidated Lease Expense”:  for any period, the aggregate amount of fixed
and contingent rentals payable by the Borrower and its Subsidiaries for such
period with respect to leases of real and personal property, determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated Leverage Ratio”:  as at the last day of any period, the ratio
of (a) Consolidated Total Debt on such day to (b) Consolidated Adjusted EBITDA
for such period.

 

“Consolidated Net Income”:  for any period, the consolidated net income
(or loss) of the Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP; provided that there shall be excluded (a)
the income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries, (b) the income (or deficit) of any Person (other
than a Subsidiary of the Borrower) in which the Borrower or any of its
Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by the Borrower or such Subsidiary in the form of
dividends or similar distributions and (c) the undistributed earnings of any
Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any Contractual Obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary.

 

“Consolidated Total Debt”:  at any date, the aggregate principal amount
of all Indebtedness of the Borrower and its Subsidiaries at such date,
determined on a consolidated basis in accordance with GAAP (excluding (a)
surety bonds (and Guarantee Obligations relating thereto), other than those not
reimbursed by the Borrower or a Subsidiary thereof within five (5) Business
Days of a drawing thereunder and (b) the obligation of the Borrower to pay an
aggregate amount not to exceed $6,000,000 pursuant to the “earnout” provisions
of the Stock Purchase Agreement, dated as of November 15, 2000, among the
Borrower, Blair Park Services, Inc., Sunesys, Inc. and the shareholders named
therein).

 

“Consolidated Working Capital”:  at any date, the excess of Consolidated
Current Assets on such date minus Consolidated Current Liabilities on
such date.

 

“Continuing Directors”:  the directors of Holdings on the Original
Closing Date, after giving effect to the Acquisition and the other transactions
contemplated hereby, and each other director, if, in each case, such other
director’s nomination for election to the board of directors of Holdings is
recommended by a majority of the then Continuing Directors or such other
director receives the vote of the Permitted Investors in his or her election by
the shareholders of Holdings.

 

“Contractual Obligation”:  as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

 

“Control Investment Affiliate”:  as to any Person, any other Person that (a)
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person and (b) is organized by such Person primarily for the
purpose of making equity or debt investments in one or more companies.  For purposes of this definition, “control” of
a Person means the power, directly or indirectly,

 

7

 

to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.

 

“Default”: 
any of the events specified in Section 8, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof (provided that the granting of a Lien permitted hereunder
shall not constitute a Disposition).  The
terms “Dispose” and “Disposed of” shall have correlative
meanings.

 

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

 

“Domestic Subsidiary”:  any Subsidiary of the Borrower organized
under the laws of any jurisdiction within the United States.

 

“ECF Percentage”:  50%; provided, that, with respect to
each fiscal year of the Borrower ending on or after December 31, 2004, the ECF
Percentage shall be reduced to 25% if the Consolidated Leverage Ratio as of the
last day of such fiscal year is not greater than 2.0 to 1.0.

 

“Effective Date”:  the date on which the conditions precedent
set forth in Section 5.2 shall have been satisfied.

 

“Environmental Laws”:  any and all laws, rules, orders, regulations,
statutes, ordinances, codes, decrees, enforceable guidelines, requirements of
any Governmental Authority or other Requirements of Law (including common law)
regulating, governing or imposing liability or standards of conduct for
protection of human health or the environment, or of employee health and safety
insofar as it governs exposure to deleterious or allegedly harmful substances,
as has been, is now, or at any time hereafter is in effect.

 

“Environmental Permits”:  any and all permits, licenses, approvals,
registrations, notifications, exemptions and any other authorization pursuant
to any Environmental Law.

 

“ERISA”: 
the Employee Retirement Income Security Act of 1974, as amended from
time to time.

 

“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurodollar Loan,
the aggregate (without duplication) of the maximum rates (expressed as a
decimal fraction) of reserve requirements in effect on such day (including
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 the
Board) maintained by a member bank of the Federal Reserve System.

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page
3750 of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Base Rate” shall
be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be

 

8

 

selected by the Administrative
Agent or, in the absence of such availability, by reference to the rate at
which the Administrative Agent is offered Dollar deposits at or about 11:00
A.M., New York City time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where its eurodollar and
foreign currency and exchange operations are then being conducted for delivery
on the first day of such Interest Period for the number of days comprised
therein.

 

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

 

“Eurodollar Rate”:  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
1/100th of 1%):

 

	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency Reserve Requirements

  

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
under a particular Facility the then current 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”:  any of the events specified in Section 8, provided
that any requirement for the giving of notice, the lapse of time, or both, has
been satisfied.

 

“Excess Cash Flow”:  for any fiscal year of the Borrower, the
excess, if any, of (a) the sum, without duplication, of (i) Consolidated Net
Income for such fiscal year (or other period), (ii) the amount of all non-cash
charges (including depreciation and amortization) deducted in arriving at such
Consolidated Net Income (excluding any non-cash charge which is reasonably
expected to be paid in cash within 12 months following the date of incurrence
thereof), (iii) decreases in Consolidated Working Capital for such fiscal year
(or other period), and (iv) the aggregate net amount of non-cash loss on the
Disposition of property by the Borrower and its Subsidiaries during such fiscal
year (other than sales of inventory in the ordinary course of business), to the
extent deducted in arriving at such Consolidated Net Income minus (b)
the sum, without duplication, of (i) the amount of all non-cash credits
included in arriving at such Consolidated Net Income, (ii) the aggregate amount
actually paid by the Borrower and its Subsidiaries in cash during such fiscal
year (or other period) on account of Capital Expenditures (excluding the
principal amount of Indebtedness incurred in connection with such
expenditures), (iii) the aggregate amount of all prepayments of Revolving Loans
and Swingline Loans during such fiscal year to the extent accompanying
permanent optional reductions of the Revolving Commitments and all optional
prepayments of Funded Debt of the Borrower and its Subsidiaries (including the
Term Loans and the principal component of Capital Lease Obligations) during
such fiscal year (or other period), (iv) the aggregate amount of all regularly
scheduled principal payments of Funded Debt (including the Term Loans) of the
Borrower and its Subsidiaries made during such fiscal year (or other period)
(other than in respect of any revolving credit facility to the extent there is
not an equivalent permanent reduction in commitments thereunder), (v) 
increases in Consolidated Working Capital for such fiscal year (or other
period), (vi) the aggregate net amount of non-cash gain on the Disposition of
property by the Borrower and its Subsidiaries during such fiscal year (or other
period) (other than sales of inventory in the ordinary course of business), to
the extent included in arriving at such Consolidated Net Income, (vii) the
aggregate amount included in Consolidated Net Income for such fiscal year (or
other period) in respect of any termination payment pursuant to the Volume
Agreement with respect to which a mandatory prepayment is required pursuant to
Section 2.10(d), (viii) distributions paid to Holdings during such fiscal year
(or other period) pursuant to Section 7.6, (ix) amounts paid in respect of
Permitted Acquisitions

 

9

 

(except to the extent financed
with Funded Debt) and (x) the amount of cash (but in no event more than
$5,000,000 per year) expended in respect of Investments permitted under
Section 7.8(m).

 

“Excess Cash Flow Application Date”:  as defined in Section 2.10(c).

 

“Excluded Proceeds”:  as defined in Section 2.10(b).

 

“Facility”: 
each of (a) the Term Loans and (b) the Revolving Commitments and the
extensions of credit made thereunder (the “Revolving Facility”).

 

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

 

“Fee Payment Date”:  (a) the third Business Day following the last
day of each March, June, September and December and (b) the last day of the
Revolving Commitment Period.

 

“Foreign Subsidiary”:  any Subsidiary of the Borrower that is not a
Domestic Subsidiary.

 

“Free Excess Cash Flow”:  for any fiscal year of the Borrower, the
aggregate amount of Excess Cash Flow for all prior fiscal years (or, in the
case of the fiscal year ending December 31, 2003, for the period commencing on
the Original Closing Date and ending on December 31, 2003) of the Borrower not
required to be used to prepay the Term Loans and reduce Revolving Commitments
in accordance with Section 2.10(c), provided that the aggregate
amount of Excess Cash Flow that shall be included in Free Excess Cash Flow
shall in no event exceed $60,000,000 and provided, further, that
the amount of Free Excess Cash Flow available at any time shall be reduced by
the aggregate amount thereof theretofore used for expenditures that would
constitute Capital Expenditures but for clause (v) of the definition of Capital
Expenditures or Investments pursuant to Section 7.8(m)(ii).

 

“Funded Debt”:  as to any Person, all Indebtedness of such
Person that matures more than one year from the date of its creation or matures
within one year from such date but is renewable or extendible, at the option of
such Person, to a date more than one year from such date or arises under a
revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, including
all current maturities and current sinking fund payments in respect of such
Indebtedness whether or not required to be paid within one year from the date
of its creation and, in the case of the Borrower, Indebtedness in respect of
the Loans.

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from time to
time by the Administrative Agent as its funding office by written notice to the
Borrower and the Lenders.

 

“GAAP”: 
generally accepted accounting principles in the United States as in
effect from time to time, except that for purposes of Section 7.1, GAAP shall
be determined on the basis of such principles in effect on the date hereof and
consistent with those used in the preparation of the most recent audited
financial statements referred to in Section 4.1(b).  In the event that any “Accounting Change” (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent agree to enter into negotiations in
order to amend such provisions of this Agreement so as to reflect equitably

 

10

 

such Accounting Changes with
the desired result that the criteria for evaluating the Borrower’s financial
condition shall be the same after such Accounting Changes as if such Accounting
Changes had not been made.  Until such
time as such an amendment shall have been executed and delivered by the
Borrower, the Administrative Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be
calculated or construed as if such Accounting Changes had not occurred.  “Accounting Changes” refers to changes in
accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the SEC.

 

“GFI”: 
GFI Energy Ventures, LLC.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Group Members”:  the collective reference to Holdings, the
Borrower and their respective Subsidiaries.

 

“Guarantee and Collateral Agreement”:  the Guarantee and Collateral Agreement, dated
as of the Original Closing Date, executed and delivered by Holdings, the
Borrower and each Subsidiary Guarantor, substantially in the form of Exhibit A.

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing Person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness (the “primary obligations”) of any
other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including 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 Guarantee
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. 
The amount of any Guarantee 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 Guarantee Obligation
is made and (b) the maximum amount for which such guaranteeing person may be
liable pursuant to the terms of the instrument embodying such Guarantee
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 Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.

 

“Guarantors”: 
the collective reference to Holdings and the Subsidiary Guarantors.

 

“Holdings”: 
as defined in the preamble hereto.

 

11

 

“Immaterial Subsidiary”:  at any time, any Subsidiary of the Borrower
then having assets with a fair market value of less than $1,000,000; provided,
that if the aggregate fair market value of all assets then owned by all
Subsidiaries of the Borrower that would otherwise constitute Immaterial
Subsidiaries shall exceed $10,000,000, only those such Subsidiaries as shall
not then have assets the aggregate fair market value of which is greater than
$10,000,000 and as shall be designated in writing by the Borrower to the
Administrative Agent as Immaterial Subsidiaries shall be deemed to constitute
Immaterial Subsidiaries.

 

“Indebtedness”:  of any Person at any date, 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 current trade payables incurred in the ordinary course of
such Person’s business) to the extent required to be recorded as a liability on
a balance sheet of such Person in accordance with GAAP, (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 Capital Lease Obligations of such Person, (f) all
obligations of such Person, contingent or otherwise, as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds
or similar arrangements (unless cash collateralized with cash and/or Cash
Equivalents in a manner permitted by Section 7.3), (g) the liquidation value of
all mandatorily redeemable preferred Capital Stock of such Person, to the
extent the holder thereof has a right to cause such preferred Capital Stock to
be redeemed by such Person for cash prior to December 31, 2010 (other than as a
result of asset sales and change of control events), (h) all Guarantee
Obligations of such Person in respect of obligations of the kind referred to in
clauses (a) through (g) above, (i) all obligations of the kind referred to in
clauses (a) through (h) above secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by)
any Lien on property (including accounts and contract rights) owned by such
Person, whether or not such Person has assumed or become liable for the payment
of such obligation (other than obligations described in clause (f) above
secured by cash and/or Cash Equivalents), and (j) for the purposes of Section
8(e) only, all obligations of such Person in respect of Swap 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 therefor.

 

“Insolvency”: 
with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

 

“Insolvent”: 
pertaining to a condition of Insolvency.

 

“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
copyrights, copyright licenses, patents, patent licenses, trademarks, trademark
licenses, technology, know-how and processes, 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.

 

“Interest
Payment Date”:  (a) as to any ABR
Loan (other than any Swingline Loan), the last day of each March, June,
September and December to occur while such Loan is outstanding and the final
maturity date of such Loan, (b) as to any Eurodollar Loan having an Interest
Period of three months or less, the last day of such Interest Period, (c) as to
any Eurodollar Loan having an Interest Period longer than three months, each
day that is three months, or a whole multiple thereof, after the first day of
such

 

12

 

Interest Period and the last
day of such Interest Period, (d) as to any Loan (other than any Revolving Loan
that is an ABR Loan and any Swingline Loan), the date of any repayment or
prepayment made in respect thereof and (e) as to any Swingline Loan, the day
that such Loan is required to be repaid.

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, on the date
that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing
provisions relating to Interest Periods are subject to the following:

 

(i)                                     if any Interest Period would otherwise
end on a day that is not a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless the result of such extension would
be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day;

 

(ii)                                  the Borrower may not select an Interest
Period (x) for Revolving Loans that would extend beyond the Revolving
Termination Date or (y) for Term Loans that would extend beyond the date final
payment is due on the Term Loans;

 

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

 

(iv)                              the Borrower shall select Interest
Periods so as not to require a payment or prepayment of any Eurodollar Loan
during an Interest Period for such Loan.

 

“Investments”:  as defined in Section 7.8.

 

“IPO”: 
the initial public offering of the shares of common stock of Holdings.

 

“Issuing Lender”:  LaSalle Bank National Association or any
affiliate thereof, in its capacity as issuer of any Letter of Credit.

 

“L/C Commitment”:  $32,000,000, as such amount may be increased
from time to time in accordance with Section 2.23(d).

 

“L/C Obligations”:  at any time, an amount equal to the sum of
(a) the aggregate then undrawn and unexpired amount of the then outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters of
Credit that have not then been reimbursed pursuant to Section 3.5.

 

“L/C Participants”:  the collective reference to all the Revolving
Lenders other than the Issuing Lender.

 

“Lenders”: 
as defined in the preamble hereto; provided, that unless the
context otherwise requires, each reference herein to the Lenders shall be
deemed to include any Conduit Lender.

 

“Letters of Credit”:  as defined in Section 3.1(a).

 

13

 

“Lien”: 
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or otherwise), charge or other security interest
or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having substantially the
same economic effect as any of the foregoing).

 

“Loan”: 
any loan made by any Lender pursuant to this Agreement.

 

“Loan Documents”:  this Agreement, the Security Documents, the
Notes and any amendment, waiver, supplement or other modification to any of the
foregoing.

 

“Loan Parties”:  each Group Member that is a party to a Loan
Document.

 

“Majority Facility Lenders”:  with respect to either Facility, the holders
of more than 50% of the aggregate unpaid principal amount of the Term Loans or
the Total Revolving Extensions of Credit, as the case may be, outstanding under
such Facility (or, in the case of the Revolving Facility, prior to any
termination of the Revolving Commitments, the holders of more than 50% of the
Total Revolving Commitments).

 

“Maslonka”: 
Maslonka & Associates, Inc., an Arizona corporation.

 

“Maslonka Acquisition”:  the acquisition by the Borrower of all the
issued and outstanding Capital Stock of Maslonka pursuant to an Agreement and
Plan of Merger, dated as of January 16, 2004, among the Borrower, Holdings, MAI
Acquisition, Inc., Maslonka and the sellers named therein.

 

“Material Adverse Effect”:  a material adverse effect on (a) the
business, property, operations or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of this Agreement or any of the other Loan Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

 

“Materials of Environmental Concern”:  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products, asbestos, polychlorinated
biphenyls and urea-formaldehyde insulation, molds, pollutants, contaminants,
radioactivity, radiofrequency radiation or any other radiation associated with
or allegedly associated with the telecommunications business, and any other
substance of any kind that is regulated pursuant to or gives rise to liability
under any applicable Environmental Law.

 

“Moody’s”: 
Moody’s Investors Services Inc.

 

“Mortgaged Properties”:  the real properties listed on Schedule 1.1B,
as to which the Administrative Agent for the benefit of the Secured Parties
shall be granted a Lien pursuant to the Mortgages.

 

“Mortgages”: 
each of the mortgages and deeds of trust made by any Loan Party in favor
of, or for the benefit of, the Administrative Agent for the benefit of the
Secured Parties, substantially in the form of Exhibit D (with such changes
thereto as shall be advisable under the law of the jurisdiction in which such
mortgage or deed of trust is to be recorded).

 

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

 

14

 

“Net Cash Proceeds”:  (a) in connection with any Asset Sale or any
Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents
(including any such proceeds received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment
receivable or otherwise, but only as and when received) of such Asset Sale or
Recovery Event, net of attorneys’ fees, accountants’ fees, investment banking
fees, amounts required to be applied to the repayment of Indebtedness secured
by a Lien permitted hereunder on any asset that is the subject of such Asset
Sale or Recovery Event (other than any Lien pursuant to a Security Document)
and other customary fees, commissions and expenses actually incurred in
connection therewith and net of taxes paid or reasonably estimated to be
payable as a result thereof (after taking into account any available tax
credits or deductions and any tax sharing arrangements), and reserves for
purchase price adjustments and retained liabilities reasonably expected to be
payable by the Borrower and its Subsidiaries within six months of such Asset
Sale, and, solely with respect to any Asset Sale consummated by a Subsidiary,
the pro rata portion of any such proceeds required to be distributed, directly
or indirectly, to holders of the Capital Stock of such Subsidiary (other than
the Borrower or any of its Subsidiaries) and (b) in connection with any
issuance or sale of Capital Stock or any incurrence of Indebtedness, the cash
proceeds received from such issuance or incurrence, net of attorneys’ fees,
investment banking fees, accountants’ fees, underwriting discounts and
commissions and other customary fees and expenses actually incurred in
connection therewith; provided, that Net Cash Proceeds shall not include
any trade-in-credits or purchase price reductions received by the Borrower or
any of its Subsidiaries in connection with an exchange of equipment for
replacement equipment that is the functional equivalent of such exchanged
equipment.

 

“New Lender”: 
as defined in Section 2.23(b).

 

“New Lender Supplement”:  as defined in Section 2.23(b).

 

“Non-Excluded Taxes”:  as defined in Section 2.18(a).

 

“Non-U.S. Lender”:  as defined in Section 2.18(d).

 

“Notes”: 
the collective reference to any promissory note evidencing Loans.

 

“Obligations”:  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 Swap Agreements, 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, out of, or
in connection with, this Agreement, any other Loan Document, the Letters of
Credit, any Specified Swap Agreement or any other document made, delivered or
given in connection herewith or therewith, 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.

 

“OCM”: 
Oaktree Capital Management, LLC.

 

“Offered Increase Amount”:  as defined in Section 2.23(a).

 

“Original Closing Date”:  September 24, 2003.

 

15

 

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

 

“Participant”:  as defined in Section 10.6(c).

 

“PBGC”: 
the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA (or any successor).

 

“Performance Bonds”:  performance bonds posted by the Borrower and
its Subsidiaries in the ordinary course of business.

 

“Permitted
Acquisition”: an acquisition by the Borrower or any of its Wholly Owned
Subsidiaries of (i) all or substantially all of the assets, (ii) the assets
constituting a line of business or (iii) all or substantially all of the
Capital Stock, of any other Person where (a) no Default or Event of Default
shall have occurred and be continuing on the date such Permitted Acquisition is
consummated, before or after giving effect thereto, (b) the business acquired
(or Person acquired) is principally engaged in the same line of business (or a
business reasonably related thereto) as the Borrower and its Subsidiaries, (c)
the Borrower shall be in compliance with the covenants set forth in Section 7.1
on a pro forma basis (calculated for the relevant period set forth in Section
7.1 as of the date of such acquisition as if such acquisition had occurred on
the first day of the relevant period), for the most recent full fiscal quarter
immediately preceding such consummation date for which the relevant financial
information has been delivered pursuant to Section 6.1, (d) the aggregate
consideration paid (excluding amounts financed with the Net Cash Proceeds of a
substantially concurrent issuance of Capital Stock of Holdings or with Capital
Stock of Holdings as consideration therefor, but including the amount of any
Indebtedness or other obligations or liabilities assumed or acquired; provided,
that any earn-out to be paid upon the satisfaction of conditions not obviously
achievable shall not be “consideration paid” until actually earned and paid) in
connection with such Permitted Acquisition, together with the aggregate amount
of such consideration paid in connection with all other Permitted Acquisitions
during the term of this Agreement, shall not be in excess of $60,000,000 and
(e) after giving effect to such Permitted Acquisition, the sum of (i) the then
Available Revolving Commitments plus (ii) the aggregate amount of cash and Cash
Equivalents then held by the Borrower and its Subsidiaries shall be no less
than $15,000,000.

