<SUBMISSION>
<ACCESSION-NUMBER>0000950129-04-001307
<TYPE>10-K
<PUBLIC-DOCUMENT-COUNT>10
<PERIOD>20031231
<FILING-DATE>20040315
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>QUANTA SERVICES INC
<CIK>0001050915
<ASSIGNED-SIC>1731
<IRS-NUMBER>742851603
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-K
<ACT>34
<FILE-NUMBER>001-13831
<FILM-NUMBER>04669442
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1360 POST OAK BLVD
<STREET2>SUITE 2100
<CITY>HOUSTON
<STATE>TX
<ZIP>77056
<PHONE>7133506000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1360 POST OAK BLVD SUITE 2100
<CITY>HOUSTON
<STATE>TX
<ZIP>77056
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>h13605e10vk.htm
<DESCRIPTION>QUANTA SERVICES, INC. - DATED 12/31/2003
<TEXT>
<HTML>
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<TITLE>e10vk</TITLE>
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<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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</DIV>

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<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

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<P align="center">
<B><FONT size="5">Form&nbsp;10-K</FONT></B>

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    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="82%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">(Mark One)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2"><FONT face="wingdings">&#254;</FONT>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">ANNUAL REPORT PURSUANT TO SECTION&nbsp;13 OR
    15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <B><FONT size="2">For the fiscal year ended December&nbsp;31,
    2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2"><FONT face="wingdings">&#111;</FONT></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <B><FONT size="2">TRANSITION REPORT PURSUANT TO SECTION&nbsp;13
    OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

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<P align="center">
<B><FONT size="2">Commission file number 1-13831</FONT></B>

<P align="center">
<B><FONT size="6">Quanta Services,&nbsp;Inc.</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></I>
</DIV>

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    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Delaware</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">74-2851603</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(I.R.S. Employer<BR>
    Identification No.)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">1360 Post Oak Boulevard,
Suite&nbsp;2100</FONT></B>

<DIV align="center">
<B><FONT size="2">Houston, Texas 77056</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Address of principal executive offices,
including ZIP Code)</FONT></I>
</DIV>

<P align="center">
<B><FONT size="2">(713)&nbsp;629-7600</FONT></B>

<DIV align="center">
<I><FONT size="2">(Registrant&#146;s telephone number, including
area code)</FONT></I>
</DIV>

<P align="center">
<B><FONT size="2">Securities registered pursuant to
Section&nbsp;12(b) of the Act:</FONT></B>

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    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="46%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of Each Class</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Name of Exchange on Which Registered</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common Stock, $.00001&nbsp;par value<BR>
    (including rights attached thereto)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">New&nbsp;York Stock Exchange
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">Securities registered pursuant to
Section&nbsp;12(g) of the Act:</FONT></B>

<P align="center">
<B><U><FONT size="2">Title of Each Class</FONT></U></B>

<P align="center">
<FONT size="2">None
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the Registrant
(1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12&nbsp;months (or for such shorter period
that the Registrant was required to file such reports), and
(2)&nbsp;has been subject to such filing requirements for the
past
90&nbsp;days:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark if disclosure of
delinquent filers pursuant to Item&nbsp;405 of
Regulation&nbsp;S-K is not contained herein, and will not be
contained, to the best of Registrant&#146;s knowledge, in
definitive proxy or information statement incorporated by
reference in Part&nbsp;III of this Form&nbsp;10-K or any
amendment to this
Form&nbsp;10-K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the Registrant is
an accelerated filer (as defined in Exchange Act
Rule&nbsp;12b-2).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of March&nbsp;9, 2004, the aggregate market
value of the Common Stock and Limited Vote Common Stock of the
Registrant held by non-affiliates of the Registrant, based on
the last sale price of the Common Stock on such date, was
approximately $455.7&nbsp;million and $1.8&nbsp;million,
respectively (for purposes of calculating these amounts, only
directors, officers and beneficial owners of 5% or more of the
outstanding capital stock of the Registrant have been deemed
affiliates).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of March&nbsp;9, 2004, the number of shares of
the Common Stock of the Registrant outstanding was 115,485,267.
As of the same date, 1,051,067&nbsp;shares of Limited Vote
Common Stock were outstanding.
</FONT>

<P align="center">
<B><FONT size="2">DOCUMENTS INCORPORATED BY REFERENCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Portions of the Registrant&#146;s Definitive
Proxy Statement for the 2004 Annual Meeting of Stockholders are
incorporated by reference into Part&nbsp;III of this
Form&nbsp;10-K.
</FONT>

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<A name="tocpage"></A>
</DIV>

<P align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">ANNUAL REPORT ON FORM 10-K</FONT></B>

<DIV align="center">
<B><FONT size="2">For the Year Ended December&nbsp;31,
2003</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">INDEX</FONT></B>

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    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="69%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#101'>PART&nbsp;I</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#102'>ITEM 1.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#102'>Business</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#103'>ITEM 2.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#103'>Properties</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#104'>ITEM 3.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#104'>Legal Proceedings</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#105'>PART&nbsp;II</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#106'>ITEM 5.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#106'>Market for Registrant&#146;s
    Common Stock and Related Stockholder Matters</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#107'>ITEM 6.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#107'>Selected Financial Data</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#108'>ITEM 7.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#108'>Management&#146;s Discussion
    and Analysis of Financial Condition and Results of Operations</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#109'>ITEM 7A.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#109'>Quantitative and Qualitative
    Disclosures About Market Risk</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#110'>ITEM 8.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#110'>Financial Statements and
    Supplementary Data</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#111'>ITEM 9.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#111'>Changes in and Disagreements
    with Accountants on Accounting and Financial Disclosure</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#112'>ITEM 9A.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#112'>Controls and Procedures</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#113'>PART&nbsp;III</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#114'>ITEM 10.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#114'>Directors and Executive
    Officers of the Registrant</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#115'>ITEM 11.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#115'>Executive Compensation</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#116'>ITEM 12.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#116'>Security Ownership of
    Certain Beneficial Owners and Management</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#117'>ITEM 13.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#117'>Certain Relationships and
    Related Transactions</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#118'>ITEM 14.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#118'>Principal Accounting Fees
    and Services</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#119'>PART&nbsp;IV</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#120'>ITEM 15.</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&nbsp;<A HREF='#120'>Exhibits, Financial
    Statement Schedules, and Reports on Form&nbsp;8-K</A>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv10w53.txt">Credit Agreement dated 12/19/2003</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv10w54.txt">Security Agreement dated 12/19/2003</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv10w55.txt">Pledge Agreement dated 12/19/2003</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv21w1.txt">Subsidiaries</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv23w1.htm">Consent of PricewaterhouseCoopers LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv31w1.txt">Certification of CEO pursuant to Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv31w2.txt">Certification of CFO pursuant to Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv32w1.txt">Certification of CEO pursuant to Section 3906</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h13605exv32w2.txt">Certification of CFO pursuant to Section 906</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center"><FONT size="2">i
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='101'></A>
</DIV>

<!-- link1 "PART I" -->

<P align="center">
<B><FONT size="2">PART&nbsp;I</FONT></B>

<DIV align="left">
<A name='102'></A>
</DIV>

<!-- link1 "ITEM 1. Business" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;1.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Business</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta is a leading provider of specialized
contracting services, offering end-to-end network solutions to
the electric power, gas, telecommunications and cable television
industries. Our comprehensive services include designing,
installing, repairing and maintaining network infrastructure.
Our consolidated revenues for the year ended December&nbsp;31,
2003 were $1.6&nbsp;billion, of which 60% was attributable to
electric power and gas customers, 15% to telecommunications
customers, 7% to cable television operators and 18% to ancillary
services, such as inside electrical wiring, intelligent traffic
networks, cable and control systems for light rail lines,
airports and highways, and specialty rock trenching, directional
boring and road milling for industrial and commercial customers.
We were organized in the state of Delaware in 1997 and since
that time have made strategic acquisitions to expand our
geographic presence, generate operating synergies with existing
businesses and develop new capabilities to meet our
customers&#146; evolving needs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently have offices that provide services
nationwide, giving us the presence and capability to quickly,
reliably and effectively complete projects throughout the United
States. We work for many of the leading companies in the
industries we serve.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Representative customers include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Adelphia Communications
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Alabama Power
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Alltel
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">AT&#38;T
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">CenterPoint Energy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Century Telephone
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Comcast
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Entergy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Ericsson
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Georgia Power Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Illinois Power
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Intermountain Rural Electric
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Pacific Gas&nbsp;&#38; Electric
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Puget Sound Energy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">San&nbsp;Diego Gas&nbsp;&#38; Electric
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Southern California Edison
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our reputation for responsiveness, performance,
geographic reach and a comprehensive service offering has also
enabled us to develop strong strategic alliances with numerous
customers.
</FONT>

<P align="left">
<B><FONT size="2">Industry Overview</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe the following trends are impacting
demand for our services:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Increasing Need to Upgrade Electric Power
Transmission and Distribution
Networks.</FONT></I><FONT size="2"> We believe that the aging of
many electric power networks may require increased investment in
electric power transmission and distribution networks, and that
concerns about power quality and reliability should result in
increased investment in transmission and distribution
infrastructure. Additionally, as the selling of electricity
increases across regional networks, capacity and reliability
will become even more important.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Improving Customer Balance Sheets Leads to
Increased Capital Expenditures.</FONT></I><FONT size="2"> We
believe that as our customers continue to improve their balance
sheets, both capital spending and maintenance budgets will
stabilize and move toward historical levels during 2004. During
the last three years, the telecommunications and cable
television industries suffered a severe downturn that resulted
in a number of companies, including several of our customers,
filing for bankruptcy protection or experiencing financial
difficulties. The downturn has adversely affected capital
expenditures for infrastructure projects even among companies
that are not experiencing financial difficulties. We expect that
during 2004 telecom capital expenditures will continue to
stabilize with a possible increase. We also anticipate
increasing capital expenditures from our wireless and central
office installations customers in 2004 as they strive to meet
the ever increasing demand for bandwidth at home and in offices
throughout the nation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the electric power and natural gas industries,
our customers continue to be restrained by limited capital
spending, uncertain regulatory progress and competition. While
the blackout in the Northeast brought the
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">state of the U.S.&nbsp;transmission grid to the
forefront, there has been little regulatory progress or other
efforts to map out methods to pay for the upgrades, determine
accountability or provide incentives to utilities for
infrastructure enhancements to address the bottlenecks and
dilapidated systems.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Increased
Outsourcing.</FONT></I><FONT size="2"> Financial and economic
pressures on electric power, gas, telecommunications and cable
television providers have caused an increased focus by providers
on core competencies and, accordingly, an increase in
outsourcing of network services. Total employment at investor
owned utilities has declined dramatically in the last decade
due, in part, to increased outsourcing. The movement from a
regulated business environment to an environment exposed to
market forces has led our customers to increase outsourcing of
non-core activities, particularly network development.
Outsourcing network services can reduce costs, provide
flexibility in budgets and improve service and performance for
many of our customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Increased Demand for Comprehensive End-to-End
Solutions.</FONT></I><FONT size="2"> We believe that electric
power, gas, telecommunications and cable television companies
will continue to seek service providers who can rapidly and
effectively design, install and maintain their networks. The
strategic and financial value to these companies of
geographically expanded and technologically improved networks
has caused them to seek quick and reliable, yet cost effective,
network solutions within increasingly challenging scale, time
and complexity constraints. Accordingly, they are partnering
with proven full-service network providers with broad geographic
reach, financial capability and technical expertise.
</FONT>

<P align="left">
<B><FONT size="2">Strategy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The key elements of our strategy are:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Focus on Expanding Operating
Efficiencies.</FONT></I><FONT size="2"> We intend to continue to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">focus on growth in our more profitable services
    and on projects that have higher margins;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">combine overlapping operations of certain of our
    operating units;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">adjust our operating costs to match the demand
    from our customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">use our assets more efficiently;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">share pricing, bidding, licensing and other
    business practices among our operating units;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">develop and expand the use of management
    information systems.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Focus on Internal Growth and
Integration.</FONT></I><FONT size="2"> We believe we can improve
our internal revenue growth by providing our customers
comprehensive end-to-end solutions for their infrastructure
needs. Our operating units cooperate to spread their best
practices and innovative technology and also share equipment and
human resources, which positions each operating unit to deepen
its relationship with current customers and develop
relationships with new customers
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Expand Portfolio of Services to Meet
Customers&#146; Evolving Needs.</FONT></I><FONT size="2"> We
continue to offer an expanding portfolio of services that allows
us to develop, build and maintain networks on both a regional
and national scale and adapt to our customers&#146; changing
needs. We intend to expand further our geographic and
technological capabilities through both internal development and
innovation and through selective acquisitions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Pursue New Opportunities for
Growth.</FONT></I><FONT size="2"> We have established a new
subsidiary, Quanta Government Solutions (QGS), that will
leverage our core expertise to pursue additional opportunities
in the government arena. QGS was formed to respond, as prime
contractor, to requests for proposals from the United States
government for power and communications infrastructure projects
in the United States and overseas.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Services</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We design, install and maintain networks for the
electric power, gas, telecommunications and cable television
industries as well as commercial, industrial and governmental
entities. The following provides an overview of the types of
services we provide:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Electric Power and Gas Network
Services.</FONT></I><FONT size="2"> We provide a variety of
end-to-end services to the electric power and gas industries,
including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation, repair and maintenance of electric
    power transmission lines ranging in capacity from 69,000 volts
    to 760,000 volts;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation, repair and maintenance of electric
    power distribution networks;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">energized installation, maintenance and upgrades
    utilizing unique bare hand and hot stick methods and our
    proprietary robotic arm;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design and construction of independent power
    producer (IPP)&nbsp;transmission and substation facilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design and construction of substation projects;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation and maintenance of natural gas
    transmission and distribution systems;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provision of cathodic protection design and
    installation services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation of fiber optic lines for voice,
    video and data transmission on existing electric power
    infrastructure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation and maintenance of joint trench
    systems, which include electric power, natural gas and
    telecommunications networks in one trench;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">trenching and horizontal boring for underground
    electric power and natural gas network installations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design and installation of wind turbine networks;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cable and fault locating;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">storm damage restoration work.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Telecommunications Network
Services.</FONT></I><FONT size="2"> Our telecommunications
network services include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fiber optic, copper and coaxial cable
    installation and maintenance for video, data and voice
    transmission;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design, construction and maintenance of DSL
    networks;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">engineering and erection of cellular, digital,
    PCS&#174;, microwave and other wireless communications towers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design and installation of switching systems for
    incumbent local exchange carriers, newly competitive local
    exchange carriers, regional Bell operating companies and long
    distance providers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">trenching and plowing applications;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">horizontal directional boring;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">vacuum excavation services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">splicing and testing of fiber optic and copper
    networks;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cable locating.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cable Television Network
Services.</FONT></I><FONT size="2"> The network services we
provide to the cable television industry include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fiber optic and coaxial cable installation and
    maintenance for video, data and voice transmission;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">system design and installation;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upgrading power and telecommunications
    infrastructure for cable installations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">system splicing, balance, testing and sweep
    certification;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">residential installation and customer connects,
    both analog and digital, for cable television, telephone and
    Internet services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Ancillary Services.</FONT></I><FONT size="2">
We provide a variety of comprehensive ancillary services to
commercial, industrial and governmental entities, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">design, installation, maintenance and repair of
    electrical components, fiber optic cabling and building control
    and automation systems;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation of intelligent traffic networks such
    as traffic signals, controllers, connecting signals, variable
    message signs, closed circuit television and other monitoring
    devices for governments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">installation of cable and control systems for
    light rail lines, airports and highways;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provision of specialty rock trenching, rock saw,
    rock wheel, directional boring and road milling for industrial
    and commercial customers.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Foreign Operations.</FONT></I><FONT size="2">
We derived $8.5&nbsp;million and $15.1&nbsp;million of our
revenues from foreign operations during the years ended
December&nbsp;31, 2002 and 2003. We had no material foreign
operations in 2001.
</FONT>

<P align="left">
<B><FONT size="2">Customers, Strategic Alliances and Preferred
Provider Relationships</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our customers include electric power, gas,
telecommunications and cable television companies, as well as
commercial, industrial and governmental entities. Our 10 largest
customers accounted for 29.4% of our consolidated revenues in
2003. Our largest customer accounted for approximately 6% of our
consolidated revenues for the year ended 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have a centralized marketing
strategy, management at each of our operating units is
responsible for developing and maintaining successful long-term
relationships with customers. Our management is incented to
cross-sell services of other operating units to their customers.
In addition, our business development group promotes and markets
our services for prospective large national accounts and
projects that would require services from multiple business
units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Many of our customers and prospective customers
have qualification procedures for approved bidders or vendors
based upon the satisfaction of particular performance and safety
standards set by the customer. These customers typically
maintain a list of vendors meeting these standards and award
contracts for individual jobs only to those vendors. We strive
to maintain our status as a preferred or qualified vendor to
these customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that our strategic relationships with
large providers of electric power and telecommunications
services will offer opportunities for future growth. Many of
these strategic relationships take the form of a strategic
alliance or long-term maintenance agreement. Strategic alliance
agreements generally state an intention to work together and
many provide us with preferential bidding procedures. Strategic
alliances and long-term maintenance agreements are typically
agreements for an initial term of approximately two to four
years that may include an option to add a one to two year
extension at the end of the initial term. Certain of our
strategic alliance and long-term maintenance agreements are
&#147;evergreen&#148; contracts with exclusivity clauses
providing that we will be awarded all contracts, or a right of
first refusal, for a certain type of work or in a certain
geographic region. None of these contracts, however, guarantees
a specific dollar amount of work to
</FONT>