 

“Permitted
Cost-Savings”: in connection with any Permitted Acquisition or Investment,
those demonstrable cost-savings reasonably anticipated by the Borrower as of
any date of determination to be achieved in connection with such Permitted
Acquisition or Investment, as the case may be, for the 12-month period
following the consummation of such Permitted Acquisition or Investment, which cost-savings
shall be estimated by the Borrower on a good faith basis as of each date of
determination prior to the inclusion of the applicable cost-savings in the
calculation of Permitted Cost-Savings and which Permitted Cost-Savings shall
only be permitted hereunder to the extent they are calculated in accordance
with (and would be permitted under) Regulation S-X of the Exchange Act; it is
understood and agreed that, for the avoidance of duplication, no anticipated
cost-savings shall be included in the calculation of Permitted Cost-Savings for
any period to the extent such anticipated cost-savings are otherwise reflected
in Consolidated Adjusted EBITDA for such period by virtue of the achievement of
actual cost-savings that were part of the cost-savings anticipated to be
achieved.

 

“Permitted Investors”:  the collective reference to the Sponsors and
their Control Investment Affiliates.

 

16

 

“Person”: 
an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

 

“Plan”: 
at a particular time, any employee benefit plan that is covered by ERISA
and in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA be
deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pricing Grid”:  the table set forth below.

 

	
  Consolidated

  Leverage Ratio

  	
   

  	
  Applicable Margin for

  Eurodollar Loans that are

  Revolving Loans or

  Swingline Loans

  	
   

  	
  Applicable Margin for

  ABR Loans that are

  Revolving Loans or

  Swingline Loans

  	
   

  	
  Applicable Margin for

  Eurodollar Loans

  that are Term Loans

  	
   

  	
  Applicable Margin

  for ABR Loans that

  are Term Loans

  	
   

  
	
  > 2.50
  to 1.00

  	
   

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  > 2.25
  to 1.00

  but < 2.50 to 1.00

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  > 2.00
  to 1.00

  but < 2.25 to 1.00

  	
   

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  < 2.00 to 1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  

 

For the purposes of the Pricing Grid, changes in the
Applicable Margin resulting from changes in the Consolidated 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 6.1 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 6.1, 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 Consolidated
Leverage Ratio pursuant to the Pricing Grid shall be made in a manner
consistent with the determination thereof pursuant to Section 7.1.

 

“Pro Forma Balance Sheet”:  as defined in Section 4.1(a).

 

“Projections”:  as defined in Section 6.2(c).

 

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of any Group Member.

 

“Refunded Swingline Loans”:  as defined in Section 2.6(b).

 

“Register”: 
as defined in Section 10.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

17

 

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of
Credit.

 

“Reinvestment Deferred Amount”:  with respect to any Reinvestment Event, an
amount equal to the aggregate Net Cash Proceeds received by any Group Member in
connection therewith that are not applied to prepay the Term Loans or reduce
the Revolving Commitments pursuant to Section 2.10(b) as a result of the delivery
of a Reinvestment Notice.

 

“Reinvestment Event”:  any Asset Sale or Recovery Event in respect
of which the Borrower has delivered a Reinvestment Notice.

 

“Reinvestment Notice”:  a written notice executed by a Responsible
Officer stating that no Event of Default has occurred and is continuing and
that the Borrower (directly or indirectly through a Subsidiary) intends and
expects to use an amount equal to all or a specified portion of the Net Cash
Proceeds of an Asset Sale or Recovery Event to acquire or repair assets useful
in its business.

 

“Reinvestment Prepayment Amount”:  with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to
the relevant Reinvestment Prepayment Date to acquire or repair assets useful in
the Borrower’s or its Subsidiaries’ business.

 

“Reinvestment Prepayment Date”:  with respect to any Reinvestment Event, the
earlier of (a) the date occurring twelve months after such Reinvestment Event
and (b) the date on which the Borrower (directly or indirectly through a
Subsidiary) shall have determined not to, or shall have otherwise ceased to,
acquire or repair assets useful in the Borrower’s or its Subsidiaries’ business
with all or any portion of the relevant Reinvestment Deferred Amount.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

 

“Reportable Event”:  any of the events set forth in Section
4043(c) of ERISA, other than those events as to which the thirty day notice
period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of
PBGC Reg. § 4043.

 

“Required Lenders”:  at any time, the holders of more than 50% of
the sum of (a) the aggregate unpaid principal amount of the Term Loans then
outstanding and (b) the Total Revolving Commitments then in effect or, if the
Revolving Commitments have been terminated, the Total Revolving Extensions of
Credit then outstanding.

 

“Requirement of Law”:  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.

 

“Responsible Officer”:  the chief executive officer, president or
chief financial officer or treasurer of the Borrower, but in any event, with
respect to financial matters, the chief financial officer or treasurer of the
Borrower.

 

“Restricted Payments”:  as defined in Section 7.6.

 

18

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make Revolving Loans and participate in Swingline Loans and
Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” opposite such
Lender’s name on Schedule 1.1A or in the Assignment and Assumption pursuant to
which such Lender became a party hereto, as the same may be changed from time
to time pursuant to the terms hereof. 
The amount of the Total Revolving Commitments as of the Effective Date
is $40,000,000.

 

“Revolving Commitment Period”:  the period from and including the Effective
Date to the Revolving Termination Date.

 

“Revolving Extensions of Credit”:  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 L/C Obligations then outstanding and (c) such Lender’s
Revolving Percentage of the aggregate principal amount of Swingline Loans then
outstanding.

 

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

 

“Revolving Loans”:  as defined in Section 2.3(a).

 

“Revolving Percentage”:  as to any Revolving Lender at any time, the
percentage which such Lender’s Revolving Commitment then constitutes of the
Total Revolving Commitments or, at any time after the Revolving Commitments
shall have expired or terminated, the percentage which the aggregate principal
amount of such Lender’s Revolving Loans then outstanding constitutes of the
aggregate principal amount of the Revolving Loans then outstanding, provided,
that, in the event that the Revolving Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the other
outstanding Revolving Extensions of Credit shall be held by the Revolving
Lenders on a comparable basis.

 

“Revolving Termination Date”:  September 24, 2009.

 

“S&P”: 
Standard & Poor’s Ratings Services (a division of McGraw-Hill
Companies, Inc.).

 

“SEC”: 
the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

 

“Secured Parties”:  as such term is defined in the Guarantee and
Collateral Agreement.

 

“Security Documents”:  the collective reference to the Guarantee and
Collateral Agreement, the Mortgages 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 Loan Party under any
Loan Document.

 

“Seller”: 
Exelon Enterprises Company, LLC, a Pennsylvania limited liability
company.

 

“Seller Note”:  the Subordinated Promissory Note in the
principal amount of $30,000,000 (plus any accretions resulting from the payment
of interest in kind), dated the Original Closing Date, made by Holdings to the
order of the Seller.

 

19

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”: 
when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “liabilities
of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable
value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts
as such debts become absolute and matured, (c) such Person will not have, as of
such date, an unreasonably small amount of capital with which to conduct its
business, and (d) such Person will be able to pay its debts as they
mature.  For purposes of this definition,
(i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) 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 (y) right to an equitable remedy for
breach of performance if such breach gives rise to a right to payment, whether
or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or
unsecured.  The amount of any contingent
claim at any time shall be computed as the amount that, in light of all the
facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured claim.

 

“Specified Swap Agreement”:  any Swap Agreement entered into by the
Borrower and any Lender or affiliate thereof in respect of interest rates.

 

“Sponsors”: 
GFI, OCM or one or more of their respective Affiliates.

 

“Subsidiary”: 
as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which
is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Subsidiary Guarantor”:  each Subsidiary of the Borrower other than
any Foreign Subsidiary.

 

“Surety”: 
as defined in Section 7.3(s).

 

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

 

“Swingline Commitment”:  the obligation of the Swingline Lender to
make Swingline Loans pursuant to Section 2.5 in an aggregate principal amount
at any one time outstanding not to exceed $5,000,000.

 

20

 

“Swingline Lender”:  Barclays Bank PLC, in its capacity as the
lender of Swingline Loans.

 

“Swingline Loans”:  as defined in Section 2.5(a).

 

“Swingline Participation Amount”:  as defined in Section 2.6(c).

 

“Syndication Agent”:  as defined in the preamble hereto.

 

“Telecommunications Subsidiaries”:  the collective reference to Sunesys, Inc.,
Sunesys of Virginia, Inc., Blair Park Services, Inc. and RJE Telecom Inc.

 

“Term Lender”:  each Lender that holds a Term Loan.

 

“Term Loan”: 
as defined in Section 2.1.

 

“Term Percentage”:  as to any Term Lender at any time, the
percentage which such Lender’s Term Loans then outstanding constitutes of the
aggregate principal amount of the Term Loans then outstanding).

 

“Titled Vehicles”:  as defined in Section 6.11 hereto.

 

“Total Revolving Commitments”:  at any time, the aggregate amount of the
Revolving Commitments then in effect.

 

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

 

“Transferee”: 
any Assignee or Participant.

 

“Type”: 
as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

 

“United States”:  the United States of America.

 

“Vehicles”: 
as defined in the Guarantee and Collateral Agreement.

 

“Volume Agreement”:  the Volume Agreement, dated as of the
Original Closing Date, between the Seller and Holdings, substantially in the
form of Exhibit C to the Acquisition Agreement.

 

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.

 

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

 

1.2                                 Other
Definitional Provisions.  (a) Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or
other document made or delivered pursuant hereto or thereto.

 

(b)  As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, (i) accounting terms relating to any Group

 

21

 

Member not defined in Section
1.1 and accounting terms partly defined in Section 1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii) the
words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”, (iii) the word “incur” shall be construed to
mean incur, create, issue, assume, become liable in respect of or suffer to
exist (and the words “incurred” and “incurrence” shall have correlative
meanings), (iv) the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, Capital Stock, securities, revenues,
accounts, leasehold interests and contract rights, and (v) references to
agreements or other Contractual Obligations shall, unless otherwise specified,
be deemed to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time.

 

(c)  The words “hereof”, “herein” 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, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

 

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

 

SECTION 2.                                AMOUNT AND TERMS OF LOANS AND COMMITMENTS

 

2.1                                 Term
Loans.  (a)  Subject to the terms and conditions hereof,
each Term Lender severally agrees that on the Effective Date it will continue
to maintain outstanding hereunder the term loans (each, a “Term Loan”)
then held by it under the Existing Credit Agreement after giving effect to the
prepayment of a portion of such term loans made pursuant to the Existing Credit
Agreement on the Effective Date from the Net Cash Proceeds of the IPO.  The Term Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Section 2.11.

 

(b)                                 Term Loans outstanding under (and as
defined in) the Existing Credit Agreement as of the close of business on the
Effective Date shall, from and after the Effective Date, continue as and
constitute Term Loans hereunder.

 

2.2                                 Repayment
of Term Loans.  The Term Loan of each
Term Lender shall mature in 26 consecutive quarterly installments, commencing
June 30, 2004, the first 25 of which shall each be in an amount equal to 0.25%
of the principal amount of such Term Loan outstanding at the close of business
on the Effective Date, and the 26th of which, payable on September
30, 2010, shall be in an amount equal to the then unpaid principal amount of
such Lender’s Term Loan.

 

2.3                                 Revolving
Commitments.  (a) Subject to the
terms and conditions hereof, each Revolving Lender severally agrees to make
revolving credit loans (“Revolving Loans”) to the Borrower from time to
time during the Revolving Commitment Period in an aggregate principal amount at
any one time outstanding which, when added to such Lender’s Revolving
Percentage of the sum of (i) the L/C Obligations then outstanding and (ii) the
aggregate principal amount of the Swingline Loans then outstanding (in each
case, after giving effect to such Revolving Loans), does not exceed the amount
of such Lender’s Revolving Commitment. 
During the Revolving Commitment Period the Borrower may use the
Revolving Commitments by borrowing, prepaying the Revolving Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof.  The Revolving Loans may from
time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower
and notified to the Administrative Agent in accordance with Sections 2.4 and
2.11.

 

22

 

(b)  The Borrower shall repay all outstanding Revolving
Loans on the Revolving Termination Date.

 

2.4                                 Procedure
for Revolving Loan Borrowing.  The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the Borrower shall
give the Administrative Agent irrevocable notice by telecopy or electronic mail
(which electronic mail shall include a PDF copy of such notice executed by a
Responsible Officer) (which notice must be received by the Administrative Agent
prior to 11:00 A.M., New York City time, (a) three Business Days prior to the
requested Borrowing Date, in the case of Eurodollar Loans, or (b) one Business
Day prior to the requested Borrowing Date, in the case of ABR Loans) (provided
that any such notice of a borrowing of ABR Loans under the Revolving Facility
to finance payments required by Section 3.5 may be given not later than
11:00 A.M., New York City time, on the date of the proposed borrowing),
specifying (i) the amount and Type of Revolving Loans to be borrowed, (ii) the
requested Borrowing Date and (iii) in the case of Eurodollar Loans, the
respective amounts of each such Type of Loan and the respective lengths of the
initial Interest Period therefor.  Any
Revolving Loans made on the Effective Date shall initially be ABR Loans.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of ABR Loans,
$1,000,000 or a whole multiple of $500,000 in excess thereof (or, if the then
aggregate Available Revolving Commitments are less than $1,000,000, such lesser
amount) and (y) in the case of Eurodollar Loans, $1,000,000 or a whole multiple
of $500,000 in excess thereof; provided, that the Swingline Lender may
request, on behalf of the Borrower, borrowings under the Revolving Commitments
that are ABR Loans in other amounts pursuant to Section 2.6.  Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Revolving Lender
thereof.  Each Revolving Lender will make
the amount of its pro  rata share of each borrowing available to
the Administrative Agent for the account of the Borrower at the Funding Office
prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of such office with the aggregate of the amounts made available to
the Administrative Agent by the Revolving Lenders and in like funds as received
by the Administrative Agent.

 

2.5                                 Swingline
Commitment.  (a) Subject to the terms
and conditions hereof, the Swingline Lender agrees to make a portion of the
credit otherwise available to the Borrower under the Revolving Commitments from
time to time during the Revolving Commitment Period by making swing line loans
(“Swingline Loans”) to the Borrower; provided that (i) the
aggregate principal amount of Swingline Loans outstanding at any time shall not
exceed the Swingline Commitment then in effect (notwithstanding that the
Swingline Loans outstanding at any time, when aggregated with the Swingline
Lender’s other outstanding Revolving Loans, may exceed the Swingline Commitment
then in effect) and (ii) the Borrower shall not request, and the Swingline
Lender shall not make, any Swingline Loan if, after giving effect to the making
of such Swingline Loan, the aggregate amount of the Available Revolving
Commitments would be less than zero. 
During the Revolving Commitment Period, the Borrower may use the
Swingline Commitment by borrowing, repaying and reborrowing, all in accordance
with the terms and conditions hereof. 
Swingline Loans shall be ABR Loans only.

 

(b)  The Borrower shall repay to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the Revolving Termination Date and the first date after such Swingline Loan
is made that is the 15th or last day of a calendar month and is at least five
Business Days after such Swingline Loan is made; provided that on each
date that a Revolving Loan is borrowed, the Borrower shall repay all Swingline
Loans then outstanding.

 

2.6                                 Procedure
for Swingline Borrowing; Refunding of Swingline Loans.  (a) Whenever the Borrower desires that the
Swingline Lender make Swingline Loans it shall give the

 

23

 

Swingline Lender irrevocable
telephonic notice confirmed promptly in writing (which telephonic notice must
be received by the Swingline Lender not later than 1:00 P.M., New York City
time, on the proposed Borrowing Date), specifying (i) the amount to be borrowed
and (ii) the requested Borrowing Date (which shall be a Business Day during the
Revolving Commitment Period).  Each
borrowing under the Swingline Commitment shall be in an amount equal to
$500,000 or a whole multiple of $100,000 in excess thereof.  Not later than 3:00 P.M., New York City time,
on the Borrowing Date specified in a notice in respect of Swingline Loans, the
Swingline Lender shall make available to the Administrative Agent at the
Funding Office an amount in immediately available funds equal to the amount of
the Swingline Loan to be made by the Swingline Lender.  The Administrative Agent shall transmit such
funds to the Borrower on or before 4:00 P.M., New York City time, on such
Borrowing Date (the account in which such funds shall be deposited shall be
designated in writing to the Administrative Agent).

 

(b)  The Swingline Lender, at any time and from
time to time in its sole and absolute discretion may, on behalf of the Borrower
(which hereby irrevocably directs the Swingline Lender to act on its behalf),
on one Business Day’s notice given by the Swingline Lender no later than 12:00
Noon, New York City time, request each Revolving Lender to make, and each
Revolving Lender hereby agrees to make, a Revolving Loan, in an amount equal to
such Revolving Lender’s Revolving Percentage of the aggregate amount of the
Swingline Loans (the “Refunded Swingline Loans”) outstanding on the date
of such notice, to repay the Swingline Lender. 
Each Revolving Lender shall make the amount of such Revolving Loan
available to the Administrative Agent at the Funding Office in immediately
available funds, not later than 11:00 A.M., New York City time, one Business
Day after the date of such notice.  The
proceeds of such Revolving Loans shall be immediately made available by the
Administrative Agent to the Swingline Lender for application by the Swingline
Lender to the repayment of the Refunded Swingline Loans.  The Borrower irrevocably authorizes the
Swingline Lender to charge the Borrower’s accounts with the Administrative
Agent (up to the amount available in each such account) in order to immediately
pay the amount of such Refunded Swingline Loans to the extent amounts received
from the Revolving Lenders are not sufficient to repay in full such Refunded
Swingline Loans.

 

(c)  If prior to the time a Revolving Loan would
have otherwise been made pursuant to Section 2.6(b), one of the events
described in Section 8(g) shall have occurred and be continuing with respect to
the Borrower or if for any other reason, as determined by the Swingline Lender
in its sole discretion, Revolving Loans may not be made as contemplated by
Section 2.6(b), each Revolving Lender shall, on the date such Revolving Loan
was to have been made pursuant to the notice referred to in Section 2.6(b),
purchase for cash an undivided participating interest in the then outstanding
Swingline Loans by paying to the Swingline Lender an amount (the “Swingline
Participation Amount”) equal to (i) such Revolving Lender’s Revolving
Percentage times (ii) the sum of the aggregate principal amount of
Swingline Loans then outstanding that were to have been repaid with such
Revolving Loans.

 

(d)  Whenever, at any time after the Swingline
Lender has received from any Revolving Lender such Lender’s Swingline Participation
Amount, the Swingline Lender receives any payment on account of the Swingline
Loans, the Swingline Lender will distribute to such Lender its Swingline
Participation Amount (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender’s participating interest
was outstanding and funded and, in the case of principal and interest payments,
to reflect such Lender’s pro  rata portion of such payment if such
payment is not sufficient to pay the principal of and interest on all Swingline
Loans then due); provided, however, that in the event that such
payment received by the Swingline Lender is required to be returned, such
Revolving Lender will return to the Swingline Lender any portion thereof
previously distributed to it by the Swingline Lender.

 

(e)  Each Revolving Lender’s obligation to make
the Loans referred to in Section 2.6(b) and to purchase participating interests
pursuant to Section 2.6(c) shall be absolute and unconditional and

 

24

 

shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or
other right that such Revolving Lender or the Borrower may have against the
Swingline Lender, the Borrower or any other Person for any reason whatsoever,
(ii) the occurrence or continuance of a Default or an Event of Default or the
failure to satisfy any of the other conditions specified in Section 5, (iii)
any adverse change in the condition (financial or otherwise) of the Borrower,
(iv) any breach of this Agreement or any other Loan Document by the Borrower,
any other Loan Party or any other Revolving Lender or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

 

2.7                                 Commitment
Fees, etc.  (a)  The Borrower agrees to pay to the
Administrative Agent for the account of each Revolving Lender a commitment fee
for the period from and including the date hereof to the last day of the
Revolving Commitment Period, computed at the Commitment Fee Rate on the average
daily amount of the Available Revolving Commitment of such Lender during the
period for which payment is made, payable quarterly in arrears on each Fee
Payment Date, commencing on the first such date to occur after the date hereof.

 

(b)  The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates as set forth in
any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.