<P align="center"><FONT size="2">4
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">be performed by us. Certain of our strategic
alliances and long-term maintenance relationships are listed in
the following table:
</FONT>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="71%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Start of Relationship</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Relationship</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">with Operating Unit</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Energy East
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Illinois Power
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Arizona Public Service
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ericsson
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Puget Sound Energy
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Georgia Power Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Avista
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Entergy
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Century Telephone
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Imperial Irrigation District
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nevada Power Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1989</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">MidAmerican Energy Corp.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Western Resources
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kansas City Power&nbsp;&#38; Light
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CenterPoint Energy
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Aquila
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1954</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intermountain Rural Electric
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Backlog</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Backlog represents the amount of revenue that we
expect to realize from work to be performed over the next twelve
months on uncompleted contracts, including new contractual
agreements on which work has not begun. Our backlog at
December&nbsp;31, 2002 and 2003 was approximately
$980.0&nbsp;million and $1.0&nbsp;billion. In many instances,
our customers are not contractually committed to specific
volumes of services under our long-term maintenance contracts
and many of our contracts may be terminated with notice. There
can be no assurance as to our customer&#146;s requirements or
that our estimates are accurate.
</FONT>

<P align="left">
<B><FONT size="2">Competition</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The markets in which we operate are highly
competitive. We compete with other independent contractors in
most of the geographic markets in which we operate, and several
of our competitors are large domestic companies that may have
greater financial, technical and marketing resources than we do.
In addition, there are relatively few barriers to entry into
some of the industries in which we operate and, as a result, any
organization that has adequate financial resources and access to
technical expertise may become a competitor. A significant
portion of our revenues is currently derived from unit price or
fixed price agreements, and price is often an important factor
in the award of such agreements. Accordingly, we could be
underbid by our competitors in an effort by them to procure such
business. We believe that as demand for our services increases,
customers will increasingly consider other factors in choosing a
service provider, including technical expertise and experience,
financial and operational resources, nationwide presence,
industry reputation and dependability, which we expect to
benefit contractors such as us. There can be no assurance,
however, that our competitors will not develop the expertise,
experience and resources to provide services that are superior
in both price and quality to our services, or that we will be
able to maintain or enhance our competitive position. We may
also face competition from the in-house service organizations of
our existing or prospective customers, including electric power,
gas, telecommunications and cable television companies, which
employ personnel who perform some of the same types of services
as those provided by us. Although a significant portion of these
services is currently outsourced by our customers, there can be
no assurance that our existing or prospective customers will
continue to outsource services in the future.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<P align="left">
<B><FONT size="2">Employees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, we had
1,476&nbsp;salaried employees, including executive officers,
project managers or engineers, job superintendents, staff and
clerical personnel and 9,741&nbsp;hourly employees, the number
of which fluctuates depending upon the number and size of the
projects we undertake at any particular time. Approximately 43%
of our employees at December&nbsp;31, 2003, were covered by
collective bargaining agreements, primarily with the
International Brotherhood of Electrical Workers (IBEW). Under
our agreements with our unions, we agree to pay specified wages
to our union employees, observe certain workplace rules and make
employee benefit payments to multi-employer pension plans and
employee benefit trusts rather than administering the funds on
behalf of these employees. These collective bargaining
agreements have varying terms and expiration dates. The majority
of the collective bargaining agreements contain provisions that
prohibit work stoppages or strikes, even during specified
negotiation periods relating to agreement renewal, and provide
for binding arbitration dispute resolution in the event of
prolonged disagreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We provide a health, welfare and benefit plan for
employees who are not covered by collective bargaining
agreements. We have a 401(k)&nbsp;plan pursuant to which
eligible employees who are not provided retirement benefits
through a collective bargaining agreement may make contributions
through a payroll deduction. We make matching cash contributions
of 100% of each employee&#146;s contribution up to 3% of that
employee&#146;s salary and 50% of each employee&#146;s
contribution between 3% and 6% of such employee&#146;s salary,
up to the maximum amount permitted by law. We also have an
employee stock purchase plan that provides that eligible
employees may contribute up to 10% of their cash compensation,
not to exceed $21,250&nbsp;annually, toward the semi-annual
purchase of our common stock at a discounted price. Over
870&nbsp;of our employees participated in the employee stock
purchase plan during the year ended December&nbsp;31, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our industry is experiencing a shortage of
journeyman linemen in certain geographic areas. In response to
the shortage, we seek to take advantage of various IBEW and
National Electrical Contractors Association (NECA)&nbsp;referral
programs and hire graduates from the joint IBEW/ NECA
apprenticeship program which trains qualified electrical workers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe our relationships with our employees
and union representatives are good.
</FONT>

<P align="left">
<B><FONT size="2">Training, Quality Assurance and
Safety</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Performance of our services requires the use of
equipment and exposure to conditions that can be dangerous.
Although we are committed to a policy of operating safely and
prudently, we have been and will continue to be subject to
claims by employees, customers and third parties for property
damage and personal injuries resulting from performance of our
services. Our policies require that employees complete the
prescribed training and service program of the operating unit
for which they work in addition to those required, if
applicable, by the IBEW and NECA prior to performing more
sophisticated and technical jobs. For example, all journeyman
linemen are required by the IBEW and NECA to complete a minimum
of 7,000&nbsp;hours of on-the-job training, approximately
200&nbsp;hours of classroom education and extensive testing and
certification. Each operating unit requires additional training,
depending upon the sophistication and technical requirements of
each particular job. We have established company-wide training
and educational programs, as well as comprehensive safety
policies and regulations, by sharing &#147;best practices&#148;
throughout our operations.
</FONT>

<P align="center"><FONT size="2">6
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Regulation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our operations are subject to various federal,
state and local laws and regulations including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">licensing, permitting and inspection requirements
    applicable to electricians and engineers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">building and electrical codes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">permitting and inspection requirements applicable
    to construction projects;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">regulations relating to worker safety and
    environmental protection;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">special bidding and procurement requirements on
    government projects.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that we have all the licenses required
to conduct our operations and that we are in substantial
compliance with applicable regulatory requirements. Our failure
to comply with applicable regulations could result in
substantial fines or revocation of our operating licenses.
</FONT>

<P align="left">
<B><FONT size="2">Risk Management,&nbsp;Insurance and
Performance Bonds</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The primary risks in our operations are bodily
injury and property damage. We are insured for employer&#146;s
liability and general liability claims, subject to a deductible
of $1,000,000&nbsp;per occurrence, and for auto liability and
workers&#146; compensation insurance subject to a deductible of
$2,000,000&nbsp;per occurrence. We also have a corporate
non-union employee related health care benefit plan that is
subject to a deductible of $250,000&nbsp;per claimant per year.
Losses up to the deductible amounts are accrued based upon our
estimates of the ultimate liability for claims incurred and an
estimate of claims incurred but not reported. However, insurance
liabilities are difficult to assess and estimate due to the many
relevant factors, the effects of which are often unknown,
including the severity of an injury, the determination of our
liability in proportion to other parties, the number of
incidents not reported and the effectiveness of our safety
program. The accruals are based upon known facts and historical
trends and management believes such accruals to be adequate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Contracts in the industries we serve may require
performance bonds or other means of financial assurance to
secure contractual performance. The current market for
performance bonds is limited. If we were unable to obtain surety
bonds or letters of credit in sufficient amounts or at
acceptable rates, we might be precluded from entering into
additional contracts with certain of our customers.
</FONT>

<P align="left">
<B><FONT size="2">Website Access</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our website address is www.quantaservices.com.
You may obtain free electronic copies of our Annual Reports on
Form&nbsp;10-K, Quarterly Reports on Form&nbsp;10-Q, Current
Reports on Form&nbsp;8-K, and any amendments to these reports in
our Investor Center under the heading &#147;SEC Filings&#148;.
These reports are available on our website as soon as reasonably
practicable after we electronically file them with, or furnish
them to, the SEC. In addition, our corporate governance
guidelines, Code of Ethics and Business Conduct and the charters
of our Audit Committee, Compensation Committee and Nominating
and Governance Committee are or, prior to our 2004 Annual
Meeting of Stockholders, will be posted on our website under the
heading &#147;Corporate Governance.&#148; We intend to disclose
any amendments or waivers to our Code of Ethics and Business
Conduct on our website. You may obtain free copies of these
items from our website or by contacting our Corporate Secretary.
</FONT>

<P align="left">
<B><FONT size="2">Risk Factors</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business is subject to a variety of risks,
including the risks described below. The risks and uncertainties
described below are not the only ones facing our company.
Additional risks and uncertainties not known to us or not
described below may also impair our business operations. If any
of the following risks actually occur, our business, financial
condition and results of operations could be harmed and we may
not be able to achieve our goals. This Annual Report also
includes statements reflecting assumptions, expectations,
projections, intentions, or beliefs about future events that are
intended as &#147;forward-looking statements&#148; under
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<DIV align="left">
<FONT size="2">the Private Securities Litigation Reform Act of
1995 and should be read in conjunction with the section entitled
<I>&#147;Uncertainty of Forward-Looking Statements and
Information.&#148;</I>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our operating results may vary significantly
from quarter to quarter.</FONT></I><FONT size="2"> We experience
lower gross and operating margins during winter months due to
lower demand for our services and more difficult operating
conditions. Additionally, our quarterly results may also be
materially and adversely affected by:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing and volume of work under new
    agreements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">regional or general economic conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the budgetary spending patterns of customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">payment risk associated with the financial
    condition of customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">variations in the margins of projects performed
    during any particular quarter;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the termination of existing agreements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">costs we incur to support growth internally or
    through acquisitions or otherwise;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">losses experienced in our operations not
    otherwise covered by insurance;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a change in the demand for our services caused by
    severe weather conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a change in the mix of our customers, contracts
    and business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increases in construction and design costs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in bonding and lien requirements
    applicable to existing and new agreements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing of acquisitions;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing and magnitude of acquisition
    integration costs.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accordingly, our operating results in any
particular quarter may not be indicative of the results that you
can expect for any other quarter or for the entire year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">An economic downturn may lead to less demand
for our services.</FONT></I><FONT size="2"> If the general level
of economic activity remains slow or deteriorates further, our
customers may delay or cancel new projects. The
telecommunications and utility markets experienced substantial
change during 2002 as evidenced by an increased number of
bankruptcies in the telecommunications market, continued
devaluation of many of our customers&#146; debt and equity
securities and pricing pressures resulting from challenges faced
by major industry participants. These factors have contributed
to the delay and cancellation of projects and reduction of
capital spending that have impacted our operations and ability
to grow at historical levels. A number of other factors,
including financing conditions for and potential bankruptcies in
the industries we serve, could adversely affect our customers
and their ability or willingness to fund capital expenditures in
the future or pay for past services. In addition, consolidation,
competition or capital constraints in the electric power, gas,
telecommunications or cable television industries may result in
reduced spending by, or the loss of, one or more of our
customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our dependence upon fixed price contracts
could adversely affect our business.</FONT></I><FONT size="2">
We currently generate, and expect to continue to generate, a
portion of our revenues under fixed price contracts. We must
estimate the costs of completing a particular project to bid for
fixed price contracts. The cost of labor and materials, however,
may vary from the costs we originally estimated. These
variations, along with other risks inherent in performing fixed
price contracts, may cause actual revenue and gross profits for
a project to differ from those we originally estimated and could
result in reduced profitability or losses on projects. Depending
upon the size of a particular project, variations from the
estimated contract costs can have a significant impact on our
operating results for any fiscal quarter or year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our industry is highly
competitive.</FONT></I><FONT size="2"> Our industry is served by
numerous small, owner-operated private companies, a few public
companies and several large regional companies. In addition,
relatively few barriers prevent entry into some of our
industries. As a result, any organization that has adequate
financial resources
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<DIV align="left">
<FONT size="2">and access to technical expertise may become one
of our competitors. Competition in the industry depends on a
number of factors, including price. Certain of our competitors
may have lower overhead cost structures and may, therefore, be
able to provide their services at lower rates than we are able
to provide. In addition, some of our competitors have greater
resources than we do. We cannot be certain that our competitors
will not develop the expertise, experience and resources to
provide services that are superior in both price and quality to
our services. Similarly, we cannot be certain that we will be
able to maintain or enhance our competitive position within our
industry or maintain a customer base at current levels. We may
also face competition from the in-house service organizations of
our existing or prospective customers. Electric power, gas,
telecommunications and cable television service providers
usually employ personnel who perform some of the same types of
services we do. We cannot be certain that our existing or
prospective customers will continue to outsource services in the
future.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We may incur liabilities relating to
occupational health and safety
matters.</FONT></I><FONT size="2"> Our operations are subject to
extensive laws and regulations relating to the maintenance of
safe conditions in the workplace. While we have invested, and
will continue to invest, substantial resources in our
occupational health and safety programs, our industry involves a
high degree of operational risk and there can be no assurance
that we will avoid significant liability exposure. Although we
have taken what we believe are appropriate precautions, we have
suffered fatalities in the past and may suffer additional
fatalities in the future. Claims for damages to persons,
including claims for bodily injury or loss of life, could result
in substantial costs and liabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The industries we serve are subject to rapid
technological and structural changes that could reduce the
demand for the services we provide.</FONT></I><FONT size="2">
The electric power, gas, telecommunications and cable television
industries are undergoing rapid change as a result of
technological advances that could, in certain cases, reduce the
demand for our services or otherwise negatively impact our
business. New or developing technologies could displace the
wireline systems used for voice, video and data transmissions,
and improvements in existing technology may allow
telecommunications and cable television companies to
significantly improve their networks without physically
upgrading them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Failure to obtain or maintain necessary
performance bonds could adversely affect our
business.</FONT></I><FONT size="2"> Contracts in the industries
we serve often require performance bonds or other means of
financial assurance to secure contractual performance. During
2002 and 2003, the market for performance bonds tightened
significantly. If we are unable to obtain performance bonds or
letters of credit in sufficient amounts or on acceptable terms,
we might be precluded from entering into additional contracts
with certain of our customers. Management believes that our
current surety arrangements will satisfy all of our bonding
needs for the foreseeable future, but there can be no assurance
that such surety arrangements will be sufficient to satisfy all
of our future bonding needs
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Many of our contracts may be canceled on short
notice, and we may be unsuccessful in replacing our contracts if
they are cancelled or as they are completed or
expire.</FONT></I><FONT size="2"> We could experience a decrease
in our revenue, net income and liquidity if any of the following
occur:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our customers cancel a significant number of
    contracts;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we fail to win a significant number of our
    existing contracts upon re-bid;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we complete a significant number of non-recurring
    projects and cannot replace them with similar projects;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we fail to reduce operating and overhead expenses
    consistent with any decrease in our revenue.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Many of our customers may cancel our contracts on
short notice, typically 30-90&nbsp;days, even if we are not in
default under the contract. Certain of our customers assign work
to us on a project-by-project basis under master service
agreements. Under these agreements, our customers often have no
obligation to assign a specific amount of work to us. Our
operations could decline significantly if the anticipated volume
of work is not assigned to us. Many of our contracts, including
our master service contracts, are opened to public bid at the
expiration of their terms. There can be no assurance that we
will be the successful bidder on our existing contracts that
come up for bid.
</FONT>

<P align="center"><FONT size="2">9
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We are self-insured against potential
liabilities.</FONT></I><FONT size="2"> Although we maintain
insurance policies with respect to automobile, general
liability, workers&#146; compensation and employers&#146;
liability, those policies are subject to deductibles of
$1,000,000 to $2,000,000&nbsp;per occurrence, and we are
primarily self-insured for all claims that do not exceed the
amount of the applicable deductible. We also maintain a
non-union employee related health care benefit plan that is
subject to a deductible of $250,000&nbsp;per claimant per year.
Losses up to the deductible amounts are accrued based upon our
estimates of the ultimate liability for claims incurred and an
estimate of claims incurred but not reported. However, insurance
liabilities are difficult to assess and estimate due to unknown
factors, including the severity of an injury, the determination
of our liability in proportion to other parties, the number of
incidents not reported and the effectiveness of our safety
program. If we were to experience insurance claims or costs
above our estimates, our business could be materially and
adversely affected.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The departure of key personnel could disrupt
our business.</FONT></I><FONT size="2"> We depend on the
continued efforts of our executive officers and on senior
management of the businesses we acquire. Although we have
entered into employment agreements with terms of one to three
years with most of our executive officers and certain other key
employees, we cannot be certain that any individual will
continue in such capacity for any particular period of time. The
loss of key personnel, or the inability to hire and retain
qualified employees, could negatively impact our ability to
manage our business. We do not carry key-person life insurance
on any of our employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our unionized workforce could adversely affect
our operations and our ability to complete future
acquisitions.</FONT></I><FONT size="2"> As of December&nbsp;31,
2003, approximately 43% of our employees were covered by
collective bargaining agreements. Although the majority of these
agreements prohibit strikes and work stoppages, we cannot be
certain that strikes or work stoppages will not occur in the
future. Strikes or work stoppages would adversely impact our
relationships with our customers and could cause us to lose
business and decrease our revenue. In addition, our ability to
complete future acquisitions could be adversely affected because
of our union status for a variety of reasons. For instance, our
union agreements may be incompatible with the union agreements
of a business we want to acquire and some businesses may not
want to become affiliated with a union based company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our business is labor intensive, and we may be
unable to attract and retain qualified
employees.</FONT></I><FONT size="2"> Our ability to maintain our
productivity and profitability will be limited by our ability to
employ, train and retain skilled personnel necessary to meet our
requirements. We may experience shortages of qualified
journeyman linemen. We cannot be certain that we will be able to
maintain an adequate skilled labor force necessary to operate
efficiently and to support our growth strategy or that our labor
expenses will not increase as a result of a shortage in the
supply of these skilled personnel. Labor shortages or increased
labor costs could impair our ability to maintain our business or
grow our revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our business growth could outpace the
capability of our corporate management
infrastructure.</FONT></I><FONT size="2"> We cannot be certain
that our infrastructure will be adequate to support our
operations as they expand. Future growth also could impose
significant additional responsibilities on members of our senior
management, including the need to recruit and integrate new
senior level managers and executives. We cannot be certain that
we can recruit and retain such additional managers and
executives. To the extent that we are unable to manage our
growth effectively, or are unable to attract and retain
additional qualified management, we may not be able to expand
our operations or execute our business plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We could have potential exposure to
environmental liabilities.</FONT></I><FONT size="2"> Our
operations are subject to various environmental laws and
regulations, including those dealing with the handling and
disposal of waste products, PCBs, fuel storage and air quality.
As a result of past and future operations at our facilities, we
may be required to incur environmental remediation costs and
other cleanup expenses. In addition, we cannot be certain that
we will be able to identify or be indemnified for all potential
environmental liabilities relating to any acquired business,
property or assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Opportunities within the government arena
could lead to increased governmental regulation applicable to
Quanta and unrecoverable start up
costs.</FONT></I><FONT size="2"> Most government contracts are
awarded through a regulated competitive bidding process. As we
pursue increased opportunities in the government arena
management&#146;s
</FONT>