 

2.8                                 Termination
or Reduction of Revolving Commitments. 
The Borrower shall have the right, upon not less than three Business
Days’ notice to the Administrative Agent, to terminate the Revolving
Commitments or, from time to time, to reduce the amount of the Revolving Commitments;
provided that no such termination or reduction of Revolving Commitments
shall be permitted if, after giving effect thereto and to any prepayments of
the Revolving Loans and Swingline Loans made on the effective date thereof, the
Total Revolving Extensions of Credit would exceed the Total Revolving
Commitments.  Any such reduction shall be
in an amount equal to $500,000, or a whole multiple thereof (unless such
reduction is with respect to all remaining Revolving Commitments or pursuant to
Section 2.10(e)), and shall reduce permanently the Revolving Commitments then
in effect.

 

2.9                                 Optional
Prepayments.  The Borrower may at any
time and from time to time prepay the Loans, in whole or in part, without
premium or penalty, upon irrevocable notice delivered to the Administrative
Agent no later than 11:00 A.M., New York City time, three Business Days prior
thereto, in the case of Eurodollar Loans, and no later than 11:00 A.M., New
York City time, one Business Day prior thereto, in the case of ABR Loans, which
notice shall specify the date and amount of prepayment, whether the prepayment
is of Eurodollar Loans or ABR Loans and whether the prepayment is of Revolving
Loans or Term Loans; provided, that if a Eurodollar Loan is prepaid on
any day other than the last day of the Interest Period applicable thereto, the
Borrower shall also pay any amounts owing pursuant to Section 2.19 and, provided,
further, that the provisions of Section 2.22 shall be applicable to
certain prepayments of the Term Loans made pursuant to this Section prior to
the second anniversary of the Original Closing Date to the extent required by
such Section 2.22.  Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with (except in the case of Revolving Loans that
are ABR Loans and Swingline Loans) accrued interest to such date on the amount
prepaid.  Partial prepayments of Term
Loans and Revolving Loans shall be in an aggregate principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof.  Partial prepayments of Swingline Loans shall
be in an aggregate principal amount of $100,000 or a whole multiple thereof.

 

2.10                           Mandatory
Prepayments and Commitment Reductions. 
(a)  If any Indebtedness shall be
incurred by any Group Member (excluding any Indebtedness incurred in accordance
with Section

 

25

 

7.2), an amount equal to 100%
of the Net Cash Proceeds thereof shall be applied no later than three Business
Days after the date of such incurrence toward the prepayment of the Term Loans
and the reduction of the Revolving Commitments as set forth in Section 2.10(e);
provided, that the provisions of Section 2.22 shall be applicable to
prepayments of the Term Loans required to be made pursuant to this paragraph
prior to the second anniversary of the Original Closing Date.

 

(b)  If on any date any Group Member shall receive
Net Cash Proceeds (other than Excluded Proceeds (as defined below)) from any
Asset Sale or Recovery Event then, unless a Reinvestment Notice shall be
delivered in respect thereof within ten Business Days after such receipt, such
Net Cash Proceeds shall be applied no later than ten Business Days after such
receipt toward the prepayment of the Term Loans and the reduction of the
Revolving Commitments as set forth in Section 2.10(e); provided, that,
notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of Asset
Sales and Recovery Events that may be excluded from the foregoing requirement
pursuant to a Reinvestment Notice shall not exceed $5,000,000 in any fiscal
year of the Borrower and (ii) on each Reinvestment Prepayment Date, an amount
equal to the Reinvestment Prepayment Amount with respect to the relevant
Reinvestment Event shall be applied toward the prepayment of the Term Loans and
the reduction of the Revolving Commitments as set forth in Section 2.10(e).  Notwithstanding anything contained in this
paragraph (b) to the contrary, no mandatory prepayment of Term Loans or
reduction of the Revolving Commitments shall be required for the first
$5,000,000 of aggregate Net Cash Proceeds received by the Group Members from
Asset Sales and Recovery Events subsequent to the Original Closing Date (the “Excluded
Proceeds”).  The provisions of
Section 2.22 shall be applicable to certain prepayments of the Term Loans
required to be made pursuant to this paragraph prior to the second anniversary
of the Original Closing Date to the extent required by such Section 2.22.

 

(c)  If, for any fiscal year of the Borrower
commencing with the fiscal year ending December 31, 2004, there shall be Excess
Cash Flow, the Borrower shall, on the relevant Excess Cash Flow Application
Date, apply the ECF Percentage of such Excess Cash Flow toward the prepayment
of the Term Loans and the reduction of the Revolving Commitments as set forth
in Section 2.10(e).  Each such prepayment
and commitment reduction shall be made on a date (an “Excess Cash Flow
Application Date”) no later than five Business Days after the earlier of
(i) the date on which the financial statements of the Borrower referred to in
Section 6.1(a), for the fiscal year with respect to which such prepayment is
made, are required to be delivered to the Lenders and (ii) the date such
financial statements are actually delivered.

 

(d)  If on any date Holdings shall receive a
termination payment from the Seller pursuant to Section 1 or Section 2 of the
Volume Agreement, an amount equal to 75% of such payment shall be applied no
later than five Business Days after the date of such payment toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as
set forth in Section 2.10(e).

 

(e)  Amounts to be applied in connection with
prepayments and Revolving Commitment reductions made pursuant to this Section
2.10 shall be applied, first, to the prepayment of the Term Loans in
accordance with Section 2.16(b) and, second, to reduce permanently the
Revolving Commitments.  Any such
reduction of the Revolving Commitments shall be accompanied by prepayment of
the Revolving Loans and/or Swingline Loans to the extent, if any, that the
Total Revolving Extensions of Credit exceed the amount of the Total Revolving
Commitments as so reduced, provided that if the aggregate principal
amount of Revolving Loans and Swingline Loans then outstanding is less than the
amount of such excess (because L/C Obligations constitute a portion thereof),
the Borrower shall, to the extent of the balance of such excess, replace
outstanding Letters of Credit and/or deposit an amount in cash in a cash
collateral account established with the Administrative Agent for the benefit of
the Secured Parties on terms and conditions satisfactory to the Administrative
Agent.  The application of any prepayment
pursuant to this Section 2.10 shall be made, first, to ABR Loans and, second,
to Eurodollar

 

26

 

Loans.  Each prepayment of the Loans under this
Section 2.10 (except in the case of Revolving Loans that are ABR Loans and
Swingline Loans) shall be accompanied by accrued interest to the date of such
prepayment on the amount prepaid.

 

2.11                           Conversion
and Continuation Options.  (a)   The Borrower may elect from time to time to
convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York City
time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 11:00 A.M., New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
ABR Loan under a particular Facility may be converted into a Eurodollar Loan
when any Event of Default has occurred and is continuing and the Administrative
Agent or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.

 

(b)  Any Eurodollar Loan may be rolled over as
such upon the expiration of the then current Interest Period with respect
thereto by the Borrower giving irrevocable notice to the Administrative Agent,
in accordance with the applicable provisions of the term “Interest Period” set
forth in Section 1.1, of the length of the next Interest Period to be
applicable to such Loans, provided that no Eurodollar Loan under a
particular Facility may be rolled over as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Majority
Facility Lenders in respect of such Facility have determined in its or their
sole discretion not to permit such continuations, and provided, further,
that if the Borrower shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to ABR Loans on the last
day of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

 

2.12                           Limitations
on Eurodollar Tranches. 
Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions and continuations of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made pursuant to
such elections so that, (a) after giving effect thereto, the aggregate
principal amount of (i) the Revolving Loans that are Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $1,000,000 or a whole
multiple of $500,000 in excess thereof and (ii) the Term Loans that are
Eurodollar Loans comprising each Eurodollar Tranche shall be equal to
$3,000,000 or a whole multiple of $500,000 in excess thereof and (b) no more
than ten Eurodollar Tranches shall be outstanding at any one time.

 

2.13                           Interest
Rates and Payment Dates.  (a)   Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

 

(b)  Each ABR Loan shall bear interest at a rate
per annum equal to the ABR plus the Applicable Margin.

 

(c)  (i) If all or a portion of the principal
amount of any Loan or Reimbursement Obligation shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest at a rate per annum equal to (x) in the case of the
Loans, the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section plus 2% or (y) in the case of
Reimbursement Obligations, the rate applicable to ABR Loans under the Revolving
Facility

 

27

 

plus
2%, and (ii) if all or a portion of any interest payable on any Loan or
Reimbursement Obligation or any commitment fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to ABR Loans under the relevant
Facility plus 2% (or, in the case of any such other amounts that do not
relate to a particular Facility, the rate then applicable to ABR Loans under
the Revolving Facility plus 2%), in each case, with respect to clauses
(i) and (ii) above, from the date of such non-payment until such amount is paid
in full (as well after as before judgment).

 

(d)  Interest shall be payable in arrears on each
Interest Payment Date, provided that interest accruing pursuant to
paragraph (c) of this Section shall be payable from time to time on demand.

 

2.14                           Computation
of Interest and Fees.  (a)   Interest and fees payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to ABR Loans the rate of interest on which is calculated
on the basis of the Prime Rate, the interest thereon shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the relevant Lenders of each
determination of a Eurodollar Rate.  Any
change in the interest rate on a Loan resulting from a change in the ABR or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of the effective date
and the amount of each such change in interest rate.

 

(b)  Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 2.13(a).

 

2.15                           Inability
to Determine Interest Rate.  If prior
to the first day of any Interest Period:

 

(a)                                  the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)                                 the Administrative Agent shall have
received notice from the Majority Facility Lenders in respect of the relevant
Facility that the Eurodollar Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
(as conclusively certified by such Lenders) of making or maintaining their
affected Loans during such Interest Period,

 

the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower and the
relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any Eurodollar
Loans under the relevant Facility requested to be made on the first day of such
Interest Period shall be made as ABR Loans, (y) any Loans under the
relevant Facility that were to have been converted on the first day of such
Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Eurodollar Loans under the relevant Facility shall be converted, on
the last day of the then-current Interest Period, to ABR Loans.  Until such notice has been withdrawn by the
Administrative Agent, no further Eurodollar Loans under the relevant Facility
shall be made or continued as such, nor shall the Borrower have the right to convert
Loans under the relevant Facility to Eurodollar Loans.

 

28

 

2.16                           Pro
Rata Treatment and Payments.  (a)   Each borrowing by the Borrower from the
Lenders hereunder, each payment by the Borrower on account of any commitment
fee and any reduction of the Revolving Commitments of the Lenders shall be made
pro  rata according to the respective Term Percentages or, unless
each Revolving Lender adversely affected thereby otherwise agrees, Revolving
Percentages, as the case may be, of the relevant Lenders.

 

(b)  Each payment (including each prepayment) by
the Borrower on account of principal of and interest on the Term Loans shall be
made pro  rata according to the respective outstanding principal
amounts of the Term Loans then held by the Term Lenders.  The amount of each principal prepayment of
the Term Loans shall be applied to reduce the then remaining installments of
the Term Loans, pro  rata based upon the respective then remaining
principal amounts thereof, except that mandatory prepayments made pursuant to
Section 2.10(c) shall be applied to reduce the then remaining installments of
the Term Loans in the direct order of their stated maturity.  Amounts prepaid on account of the Term Loans
may not be reborrowed.

 

(c)  Each payment (including each prepayment) by
the Borrower on account of principal of and interest on the Revolving Loans
shall be made pro  rata according to the respective outstanding
principal amounts of the Revolving Loans then held by the Revolving Lenders.

 

(d)  All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made without setoff or counterclaim and shall be made
prior to 12:00 Noon, New York City time, on the due date thereof to the Administrative
Agent, for the account of the Lenders, at the Funding Office, in Dollars and in
immediately available funds.  The
Administrative Agent shall distribute such payments to the Lenders promptly
upon receipt in like funds as received. 
If any payment hereunder (other than payments on the Eurodollar Loans)
becomes due and payable on a day other than a Business Day, such payment shall
be extended to the next succeeding Business Day.  If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business
Day.  In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.

 

(e)  Unless the Administrative Agent shall have been
notified in writing by any Lender prior to a borrowing that such Lender will
not make the amount that would constitute its share of such borrowing available
to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount.  If
such amount is not made available to the Administrative Agent by the required
time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon, at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes such
amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent submitted
to any Lender with respect to any amounts owing under this paragraph shall be
conclusive in the absence of manifest error. 
If such Lender’s share of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days after such
Borrowing Date, the Administrative Agent shall also be entitled to recover such
amount with interest thereon at the rate per annum applicable to ABR Loans
under the relevant Facility, on demand, from the Borrower.

 

29

 

(f)  Unless the Administrative Agent shall have
been notified in writing by the Borrower prior to the date of any payment due
to be made by the Borrower hereunder that the Borrower will not make such
payment to the Administrative Agent, the Administrative Agent may assume that
the Borrower is making such payment, and the Administrative Agent may, but
shall not be required to, in reliance upon such assumption, make available to
the Lenders their respective pro  rata shares of a corresponding
amount.  If such payment is not made to
the Administrative Agent by the Borrower within three Business Days after such
due date, the Administrative Agent shall be entitled to recover, on demand,
from each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum
equal to the daily average Federal Funds Effective Rate.  Nothing herein shall be deemed to limit the
rights of the Administrative Agent or any Lender against the Borrower.

 

2.17                           Requirements
of Law.  (a)   If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

 

(i)  shall subject any Lender to
any tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any Application or any Eurodollar Loan made by it, or change the basis
of taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes covered by Section 2.18 and changes in the rate of tax on
the overall net income of such Lender);

 

(ii)  shall impose, modify or
hold applicable any reserve, special deposit, compulsory loan or similar
requirement against assets held by, deposits or other liabilities in or for the
account of, advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate; or

 

(iii)    shall impose on such Lender any other
condition;

 

and the result of any of the foregoing is to
increase the cost (other than taxes that are not Non-Excluded Taxes) to such
Lender, by an amount that such Lender deems to be material, of making,
converting into, continuing or maintaining Eurodollar Loans or issuing or
participating in Letters of Credit, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount
receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the
event by reason of which it has become so entitled.

 

(b)  If any Lender shall have determined that the
adoption of or any change in any Requirement of Law regarding capital adequacy
or in the interpretation or application thereof or compliance by such Lender or
any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent)

 

30

 

of a written request therefor,
the Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or such corporation for such reduction.

 

(c)  A certificate setting forth in reasonable
detail any additional amounts payable pursuant to this Section submitted by any
Lender to the Borrower (with a copy to the Administrative Agent) shall be
conclusive in the absence of manifest error. 
Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for any
amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if the circumstances giving rise to such claim
have a retroactive effect, then such six-month period shall be extended to
include the period of such retroactive effect. 
The obligations of the Borrower pursuant to this Section shall survive
the termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

 

2.18                           Taxes.  (a)  All payments made by the Borrower under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes (including branch profits taxes) and
franchise taxes imposed on the Administrative Agent or any Lender as a result of
a present or former connection between the Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, (i) the Borrower shall be
entitled to make such deduction, (ii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law and (iii) the amounts so payable to the Administrative Agent or such Lender
shall be increased to the extent necessary to yield to the Administrative Agent
or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, provided, however, that the
Borrower shall not be required to increase any such amounts payable to any
Lender with respect to any Non-Excluded Taxes (i) that are attributable to such
Lender’s failure to comply with the requirements of paragraph (d) or (e) of
this Section or (ii) that are United States withholding taxes imposed on
amounts payable to such Lender at the time such Lender becomes a party to this
Agreement, except to the extent that such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from the
Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph.

 

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

 

(c)  Whenever any Non-Excluded Taxes or Other
Taxes are payable by the Borrower, as promptly as reasonably possible
thereafter the Borrower shall send to the Administrative Agent for its own
account or for the account of the relevant Lender, as the case may be, a
certified copy of an original official receipt received by the Borrower showing
payment thereof.  If the Borrower fails
to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts
or other required documentary evidence, the Borrower shall indemnify the
Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as
a result of any such failure.

 

31

 

(d)  Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”)
shall deliver to the Borrower and the Administrative Agent (or, in the case of
a Participant, to the Lender from which the related participation shall have
been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption from
U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with
respect to payments of “portfolio interest”, a statement substantially in the
form of Exhibit G and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the
other Loan Documents.  Such forms shall
be delivered by each Non-U.S. Lender on or before the date it becomes a party
to this Agreement (or, in the case of any Participant, on or before the date
such Participant purchases the related participation).  In addition, each Non-U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non-U.S. Lender. 
Each Non-U.S. Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(e)  A Lender that is entitled to an exemption
from or reduction of non-U.S. withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

 

(f)  If the
Administrative Agent or any Lender determines, in its sole discretion, that it
has received a refund or credit in respect of any Non-Excluded Taxes or Other
Taxes as to which it has been indemnified by the Borrower or with respect to
which the Borrower has paid additional amounts pursuant to this Section 2.18,
it shall as promptly as reasonably possible pay over such refund or credit to
the Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 2.18 with respect to the
Non-Excluded Taxes or Other Taxes giving rise to such refund or credit), net of
all out-of-pocket expenses of the Administrative Agent or such Lender and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund or credit); provided, that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating
to its taxes which it deems confidential) to the Borrower or any other Person.

 

(g)  The agreements in this Section shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

2.19                           Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any reasonable loss or expense that
such Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of

 

32

 

Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment of or conversion from Eurodollar Loans after the Borrower has given
a notice thereof in accordance with the provisions of this Agreement or (c) the
making of a prepayment of Eurodollar Loans on a day that is not the last day of
an Interest Period with respect thereto. 
Such indemnification may include an amount equal to the excess, if any,
of (i) the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of
such prepayment or of such failure to borrow, convert or continue to the last
day of such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans
provided for herein (excluding, however, the Applicable Margin included
therein, if any) minus (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank eurodollar market. 
A certificate as to any amounts payable pursuant to this Section
submitted to the Borrower by any Lender shall be conclusive in the absence of
manifest error.  This covenant shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

2.20                           Change
of Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of
Section 2.17 or 2.18(a) 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 with the object of avoiding the consequences of such event; provided,
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic,
legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of the
Borrower or the rights of any Lender pursuant to Section 2.17 or 2.18(a).

 

2.21                           Replacement
of Lenders.  The Borrower shall be
permitted to replace with a replacement financial institution any Lender that
(a) requests reimbursement for amounts owing pursuant to Section 2.17 or
2.18(a), (b) defaults in its obligation to make Loans hereunder, or (c) fails
to consent to a requested waiver, amendment, supplement or other modification
to any of the Loan Documents that, specifically or effectively, requires, to
become effective, the consent of each of the Lenders or each of the Lenders
holding Term Loans or each of the Lenders holding Revolving Extensions of
Credit or the consent of each Lender directly affected thereby pursuant to the
proviso to the second sentence of Section 10.1; provided that (i) such
replacement does not conflict with any Requirement of Law, (ii) no Event of
Default shall have occurred and be continuing at the time of such replacement,
(iii) prior to any such replacement as a result of clause (a) above, such
Lender shall have taken no action under Section 2.20 so as to eliminate the
continued need for payment of amounts owing pursuant to Section 2.17 or
2.18(a), (iv) the replacement financial institution shall purchase, at par, all
Loans and other amounts owing to such replaced Lender on or prior to the date
of replacement, (v) the Borrower shall be liable to such replaced Lender under
Section 2.19 if any Eurodollar Loan owing to such replaced Lender shall be purchased
other than on the last day of the Interest Period relating thereto, (vi) the
replacement financial institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent and, if such replacement financial
institution is replacing a Revolving Lender, the Issuing Lender, (vii) the
replaced Lender shall be obligated to make such replacement in accordance with
the provisions of Section 10.6 (provided that the Borrower shall be obligated
to pay the registration and processing fee referred to therein), (viii) until
such time as such replacement shall be consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 2.17 or 2.18(a), as
the case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender. 
In the event that a replaced
Lender does not execute an Assignment and Assumption pursuant to Section 10.6
within three Business Days after receipt by such replaced Lender of notice of
replacement pursuant to this Section 2.21 and presentation to such replaced

 

33

 

Lender of an Assignment and
Assumption evidencing an assignment pursuant to this Section 2.21, the Borrower
shall be entitled (but not obligated) to execute such an Assignment and
Assumption on behalf of such replaced Lender, and any such Assignment and
Assumption so executed by the Borrower, the replacement Lender and, to the
extent required pursuant to Section 10.6, the Administrative Agent and the
Issuing Lender, shall be effective for purposes of this Section 2.21 and
Section 10.6.  Upon any such assignment,
such replaced Lender shall no longer constitute a “Lender” for purposes hereof;
provided, that any rights of such replaced Lender to indemnification
hereunder shall survive as to such replaced Lender.