<P align="center"><FONT size="2">10
</FONT>

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<DIV align="left">
<FONT size="2">focus associated with the start up and bidding
process may be diverted away from other opportunities. If we
were to be successful in being awarded government contracts, a
significant amount of costs could be required before any
revenues were realized from these contracts. In addition, as a
government contractor we would be subject to a number of
procurement rules and other public sector liabilities, any
deemed violation of which could lead to fines or penalties or a
loss of business. Government agencies routinely audit and
investigate government contractors. Government agencies may
review a contractor&#146;s performance under its contracts,
costs structure, and compliance with applicable laws,
regulations and standards. If government agencies determine
through these audits or reviews that costs were improperly
allocated to specific contracts, they will not reimburse the
contractor for those costs or may require the contractor to
refund previously reimbursed costs. Moreover, our internal
controls may not prevent improper conduct. If government
agencies determine that we engaged in improper activity, we may
be subject to civil and criminal penalties. We also could
experience serious harm to our reputation. Many government
contracts must be appropriated each year. If appropriations are
not made in subsequent years we would not realize all of the
potential revenues from any awarded contracts.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We may not be successful in meeting the
requirements of the Sarbanes-Oxley Act of
2002.</FONT></I><FONT size="2"> The Sarbanes-Oxley Act of 2002
has introduced many new requirements applicable to Quanta
regarding corporate governance and financial reporting. Among
many other requirements is the requirement under
Section&nbsp;404 of the Act, beginning with the 2004 Annual
Report, for management to report on the Company&#146;s internal
controls over financial reporting and for Quanta&#146;s
independent public accountants to attest to this report. During
2003, the Company commenced actions to ensure its ability to
comply with these requirements, including but not limited to,
the engaging of outside experts to assist in the evaluation of
our controls, additional staffing requirements of our internal
audit department and documentation of existing controls. In
addition, the Company expects to continue to devote substantial
time and incur substantial costs during 2004 to ensure
compliance. There can no assurance what we will be successful in
complying with Section&nbsp;404. Failure to do so could result
in the reduced ability to obtain financing, the loss of
customers, penalties and additional expenditures to meet the
requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We may not have access in the future to
sufficient funding to finance desired
growth.</FONT></I><FONT size="2"> If we cannot secure additional
financing in the future on acceptable terms, we may be unable to
support our growth strategy. We cannot readily predict the
ability of certain customers to pay for past services or the
timing, size and success of our acquisition efforts. Using cash
for acquisitions limits our financial flexibility and makes us
more likely to seek additional capital through future debt or
equity financings. Our existing debt agreements contain
significant restrictions on our operational and financial
flexibility, including our ability to incur additional debt, and
if we seek more debt we may have to agree to additional
covenants that limit our operational and financial flexibility.
When we seek additional debt or equity financings, we cannot be
certain that additional debt or equity will be available to us
on terms acceptable to us or at all.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We may be unsuccessful at generating internal
growth.</FONT></I><FONT size="2"> Our ability to generate
internal growth will be affected by, among other factors, our
ability to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">expand the range of services we offer to
    customers to address their evolving network needs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">attract new customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increase the number of projects performed for
    existing customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">hire and retain employees;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">open additional facilities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">In addition, our customers may reduce the number
or size of projects available to us due to their inability to
obtain capital or pay for services provided. Many of the factors
affecting our ability to generate internal growth may be beyond
our control, and we cannot be certain that our strategies will
be successful or that we will be able to generate cash flow
sufficient to fund our operations and to support internal
growth. If we are unsuccessful, we may not be able to achieve
internal growth, expand our operations or grow our business.
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Our results of operations could be adversely
affected as a result of goodwill
impairments.</FONT></I><FONT size="2"> When we acquire a
business, we record an asset called &#147;goodwill&#148; equal
to the excess amount we pay for the business, including
liabilities assumed, over the fair value of the tangible and
intangible assets of the business we acquire. Through
December&nbsp;31, 2001, pursuant to generally accepted
accounting principles, we amortized this goodwill over its
estimated useful life of 40&nbsp;years following the
acquisition, which directly impacted our earnings. The Financial
Accounting Standards Board (FASB)&nbsp;issued Statement of
Financial Accounting Standards (SFAS)&nbsp;No.&nbsp;142 which
provides that goodwill and other intangible assets that have
indefinite useful lives not be amortized, but instead must be
tested at least annually for impairment, and intangible assets
that have finite useful lives should continue to be amortized
over their useful lives. SFAS&nbsp;No.&nbsp;142 also provides
specific guidance for testing goodwill and other non-amortized
intangible assets for impairment. SFAS&nbsp;No.&nbsp;142
requires management to make certain estimates and assumptions to
allocate goodwill to reporting units and to determine the fair
value of reporting unit net assets and liabilities, including,
among other things, an assessment of market conditions,
projected cash flows, investment rates, cost of capital and
growth rates, which could significantly impact the reported
value of goodwill and other intangible assets. Fair value is
determined using a combination of the discounted cash flow,
market multiple and market capitalization valuation approaches.
Absent any impairment indicators, we perform our impairment
tests annually during the fourth quarter. Future impairments, if
any, will be recognized as operating expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">We may be unsuccessful at integrating
companies that we either have acquired or that we may acquire in
the future.</FONT></I><FONT size="2"> We cannot be sure that we
can successfully integrate our acquired companies with our
existing operations without substantial costs, delays or other
operational or financial problems. If we do not implement proper
overall business controls, our decentralized operating strategy
could result in inconsistent operating and financial practices
at the companies we acquire and our overall profitability could
be adversely affected. Integrating our acquired companies
involves a number of special risks which could have a negative
impact on our business, financial condition and results of
operations, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure of acquired companies to achieve the
    results we expect;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">diversion of our management&#146;s attention from
    operational matters;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulties integrating the operations and
    personnel of acquired companies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">inability to retain key personnel of the acquired
    companies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">risks associated with unanticipated events or
    liabilities;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">potential disruptions of our business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">If one of our acquired companies suffers customer
dissatisfaction or performance problems, the reputation of our
entire company could suffer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">First Reserve&#146;s investment in us may
result in potential conflicts of interest with, or dilution of,
existing stockholders.</FONT></I><FONT size="2"> First Reserve
Fund&nbsp;IX, L.P. (First Reserve) owned approximately 33.8% of
the outstanding shares of our common stock as of March&nbsp;9,
2004. By reason of such stock ownership, conflicts of interest
may arise in the future between us and First Reserve and its
affiliates with respect to, among other things, issuances of
additional shares of voting securities or the payment of
dividends. There are no contractual or other restrictions on the
ability of First Reserve or its affiliates to pursue other
investment opportunities in any of the industries we serve. In
addition, First Reserve may have interests that could be in
conflict with those of the holders of our convertible
subordinated notes or other stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">You are unlikely to be able to seek remedies
against Arthur Andersen LLP, our former independent
auditor.</FONT></I><FONT size="2"> Our consolidated financial
statements for the fiscal years ended prior to December&nbsp;31,
2002 were audited by Arthur Andersen LLP, our former independent
auditor. In June 2002 Arthur Andersen LLP was convicted of
federal obstruction of justice charges in connection with its
destruction of documents. As a result of its conviction, Arthur
Andersen LLP has ceased operations and is no longer in a
position to reissue its audit reports or to provide consent to
include financial statements reported on by it in this
prospectus. Because Arthur Andersen LLP has not reissued its
reports and because we are not able to obtain a consent from
Arthur Andersen LLP, you will have no effective remedy against
Arthur Andersen LLP in connection with their role
</FONT>

<P align="center"><FONT size="2">12
</FONT>

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<DIV align="left">
<FONT size="2">as our independent public accountants for the
period covered by its previously issued reports. Even if you
have a basis for asserting a remedy against, or seeking to
recover from, Arthur Andersen LLP, we believe that it is
unlikely that you would be able to recover damages from Arthur
Andersen LLP.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Certain provisions of our corporate governing
documents could make an acquisition of our company more
difficult.</FONT></I><FONT size="2"> The following provisions of
our certificate of incorporation and bylaws, as currently in
effect, as well as our stockholder rights plan and Delaware law,
could discourage potential proposals to acquire us, delay or
prevent a change in control of us or limit the price that
investors may be willing to pay in the future for shares of our
common stock:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our certificate of incorporation permits our
    board of directors to issue &#147;blank check&#148; preferred
    stock and to adopt amendments to our bylaws;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our bylaws contain restrictions regarding the
    right of stockholders to nominate directors and to submit
    proposals to be considered at stockholder meetings;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our certificate of incorporation and bylaws
    restrict the right of stockholders to call a special meeting of
    stockholders and to act by written consent;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we are subject to provisions of Delaware law
    which prohibit us from engaging in any of a broad range of
    business transactions with an &#147;interested stockholder&#148;
    for a period of three years following the date such stockholder
    became classified as an interested stockholder;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">on March&nbsp;8, 2000, we adopted, and have
    subsequently amended, a stockholder rights plan that could cause
    substantial dilution to a person or group that attempts to
    acquire us on terms not approved by our board of directors or
    permitted by the stockholder rights plan.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<A name='103'></A>
</DIV>