 

2.22                           Prepayment
Fees.  In the event of any prepayment
of the Term Loans pursuant to Section 2.9 (in connection with the sale of all
or substantially all of the Capital Stock or assets of Holdings or the
Borrower), Section 2.10(a) or, in connection with a Disposition of all or
substantially all of the assets of the Borrower, Section 2.10(b), occurring
prior to the second anniversary of the Original Closing Date, the Borrower
shall pay to each Term Lender a fee in an amount equal to the product of (a)
1.00% and (b) the principal amount of the Term Loans of such Term Lender so
prepaid.

 

2.23                           Increase
of Revolving Commitments.  (a)  Anything in this Agreement to the contrary
notwithstanding, the Borrower shall have the right to increase the Revolving
Commitments from time to time pursuant to this Section 2.23 (subject to the
restrictions of Section 2.23(d) below). 
In the event that the Borrower wishes to increase the aggregate
Revolving Commitments at any time, it shall notify the Administrative Agent in
writing of the amount (the “Offered Increase Amount”) of such proposed
increase (such notice, a “Commitment Increase Notice”); provided,
that the aggregate amount of any such increase in Revolving Commitments shall
be at least $2,500,000.  The Borrower
may, at its election, (i) offer one or more of the Lenders the opportunity to
participate in all or a portion of the Offered Increase Amount pursuant to
paragraph (c) below and/or (ii) offer one or more additional banks, financial
institutions or other entities the opportunity to participate in all or a
portion of the Offered Increase Amount pursuant to paragraph (b) below.  Each Commitment Increase Notice shall specify
which Lenders and/or banks, financial institutions or other entities the
Borrower desires to participate in such Revolving Commitment increase.  The Borrower or, if requested by the
Borrower, the Administrative Agent, will notify such Lenders and/or banks,
financial institutions or other entities of such offer.

 

(b)                                 Any additional bank, financial
institution or other entity which the Borrower selects to offer participation
in the increased Revolving Commitments and which elects to become a party to
this Agreement and provide a Revolving Commitment in an amount so offered and
accepted by it pursuant to this Section 2.23 shall execute a New Lender
Supplement (in the form specified by the Administrative Agent, each a “New
Lender Supplement”) with the Borrower and the Administrative Agent,
whereupon such bank, financial institution or other entity (herein called a “New
Lender”) shall become a Lender for all purposes and to the same extent as
if originally a party hereto and shall be bound by and entitled to the benefits
of this Agreement, and Schedule 1.1A shall be deemed to be amended to add the
name and Revolving Commitment of such New Lender (in all cases without the
consent of any other Lender), provided that the Revolving Commitment of
any such new Lender shall be in an amount not less than $2,500,000, provided,
further that on the effective date of such New Lender Supplement, there
shall be no outstanding Eurodollar Loans hereunder or, if any Eurodollar Loans
would be outstanding on the effective date of any such New Lender Supplement,
the Borrower shall either (x) convert such Eurodollar Loans to ABR Loans, or
(y) prepay, in accordance with the provisions of Section 2.9, such Eurodollar
Loans immediately prior to such New Lender Supplement becoming effective
(subject, in either case, to the payment provisions hereof).

 

(c)                                  Any Lender which accepts an offer to it
by the Borrower to increase its Revolving Commitment pursuant to Section 2.23
shall, in each case, execute a Commitment Increase

 

34

 

Supplement (in the form
specified by the Administrative Agent, each a “Commitment Increase
Supplement”) with the Borrower and the Administrative Agent whereupon such
Lender shall be bound by and entitled to the benefits of this Agreement with
respect to the full amount of its Revolving Commitment as so increased, and
Schedule 1.1A shall be deemed to be amended to so increase the Revolving
Commitment of such Lender (in all cases without the consent of any other
Lender),  provided that on the effective date of such Commitment
Increase Supplement, there shall be no outstanding Eurodollar Loans hereunder
or, if any Eurodollar Loans would be outstanding on the effective date of any
such Commitment Increase Supplement, the Borrower shall either (x) convert such
Eurodollar Loans to ABR Loans, or (y) prepay, in accordance with the provisions
of Section 2.9, such Eurodollar Loans immediately prior to such Commitment
Increase Supplement becoming effective (subject, in either case, to the payment
provisions hereof).

 

(d)                                 Notwithstanding anything to the contrary
in this Section 2.23 (i) in no event shall any transaction effected pursuant to
this Section 2.23 cause the aggregate Revolving Commitments hereunder to exceed
$85,000,000, (ii) no Lender shall have any obligation to increase its Revolving
Commitment unless it agrees to do so in its sole discretion, (iii) for each
increase of the Revolving Commitments pursuant to this Section 2.23, the L/C
Commitment shall automatically be increased by an amount equal to 80% of such
increase in the Revolving Commitments and (iv) no New Lender Supplement or
Commitment Increase Supplement shall be effective unless consented to in
writing by the Administrative Agent and the Issuing Lender (which consent shall
not be unreasonably withheld or delayed); provided, that no consent of
any other Lender shall be required.

 

SECTION 3.                                LETTERS OF CREDIT

 

3.1                                 L/C
Commitment.  (a)  Subject to the terms and conditions hereof,
the Issuing Lender, in reliance on the agreements of the other Revolving
Lenders set forth in Section 3.4(a), agrees to issue letters of credit (“Letters
of Credit”) for the account of the Borrower on any Business Day during the
Revolving Commitment Period in such form as may be approved from time to time
by the Issuing Lender; provided that the Issuing Lender shall have no
obligation to issue any Letter of Credit if, after giving effect to such
issuance, (i) the L/C Obligations would exceed the L/C Commitment or (ii) the
aggregate amount of the Available Revolving Commitments would be less than
zero; and provided further that notwithstanding that any Letter of
Credit may state that it is issued on behalf of a Guarantor and notwithstanding
that any Application is executed by a Guarantor, each Letter of Credit is
hereby deemed to be issued for the account of Borrower.  Each Letter of Credit shall (i) be
denominated in Dollars and (ii) expire no later than the earlier of (x) the
first anniversary of its date of issuance and (y) the date that is five
Business Days prior to the Revolving Termination Date, provided that any
Letter of Credit with a one-year term may provide for the renewal thereof for
additional one-year periods (which shall in no event extend beyond the date
referred to in clause (y) above).  It is
hereby understood and agreed that each Letter of Credit issued under the
Existing Credit Agreement and outstanding on the Effective Date shall continue
to constitute a Letter of Credit.

 

(b)  The Issuing Lender shall not at any time be
obligated to issue any Letter of Credit if such issuance would conflict with,
or cause the Issuing Lender or any L/C Participant to exceed any limits imposed
by, any applicable Requirement of Law.

 

3.2                                 Procedure
for Issuance of Letter of Credit. 
The Borrower may from time to time request that the Issuing Lender issue
a Letter of Credit by delivering (i) to the Issuing Lender at its address for
notices specified herein an Application therefor, completed to the satisfaction
of the Issuing Lender, and such other certificates, documents and other papers
and information as the Issuing Lender may request, and (ii) to the
Administrative Agent copies of all such Applications, certificates, documents,
and other papers and information.  Upon
receipt of any Application or copy thereof, (a) the

 

35

 

Administrative Agent shall
inform the Issuing Lender of the aggregate amount of Revolving Loans and
Swingline Loans then outstanding and (b) the Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary
procedures and shall promptly issue the Letter of Credit requested thereby (but
in no event shall the Issuing Lender be required to issue any Letter of Credit
earlier than five Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and
the Borrower.  The Issuing Lender shall
furnish a copy of such Letter of Credit to the Borrower promptly following the
issuance thereof.  The Issuing Lender
shall promptly furnish to the Administrative Agent, which shall in turn
promptly furnish to the Lenders, notice of the issuance of each Letter of
Credit (including the amount thereof). 
The Issuing Lender shall also promptly notify the Administrative Agent
of any other event that results in a change in the outstanding amount of the
L/C Obligations.

 

3.3                                 Fees
and Other Charges.  (a) The Borrower
will pay a fee on all outstanding Letters of Credit at a per annum rate equal
to the Applicable Margin then in effect with respect to Eurodollar Loans under
the Revolving Facility, shared ratably among the Revolving Lenders and payable
quarterly in arrears on each Fee Payment Date after the issuance date.  In addition, the Borrower shall pay to the
Issuing Lender for its own account a fronting fee of 0.25% per annum on the
undrawn and unexpired amount of each Letter of Credit, payable quarterly in
arrears on each Fee Payment Date after the issuance date.

 

(b)   In
addition to the foregoing fees, the Borrower shall pay or reimburse the Issuing
Lender for such normal and customary costs and expenses as are incurred or
charged by the Issuing Lender in issuing, negotiating, effecting payment under,
amending or otherwise administering any Letter of Credit.

 

3.4                                 L/C
Participations.  (a)  The Issuing Lender irrevocably agrees to grant
and hereby grants to each L/C Participant, and, to induce the Issuing Lender to
issue Letters of Credit, each L/C Participant irrevocably agrees to accept and
purchase and hereby accepts and purchases from the Issuing Lender, on the terms
and conditions set forth below, for such L/C Participant’s own account and risk
an undivided interest equal to such L/C Participant’s Revolving Percentage in
the Issuing Lender’s obligations and rights under and in respect of each Letter
of Credit and all amounts paid by the Issuing Lender thereunder.  Each L/C Participant agrees with the Issuing
Lender that, if a payment is made under any Letter of Credit for which the Issuing
Lender is not reimbursed in full by the Borrower in accordance with the terms
of this Agreement, such L/C Participant shall pay to the Issuing Lender upon
demand at the Issuing Lender’s address for notices specified herein an amount
equal to such L/C Participant’s Revolving Percentage of the amount of such
payment, or any part thereof, that is not so reimbursed.  Each L/C Participant’s obligation to pay such
amount shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or
other right that such L/C Participant may have against the Issuing Lender, the
Borrower or any other Person for any reason whatsoever, (ii) the occurrence or
continuance of a Default or an Event of Default or the failure to satisfy any
of the other conditions specified in Section 5, (iii) any adverse change in the
condition (financial or otherwise) of the Borrower, (iv) any breach of this
Agreement or any other Loan Document by the Borrower, any other Loan Party or
any other L/C Participant or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.

 

(b)  If any amount required to be paid by any L/C
Participant to the Issuing Lender pursuant to Section 3.4(a) in respect of any
unreimbursed portion of any payment made by the Issuing Lender under any Letter
of Credit is paid to the Issuing Lender within three Business Days after the
date such payment is due, such L/C Participant shall pay to the Issuing Lender
on demand an amount equal to

 

36

 

the product of (i) such amount,
times (ii) the daily average Federal Funds Effective Rate during the period
from and including the date such payment is required to the date on which such
payment is immediately available to the Issuing Lender, times (iii) a fraction
the numerator of which is the number of days that elapse during such period and
the denominator of which is 360.  If any
such amount required to be paid by any L/C Participant pursuant to Section
3.4(a) is not made available to the Issuing Lender by such L/C Participant
within three Business Days after the date such payment is due, the Issuing
Lender shall be entitled to recover from such L/C Participant, on demand, such
amount with interest thereon calculated from such due date at the rate per
annum applicable to ABR Loans under the Revolving Facility.  A certificate of the Issuing Lender submitted
to any L/C Participant with respect to any amounts owing under this Section
shall be conclusive in the absence of manifest error.

 

(c)  Whenever, at any time after the Issuing
Lender has made payment under any Letter of Credit and has received from any
L/C Participant its pro  rata share of such payment in accordance
with Section 3.4(a), the Issuing Lender receives any payment related to such
Letter of Credit (whether directly from the Borrower or otherwise, including
proceeds of collateral applied thereto by the Issuing Lender), or any payment
of interest on account thereof, the Issuing Lender will distribute to such L/C
Participant its pro  rata share thereof; provided, however,
that in the event that any such payment received by the Issuing Lender shall be
required to be returned by the Issuing Lender, such L/C Participant shall
return to the Issuing Lender the portion thereof previously distributed by the
Issuing Lender to it.

 

3.5                                 Reimbursement
Obligation of the Borrower.  If any
payment  is made under any Letter of
Credit, the Borrower shall reimburse the Issuing Lender for the amount of (a)
the payment so made and (b) any taxes, fees, charges or other costs or expenses
incurred by the Issuing Lender in connection with such payment, not later than
12:00 Noon, New York City time, on (i) the Business Day that the Borrower
receives notice of such payment, if such notice is received on such day prior
to 12:00 Noon, New York City time, or (ii) if clause (i) above does not apply,
the Business Day immediately following the day that the Borrower receives such
notice.  Each such reimbursement payment
shall be made to the Issuing Lender at its address for notices referred to
herein in Dollars and in immediately available funds.  Interest shall be payable on any such amounts
from the date on which the relevant payment under the Letter of Credit is made
until payment in full at the rate set forth in (x) until the Business Day next
succeeding the date of the relevant notice, Section 2.13(b) and (y) thereafter,
Section 2.13(c).  The Borrower may
request that such payment be financed with an ABR Loan of an equivalent amount,
and, to the extent so financed, the Borrower’s obligation to make such payment
shall be discharged and be replaced by such ABR Loan.

 

3.6                                 Obligations
Absolute.  The Borrower’s obligations
under this Section 3 shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment that the Borrower may have or have had against the Issuing Lender, any
beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees with the Issuing
Lender that the Issuing Lender shall not be responsible for, and the Borrower’s
Reimbursement Obligations under Section 3.5 shall not be affected by, among
other things, the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between or among the Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of
Credit may be transferred or any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee.  The Issuing Lender shall not be liable for
any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any
Letter of Credit, except for errors or omissions that resulted from the gross
negligence, bad faith or willful misconduct of the Issuing Lender.  The Borrower agrees that any action taken or
omitted by the Issuing Lender under or in connection with any Letter of Credit,
the related documents or payment thereunder 
shall be binding on the Borrower and shall

 

37

 

not result in any liability of
the Issuing Lender to the Borrower except to the extent caused by the gross
negligence or willful misconduct of the Issuing Lender.

 

3.7                                 Letter
of Credit Payments.  If any draft
shall be presented for payment under any Letter of Credit, the Issuing Lender
shall promptly notify the Borrower of the date and amount thereof.  The responsibility of the Issuing Lender to
the Borrower in connection with any draft presented for payment under any
Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit.

 

3.8                                 Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.                                REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders
to enter into this Agreement and to make the Loans and issue or participate in
the Letters of Credit, Holdings and the Borrower hereby jointly and severally
represent and warrant to the Administrative Agent and each Lender that:

 

4.1                                 Financial
Condition.  (a) The unaudited pro
forma consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at December 31, 2003 (including the notes thereto) (the “Pro
Forma Balance Sheet”), copies of which have heretofore been furnished to
each Lender, has been prepared giving effect (as if such events had occurred on
such date) to (i) the consummation of the IPO, (ii) the Loans to be made and/or
continued on the Effective Date and the use of proceeds thereof and (iii) the payment
of fees and expenses in connection with the foregoing.  The Pro Forma Balance Sheet has been prepared
based on the best information available to the Borrower as of the date of
delivery thereof, and presents fairly on a pro  forma basis the
estimated financial position of the Borrower and its consolidated Subsidiaries
as at December 31, 2003, assuming that the events specified in the preceding
sentence had actually occurred at such date.

 

(b)  The audited consolidated balance sheets of
the Borrower as at December 31, 2001, December 31, 2002 and December 31, 2003,
and the related consolidated statements of income and of cash flows for the
fiscal years ended on such dates, reported on by and accompanied by an
unqualified report from PricewaterhouseCoopers LLP, present fairly the
consolidated financial condition of the Borrower as at such date, and the
consolidated results of its operations and its consolidated cash flows for the
respective fiscal years then ended.  All
such financial statements, including the related schedules and notes thereto,
have been prepared in accordance with GAAP applied consistently throughout the
periods involved (except as approved by the aforementioned firm of accountants
and disclosed therein).  As of the
Effective Date, no Group Member has any material Guarantee Obligations,
contingent liabilities and liabilities for taxes, or any long-term leases or
unusual forward or long-term commitments, including any interest rate or
foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph other than obligations in respect of surety bonds
entered into in the ordinary course of business and Guarantee Obligations in
respect thereof.  During the period from
December 31, 2003 to and including the Effective Date there has been no
Disposition by any Group Member of any material part of its business or
property other than in connection with the IPO.

 

4.2                                 No
Change.  Since December 31, 2003,
there has been no development or event that has had or could reasonably be
expected to have a Material Adverse Effect.

 

38

 

4.3                                 Existence;
Compliance with Law.  Each Group
Member (a) is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, (b) has the power and authority,
and the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently
engaged, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, (c) is duly
qualified as a foreign corporation and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification, except in jurisdictions where the
failure to be so qualified or in good standing could not be reasonably expected
to have a Material Adverse Effect, and (d) 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.

 

4.4                                 Power;
Authorization; Enforceable Obligations. 
Each Loan Party has the power and authority, and the legal right, to
make, deliver and perform the Loan Documents to which it is a party and, in the
case of the Borrower, to obtain extensions of credit hereunder.  Each Loan Party has taken all necessary
organizational action to authorize the execution, delivery and performance of
the Loan Documents to which it is a party and, in the case of the Borrower, to
authorize the extensions of credit on the terms and conditions of this
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 extensions of
credit hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Loan Documents, except (i)
consents, authorizations, filings and notices described in Schedule 4.4, which
consents, authorizations, filings and notices have been obtained or made and
are in full force and effect, (ii) the filings referred to in Section 4.19 and
(iii) consents, approvals, registrations, filings or actions the failure of
which to be obtained or performed could not reasonably be expected to have a
Material Adverse Effect.  Each Loan
Document has been duly executed and delivered on behalf of each Loan Party
party thereto.  This Agreement
constitutes, and each other Loan Document upon execution will constitute, a
legal, valid and binding obligation of each Loan Party party thereto, enforceable
against each such Loan Party 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).

 

4.5                                 No
Legal Bar.  The execution, delivery
and performance of this Agreement and the other Loan Documents, the issuance of
Letters of Credit, the borrowings hereunder and the use of the proceeds thereof
will not violate any Requirement of Law or any Contractual Obligation of any
Group Member 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).  No
Requirement of Law or Contractual Obligation applicable to the Borrower or any
of its Subsidiaries could reasonably be expected to have a Material Adverse
Effect.  As of the Effective Date, the
only material orders or decrees of Governmental Authorities to which any Group
Member is subject are listed on Schedule 4.5.

 

4.6                                 Litigation.  No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of Holdings or the Borrower, threatened by or against any Group
Member or against any of their respective properties or revenues (a) with
respect to any of the Loan Documents or any of the transactions contemplated
hereby or thereby, or (b) that could reasonably be expected to have a Material
Adverse Effect.

 

4.7                                 No
Default.  No Group Member 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.

 

39

 

4.8                                 Ownership
of Property; Liens.  Each Group
Member has title in fee simple to, or a valid leasehold interest in or other
valid rights to use, all its material real property, and good title to, or a
valid leasehold interest in or other valid rights to use, all its other
property material to its business, except for (a) Liens permitted under Section
7.3, and (b) minor irregularities or deficiencies in title that, individually
or in the aggregate, do not materially adversely affect the value of such real
property, or interfere with the ability of such Group Member to conduct its
business as currently conducted or to utilize such properties for their
intended purposes, and none of such property is subject to any Lien except as
permitted by Section 7.3.

 

4.9                                 Intellectual
Property.  Each Group Member owns, or
is licensed to use, all Intellectual Property necessary for the conduct of its
business as currently conducted.  No
claim has been asserted and is pending by any Person challenging or questioning
the use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does Holdings or the Borrower know of any valid
basis for any such claim, in each case, to the extent such claim could
reasonably be expected to result in a Material Adverse Effect.  The use of Intellectual Property by each
Group Member does not, to its knowledge, infringe on the rights of any Person
in any material respect.

 

4.10                           Taxes.  Each Group Member has filed or caused to be
filed all Federal, state and other material tax returns that are required to be
filed and has paid all taxes shown to be due and payable on said returns or on
any assessments made against it or any of its property and all other material
taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority (other than any the amount or validity of which are
currently being contested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been provided on the
books of the relevant Group Member); no material tax Lien has been filed, and,
to the knowledge of Holdings and the Borrower, no material claim is being
asserted, with respect to any such tax, fee or other charge.

 

4.11                           Federal
Regulations.  No part of the proceeds
of any Loans, and no other extensions of credit hereunder, will be used for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect or for any purpose that violates the provisions of the Regulations of
the Board.  If requested by any Lender or
the Administrative Agent, the Borrower will furnish to the Administrative Agent
and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in
Regulation U.