<!-- link1 "ITEM 2. Properties" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;2.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Properties</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Facilities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We lease our corporate headquarters in Houston,
Texas and maintain offices nationwide. This space is used for
offices, equipment yards, warehousing, storage and vehicle
shops. We own 31 of the facilities we occupy, all of which are
encumbered by our credit facility, and we lease the rest. We
believe that our existing facilities are sufficient for our
current needs.
</FONT>

<P align="left">
<B><FONT size="2">Equipment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate a fleet of owned and leased trucks and
trailers, support vehicles and specialty construction equipment,
such as backhoes, excavators, trenchers, generators, boring
machines, cranes, wire pullers and tensioners. As of
December&nbsp;31, 2003, the total size of the rolling-stock
fleet was approximately 19,700&nbsp;units. Most of this fleet is
serviced by our own mechanics who work at various maintenance
sites and facilities. We believe that these vehicles generally
are well maintained and adequate for our present operations.
</FONT>

<DIV align="left">
<A name='104'></A>
</DIV>

<!-- link1 "ITEM 3. Legal Proceedings" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;3.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Legal Proceedings</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are from time to time a party to various
lawsuits, claims and other legal proceedings that arise in the
ordinary course of business. These actions typically seek, among
other things, compensation for alleged personal injury, breach
of contract, property damage, punitive damages, civil penalties
or other losses, or injunctive or declaratory relief. With
respect to such lawsuits, claims, and proceedings, we accrue
reserves when it is probable a liability has been incurred and
the amount of loss can be reasonably estimated. We do not expect
the outcome of any of these proceedings, separately or in the
aggregate, to have a material adverse effect on our results of
operations or financial position.
</FONT>

<P align="center"><FONT size="2">13
</FONT>

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<DIV align="left">
<A name='105'></A>
</DIV>

<!-- link1 "PART II" -->

<P align="center">
<B><FONT size="2">PART&nbsp;II</FONT></B>

<DIV align="left">
<A name='106'></A>
</DIV>

<!-- link1 "ITEM 5. Market for Registrant&#146;s Common Stock and Related Stockholder Matters" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;5.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Market for Registrant&#146;s Common Stock
    and Related Stockholder Matters</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We initially offered our common stock to the
public on February&nbsp;12, 1998, at a price of $6.00&nbsp;per
share. Our common stock is listed on the New&nbsp;York Stock
Exchange (NYSE)&nbsp;under the symbol &#147;PWR.&#148; The
following table sets forth the high and low sales prices of our
common stock per quarter, as reported by the NYSE, for the two
most recent fiscal years.
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="76%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">High</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Low</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Year Ended December&nbsp;31, 2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1st&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2nd&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3rd&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.75</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4th&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.78</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Year Ended December&nbsp;31, 2003</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1st&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2nd&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3rd&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4th&nbsp;Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;9, 2004, there were 1,032 holders
of record of our common stock and 24 holders of record of our
Limited Vote Common Stock. There is no established trading
market for the Limited Vote Common Stock; however, the Limited
Vote Common Stock converts into common stock immediately upon
sale.
</FONT>

<P align="left">
<B><FONT size="2">Dividends</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently intend to retain our future
earnings, if any, to finance the growth, development and
expansion of our business. Accordingly, we do not currently
intend to declare or pay any cash dividends on our common stock
in the immediate future. The declaration, payment and amount of
future cash dividends, if any, will be at the discretion of our
board of directors after taking into account various factors.
These factors include our financial condition, results of
operations, cash flows from operations, current and anticipated
capital requirements and expansion plans, the income tax laws
then in effect and the requirements of Delaware law. In
addition, the terms of our revolving credit facility and
convertible subordinated notes include limitations on the
payment of cash dividends without the consent of the respective
lenders.
</FONT>

<P align="left">
<B><FONT size="2">Recent Sales of Unregistered
Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;21, 2003 and October&nbsp;24,
2003, we sold $225&nbsp;million and $45&nbsp;million principal
amount of our 4.5%&nbsp;convertible subordinated notes due 2023
to Banc of America Securities LLC and J.P.&nbsp;Morgan
Securities Inc., in a private placement pursuant to
Rule&nbsp;144A under the Securities Act of 1933, as amended.
Subject to the satisfaction of certain conditions, the notes
will be convertible into shares of common stock at an initial
rate of 89.7989&nbsp;shares of common stock per $1,000 principal
amount of notes (or a conversion price of approximately
$11.14&nbsp;per share of common stock). These securities were
registered subsequent to issuance.
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<DIV align="left">
<A name='107'></A>
</DIV>

<!-- link1 "ITEM 6. Selected Financial Data" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;6.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Selected Financial Data</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following historical selected financial data
has been derived from the audited financial statements of the
company. The historical financial statement data represents the
financial position and results of operations of a company
acquired in a pooling transaction in 1999 and reflects the
acquisitions of businesses accounted for as purchase
transactions as of their respective acquisition dates. The
historical selected financial data should be read in conjunction
with the historical Consolidated Financial Statements and
related notes thereto included in Item&nbsp;8 &#147;Financial
Statements and Supplementary Data.&#148;
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Consolidated Statements of Operations
    Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">925,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,793,301</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,014,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of services (including depreciation)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">711,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,379,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,601,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,513,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,442,958</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,301</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">414,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">413,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143,564</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Merger and special charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,574</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,566</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(a)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill impairment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">166,580</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,452</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) from operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,265</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(155,532</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,184</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,708</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36,072</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,866</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31,822</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on early extinguishment of debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)(f)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(227</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,763</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before income tax provision
    (benefit) and cumulative effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,938</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(193,844</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(53,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,999</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,328</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before cumulative effect of change
    in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">105,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(174,134</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,422</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">105,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(619,556</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends (forfeitures)&nbsp;on preferred stock,
    net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cash beneficial conversion charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,508</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,679</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(a)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">In June 1999, as a result of the termination of
    an Employee Stock Ownership Plan associated with a company
    acquired in a pooling transaction, we incurred a non-cash
    compensation charge of $5.3&nbsp;million
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">15
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">and an excise tax charge of $1.1&nbsp;million. We
    also incurred $137,000 in merger charges associated with a
    pooling transaction in the first quarter of 1999. In December
    2000, we agreed to conclude our obligations under our management
    services agreement with Aquila Inc. in exchange for a one-time
    payment to Aquila of approximately $28.6&nbsp;million.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(b)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">For the year ended December&nbsp;31, 1999, the
    provision includes a non-cash deferred tax charge of $677,000 as
    a result of a change in the tax status of a company acquired in
    a pooling transaction from an S&nbsp;corporation to a C
    corporation. For the year ended December&nbsp;31, 2000, it
    reflects the result of no tax benefit being recognized for a
    portion of merger and special charges.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(c)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We recognized an interim SFAS&nbsp;No.&nbsp;142
    non-cash goodwill impairment charge of $166.6&nbsp;million
    during the year ended December&nbsp;31, 2002. Impairment
    adjustments recognized after the adoption of SFAS&nbsp;No. 142
    are required to be recognized as operating expenses.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(d)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Based on our transitional impairment test
    performed upon adoption of SFAS&nbsp;No.&nbsp;142, we recognized
    a $488.5&nbsp;million non-cash charge ($445.4&nbsp;million, net
    of tax) to reduce the carrying value of goodwill to the implied
    fair value of our reporting units. Basic and diluted earnings
    per share before cumulative effect of change in accounting
    principle were a loss of $2.90&nbsp;per share.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(e)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">The original as-converted share price negotiated
    with First Reserve for the Series&nbsp;E Preferred Stock on
    October&nbsp;15, 2002 was $3.00&nbsp;per share which was an
    above market price. On December&nbsp;20, 2002, the date First
    Reserve purchased the Series&nbsp;E Preferred Stock, our stock
    closed at $3.35&nbsp;per share. Accordingly, we recorded a
    non-cash beneficial conversion charge of $8.5&nbsp;million based
    on the $0.35&nbsp;per share differential. The non-cash
    beneficial conversion charge is recognized as a deemed dividend
    to the Series&nbsp;E Preferred Stockholder and is recorded as a
    decrease in net income attributable to common stock and an
    increase in additional paid-in capital. The non-cash beneficial
    conversion charge had no effect on our operating income, cash
    flows or stockholders&#146; equity at December&nbsp;31, 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">(f)
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">In the fourth quarter 2003, we recorded a
    $35.1&nbsp;million loss on early extinguishment of debt
    comprised of make-whole prepayment premiums, the write-off of
    unamortized debt issuance costs and other related costs due to
    the retirement of our senior secured notes and termination of
    our previous credit facility.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance Sheet Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Working capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164,140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,729</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">335,590</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">317,356</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">476,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,159,636</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,871,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,042,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,364,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,466,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt, net of current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">318,602</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">327,774</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Convertible subordinated notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">442,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Redeemable common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">756,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,068,956</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,206,751</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">611,671</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">663,132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements for the
years ended December&nbsp;31, 1999 through 2001, were audited by
Arthur Andersen LLP (Andersen), which has ceased operations. A
copy of the report previously issued by Andersen on our
financial statements as of December&nbsp;31, 2001 and 2000, and
for each of the three years in the period ended
December&nbsp;31, 2001, is included in Item&nbsp;8 of this
Form&nbsp;10-K. Such report has not been reissued by Andersen.
</FONT>

<P align="center"><FONT size="2">16
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='108'></A>
</DIV>

<!-- link1 "ITEM 7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;7.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following discussion and analysis of our
financial condition and results of operations should be read in
conjunction with our historical consolidated financial
statements and related notes thereto in Item&nbsp;8
&#147;Financial Statements and Supplementary Data.&#148; The
discussion below contains forward-looking statements that are
based upon our current expectations and are subject to
uncertainty and changes in circumstances. Actual results may
differ materially from these expectations due to inaccurate
assumptions and known or unknown risks and uncertainties,
including those identified in &#147;Uncertainty of
Forward-Looking Statements and Information.&#148;</FONT></I>

<P align="left">
<B><FONT size="2">Introduction</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We derive our revenues from one reportable
segment by providing specialized contracting services and
offering comprehensive network solutions. Our customers include
electric power, gas, telecommunications and cable television
companies, as well as commercial, industrial and governmental
entities. We had consolidated revenues for the year ended
December&nbsp;31, 2003 of $1.6&nbsp;billion, of which 60% was
attributable to electric power and gas customers, 15% to
telecommunications customers, 7% to cable television operators
and 18% to ancillary services, such as inside electrical wiring,
intelligent traffic networks, cable and control systems for
light rail lines, airports and highways, and specialty rock
trenching, directional boring and road milling for industrial
and commercial customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We enter into contracts principally on the basis
of competitive unit price or fixed price bids, the final terms
and prices of which we frequently negotiate with the customer.
Although the terms of our contracts vary considerably, most are
made on either a unit price or fixed price basis in which we
agree to do the work for a price per unit of work performed
(unit price) or for a fixed amount for the entire project (fixed
price). We also perform services on a cost-plus or time and
materials basis. We complete a substantial majority of our fixed
price projects within one year, while we frequently provide
maintenance and repair work under open-ended, unit price or
cost-plus master service agreements which are renewable
annually. Some of our customers require us to post performance
and payment bonds upon execution of the contract, depending upon
the nature of the work to be performed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services consists primarily of salaries,
wages and benefits to employees, depreciation, fuel and other
vehicle expenses, equipment rentals, subcontracted services,
insurance, facilities expenses, materials and parts and
supplies. Our gross margin, which is gross profit expressed as a
percentage of revenues, is typically higher on projects where
labor, rather than materials, constitute a greater portion of
the cost of services. We seek higher margins on our
labor-intensive projects because we can predict materials costs
more accurately than labor costs. Operating margins could be
impacted by fluctuations in insurance accruals related to our
deductibles in the period in which such adjustments are made. As
of December&nbsp;31, 2003, we had a deductible of
$1,000,000&nbsp;per occurrence related to employer&#146;s
liability and general liability claims and a deductible of
$2,000,000&nbsp;per occurrence for automobile liability and
workers&#146; compensation insurance. We also have a non-union
employee related health care benefit plan that is subject to a
deductible of $250,000&nbsp;per claimant per year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Selling, general and administrative expenses
consist primarily of compensation and related benefits to
management, administrative salaries and benefits, marketing,
office rent and utilities, communications, professional fees and
bad debt expense. Selling, general and administrative expenses
can be impacted by our customers&#146; inability to pay for
services performed.
</FONT>

<P align="left">
<B><FONT size="2">Seasonality; Fluctuations of Results</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our results of operations can be subject to
seasonal variations. During the winter months, demand for new
projects and new maintenance service arrangements may be lower
due to reduced construction activity. However, demand for repair
and maintenance services attributable to damage caused by
inclement weather during the winter months may partially offset
the loss of revenues from lower demand for new projects and new
maintenance service arrangements. Additionally, our industry can
be highly cyclical. As a result, our volume of business may be
adversely affected by declines in new projects in various
geographic regions in the
</FONT>