 

4.12                           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 Group Member pending or, to the knowledge of Holdings
or the Borrower, threatened; (b) hours worked by and payment made to employees
of each Group Member 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 any Group Member on account of employee health and
welfare insurance have been paid or accrued as a liability on the books of the
relevant Group Member.

 

4.13                           ERISA.  Neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or
Section 302 of ERISA) has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan, and each Plan has complied in all respects with the applicable provisions
of ERISA and the Code.  No termination of
a Single Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan
has arisen, during such five-year period. 
The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by a material amount. 
Neither the Borrower nor

 

40

 

any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan that has
resulted in a material liability under ERISA, and, to the Borrower’s knowledge,
neither the Borrower nor any Commonly Controlled Entity would become subject to
any material liability under ERISA if the Borrower or any such Commonly
Controlled Entity were to withdraw completely from all Multiemployer Plans as
of the valuation date most closely preceding the date on which this
representation is made or deemed made. 
No such Multiemployer Plan is in Reorganization or Insolvent which
Reorganization or Insolvency would subject the Borrower or any Commonly
Controlled Entity to any material liability under ERISA or the Code.

 

4.14                           Investment
Company Act; Other Regulations.  No
Loan Party is an “investment company”, or a company “controlled” by a company
required to be registered as an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. 
No Loan Party is subject to regulation under any Requirement of Law
(other than Regulation X of the Board) that limits its ability to incur
Indebtedness.

 

4.15                           Subsidiaries.  Except as disclosed to the Administrative
Agent by the Borrower in writing from time to time after the Effective Date,
(a) Schedule 4.15 sets forth the name and jurisdiction of organization of each
Subsidiary of the Borrower and, as to each such Subsidiary, the percentage of each
class of Capital Stock owned by any Loan Party and (b) there are no outstanding
subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors and
directors’ qualifying shares) of any nature relating to any Capital Stock of
the Borrower or any Subsidiary, except as created by the Loan Documents.

 

4.16                           Use
of Proceeds.  The proceeds of the
Revolving Loans and the Swingline Loans, and the Letters of Credit, shall be
used for general corporate purposes, including working capital purposes and
acquisitions permitted by Section 7.8.

 

4.17                           Environmental
Matters.  Other than exceptions to
any of the following that could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect:

 

(a)  each Group Member:  (i) is, and to the knowledge of any Group
Member within the period of all applicable statutes of limitation has been, in
compliance with all applicable Environmental Laws; (ii) holds all Environmental
Permits (each of which is in full force and effect) required for its current
operations or for it with respect to any property owned, leased, or otherwise
operated by it; (iii) is, and to the knowledge of any Group Member within the
period of all applicable statutes of limitation has been, in compliance with
all of its Environmental Permits; and (iv) reasonably believes that: its
Environmental Permits will be timely renewed and complied with, without
significant expense; any additional Environmental Permits that may be required
of it will be timely obtained and complied with, without significant expense;
and compliance with any Environmental Law that is or is expected to become
applicable to it will be timely attained and maintained, without significant
expense;

 

(b)  Materials of Environmental Concern are not
present at, on, under, in, or about any real property now or formerly owned,
leased or operated by any Group Member, or at any other location (including,
without limitation, any location to which Materials of Environmental Concern
have been sent for re-use or recycling or for treatment, storage, or disposal)
which could reasonably be expected to (i) give rise to liability of any Group
Member under any applicable Environmental Law or otherwise result in costs to
any Group Member, or (ii) interfere with any Group Member’s continued
operations, or (iii) impair the fair saleable value of any real property owned
or leased by any Group Member in light of such property’s current use;

 

41

 

(c)  There is no judicial, administrative, or
arbitral proceeding (including any notice of violation or alleged violation)
under or relating to any Environmental Law to which any Group Member is, or to
the knowledge of any Group Member will be, named as a party that is pending or,
to the knowledge of any Group Member, threatened; and to the knowledge of any
Group Member, there are no judicial, administrative, or arbitral proceedings
under or relating to any Environmental Law pending or threatened against any
Person, other than any Group Member, that could reasonably be expected to
affect any Group Member;

 

(d)  No Group Member has received any written
request for information, or been notified that it is a potentially responsible
party under or relating to the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (“CERCLA”) or any
similar Environmental Law, or with respect to any Materials of Environmental
Concern;

 

(e)  No Group Member has entered into or agreed to
any consent decree, order, or settlement or similar agreement, or is subject to
any judgment, decree, or order or other agreement, in any judicial,
administrative, arbitral, or other forum for dispute resolution, relating to
compliance with or liability under any Environmental Law; and

 

(f)  no Group Member has assumed or retained, by
contract or, to the knowledge of any Group Member, by operation of law, any
liabilities of any kind, fixed or contingent, under any Environmental Law or
with respect to any Materials of Environmental Concern.

 

4.18                           Accuracy
of Information, etc.  No statement or
information (excluding projections and pro forma financial information)
contained in this Agreement, any other Loan Document, the Confidential
Information Memorandum or any other document, certificate or statement
furnished in writing by or on behalf of any Loan Party to the Administrative
Agent or the Lenders, or any of them, for use in connection with the
transactions contemplated by this Agreement or the other Loan Documents, when
taken as a whole, contained as of the date such statement, information,
document or certificate was so furnished (or, in the case of the Confidential
Information Memorandum (as supplemented by written information provided to the
Lenders prior to the Effective Date), as of the date of this Agreement), any
untrue statement of a material fact or omitted to state a material fact
necessary to make the statements contained herein or therein not materially
misleading.  The projections and pro
forma financial information contained in the materials referenced above
are based upon good faith estimates and assumptions believed by management of
the Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount.  As of the
Effective Date, there is no fact known to any Loan Party that could reasonably
be expected to have a Material Adverse Effect that has not been expressly
disclosed herein, in the other Loan Documents, in the Confidential Information
Memorandum or in any other documents, certificates and statements furnished in
writing to the Administrative Agent and the Lenders for use in connection with
the transactions contemplated hereby and by the other Loan Documents.

 

4.19                           Security
Documents.  (a) The Guarantee and
Collateral Agreement is effective to create in favor of the Administrative
Agent, for the benefit of the Secured Parties, a legal, valid and enforceable
security interest in the Collateral described therein and proceeds thereof.  In the case of the Pledged Stock described in
the Guarantee and Collateral Agreement, stock certificates representing such
Pledged Stock having been delivered to the Administrative Agent, and in the
case of the other Collateral described in the Guarantee and Collateral
Agreement, financing statements and other filings and actions specified on
Schedule 4.19(a) in appropriate form having been filed in the offices specified
on Schedule 4.19(a), the Guarantee and Collateral Agreement constitutes a
fully perfected Lien on, and

 

42

 

security interest in, all
right, title and interest of the Loan Parties in such Collateral and the
proceeds thereof (other than such Collateral in which a security interest
cannot be perfected under the Uniform Commercial Code or other applicable law
as in effect at the relevant time in the relevant jurisdiction by the filing of
financing statements and other filings and actions described in Schedule
4.19(a)), as security for the Obligations (as defined in the Guarantee and
Collateral Agreement), in each case prior and superior in right to any other
Person (except, in the case of Collateral other than Pledged Stock, Liens
permitted by Section 7.3).

 

(b)  Each of the Mortgages is effective to create
in favor of the Administrative Agent, for the benefit of the Secured Parties, a
legal, valid and enforceable Lien on the Mortgaged Properties described therein
and proceeds thereof, and when the Mortgages are filed in the offices specified
on Schedule 4.19(b), each such Mortgage shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in the Mortgaged Properties and the proceeds thereof, as security for
the Obligations (as defined in the relevant Mortgage), in each case prior and
superior in right to any other Person (other than Liens permitted under Section
7.3 that have priority by operation of law or Liens permitted under Section
7.3(e) or 7.3(g)).  Schedule 1.1B lists,
as of the Effective Date, each parcel of owned real property located in the
United States and held by the Borrower or any of its Subsidiaries that has a
value, in the reasonable opinion of the Borrower, in excess of $500,000.

 

4.20                           Solvency.  The Loan Parties are, taken as a whole, and
after giving effect to the IPO and the incurrence of all Indebtedness and
obligations being incurred in connection herewith and therewith will be and
will continue to be, Solvent.

 

4.21                           Regulation
H.  No Mortgage (other than the
Connecticut 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, as amended.

 

SECTION 5.                                CONDITIONS PRECEDENT

 

5.1                                 Condition
to Amendment of Section 8(l)(v) of Existing Credit Agreement.  Section 8(l)(v) of the Existing Credit
Agreement shall be amended by deleting such subsection in its entirety upon the
Administrative Agent receiving this Agreement, executed and delivered by the
Administrative Agent, Holdings, the Borrower and the Required Lenders (as
defined in the Existing Credit Agreement); provided, that such amendment
shall cease to be effective if the IPO is not consummated within ten (10)
Business Days after the date of such receipt by the Administrative Agent, in
which case such provision shall automatically be reinserted into the Existing
Credit Agreement.  Each of the Required
Lenders referred to above hereby agrees and consents to such amendment by
executing this Agreement.

 

5.2                                 Conditions
to Effectiveness.  The effectiveness
of this Agreement (other than Section 5.1, the effectiveness of which is
governed by the terms thereof) is subject to the satisfaction, on or before May
31, 2004, of the following conditions precedent:

 

(a)                                  Execution of Credit
Agreement.  The
Administrative Agent shall have received this Agreement, executed and delivered
by the Administrative Agent, Holdings, the Borrower and the Lenders.

 

(b)                                 IPO, etc.  Holdings
shall have received at least $90,000,000 in Net Cash Proceeds from the IPO, and
such proceeds shall have been applied as follows: (x) 50% thereof shall have
been applied to prepay the Term Loans (under and as defined in the Existing
Credit Agreement),

 

43

 

(y) approximately
$31,200,000 thereof shall have been used to repay the Seller Note in full and
(z) the remainder shall have been contributed to the equity capital of the
Borrower.

 

(c)                                  Pro Forma Balance Sheet. 
The Lenders shall have received the Pro Forma Balance Sheet.

 

(d)                                 Projections. 
The Lenders shall have received projections of the Borrower through the
2010 fiscal year, in form and substance reasonably satisfactory to the
Administrative Agent.

 

(e)                                  Approvals.  All
governmental and third party approvals necessary or, in the discretion of the
Administrative Agent, advisable in connection with the IPO, the continuing
operations of the Group Members 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.

 

(f)                                    Fees.  The Lenders
and the Administrative Agent shall have received all fees required to be paid,
and all expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel), on or before the Effective
Date.

 

(g)                                 Closing Certificate; Good Standing
Certificates.  The Administrative Agent shall have received
a certificate of each Loan Party, dated the Effective Date, substantially in
the form of Exhibit C, with good-standing certificates for each Loan Party from
its jurisdiction of organization attached and representing that no amendments
or modifications have been made to such Loan Party’s organizational documents
since the Original Closing Date (or the date on which such Person became a Loan
Party).

 

5.3                                 Conditions
to Each Extension of Credit.  The
agreement of each Lender to make any extension of credit requested to be made
by it on any date is subject to the satisfaction of the following conditions
precedent:

 

(a)                                  Representations and Warranties. 
Each of the representations and warranties made by any Loan Party in or
pursuant to the Loan Documents shall be true and correct in all material
respects on and as of such date as if made on and as of such date (it being
understood and agreed that any representation or warranty that by its terms is
made as of a specified date shall be required to be true and correct in all
material respects only as of such specified date).

 

(b)                                 No Default.  No Default or
Event of Default shall have occurred and be continuing on such date or after
giving effect to the extensions of credit requested to be made on such date.

 

Each borrowing by and
issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit that the conditions contained in this Section 5.3 have been
satisfied.

 

SECTION 6.                                AFFIRMATIVE COVENANTS

 

Holdings and the Borrower hereby jointly and
severally agree that, so long as the Revolving Commitments remain in effect,
any Letter of Credit remains outstanding (unless cash collateralized in a
manner reasonably satisfactory to the Administrative Agent and the Issuing
Lender) or

 

44

 

any Loan or other amount is
owing to any Lender or the Administrative Agent hereunder, each of Holdings and
the Borrower shall and shall cause each of its Subsidiaries to:

 

6.1                                 Financial
Statements.  Furnish to the Administrative
Agent for itself and for reasonably prompt distribution by the Administrative
Agent to each Lender:

 

(a)                                  as soon as available, but in any event
within 105 days after the end of each fiscal year of Holdings, a copy of
the audited consolidated balance sheet of Holdings and its consolidated
Subsidiaries as at the end of such year and the related audited consolidated
statements of income and of cash flows for such year (together with such
balance sheet and such statements on an unaudited consolidating basis treating
the Borrower and its Subsidiaries as a single Subsidiary of Holdings), setting
forth in each case in comparative form the figures for the previous year,
reported on without a qualification arising out of the scope of the audit, by
PricewaterhouseCoopers LLP or other independent certified public accountants of
nationally recognized standing; and

 

(b)                                 as soon as available, but in any event
not later than 45 days after the end of each of the first three quarterly
periods of each fiscal year of Holdings, the unaudited consolidated balance
sheet of Holdings and its consolidated Subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end of
such quarter (together with such balance sheet and such statements on a
consolidating basis treating the Borrower and its Subsidiaries as a single
Subsidiary of Holdings), setting forth in each case in comparative form the
figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit
adjustments and the absence of footnotes and prepared in a format similar to
that used for the financial statements referred to in paragraph (a) above).

 

All such financial
statements delivered pursuant to paragraphs (a) and (b) above shall be complete
and correct in all material respects and shall be prepared in reasonable detail
and in accordance with GAAP applied (except as approved by such accountants or
officer, as the case may be, and disclosed in reasonable detail therein and, in
the case of financial statements delivered pursuant to paragraph (b) above,
subject to normal year-end and, if applicable, quarter-end audit adjustments
and the absence of footnotes) consistently throughout the periods reflected
therein and with prior periods.

 

6.2                                 Certificates;
Other Information.  Furnish to the
Administrative Agent for itself and for reasonably prompt distribution by the
Administrative Agent to each Lender (or, in the case of clause (g), to the
relevant Lender):

 

(a)                                  concurrently with the delivery of the
financial statements referred to in Section 6.1(a), a certificate of the
independent certified public accountants reporting on such financial statements
stating that in making the examination necessary therefore no knowledge was
obtained of any Default or Event of Default, except as specified in such
certificate;

 

(b)                                 concurrently with the delivery of any
financial statements pursuant to Section 6.1, (i) a certificate of a
Responsible Officer stating that, to the best of each such Responsible Officer’s
knowledge, each Loan Party during such period has observed or performed all of
its covenants under Sections 2.10, 6 and 7, and that such Responsible Officer
has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and (ii) in the case of quarterly or annual
financial statements, (x) a Compliance Certificate containing all information
and calculations necessary for determining compliance by each Group Member with
the provisions of this Agreement applicable to it referred to therein as of the
last day of the fiscal

 

45

 

quarter or fiscal year of
the Borrower, as the case may be, and (y) to the extent not previously
disclosed to the Administrative Agent, a description of any change in the
jurisdiction of organization of any Loan Party and a list of any Intellectual
Property material to the business of any Loan Party acquired by any Loan Party
since the date of the most recent report delivered pursuant to this clause (y)
(or, in the case of the first such report so delivered, since the Effective
Date);

 

(c)                                  as soon as available, and in any event no
later than 60 days after the end of each fiscal year of the Borrower, a
reasonably detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow, projected changes in financial
position and projected income and a description of the underlying assumptions
applicable thereto), and, as soon as available, significant revisions, if any
(as a result of, among other things, a material acquisition or disposition), of
such budget and projections with respect to such fiscal year (collectively, the
“Projections”), which Projections shall in each case be accompanied by a
certificate of a Responsible Officer stating that such Projections are based on
reasonable estimates, information and assumptions and that such Responsible
Officer has no reason to believe that such Projections are incorrect or
misleading in any material respect (it being understood that actual results may
vary from any such Projections by a material amount and such Projections are
subject to significant contingencies and assumptions, many of which are beyond
the control of the Borrower, and that no assurances are offered that the
Projections will be realized);

 

(d)                                 within 45 days after the end of each of
the first three fiscal quarters of each fiscal year of the Borrower and within
105 days after the end of the fourth fiscal quarter of each fiscal year of the
Borrower, a narrative discussion and analysis of the financial condition and
results of operations of the Borrower and its Subsidiaries for such fiscal
quarter and for the period from the beginning of the fiscal year in which such
fiscal quarter is included to the end of such fiscal quarter;

 

(e)                                  no later than five Business Days prior to
the effectiveness thereof, copies of substantially final drafts of any proposed
amendment, supplement, waiver or other modification with respect to the
Acquisition Documentation;

 

(f)                                    within five days after the same are
filed, copies of all financial statements and reports that Holdings or the
Borrower may make to, or file with, the SEC; and

 

(g)                                 promptly, such additional financial and
other information as the Administrative Agent or any Lender (through the
Administrative Agent) may from time to time reasonably request.

 

Reports and documents
required to be delivered pursuant to Sections 6.1 and 6.2 may be delivered
electronically and if so, shall be deemed to have been delivered on the date on
which (a) such reports are posted electronically on IntraLinks/IntraAgency or
other relevant website to which the Administrative Agent and the Lenders have
access (whether a commercial, third-party website or whether sponsored by the
Administrative Agent), if any, and (b) the Borrower shall have notified (which
may be by facsimile or electronic mail) the Administrative Agent and each
Lender of the posting of any such reports and provided to the Administrative
Agent and each Lender by email electronic versions (i.e. soft copies) of such
reports and documents.

 

46

 

6.3                                 Payment
of Obligations.  Pay, discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature, except where
(i) 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 Group Member or (ii)
such failure to pay, discharge or satisfy could not reasonably be expected to
have a Material Adverse Effect.

 

6.4                                 Maintenance
of Existence; Compliance. 
(a)(i)  Preserve, renew and keep
in full force and effect its organizational existence and (ii) take all
reasonable action to maintain all rights, privileges and franchises necessary
or desirable in the normal conduct of its business, except, in each case, as
otherwise permitted by Section 7.4 and except, in the case of clause (ii)
above, to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (b) comply with all Contractual Obligations
and applicable Requirements of Law except to the extent that failure to comply
therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

6.5                                 Maintenance
of Property; Insurance.  (a) 
Keep all property useful and necessary in its business in good working order
and condition, ordinary wear and tear excepted and (b) maintain with
financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks (but
including in any event public liability, product liability and business interruption)
as are usually insured against in the same general area by companies engaged in
the same or a similar business.

 

6.6                                 Inspection
of Property; Books and Records; Discussions.  (a) 
Maintain proper books of record and account, in which entries correct
and accurate in all material respects and sufficient to prepare financial
statements in conformity with GAAP are made and (b) permit representatives of
the Administrative Agent or any Lender to visit and inspect any of its
properties and examine and make abstracts from any of its books and records at
any reasonable time during normal business hours and to discuss the business,
operations, properties and financial condition of the Group Members with
officers of the Group Members and with their independent certified public
accountants.  Notwithstanding anything to
the contrary in this Section 6.6, none of Holdings, the Borrower or any of
their Subsidiaries will be required to disclose, permit the inspection,
examination or making of extracts, or discussion of, any document, information
or other matter that (i) in respect of which disclosure to the Administrative
Agent (or its designated representative) is then prohibited by law or any
agreement binding on Holdings, the Borrower or any of their Subsidiaries or
(ii) is subject to attorney-client or similar privilege or constitutes attorney
work product.

 

6.7                                 Notices.  Promptly give notice to the Administrative
Agent and each Lender of:

 

(a)                                  any Responsible Officer of Holdings or
the Borrower obtaining knowledge of the occurrence of any Default or Event of
Default;

 

(b)                                 any Responsible Officer of Holdings or
the Borrower obtaining knowledge of any (i) default or event of default under
any Contractual Obligation of any Group Member or (ii) litigation,
investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have
a Material Adverse Effect;

 

(c)                                  any litigation or proceeding affecting
any Group Member (i) in which the amount involved is $5,000,000 or more and not
covered by insurance, (ii) in which injunctive or similar relief is sought or
(iii) which relates to any Loan Document;

 

47

 

(d)                                 the following events, as soon as possible
and in any event within 30 days after any Responsible Officer of Holdings or
the Borrower knows or has reason to know thereof:  (i) the occurrence of any Reportable Event
with respect to any Plan, a failure to make any required contribution to a
Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal
from, or the termination, Reorganization or Insolvency of, any Multiemployer
Plan or (ii) the institution of proceedings or the taking of any other action
by the PBGC or the Borrower or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the termination,
Reorganization or Insolvency of, any Plan;

 

(e)                                  the following events, as soon as possible
and in any event within 30 days after any Group Member knows or has reason to
know thereof:  (i) any written notice
that any Governmental Authority may deny any application for a material Environmental
Permit sought by, or revoke or refuse to renew any material Environmental
Permit held by any Group Member; and (ii) any Governmental Authority has
identified any Group Member as a potentially responsible party under CERCLA or
any similar Environmental Law for the cleanup of Materials of Environmental
Concern at any location, whether or not owned, leased or operated by any Group
Member; and

 

(f)                                    any development or event that has had or
could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this
Section 6.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the relevant Group Member proposes to take with respect thereto.

 

6.8                                 Environmental
Laws  Other than exceptions to any of
the following that could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect:

 

(a)                                  comply in all material respects with, and
use reasonable efforts to 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 use
reasonable efforts to ensure that all tenants and subtenants obtain and comply
in all material respects with and maintain, any and all Environmental Permits
required of them by any applicable Environmental Laws;

 

(b)                                 conduct
and complete in all material respects all investigations, studies, sampling and
testing, and all remedial, removal and other actions required to be undertaken
by any Group Member under Environmental Laws and promptly comply with all
orders and directives applicable to any Group Member of all Governmental
Authorities regarding Environmental Laws;

 

(c)                                  generate,
use, treat, store, release, dispose of, and otherwise manage Materials of
Environmental Concern in a manner that would not reasonably be expected to
result in a material liability to any Group Member or to materially affect any
real property owned or leased by any of them; and take reasonable efforts to
prevent any other Person from generating, using, treating, storing, releasing,
disposing of, or otherwise managing Materials of Environmental Concern in a
manner that could reasonably be expected to result in a material liability to,
or materially affect any real property owned or operated by, any Group Member;
and

 

(d)                                 maintain
and update as appropriate, and implement in all material respects an ongoing
program reasonably designed to ensure that all the properties and operations of
the

 

48

 

Group Members
are regularly and reasonably reviewed by competent professionals to identify
and promote compliance with and to reasonably and prudently manage any
liabilities or potential liabilities under any Environmental Law that may
affect any Group Member, including, without limitation, compliance and
liabilities relating to:  discharges to
air and water; acquisition, transportation, storage and use of hazardous materials;
waste disposal; repair, maintenance and improvement of properties; employee
health and safety; species protection; and recordkeeping.

 

6.9                                 Interest
Rate Protection.  In the case of the
Borrower, maintain Swap Agreements to the extent necessary to provide that at
least 50% of the aggregate outstanding principal amount of the Term Loans is
subject to either a fixed interest rate or interest rate protection for a
period of not less than three years after the Original Closing Date, which Swap
Agreements shall have terms and conditions reasonably satisfactory to the
Administrative Agent.

 

6.10                           Additional
Collateral, etc.  (a)                                     With respect to
any property acquired after the Original Closing Date by any Group Member
(other than (w) any property described in paragraph (b), (c) or (d) below,
(x) any property subject to a Lien expressly permitted by Section 7.3(g),
(y) property acquired by any Foreign Subsidiary and (z) in any case
where the Administrative Agent determines in its reasonable discretion that the
costs of obtaining a security interest are excessive in relation to the
collateral value to be afforded thereby) as to which the Administrative Agent,
for the benefit of the Secured Parties, does not have a perfected Lien,
promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement or such other documents as the
Administrative Agent deems necessary or advisable to grant to the
Administrative Agent, for the benefit of the Secured Parties, a security
interest in such property and (ii) take all actions necessary or advisable to
grant to the Administrative Agent, for the benefit of the Lenders, a perfected
first priority (except, in the case of Collateral other than Pledged Stock,
Liens permitted by Section 7.3) security interest in such property, 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 $500,000 acquired after the Original Closing
Date by any Group Member (other than (x) any such real property subject to a
Lien expressly permitted by Section 7.3(g) and (z) real property acquired by
any Foreign Subsidiary), promptly (i) execute and deliver a first priority
Mortgage, in favor of the Administrative Agent, for the benefit of the Secured
Parties, covering such real property, (ii) if 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 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.

 

(c)  With respect to any new Subsidiary (other
than (x) a Foreign Subsidiary and (y) any case where the
Administrative Agent determines in its reasonable discretion that the costs of
obtaining a security interest are excessive in relation to the collateral value
of the security interest) created or acquired after the Original Closing Date
by any Group Member (which, for the purposes of this paragraph (c), shall
include any existing Subsidiary that ceases to be a Foreign Subsidiary),
promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement as the Administrative Agent deems
necessary or advisable to grant to the Administrative Agent, for the benefit

 

49

 

of the Secured Parties, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by any Group Member, (ii) deliver to the
Administrative Agent the certificates (if any) representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member, (iii) cause such new
Subsidiary (A) to become a party to the Guarantee and Collateral
Agreement, (B) to take such actions necessary or advisable to grant to the
Administrative Agent for the benefit of the Secured Parties a perfected first
priority (except, in the case of Collateral other than Pledged Stock,
Liens permitted by Section 7.3) security interest in the Collateral
described in the Guarantee and Collateral Agreement with respect to such new
Subsidiary, 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 requested by the Administrative
Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit C, with appropriate insertions
and attachments, and (iv) if 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 Original Closing Date by any Group Member (other
than (x) by any Group Member that is a Foreign Subsidiary and (y) in
any case where the Administrative Agent determines in its reasonable discretion
that the costs of obtaining a security interest are excessive in relation to
the collateral value of the security interest), promptly (i) execute and
deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement as the Administrative Agent deems necessary or advisable
to grant to the Administrative Agent, for the benefit of the Secured Parties, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by any such Group Member (provided that in no event
shall more than 66% of the total outstanding voting Capital Stock of any such
new Subsidiary be required to be so pledged), (ii) deliver to the
Administrative Agent the certificates (if any) representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member, and take such other action as
may be necessary or, in the 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.

 

6.11                           Vehicles.  Use its best efforts to cause, as soon as
possible, the Administrative Agent’s first priority security interest in all
cars, trucks, trailers, construction and earth moving equipment and other
vehicles covered by a certificate of title law of any state (collectively, the “Titled
Vehicles”) that are listed on Schedule 8 of the Guarantee and Collateral
Agreement with a book value in excess of $10,000 to be noted on the
certificates of title of such Titled Vehicles in the jurisdictions in which
such notation is required to perfect such security interest and, in any event,
on or before July 7, 2004, (a) submit applications to note the Administrative
Agent’s first priority security interest on the certificates of title with
respect to all Titled Vehicles listed on such Schedule 8 with a book value in
excess of $10,000 in the appropriate jurisdictions and (b) deliver to the
Administrative Agent evidence, in form and substance reasonably satisfactory to
the Administrative Agent, that the Administrative Agent’s first priority
security interest has been noted on the certificates of title with respect to
Titled Vehicles the aggregate book value of which is greater than or equal to
80% of the aggregate book value of all Titled Vehicles listed on such Schedule
8 with book values in excess of $10,000.

 

SECTION 7.                                NEGATIVE COVENANTS

 

Holdings and the Borrower hereby jointly and
severally agree that, so long as the Revolving Commitments remain in effect,
any Letter of Credit remains outstanding (unless cash

 

50

 

collateralized in a manner
reasonably satisfactory to the Administrative Agent and the Issuing Lender) or
any Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, each of Holdings and the Borrower shall not, and shall not permit
any of its Subsidiaries to, directly or indirectly:

 

7.1                                 Financial
Condition Covenants.

 

(a)  Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as at
the last day of any period of four consecutive fiscal quarters of the Borrower
ending with any fiscal quarter set forth below to exceed the ratio set forth
below opposite such fiscal quarter:

 

	
  Fiscal Quarter Ended

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2004 through

  September 30, 2004

  	
   

  	
  3.25 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2004 through

  September 30, 2005

  	
   

  	
  2.75 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2005 through

  September 30, 2006

  	
   

  	
  2.25 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2006 through

  September 30, 2007

  	
   

  	
  2.00 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2007 through

  September 30, 2010

  	
   

  	
  1.75 to 1.00

  	
   

  

 

(b)  Consolidated Interest Coverage Ratio.  Permit the Consolidated Interest Coverage
Ratio for any period of four consecutive fiscal quarters of the Borrower
(beginning with the four fiscal quarters ended March 31, 2004) to be less than
4.00 to 1.00.

 

(c)  Consolidated Fixed Charge Coverage Ratio.  Permit the Consolidated Fixed Charge Coverage
Ratio for any period of four consecutive fiscal quarters of the Borrower
(beginning with the four fiscal quarters ended March 31, 2004) to be less than
1.50 to 1.00.

 

(d)  Consolidated Adjusted EBITDA.  Permit Consolidated Adjusted EBITDA for any
period of four consecutive fiscal quarters of the Borrower ending with any
fiscal quarter set forth below to be less than the amount set forth below
opposite such fiscal quarter:

 

	
  Fiscal Quarter Ended

  	
   

  	
  Consolidated

  Adjusted EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  2004 through

  September 30, 2004

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2004 through

  September 30, 2005

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2005 through

  September 30, 2010

  	
   

  	
  $

  	
  55,000,000

  	
   

  

 

51

 

7.2                                 Indebtedness.  Create, issue, incur, assume, become liable
in respect of or suffer to exist any Indebtedness, except:

 

(a)                                  Indebtedness of any Loan Party pursuant
to any Loan Document;

 

(b)                                 (i) Indebtedness of the Borrower to any
Subsidiary, (ii) Indebtedness of any Subsidiary Guarantor to the Borrower or
any other Subsidiary, (iii) Indebtedness of any Foreign Subsidiary to any other
Foreign Subsidiary and (iv) Indebtedness in an aggregate principal amount not
to exceed $2,000,000 of all Foreign Subsidiaries to the Borrower or any of its
Domestic Subsidiaries;

 

(c)                                  Guarantee Obligations incurred in the
ordinary course of business by Holdings, the Borrower or any of its
Subsidiaries of obligations of any Subsidiary Guarantor;

 

(d)                                 Indebtedness outstanding on the Original
Closing Date and listed on Schedule 7.2(d) and any refinancings, refundings,
renewals or extensions thereof (without increasing (except to the extent of
fees and interest on such Indebtedness, refinancings, refundings, renewals or
extensions), or shortening the maturity of, the principal amount thereof);

 

(e)                                  Indebtedness (including Capital Lease
Obligations and any refinancings, refundings, renewals or extensions thereof)
secured by Liens permitted by Section 7.3(g) in an aggregate principal amount
not to exceed $20,000,000 at any one time outstanding;

 

(f)                                    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 (including Guarantee Obligations relating thereto);

 

(g)                                 Indebtedness arising from the honoring by
a bank or other financial institution of a check, draft or similar instrument
drawn against insufficient funds in the ordinary course of business, provided
that such Indebtedness is extinguished within five Business Days after its
incurrence;

 

(h)                                 Indebtedness of the Borrower or any of
its Subsidiaries consisting of the financing of insurance premiums in the ordinary
course of business; and

 

(i)                                     other Indebtedness of Holdings and its
Subsidiaries in an aggregate principal amount not to exceed at any time
$40,000,000.

 

In the event that any
item of Indebtedness meets more than one of the categories set forth above in
this Section, the Borrower may classify such item of Indebtedness and only be
required to include the amount and type of such Indebtedness in one or more of
such clauses, at its election.

 

7.3                                 Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, whether now owned or hereafter acquired, except:

 

(a)                                  Liens for taxes and other governmental
charges not yet due or that are being contested in good faith by appropriate
proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

 

52

 

(b)                                 carriers’,
warehousemen’s, landlords’, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business that are not overdue for
a period of more than 30 days or that are being contested in good faith by
appropriate proceedings;

 

(c)                                  pledges
or deposits in connection with workers’ compensation, unemployment insurance
and other social security legislation;

 

(d)                                 deposits
to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary course of business;

 

(e)                                  easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business that, in the aggregate, are not substantial in
amount and that do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries;

 

(f)                                    Liens
in existence on the Original Closing Date listed on Schedule 7.3(f) and
renewals, refinancings and extensions thereof, securing Indebtedness permitted
by Section 7.2(d), provided that no such Lien is spread to cover any
additional property after the Original Closing Date and that the amount of
Indebtedness secured thereby is not increased except as permitted under Section
7.2(d);

 

(g)                                 Liens
securing Indebtedness of the Borrower or any other Subsidiary incurred pursuant
to Section 7.2(e) to finance the acquisition of fixed or capital assets or to
refinance Indebtedness incurred for such purpose, provided that (i) such
Liens shall be created within 180 days after the acquisition of such fixed or
capital assets or at the time of such refinancing, as the case may be, (ii)
such Liens do not at any time encumber any property other than the property
financed by such Indebtedness (or securing such Indebtedness being refinanced)
and proceeds and replacements thereof and (iii) the principal amount of Indebtedness
secured thereby is not increased;

 

(h)                                 Liens
created pursuant to the Security Documents;

 

(i)                                     any
interest or title of a lessor, licensor or sublessor under any lease, license
or sublease entered into by the Borrower or any other Subsidiary in the ordinary
course of its business and covering only the assets so leased, licensed or
subleased;

 

(j)                                     Liens
arising from judgments, decrees, awards or attachments in circumstances not
constituting an Event of Default;

 

(k)                                  Liens
arising out of any conditional sale, title retention, consignment or other
similar arrangements for the sale of goods by the Borrower or any of its
Subsidiaries in the ordinary course of business to the extent such Liens do not
attach to any assets other than the goods subject to such arrangements;

 

(l)                                     Liens
on insurance policies and the proceeds thereof pursuant to insurance premium
financing arrangements;

 

(m)                               Liens
(i) incurred in the ordinary course of business in connection with the purchase
or shipping of goods or assets (or the related assets and proceeds thereof),
which Liens are in favor of the seller or shipper of such goods or assets and
only attached to such goods or assets,

 

53

 

and (ii) in favor
of customs and revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods;

 

(n)                                 Liens
in favor of collecting banks having a right of setoff, revocation, refund or
chargeback with respect to money or instruments of the Borrower or any of its
Subsidiaries on deposits with or in possession of such banks, other than
relating to Indebtedness;

 

(o)                                 Liens
on the assets of Foreign Subsidiaries in connection with financing arrangements
for their benefit that are not otherwise prohibited under this Agreement;

 

(p)                                 purported
Liens evidenced by the filing of precautionary UCC financing statements
relating solely to operating leases of personal property entered into in the
ordinary course of business;

 

(q)                                 those
matters set forth as exceptions to title in the title policy for each Mortgaged
Property;

 

(r)                                    Liens
on cash reserves securing Indebtedness of the Borrower and its Subsidiaries in
respect of letters of credit or surety bonds permitted by Section 7.2(f); and
Liens on cash reserves securing other obligations of the Borrower and its
Subsidiaries in respect of letters of credit or surety bonds arising in the
ordinary course of business, to the extent not provided to secure the repayment
of other Indebtedness of the Borrower and its Subsidiaries;

 

(s)                                  Liens
on contracts entered into with its customers by Holdings or any of its
Subsidiaries, and on all assets related thereto and to the projects that are
the subject thereof, to secure the obligations of Holdings or such Subsidiary in
respect of surety bonds issued on its behalf (the issuer thereof, the “Surety”)
to assure performance of such contracts (each such contract, a “Bonded
Contract”); provided that (i) all such Liens (other than those on
accounts receivable due and to become due with respect to all Bonded Contracts,
contract rights related to such accounts receivable and materials purchased for
incorporation in any project that is the subject of a Bonded Contract) shall be
subject, subordinate and junior to the Liens on the assets that are subject
thereto created by the Security Documents and (ii) prior to the creation of any
such Liens each Person (directly or through its agent) which is to be secured
thereby shall have entered into with the Administrative Agent, on behalf of the
Lenders, an intercreditor agreement which is in form and substance satisfactory
to the Administrative Agent;

 

(t)                                    Liens
in existence on the date of consummation of the Maslonka Acquisition on
contracts entered into with its customers by Maslonka, and on all assets
related thereto and to the projects that are the subject thereof, to secure the
obligations of Maslonka in respect of surety bonds issued on its behalf to
assure performance of such contracts; and

 

(u)                                 Liens
not otherwise permitted by this Section so long as the aggregate outstanding
principal amount of the obligations secured thereby do not exceed $5,000,000 at
any one time.

 

7.4                                 Fundamental
Changes.  Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Dispose of all or substantially all
of its property or business, except that:

 

(a)                                  any
Subsidiary of the Borrower may be merged or consolidated with or into the
Borrower (provided that the Borrower shall be the continuing or surviving
corporation) or with or

 

54

 

into any Wholly
Owned Subsidiary Guarantor (provided that the Wholly Owned Subsidiary
Guarantor shall be the continuing or surviving corporation);

 

(b)                                 any
Subsidiary of the Borrower may Dispose of any or all of its assets (i) to the
Borrower or any Wholly Owned Subsidiary Guarantor (upon voluntary liquidation
or otherwise) or (ii) pursuant to a Disposition permitted by Section 7.5;

 

(c)                                  any
Foreign Subsidiary may (i) be merged or consolidated with or into any other
Foreign Subsidiary or (ii) Dispose of any or all of its assets to any other
Foreign Subsidiary;

 

(d)                                 any
Immaterial Subsidiary may liquidate, wind up or dissolve; and

 

(e)                                  any
Investment expressly permitted by Section 7.8 may be structured as a merger,
consolidation or amalgamation.

 

7.5                                 Disposition
of Property.  Dispose of any of its
property, whether now owned or hereafter acquired, or, in the case of any
Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any
Person, except:

 

(a)                                  the
Disposition of obsolete or worn out property in the ordinary course of
business;

 

(b)                                 the
sale of inventory in the ordinary course of business;

 

(c)                                  Dispositions
permitted by Section 7.4(a), clause (i) of Section 7.4(b) or Section 7.4(c);

 

(d)                                 the
sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any
Wholly Owned Subsidiary Guarantor;

 

(e)                                  the
Disposition of cash or Cash Equivalents in the ordinary course of business;

 

(f)                                    the
license, as either licensor or licensee, of patents, trademarks, copyrights and
know-how to or from third Persons or any Group Member in the ordinary course of
business;

 

(g)                                 the
Disposition of property identified on Schedule 7.5(g) on or prior to the first
anniversary of the Original Closing Date;

 

(h)                                 the
Borrower may, subject to and in compliance with Section 6.10, Dispose of
assets (other than all or substantially all of its assets) to any Wholly Owned
Subsidiary Guarantor; and

 

(i)                                     the
Disposition of other property having a fair market value not to exceed
$10,000,000 in the aggregate for any fiscal year of the Borrower.

 

7.6                                 Restricted
Payments.  Declare or pay any
dividend (other than dividends payable solely in common stock or common equity
of the Person making such dividend) on, or make any payment on account of, or
set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock
of any Group Member, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash
or property or in obligations of any Group Member (collectively, “Restricted
Payments”), except that:

 

55

 

(a)                                  any
Subsidiary may make Restricted Payments to the Borrower or any Wholly Owned
Subsidiary Guarantor;

 

(b)                                 so
long as no Default or Event of Default shall have occurred and be continuing,
the Borrower may pay dividends to Holdings to permit Holdings to  purchase Holdings’ common stock or common
stock options from present or former officers or employees of any of Holdings
or its Subsidiaries upon the death, disability or termination of employment of
such officer or employee or pursuant to the terms of any stock option plan or
like agreement, provided, that the aggregate amount of payments under
this paragraph (net of any Net Cash Proceeds received by Holdings and
contributed to the Borrower after the date hereof in connection with resales of
any common stock or common stock options so purchased) shall not exceed
$500,000 in any fiscal year; and

 

(c)                                  the
Borrower may pay dividends to Holdings to permit Holdings to (i) pay corporate
overhead expenses incurred by Holdings in the ordinary course of its business
not to exceed $500,000 in any fiscal year, (ii) pay any taxes that are due and
payable by Holdings in respect of the operations of the Borrower or any
Subsidiary as part of a consolidated, combined or similar group that includes
Holdings, the Borrower or any Subsidiary, (iii) pay amounts owed to officers
and directors of Holdings with respect to directors’ fees, indemnities,
compensation or reimbursement of expenses and (iv) pay amounts owed to officers
of the Borrower and its Subsidiaries in connection with employment contracts
such officers enter into with Holdings.

 

7.7                                 Capital
Expenditures.  Make or commit to make
any Capital Expenditure, except Capital Expenditures of the Borrower and its
Subsidiaries in the ordinary course of business not exceeding, for any fiscal
year of the Borrower set forth in the table below, the amount set forth in such
table for such fiscal year; provided, that (a) up to 50% of any such
amount referred to above, if not so expended in the fiscal year for which it is
permitted, may be carried over for expenditure in the next succeeding fiscal
year, (b) Capital Expenditures made pursuant to this Section during any fiscal
year shall be deemed made, first, in respect of amounts permitted for
such fiscal year as provided above and, second, in respect of amounts
carried over from the prior fiscal year pursuant to clause (a) above and (c)
notwithstanding the foregoing, the Telecommunications Subsidiaries may not make
Capital Expenditures in an aggregate amount greater than $15,000,000 during any
fiscal year; provided, further, that no Capital Expenditures may
be made pursuant to clause (c) above unless in a manner reasonably consistent
with past practice.

 

	
  Fiscal Year

  	
   

  	
  Capital Expenditures

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2003

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2004

  	
   

  	
  $

  	
  31,650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  $

  	
  34,350,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  $

  	
  37,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  $

  	
  39,750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  $

  	
  41,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  $

  	
  42,450,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  $

  	
  43,950,000

  	
   

  

 

56

 

7.8                                 Investments.  Make any advance, loan, extension of credit
(by way of guaranty or otherwise) or capital contribution to, or purchase any
Capital Stock, bonds, notes, debentures or other debt securities of, or any
assets constituting a business unit of, or make any other investment in, any
Person (all of the foregoing, “Investments”), except:

 

(a)                                  extensions
of trade credit or the holding of receivables in the ordinary course of
business;

 

(b)                                 investments
in Cash Equivalents;

 

(c)                                  Indebtedness
and Guarantee Obligations permitted by Section 7.2;

 

(d)                                 loans
and advances to employees of any Group Member in the ordinary course of
business (including for travel, entertainment and relocation expenses) in an
aggregate amount for all Group Members not to exceed $500,000 at any one time
outstanding;

 

(e)                                  the
Acquisition and Permitted Acquisitions (including any Investments owned by a
Person acquired in the Acquisition or a Permitted Acquisition);

 

(f)                                    Investments
in assets useful in the business of the Borrower and its Subsidiaries made by
the Borrower or any of its Subsidiaries with the proceeds of any Reinvestment
Deferred Amount (including through the acquisition of Capital Stock of a Person
that directly or indirectly holds such assets);

 

(g)                                 (i)
intercompany Investments by any Group Member in the Borrower or any Person
that, prior to such investment, is a Wholly Owned Subsidiary Guarantor, (ii)
Investments by any Foreign Subsidiary in any Person that, prior to such
Investment, is a Foreign Subsidiary and (iii) Investments by any Group Member
(other than a Foreign Subsidiary) in a Person that, prior to such Investment,
is a Foreign Subsidiary or a Subsidiary that is not a Wholly Owned Subsidiary
Guarantor in an aggregate amount outstanding at any time not to exceed $2,000,000
(after giving effect to any portion of any such Investment returned to the
investor in cash, whether  as a repayment
of principal or a return of invested capital, as the case may be, but without
giving effect to any earnings on such Investment, whether in the form of
interest, dividends or otherwise);

 

(h)                                 the
Borrower and its Subsidiaries may own the Capital Stock of their respective
Subsidiaries created or acquired in accordance with the terms of this
Agreement;

 

(i)                                     Investments
(including Indebtedness and Capital Stock) 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;

 

(j)                                     without
duplication, Investments that constitute Capital Expenditures permitted
pursuant to Section 7.7;

 

57

 

(k)                                  Investments
funded through substantially concurrent capital contributions to Holdings or
substantially concurrent sales or issuances of Capital Stock of Holdings; provided,
that the proceeds (if any) of such capital contributions, sales or issuances
are contributed by Holdings, directly or indirectly through any Subsidiary, to
the Borrower or a Subsidiary of the Borrower, as the case may be, making such
Investment or used to fund the acquisition of Investments which are so
contributed to the Borrower or a Subsidiary of the Borrower;

 

(l)                                     guarantees
by the Borrower of employment contracts entered into between Holdings and
officers of Holdings and its Subsidiaries; and

 

(m)                               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 but giving effect to any portion of such Investments returned
to the investor in cash as a repayment of principal or a return of invested
capital but without giving effect to any earnings on such Investment, whether
in the form of interest, dividends or otherwise) not to exceed in any fiscal
year of the Borrower the greater of (i) $5,000,000 and (ii) the aggregate
amount of Free Excess Cash Flow available during such fiscal year.

 

7.9                                 Transactions
with Affiliates.  Enter into any
transaction, including any purchase, sale, lease or exchange of property, the
rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate (other than Holdings, the Borrower or any Subsidiary
Guarantor) unless such transaction is (a) not prohibited under this
Agreement and (b) upon fair and reasonable terms no less favorable to the
relevant Group Member than it would obtain in a comparable arm’s length
transaction with a Person that is not an Affiliate; provided that the
foregoing restrictions shall not, so long as no Event of Default has occurred,
apply to: (i) customary fees to, and indemnifications of, non-officer directors
of Holdings and its Subsidiaries, (ii) compensation and indemnification
arrangements and benefit plans for officers and employees of Holdings or any of
its Subsidiaries in the ordinary course of business and (iii) transactions to
the extent permitted under Section 7.6.

 

7.10                           Sales
and Leasebacks.  Enter into any
arrangement with any Person providing for the leasing by any Group Member of
real or personal property that has been or is to be sold or transferred by such
Group Member 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 Group Member.

 

7.11                           Swap
Agreements.  Enter into any Swap
Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks
to which the Borrower or any Subsidiary has actual exposure (other than those
in respect of Capital Stock) and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of the Borrower or any
Subsidiary.

 

7.12                           Changes
in Fiscal Periods.  Permit the fiscal
year of the Borrower to end on a day other than December 31 or change the
Borrower’s method of determining fiscal quarters.

 

7.13                           Negative
Pledge Clauses.  Enter into or suffer
to exist or become effective any agreement that prohibits or limits the ability
of any Group Member to create, incur, assume or suffer to exist any Lien upon
any of its property or revenues, whether now owned or hereafter acquired, to
secure its obligations under the Loan Documents to which it is a party other
than (a) this Agreement and the other Loan Documents, (b) any agreements
governing any purchase money Liens or Capital Lease Obligations otherwise
permitted hereby or Indebtedness permitted under Section 7.2(d) (in which case,

 

58

 

any prohibition or limitation
shall only be effective against the assets financed thereby), (c)  agreements containing customary provisions
restricting subletting or assignment of any lease governing a leasehold
interest of the Borrower or any of its Subsidiaries entered into in the
ordinary course of business, (d) agreements containing customary provisions
restricting assignment of any contract entered into by the Borrower or any of
its Subsidiaries in the ordinary course of business, (e) agreements containing
customary provisions restricting the assignment of licensing agreements,
management agreements or franchise agreements entered into by the Borrower or
any of its Subsidiaries in the ordinary course of business, (f) agreements
containing any restriction or encumbrance with respect to a Subsidiary imposed
pursuant to an agreement that 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 of all or substantially all of the Capital
Stock or assets of such Subsidiary is permitted under this Agreement, (g)
agreements containing restrictions on the transfer of any asset pending the
close of the sale of such asset so long as such sale is permitted under this
Agreement and (h) agreements containing restrictions with respect to Foreign
Subsidiaries in connection with financing arrangements for their benefit that
are not otherwise prohibited under this Agreement.

 

7.14                           Clauses
Restricting Subsidiary Distributions. 
Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary of the Borrower to
(a) make Restricted Payments in respect of any Capital Stock of such Subsidiary
held by, or pay any Indebtedness owed to, the Borrower or any other Subsidiary
of the Borrower, (b) make loans or advances to, or other Investments in, the
Borrower or any other Subsidiary of the Borrower or (c) transfer any of its
assets to the Borrower or any other Subsidiary of the Borrower, except for such
encumbrances or restrictions existing under or by reason of (i) any
restrictions existing under the Loan Documents, (ii) any restrictions with respect
to a Subsidiary imposed pursuant to an agreement that has been entered into in
connection with the Disposition of all or substantially all of the Capital
Stock or assets of such Subsidiary, (iii) restrictions contained in agreements
referenced in Sections 7.13(b), (c), (d), (e) and (g), and (iv) any restriction
with respect to Foreign Subsidiaries in connection with financing arrangements
for their benefit that are not otherwise prohibited under this Agreement.

 

7.15                           Lines
of Business.  Enter into any
business, either directly or through any Subsidiary, except for those
businesses in which the Borrower and its Subsidiaries are engaged on the date
of this Agreement (after giving effect to the Acquisition) or that are
reasonably related or incidental thereto.

 

7.16                           Amendments
to Acquisition Documents.  (a)  Amend, supplement or otherwise modify
(pursuant to a waiver or otherwise) the terms and conditions of the indemnities
and licenses furnished to the Borrower or any of its Subsidiaries pursuant to
the Acquisition Documentation such that after giving effect thereto such
indemnities or licenses shall be materially less favorable to the interests of
the Loan Parties or the Lenders with respect thereto or (b) otherwise amend,
supplement or otherwise modify the terms and conditions of the Acquisition
Documentation or any such other documents except for any such amendment,
supplement or modification that (i) becomes effective after the Original
Closing Date and (ii) could not reasonably be expected to have a Material
Adverse Effect.

 

SECTION 8.                                EVENTS OF DEFAULT

 

If any of the following events shall occur
and be continuing:

 

(a)                                  the
Borrower shall fail to pay any principal of any Loan or Reimbursement
Obligation when due in accordance with the terms hereof; or the Borrower shall
fail to pay any interest on any Loan or Reimbursement Obligation, or any other
amount payable hereunder or

 

59

 

under any other
Loan Document, within five days after any such interest or other amount becomes
due in accordance with the terms hereof; or

 

(b)                                 any
representation or warranty made or deemed made by any Loan Party herein or in
any other Loan Document or that is contained in any certificate, document or
financial or other statement furnished by it at any time under or in connection
with this Agreement or any such other Loan Document shall prove to have been
inaccurate in any material respect on or as of the date made or deemed made; or

 

(c)                                  (i)  any Loan Party shall default in the observance
or performance of any agreement contained in clause (i) of Section 6.4(a) (with
respect to Holdings and the Borrower only), Section 2.8, 6.7(a) or Section 7 of
this Agreement (excluding Section 7.1) or Sections 5.5 and 5.7(b) of the
Guarantee and Collateral Agreement or (ii) an “Event of Default” under and as
defined in any Mortgage shall have occurred and be continuing; or

 

(d)                                 the
Borrower shall default in the observance or performance of any financial
covenant set forth in Section 7.1, and such default shall continue unremedied
for a period of 15 days after the date on which delivery of the relevant
financial statements is required pursuant to Section 6.1; any default referred
to in this paragraph (d) may be cured by any Person making an investment in
Holdings (provided that such investment shall not result in an Event of
Default under Section 8(l)), the proceeds of which shall be contributed by
Holdings to the common equity of the Borrower and Consolidated Adjusted EBITDA
for the period for which such default shall have occurred shall be deemed
increased by the amount of such common equity contribution; or

 

(e)                                  any
Loan Party shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as
provided in paragraphs (a) through (d) of this Section), and such default shall
continue unremedied for a period of 30 days after notice to the Borrower from
the Administrative Agent or the Required Lenders; or

 

(f)                                    any
Group Member (other than any Immaterial Subsidiary) shall (i) default in making
any payment of any principal of any Indebtedness (including any Guarantee
Obligation in respect of Indebtedness, but excluding the Loans or Guarantee
Obligations in respect thereof) on the scheduled or original due date with
respect thereto; or (ii) default in making any payment of any interest on any
such Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created; or (iii) default
in the observance or performance of any other 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 beneficiary of such Indebtedness (or a
trustee or agent on behalf of such holder or beneficiary) to cause, with the
giving of notice if required, such Indebtedness to become due prior to its
stated maturity or (in the case of any such Indebtedness constituting a
Guarantee Obligation) to become payable; provided, that a default, event
or condition described in clause (i), (ii) or (iii) of this paragraph (f) shall
not at any time constitute an Event of Default unless, at such time, one or
more defaults, events or conditions of the type described in clauses (i), (ii)
and (iii) of this paragraph (f) shall have occurred and be continuing with
respect to Indebtedness the outstanding principal amount of which exceeds in
the aggregate $5,000,000; or

 

(g)                                 (i)
any Group Member (other than any Immaterial Subsidiary) shall commence any
case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have

 

60

 

an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or any Group Member (other than any Immaterial Subsidiary) shall
make a general assignment for the benefit of its creditors; or (ii) there shall
be commenced against any Group Member (other than any Immaterial Subsidiary)
any case, proceeding or other action of a nature referred to in clause (i)
above that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be commenced against any
Group Member (other than any Immaterial Subsidiary) any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets that
results in the entry of an order for any such relief that shall not have been
vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) any Group Member (other than any Immaterial Subsidiary)
shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) any Group Member (other than any Immaterial Subsidiary) shall
generally not, or shall be unable to, or shall admit in writing its inability
to, pay its debts as they become due; or

 

(h)                                 (i)
any Person shall engage in any “prohibited transaction” (as defined in Section
406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan shall arise on the assets of any Group Member or any Commonly Controlled
Entity, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of the Required Lenders, likely to result in the termination of such
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) any Group Member or any
Commonly Controlled Entity shall, or in the reasonable opinion of the Required
Lenders is likely to, incur any liability in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan or (vi) any event
or condition not in the ordinary course shall occur or exist with respect to a
Plan; and in each case in clauses (i) through (vi) above, such event or
condition, together with all other such events or conditions, if any, could, in
the reasonable judgment of the Required Lenders, reasonably be expected to have
a Material Adverse Effect; or

 

(i)                                     one
or more judgments or decrees shall be entered against any Group Member
involving in the aggregate a liability (to the extent not paid or covered by
insurance) of $5,000,000 or more, and all such judgments or decrees shall not
have been vacated, discharged, stayed or bonded pending appeal within 60 days
from the entry thereof; or

 

(j)                                     any
of the Security Documents shall cease, for any reason, to be in full force and
effect (other than in accordance with its terms), or any Loan Party or any
Affiliate of any Loan Party shall so assert, or any Lien created by any of the
Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby (except as provided in the Loan
Documents); or

 

(k)                                  the
guarantee contained in Section 2 of the Guarantee and Collateral Agreement
shall cease, for any reason (other than in accordance with its terms), to be in
full force and effect or any Loan Party or any Affiliate of any Loan Party
shall so assert; or

 

61

 

(l)                                     (i)
(A) the Permitted Investors shall cease to have the power to vote or direct the
voting of securities having at least 30% of the ordinary voting power for the
election of directors of Holdings (determined on a fully diluted basis) or (B)
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
shall become, or obtain rights (whether by means or warrants, options or
otherwise) to become, the “beneficial owner” (as defined in Rule 13(d)(3) and
13(d)(5) of the Exchange Act), directly or indirectly, of more of the
outstanding common stock of Holdings than the Permitted Investors own;
(ii) the board of directors of Holdings shall cease to consist of a
majority of Continuing Directors; or (iii) Holdings shall cease to own and
control, of record and beneficially, directly, 100% of each class of
outstanding Capital Stock of the Borrower free and clear of all Liens (except
Liens created by the Guarantee and Collateral Agreement); or

 

(m)                               Holdings
shall directly or indirectly (i) conduct, transact or otherwise engage in, or
commit to conduct, transact or otherwise engage in, any business or operations
other than those incidental to its ownership of the Capital Stock of the
Borrower and in connection with employment contracts entered into with officers
of Holdings and its Subsidiaries, (ii) incur, create, assume or suffer to exist
any Indebtedness or other liabilities or financial obligations, except (w)
obligations in respect of surety bonds referred to in Section 7.3(s), (x)
nonconsensual obligations imposed by operation of law, (y) Indebtedness,
liabilities and obligations pursuant to the Loan Documents to which it is a
party, agreements entered into in
connection with or related to the Acquisition, Permitted Acquisitions and
issuances of Capital Stock, agreements entered into with directors and officers
of Holdings and corporate overhead expenses and (z) obligations with
respect to its Capital Stock, or (iii) own, lease, manage or otherwise operate
any properties or assets (including cash and Cash Equivalents (other than cash
and Cash Equivalents received in connection with dividends made by the Borrower
in accordance with Section 7.6 pending application in the manner contemplated
by said Section or in connection with capital contributions or the issuance and
sale of Capital Stock)) other than the ownership of shares of Capital Stock of
the Borrower;

 

then, and in
any such event, (A) if such event is an Event of Default specified in clause
(i) or (ii) of paragraph (g) above with respect to the Borrower, automatically
the Revolving Commitments shall immediately terminate and the Loans (with
accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents (including all amounts of L/C Obligations, whether or
not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (B) if such event is any other Event of Default, either or both of
the following actions may be taken: (i) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Revolving
Commitments to be terminated forthwith, whereupon the Revolving Commitments
shall immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans (with
accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents (including all amounts of L/C Obligations, whether or
not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash collateral
account shall be applied by the Administrative Agent to the payment of amounts
drawn under such Letters of Credit, and the unused portion thereof after all
such Letters of Credit shall have expired or been fully drawn upon, if any,
shall be applied to repay other obligations of

 

62

 

the Borrower
hereunder and under the other Loan Documents. 
After all such Letters of Credit shall have expired or been fully drawn
upon, all Reimbursement Obligations shall have been satisfied and all other obligations
of the Borrower hereunder and under the other Loan Documents shall have been
paid in full, the balance, if any, in such cash collateral account shall be
returned to the Borrower (or such other Person as may be lawfully entitled
thereto).  Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of
any kind are hereby expressly waived by the Borrower.

 

SECTION 9.                                THE AGENTS

 

9.1                                 Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan 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 Loan
Documents, together with such other powers as are reasonably incidental
thereto.   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 any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2                                 Delegation
of Duties.  The Administrative Agent
may execute any of its duties under this Agreement and the other Loan Documents
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.

 

9.3                                 Exculpatory
Provisions.  Neither any Agent nor
any of their respective 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 or any
other Loan Document (except to the extent that any of the foregoing are found
by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from 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 any Loan Party or
any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided
for in, or received by the Agents under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder.  The Agents
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 any other Loan Document, or to inspect the
properties, books or records of any Loan Party.

 

9.4                                 Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, 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 counsel to Holdings
or the Borrower), independent accountants and other experts selected by the
Administrative Agent.  The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the

 

63

 

Administrative Agent.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense that 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 Loan Documents in accordance with a request of the Required
Lenders (or, if so specified by this Agreement, all Lenders), and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all the Lenders and all future holders of the Loans.

 

9.5                                 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 unless the Administrative Agent has received notice
from a Lender, Holdings or the Borrower 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 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 (or,
if so specified by this Agreement, all 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.

 

9.6                                 Non-Reliance
on Agents and Other Lenders.  Each
Lender expressly acknowledges that neither the Agents nor any of their
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates have made any representations or warranties to it and that no act by
any Agent hereafter taken, including any review of the affairs of a Loan Party
or any affiliate of a Loan Party, shall be deemed to constitute any
representation or warranty by any Agent to any Lender.  Each Lender represents to the Agents that it
has, independently and without reliance upon any 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, operations, property,
financial and other condition and creditworthiness of the Loan Parties and
their affiliates 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 any 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 the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
and other condition and creditworthiness of the Loan Parties and their
affiliates.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of
a Loan Party that may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

 

9.7                                 Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by Holdings or the Borrower
and without limiting the obligation of Holdings or the Borrower to do so),
ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Revolving Commitments
shall have terminated and the Loans shall have been paid in full, ratably in
accordance with such Aggregate Exposure Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties,

 

64

 

actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever that may at any time
(whether before or after the payment of the Loans) be imposed on, incurred by
or asserted against such Agent in any way relating to or arising out of, the
Revolving Commitments, this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from such Agent’s gross
negligence or willful misconduct.  The
agreements in this Section shall survive the payment of the Loans and all other
amounts payable hereunder.

 

9.8                                 Agent
in Its Individual Capacity.  Each
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of business with any Loan Party as though such Agent were
not an Agent.  With respect to its Loans
made or renewed by it and with respect to any Letter of Credit issued or
participated in by it, each Agent shall have the same rights and powers under
this Agreement and the other Loan Documents as any Lender and may exercise the
same as though it were not an Agent, and the terms “Lender” and “Lenders” shall
include each Agent in its individual capacity.

 

9.9                                 Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 10 days’ notice to
the Lenders and the Borrower.  If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders, which successor agent shall
(unless an Event of Default under Section 8(a) or Section 8(g) with respect to
the Borrower shall have occurred and be continuing) be subject to approval by
the Borrower (which approval shall not be unreasonably withheld or delayed),
whereupon such successor agent shall succeed to the rights, powers and duties
of the Administrative Agent, and the term “Administrative Agent” shall mean
such successor agent effective upon such appointment and approval, and the
former Administrative Agent’s rights, powers and duties as 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 or any
holders of the Loans.  If no successor
agent has accepted appointment as Administrative Agent by the date that is 10
days following a retiring Administrative Agent’s notice of resignation, the
retiring Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above (subject to the Borrower’s
approval, as provided above).  After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Section 9 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 and the other Loan Documents.

 

9.10                           Syndication
Agent.  The Syndication Agent shall
not have any duties or responsibilities hereunder in its capacity as such.

 

SECTION 10.                          MISCELLANEOUS

 

10.1                           Amendments
and Waivers.  Neither this Agreement,
any other Loan Document, nor any terms hereof or thereof may be amended (or
amended and restated), supplemented or modified except in accordance with the
provisions of this Section 10.1.  The
Required Lenders and each Loan Party party to the relevant Loan Document may,
or, with the written consent of the Required Lenders, the Administrative Agent
and each Loan Party party to the relevant Loan Document may, from time to time,
(a) enter into written amendments, supplements or modifications hereto and to
the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in

 

65

 

any manner the rights of the
Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such
terms and conditions as the Required Lenders or the Administrative Agent, as
the case may be, may specify in such instrument, any of the requirements of
this Agreement or the other Loan Documents or any Default or Event of Default
and its consequences; provided, however, that no such waiver and
no such amendment, supplement or modification shall (i) forgive the principal
amount or extend the final scheduled date of maturity of any Loan, extend the
scheduled date of any scheduled amortization payment in respect of any Term
Loan, reduce the stated rate of any interest or fee payable hereunder (except
(x) in connection with the waiver of applicability of any post-default increase
in interest rates (which waiver shall be effective with the consent of the
Majority Facility Lenders of each adversely affected Facility) and (y) that any
amendment or modification of defined terms used in the financial covenants in
this Agreement shall not constitute a reduction in the rate of interest or fees
for purposes of this clause (i)) or extend the scheduled date of any payment
thereof, or increase the amount or extend the expiration date of any Lender’s
Revolving Commitment, in each case without the written consent of each Lender
directly affected thereby;  (ii)
eliminate or reduce the voting rights of any Lender under this Section 10.1
without the written consent of such Lender; (iii) reduce any percentage
specified in the definition of Required Lenders, consent to the assignment or
transfer by the Borrower of any of its rights and obligations under this
Agreement and the other Loan Documents, release all or substantially all of the
Collateral or release all or substantially all of the Subsidiary Guarantors
from their obligations under the Guarantee and Collateral Agreement, in each
case without the written consent of all Lenders; (iv) amend, modify or
waive any provision of Section 2.16 without the written consent of the Majority
Facility Lenders in respect of each Facility adversely affected thereby; (v)
reduce the percentage specified in the definition of Majority Facility Lenders
with respect to any Facility without the written consent of all Lenders under
such Facility; (vi) amend, modify or waive any provision of Section 9 without
the written consent of the Administrative Agent; (vii) amend, modify or waive
any provision of Section 2.5 or 2.6 without the written consent of the
Swingline Lender; or (viii) amend, modify or waive any provision of Section 3
without the written consent of the Issuing Lender.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Loan Parties, the Lenders, the Administrative Agent and all
future holders of the Loans.  In the case
of any waiver, the Loan 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
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 and the other Loan Documents with the Term Loans and 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, Majority Facility Lenders, Revolving
Lenders and Term Lenders (as applicable).

 

In addition, notwithstanding the foregoing, this Agreement may be
amended (or amended and restated) with the written consent of the
Administrative Agent, the Borrower and the Lenders providing the relevant
Replacement Term Loans (as defined below) to permit the refinancing of all
outstanding Term Loans (“Refinanced Term Loans”) with a replacement term
loan facility 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

 

66

 

of such refinancing and (d) all
other terms applicable to such Replacement Term Loans shall be substantially
similar 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.

 

Furthermore, notwithstanding the foregoing, this Agreement may be
amended in accordance with Section 2.23.

 

10.2                           Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of Holdings, the Borrower, the
Issuing Lender and the Administrative Agent, and as set forth in an
administrative questionnaire delivered to the Administrative Agent in the case
of the Lenders, or to such other address as may be hereafter notified by the
respective parties hereto:

 

	
  Holdings:

  	
  InfraSource
  Services, Inc.

  
	
   

  	
  c/o

  
	
   

  	
  GFI Energy
  Ventures LLC

  
	
   

  	
  11611 San
  Vicente Boulevard, Suite 710

  
	
   

  	
  Los Angeles,
  CA 90049

  
	
   

  	
  Attention:
  Ian Schapiro

  
	
   

  	
  Telecopy:
  (310) 442-0540 

  
	
   

  	
  Telephone:
  (310) 442-0542

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
  c/o Oaktree
  Capital Management, LLC

  
	
   

  	
  333 South
  Grand Avenue

  
	
   

  	
  Los Angeles,
  CA 90071

  
	
   

  	
  Attention:
  Christopher Brothers

  
	
   

  	
  Telecopy:
  (213) 830-6395

  
	
   

  	
  Telephone:
  (213) 830-6356

  
	
   

  	
   

  
	
   

  	
  with a copy
  to:

  
	
   

  	
   

  
	
   

  	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  
	
   

  	
  300 South
  Grand Avenue

  
	
   

  	
  Los Angeles,
  CA 90071

  
	
   

  	
  Attention:
  David C. Reamer, Esq.

  
	
   

  	
  Telecopy:
  (213) 687-5600

  
	
   

  	
  Telephone:
  (213) 687-5052

  
	
   

  	
   

  
	
  Borrower:

  	
  InfraSource
  Incorporated

  
	
   

  	
  500 W.
  Dutton Mill Road

  
	
   

  	
  Aston,
  Pennsylvania 19104

  
	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
  Telecopy: (610)
  619-3081

  
	
   

  	
  Telephone: (610)
  619-3040

  

 

67

 

	
  Administrative
  Agent:

  	
  Barclays
  Bank PLC

  
	
   

  	
  200 Park
  Avenue

  
	
   

  	
  New York, NY
  10166

  
	
   

  	
  Attention: May
  Huang

  
	
   

  	
  Telecopy: 212-412-5306

  
	
   

  	
  Telephone: 212-412-3730

  
	
   

  	
  May.huang@barcap.com

  
	
   

  	
   

  
	
  Issuing
  Lender:

  	
  LaSalle Bank
  National Association

  
	
   

  	
  200 West
  Monroe Street

  
	
   

  	
  Chicago,
  Illinois 60606

  
	
   

  	
  Attention:
  Standby Letter of Credit Department

  
	
   

  	
  Telecopy: 312-780-0828

  
	
   

  	
  Telephone: 312-904-8462

  

 

provided
that any notice, request or demand to or upon the Administrative Agent, the
Issuing Lender or the Lenders shall not be effective until received.

 

Notices and
other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender.  The Administrative
Agent, the Issuing Lender 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.

 

10.3                           No
Waiver; Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder or under the other Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

10.4                           Survival
of Representations and Warranties. 
All representations and warranties made hereunder, in the other Loan
Documents and in any document, certificate or statement delivered pursuant
hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the making of the Loans and other extensions of credit
hereunder.

 

10.5                           Payment
of Expenses and Taxes.  The Borrower
agrees (a) to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of
the transactions contemplated hereby and thereby, including the reasonable fees
and disbursements of outside counsel to the Administrative Agent and filing and
recording fees and expenses, with statements with respect to the foregoing to
be submitted to the Borrower prior to the Effective Date (in the case of
amounts to be paid on the Effective Date) and from time to time thereafter on a
quarterly basis or such other periodic basis as the Administrative Agent shall
deem appropriate, (b) to pay or reimburse each Lender and the Administrative
Agent for all its costs and expenses incurred in connection with the
enforcement or preservation of any rights under this

 

68

 

Agreement, the other Loan
Documents and any such other documents, including the fees and disbursements of
counsel (including the allocated fees and expenses of in-house counsel) to each
Lender and of counsel to the Administrative Agent, (c) to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender and
the Administrative Agent and their respective officers, directors, employees,
affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other 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, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Loans or the violation of, noncompliance with or
liability under, any Environmental Law applicable to the operations of any
Group Member or any property at any time owned, leased, or in any way used by
any Group Member, or any entity for which any Group Member is alleged to be
responsible, and the reasonable fees and expenses of legal counsel in
connection with claims, actions or proceedings by any Indemnitee against any
Loan Party under any Loan Document (all the foregoing in this clause (d),
collectively, the “Indemnified Liabilities”), provided, that the
Borrower shall have no obligation hereunder to an Indemnitee with respect to
Indemnified Liabilities to the extent such Indemnified Liabilities resulted
from the gross negligence, bad faith or willful misconduct of such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of recovery
with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee, except to the extent such rights are based on
the gross negligence or willful misconduct of such Indemnitee.  All amounts due under this Section 10.5 shall
be payable not later than 10 days after written demand therefor (accompanied by
appropriate supporting invoices and detail). 
Statements payable by the Borrower pursuant to this Section 10.5 shall
be submitted to Terrance F. Montgomery (Telephone No. (610) 619-3040)
(Telecopy No. (610) 619-3081)), at the address of the Borrower set forth
in Section 10.2, or to such other Person or address as may be hereafter
designated by the Borrower in a written notice to the Administrative
Agent.  The agreements in this Section
10.5 shall survive repayment of the Loans and all other amounts payable
hereunder.

 

10.6                           Successors
and Assigns; Participations and Assignments.  (a) 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any affiliate of the Issuing Lender that issues any
Letter of Credit), except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section.

 

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

 

69

 

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

 

(B)                                the
Administrative Agent and the Issuing Lender, provided that no consent of
the Administrative Agent or the Issuing Lender shall be required for an
assignment of (x) any Revolving Commitment to an assignee that is a Lender with
a Revolving Commitment immediately prior to giving effect to such assignment or
(y) all or any portion of a Term Loan to a Lender, an Affiliate of a Lender or
an Approved Fund; provided, further, that the assignment of all
or any portion of a Term Loan shall not require the consent of the Issuing
Lender.

 

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

 

(A)                              except
in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Revolving Commitment or Loans under any Facility, the amount of the
Revolving Commitment or Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $1,000,000  unless each of
the Borrower and the Administrative Agent otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (2) such amounts shall be aggregated
in respect of each Lender and its affiliates or Approved Funds, if any;

 

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

 

(C)                                the
Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire.

 

For the purposes of this
Section 10.6, the term “Approved Fund” has the following meaning:

 

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

 

(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified in
each Assignment and Assumption the Assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.17, 2.18, 2.19 and 10.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 10.6 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

 

70

 

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

 

(v)  Upon its receipt of a duly
completed Assignment and Assumption executed by an assigning Lender and an
Assignee, the Assignee’s completed administrative questionnaire (unless the
Assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent
to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. 
No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

 

(c)(i) 
Any Lender may, without the consent of the Borrower or the Administrative
Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Revolving Commitment and the Loans
owing to it); provided that (A) such Lender’s obligations under
this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Borrower, the Administrative Agent, the Issuing Lender and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the consent of
each Lender directly affected thereby pursuant to the proviso to the second
sentence of Section 10.1 and (2) directly affects such Participant.  Subject to paragraph (c)(ii) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.17, 2.18 and 2.19 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this
Section.  To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.7(b)
as though it were a Lender, provided such Participant shall be subject to
Section 10.7(a) as though it were a Lender.

 

(ii)  A
Participant shall not be entitled to receive any greater payment under Section
2.17, 2.18 or 2.19 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrower’s prior
written consent.  Any Participant that is
a Non-U.S. Lender shall not be entitled to the benefits of Section 2.18
unless such Participant complies with Section 2.18(d).

 

(d)  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or Assignee for such
Lender as a party hereto.

 

71

 

(e)  The Borrower, upon receipt of written notice
from the relevant Lender, agrees to issue Notes to any Lender requiring Notes
to facilitate transactions of the type described in paragraph (d) above.

 

(f)  Notwithstanding the foregoing, any Conduit
Lender may assign any or all of the Loans it may have funded hereunder to its
designating Lender without the consent of the Borrower or the Administrative
Agent and without regard to the limitations set forth in Section 10.6(b).  Each of Holdings, the Borrower, each Lender
and the Administrative Agent hereby confirms that it will not institute against
a Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless each
other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during
such period of forbearance.

 

(g)  If the Borrower wishes to replace all
or a portion of the Loans or Revolving Commitments under any Facility with
Loans or Revolving Commitments, as applicable, having different terms, it shall
have the option, with the consent of the Administrative Agent and subject to at
least three Business Days’ advance notice to the relevant Lenders, instead of
prepaying the Loans or reducing or terminating the Revolving Commitment to be
replaced, to (i) require the relevant Lenders to assign such Loans or Revolving
Commitment to the Administrative Agent or its designees and (ii) amend the
terms thereof in accordance with Section 10.1 (with such replacement, if
applicable, being deemed to have been made pursuant to the last paragraph of
Section 10.1).  Pursuant to any such
assignment, all Loans and Revolving Commitments to be replaced shall be
purchased at par (allocated among the relevant Lenders in the same manner as
would be required if such Loans were being optionally prepaid or such Revolving
Commitment was being optionally reduced or terminated by the Borrower),
accompanied by payment of any accrued interest and fees thereon and any amounts
owing pursuant to Section 2.19, and, in the case the Facility being replaced is
the Revolving Facility, all Letters of Credit then outstanding shall be
replaced by Letters of Credit issued by a replacement Issuing Lender.  By receiving such purchase price, the
relevant Lenders shall automatically be deemed to have assigned the relevant
Loans or Revolving Commitment pursuant to the terms of the form of Assignment
and Assumption attached hereto as Exhibit E, and accordingly no other action by
such Lenders shall be required in connection therewith.

 

10.7                           Adjustments;
Set-off.  (a)  Except to the extent that this Agreement
expressly provides for payments to be allocated to a particular Lender or to
the Lenders under a particular Facility, if any Lender (a “Benefitted Lender”)
shall, at any time after the Loans and other amounts payable hereunder shall
immediately become due and payable pursuant to Section 8, receive any payment
of all or part of the Obligations owing to it, or receive any collateral in
respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 8(g), or otherwise),
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of the Obligations owing to such other Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations owing to each such
other Lender, or shall provide such other Lenders with the benefits of any such
collateral, as shall be necessary to cause such Benefitted Lender to share the
excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such Benefitted Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest.

 

72

 

(b)  In addition to any rights and remedies of the
Lenders provided by law, each Lender shall at any time when an Event of Default
shall have occurred and be continuing have the right, without prior notice to
Holdings, the Borrower or any Subsidiary Guarantor, any such notice being
expressly waived by Holdings, the Borrower and each Subsidiary Guarantor to the
extent permitted by applicable law, upon any amount becoming due and payable by
Holdings or the Borrower hereunder (whether at the stated maturity, by
acceleration or otherwise), to set off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Lender or any branch or
agency thereof to or for the credit or the account of Holdings, the Borrower or
any Subsidiary Guarantor, as the case may be. 
Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

 

10.8                           Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on 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 signature page of this Agreement by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

10.9                           Severability.  Any provision of this Agreement that 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.

 

10.10                     Integration.  This Agreement and the other Loan Documents
represent the entire agreement of Holdings, the Borrower, 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 the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

10.11                     GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.12                     Submission
To Jurisdiction; Waivers.  Each of
Holdings and the Borrower hereby irrevocably and unconditionally:

 

(a)                                  submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan 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 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;

 

73

 

(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 Holdings or the Borrower, as the
case may be at its address set forth in Section 10.2 or at such other address
of which the Administrative Agent shall have been notified pursuant thereto;

 

(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.

 

10.13                     Acknowledgements.  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 Loan Documents;

 

(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 Loan 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 Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or
among Holdings, the Borrower and the Lenders.

 

10.14                     Releases
of Guarantees and Liens.  (a)  Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Administrative Agent is
hereby irrevocably authorized by each Lender (without requirement of notice to
or consent of any Lender except as expressly required by Section 10.1) to take,
and the Administrative Agent shall take or cause to be taken, any action
requested by the Borrower having the effect of releasing any Collateral or
guarantee obligations (i) to the extent necessary to permit consummation of any
transaction not prohibited by any Loan Document or that has been consented to
in accordance with Section 10.1 or (ii) under the circumstances described in
paragraphs (b) or (c) below.

 

(b)  At such time as the Loans, the Reimbursement
Obligations and the other obligations under the Loan Documents (other than
obligations under or in respect of Swap Agreements) shall have been paid in
full, the Revolving Commitments have been terminated and no Letters of Credit
shall be outstanding (unless cash collateralized in a manner reasonably satisfactory
to the Administrative Agent and the Issuing Lender), the Collateral shall be
released from the Liens created by the Security Documents, and the Security
Documents and all obligations (other than those expressly stated to survive
such termination) of the Administrative Agent and each Loan Party under the
Security Documents shall terminate, all without delivery of any instrument or
performance of any act by any Person.

 

(c)  To the extent the Required Lenders waive the
provisions of the Loan Documents with respect to the sale or other disposition
of any Collateral, or any Collateral is sold or otherwise disposed of in a
manner not prohibited by the Loan Documents, such Collateral (unless
transferred to the Borrower or a Subsidiary Guarantor) shall be sold or
otherwise disposed of free and clear of the Liens created by the

 

74

 

Loan Documents, and the
Administrative Agent shall take such actions, at the sole expense of the
Borrower (including, without limitation, directing any collateral agent to take
such actions), as are appropriate in connection therewith to release any such
Lien.  To the extent the Collateral so sold or
disposed of constitutes Capital Stock of a Subsidiary Guarantor, the Guarantee
Obligations of such Subsidiary Guarantor in respect of the Obligations and all
obligations of such Subsidiary Guarantor under the Loan Documents shall
terminate and be of no further force and effect, and the Administrative Agent
shall take such actions, at the sole expense of the Borrower (including
directing any collateral agent to take such actions) as are appropriate in
connection with such termination.

 

10.15                     Confidentiality.  Each of the Administrative Agent and each
Lender agrees to keep confidential all non-public information provided to it by
any Loan Party, the Administrative Agent or any Lender pursuant to or in
connection with this Agreement; 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 any affiliate thereof, (b)
subject to an agreement to comply with the provisions of this Section, to any
actual or prospective Transferee or any direct or indirect counterparty to any
Swap Agreement (or any professional advisor to such counterparty), (c) to its
employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, (d) upon the request or demand of
any Governmental Authority, (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) if requested or required to do so in connection with
any litigation or similar proceeding, (g) that has been publicly disclosed, (h)
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 (i) in connection with the exercise of
any remedy hereunder or under any other Loan Document.

 

10.16                     WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE ADMINISTRATIVE
AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

75

 

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

 

	
   

  	
  INFRASOURCE
  SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David R. Helwig

  
	
   

  	
   

  	
  Name: David R. Helwig

  
	
   

  	
   

  	
  Title:  President and CEO

  

 

 

	
   

  	
  INFRASOURCE
  INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David R.
  Helwig

  
	
   

  	
   

  	
  Name: David R. Helwig

  
	
   

  	
   

  	
  Title:  President

  

 

 

	
   

  	
  BARCLAYS
  BANK PLC, as Administrative Agent

  and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  Giannone

  
	
   

  	
   

  	
  Name: John Giannone

  
	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION, as

  Syndication Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip
  R. Medsger

  
	
   

  	
   

  	
  Name: Philip R. Medsger

  
	
   

  	
   

  	
  Title:  Vice President

  

 

 

	
   

  	
   

  
	
   

  	
  Name of Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  
	
   

  	
  Name of Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit
10.12

 

 

NON-EMPLOYEE DIRECTOR COMPENSATION

 

 

On October 27, 2004, the Board of Directors of InfraSource Services,
Inc. (the “Board”) adopted resolutions approving the compensation paid to
non-employee directors serving on the Board and certain committees of the
Board.  Effective as of October 1, 2004:

 

(1)           Each non-employee
director serving on the Board will receive $25,000 per year for his or her
services as a member of the Board;

 

(2)           The Chairman of the
Board (if a non-employee director) will receive $75,000 per year in lieu of the
foregoing retainer of $25,000;

 

(3)           Each non-employee
director will receive $5,000 per year for each committee of the Board on which
he or she serves as a member, other than a non-employee director serving as a
member of the Audit Committee or as the Chairman of the Compensation Committee;

 

(4)           Each non-employee
director serving on the Audit Committee of the Board (other than the Chairman
of the Audit Committee) will receive $7,500 per year for his or her services as
a member of the Audit Committee;

 

(5)           The Chairman of the
Audit Committee (if a non-employee director) will receive $10,000 per year for
his or her services as a member of the Audit Committee; and

 

(6)           The Chairman of the
Compensation Committee (if a non-employee director) will receive $7,500 per
year for his or services as a member of the Compensation Committee.

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