<P align="center"><FONT size="2">17
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">United States. Typically, we experience lower
gross and operating margins during the winter months due to
lower demand for our services and more difficult operating
conditions. The financial condition of our customers and their
access to capital, variations in the margins of projects
performed during any particular quarter, the timing and
magnitude of acquisition assimilation costs, regional economic
conditions and timing of acquisitions may also materially affect
quarterly results. Accordingly, our operating results in any
particular quarter or year may not be indicative of the results
that can be expected for any other quarter or for any other year.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Liquidity and Capital Resources</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Cash
Requirements</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2003, our cash flow from operations
coupled with the 4.5%&nbsp;convertible subordinated notes
offering and a new credit facility allowed us to increase the
amount of cash on our balance sheet. We anticipate that our cash
on hand and cash flow from operations will provide sufficient
cash to enable us to meet our future operating needs, debt
service requirements and planned capital expenditures and to
ensure our future ability to grow. Expansion into governmental
contracts, momentum in deployment of fiber to the home or
initiatives to rebuild the United States electric power grid
might require a significant amount of additional working
capital. However, we feel that we have adequate cash and
availability under our credit facility to meet such needs.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Sources
and Uses of Cash</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, we had cash and
cash equivalents of $179.6&nbsp;million, working capital of
$476.7&nbsp;million and long-term debt of $500.6&nbsp;million,
net of current maturities. Our long-term debt balance at that
date included $442.5&nbsp;million of convertible subordinated
notes and $58.1&nbsp;million of other debt. In addition, we had
$96.7&nbsp;million of letters of credit outstanding under our
credit facility.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the year ended December&nbsp;31, 2003,
operating activities provided net cash to us of
$117.2&nbsp;million. Operating cash flow before changes in
working capital and other operating accounts totaled
$131.1&nbsp;million. Net changes in working capital and other
operating accounts used $13.9&nbsp;million of cash flow from
operations, in 2003. Cash flow from operations is primarily
influenced by demand for our services, operating margins and the
type of services we provide. We used net cash in investing
activities of $42.1&nbsp;million, including $35.9&nbsp;million
used for capital expenditures and $9.3&nbsp;million used to fund
our casualty self-insurance obligation, partially offset by
proceeds from the sale of equipment. Cash flow from financing
activities was $76.6&nbsp;million resulting from the proceeds of
$270.0&nbsp;million convertible subordinated notes offering,
$56.0&nbsp;million drawn down on the term loan portion of the
credit facility discussed below, $7.1&nbsp;million from
issuances of common stock and $4.9&nbsp;million of proceeds from
other debt offset by the $210.0&nbsp;million in retirement of
senior secured notes, $31.7&nbsp;million in make-whole
prepayment premiums and other related costs associated with the
retirement of the senior secured notes, $7.6&nbsp;million in
payments of other long-term debt obligations and
$12.1&nbsp;million in costs relating to the new financings.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Debt
Instruments</FONT></I>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Credit
Facility</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;19, 2003, we entered into a
$185.0&nbsp;million credit facility with various lenders, which
replaced our previous credit facility. The credit facility
consists of a $150.0&nbsp;million letter of credit facility
maturing on June&nbsp;19, 2008, which also provides for term
loans, and a $35.0&nbsp;million revolving credit facility
maturing on December&nbsp;19, 2007, which provides for revolving
loans and letters of credit. The letter of credit facility is
linked to a $150.0&nbsp;million deposit made by the lenders,
which is held in an account with Bank of America, N.A. This
deposit may be used either to support letters of credit or, to
the extent that amounts available under the facility are not
used to support letters of credit, for term loans. As of
December&nbsp;31, 2003, we had approximately $93.6&nbsp;million
of letters of credit issued under the letter of credit facility,
approximately $3.1&nbsp;million of letters of credit issued
under the revolving facility and $56.0&nbsp;million outstanding
as a term loan under the credit facility with an interest rate
of 4.15% as of December&nbsp;31, 2003. Our borrowing
availability was $31.9&nbsp;million as of December&nbsp;31, 2003.
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the letter of credit facility, we are
subject to a fee equal to 3.00% of the letters of credit
outstanding, plus an additional 0.15% of the amount outstanding
to the extent the funds in the deposit account do not earn the
London Interbank Offered Rate (LIBOR), as defined in the credit
facility. Term loans under the facility bear interest at a rate
equal to either (a)&nbsp;the Eurodollar Rate (as defined in the
credit facility) plus 3.00%&nbsp;or (b)&nbsp;the Base Rate (as
described below) plus 3.00%. The Base Rate equals the higher of
(i)&nbsp;the Federal Funds Rate (as defined in the credit
facility) plus 1/2 of 1% and (ii)&nbsp;the bank&#146;s prime
rate. The maximum availability under the facility is
automatically reduced on December&nbsp;31 of each year by
$1.5&nbsp;million, beginning December&nbsp;31, 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts borrowed under the revolving credit
facility bear interest at a rate equal to either (a)&nbsp;the
Eurodollar Rate plus 1.75% to 3.00%, as determined by the ratio
of our total funded debt to EBITDA, or (b)&nbsp;the Base Rate
plus 0.25% to 1.50%, as determined by the ratio of our total
funded debt to EBITDA. Letters of credit issued under the
revolving credit facility are subject to a letter of credit fee
of 1.75% to 3.00%, based on the ratio of our total funded debt
to EBITDA. If we choose to cash collateralize letters of credit
issued under the revolving credit facility, those letters of
credit will be subject to a letter of credit fee of 0.50%. We
are also subject to a commitment fee of 0.375% to 0.625%, based
on the ratio of our total funded debt to EBITDA, on any unused
availability under the revolving credit facility.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The credit facility contains certain covenants,
including a maximum funded debt to EBITDA ratio, a maximum
senior debt to EBITDA ratio, a minimum interest coverage ratio,
a minimum asset coverage ratio and a minimum consolidated net
worth covenant. The credit facility also limits acquisitions,
capital expenditures and asset sales and, subject to some
exceptions, prohibits stock repurchase programs and the payment
of dividends (other than dividend payments or other
distributions payable solely in capital stock). After
December&nbsp;31, 2004, however, we may pay dividends and engage
in stock repurchase programs in any fiscal year in an aggregate
amount up to twenty-five percent of our consolidated net income
(plus the amount of non-cash charges that reduced such
consolidated net income) for the immediately prior fiscal year.
The credit facility carries cross-default provisions with our
other debt instruments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The credit facility is secured by a pledge of all
of the capital stock of our U.S.&nbsp;subsidiaries, 65% of the
capital stock of our foreign subsidiaries and substantially all
of our assets, and it restricts pledges on all material assets.
Borrowings under the credit facility are to be used for working
capital, capital expenditures and for other general corporate
purposes. Our U.S.&nbsp;subsidiaries guarantee the repayment of
all amounts due under the credit facility. Our obligations under
the credit facility constitute designated senior indebtedness
under our convertible subordinated notes.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">4.0%&nbsp;Convertible
Subordinated Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, we had
$172.5&nbsp;million in 4.0%&nbsp;convertible subordinated notes
outstanding. These 4.0%&nbsp;convertible subordinated notes are
convertible into shares of our common stock at a price of
$54.53&nbsp;per share, subject to adjustment as a result of
certain events. These 4.0%&nbsp;convertible subordinated notes
require semi-annual interest payments until the notes mature on
July&nbsp;1, 2007. We have the option to redeem some or all of
the 4.0%&nbsp;convertible subordinated notes beginning
July&nbsp;3, 2003 at specified redemption prices, together with
accrued and unpaid interest; however, redemption is prohibited
by our credit facility. If certain fundamental changes occur, as
described in the indenture under which we issued the
4.0%&nbsp;convertible subordinated notes, holders of the
4.0%&nbsp;convertible subordinated notes may require us to
purchase all or part of their notes at a purchase price equal to
100% of the principal amount, plus accrued and unpaid interest.
In the event of such circumstance, consent to repurchase the
4.0%&nbsp;convertible subordinated notes would be required under
our credit facility.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">4.5%&nbsp;Convertible
Subordinated Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 2003, we issued $270.0&nbsp;million
principal amount of 4.5%&nbsp;convertible subordinated notes.
These 4.5%&nbsp;convertible subordinated notes are convertible
into shares of Quanta&#146;s common stock at a price of
$11.14&nbsp;per share, subject to adjustment as a result of
certain events. The 4.5%&nbsp;convertible subordinated notes
require semi-annual interest payments beginning April&nbsp;1,
2004, until the notes mature on October&nbsp;1, 2023.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 4.5%&nbsp;convertible subordinated notes are
convertible by the holder if (i)&nbsp;during any fiscal quarter
commencing after December&nbsp;31, 2003 the last reported sale
price of our common stock is greater than or equal to 120% of
the conversion price for at least 20 trading days in the period
of 30 consecutive trading days ending on the first trading day
of such fiscal quarter, (ii)&nbsp;during the five&nbsp;business
day period after any five&nbsp;consecutive trading day period in
which the trading price per note for each day of that period was
less than 98% of the product of the last reported sale price of
our common stock and the conversion rate, (iii)&nbsp;upon us
calling the notes for redemption or (iv)&nbsp;upon the
occurrence of specified corporate transactions. If the notes
become convertible under one of these circumstances, we have the
option to deliver cash, shares of our common stock or a
combination thereof to satisfy our conversion obligation. If we
satisfy the obligation with shares of our common stock, we will
deliver a number of shares equal to the par value of the notes
divided by the conversion price. If we satisfy the obligation
with cash, we will pay cash in an amount equal to the par value
of the notes divided by the conversion price multiplied by the
average trading price of our common stock. The maximum number of
shares of common stock that could be issued under these
circumstances is equal to the par value of the notes divided by
the conversion price.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning October&nbsp;8, 2008, we may redeem for
cash some or all of the 4.5%&nbsp;convertible subordinated notes
at par value plus accrued and unpaid interest. The holders of
the notes may require us to repurchase some or all of the notes
at par value plus accrued and unpaid interest on October&nbsp;1,
2008, 2013, or 2018, or upon the occurrence of a fundamental
change, as defined by the indenture under which we issued the
notes. We must pay any required repurchase on October&nbsp;1,
2008 in cash. For all other required repurchases, we have the
option to deliver cash, shares of our common stock or a
combination thereof to satisfy our repurchase obligation. We
presently do not anticipate using stock to satisfy any future
obligations. If we were to satisfy the obligation with shares of
our common stock, we will deliver a number of shares equal to
the par value of the notes divided by 98.5% of the average
trading price of our common stock. The number of shares of
common stock issuable by us under this circumstance is not
capped. Our right to satisfy a required repurchase obligation
with shares of common stock can be surrendered by us. The
4.5%&nbsp;convertible subordinated notes carry cross-default
provisions with our credit facility and any other debt
instrument that exceeds $10.0&nbsp;million in borrowings.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Senior
Secured Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the fourth quarter of 2003, we retired the
$210.0&nbsp;million of senior secured notes that were then
outstanding and paid associated make-whole prepayment premiums
in the amount of $31.3&nbsp;million. The make-whole prepayment
premiums, along with unamortized deferred financing costs for
the senior notes in the amount of approximately
$2.5&nbsp;million and other related costs, were expensed in the
fourth quarter of 2003.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Preferred
Stock</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;20, 2002, First Reserve
purchased from us approximately 2.4&nbsp;million shares of newly
issued Series&nbsp;E Preferred Stock. The Series&nbsp;E
Preferred Stock was converted into 24.3&nbsp;million shares of
common stock on December&nbsp;31, 2002 and the series was
eliminated during the second quarter of 2003. Through
February&nbsp;20, 2003, First Reserve had the right to require
us to repurchase for cash the shares of common stock issued as a
result of the conversion of the shares of Series&nbsp;E
Preferred Stock if we had a change in control. As such, the
investment was reflected in the consolidated balance sheet as
redeemable common stock at December&nbsp;31, 2002. On
February&nbsp;20, 2003, at the expiration of this right, the
redeemable common stock was reclassified to stockholders&#146;
equity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the first quarter of 2003, all outstanding
shares of Series&nbsp;A Convertible Preferred Stock were
converted into shares of common stock and the series was
eliminated during the second quarter of 2003. Dividends of
$2.3&nbsp;million that had accrued on the shares of
Series&nbsp;A Convertible Preferred Stock, which included
$0.2&nbsp;million accrued during the first quarter of 2003, were
forfeited and reversed on the date of the conversion.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Off-balance
Sheet Transactions</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As is common in our industry, we have entered
into certain off-balance sheet arrangements in the ordinary
course of business that result in risks not directly reflected
in our balance sheets. Our significant off-balance sheet
transactions include liabilities associated with non-cancelable
operating leases, letter of credit obligations and surety
guarantees. We have not engaged in any off-balance sheet
financing arrangements through special purpose entities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We enter into non-cancelable operating leases for
many of our facility, vehicle and equipment needs. These leases
allow us to conserve cash by paying a monthly lease rental fee
for use of facilities, vehicles and equipment rather than
purchasing them. At the end of the lease, we have no further
obligation to the lessor. We may decide to cancel or terminate a
lease before the end of its term, in which case we are typically
liable to the lessor for the remaining lease payments under the
term of the lease.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have guaranteed the residual value on certain
of our equipment operating leases. We guarantee the difference
between this residual value and the fair market value of the
underlying asset at the date of termination of the leases. At
December&nbsp;31, 2003, the maximum guaranteed residual value
would have been approximately $118.8&nbsp;million. We believe
that no significant payments will be made as a result of the
difference between the fair market value of the leased equipment
and the guaranteed residual value. However, there can be no
assurance that future significant payments will not be required.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of our vendors require letters of credit
to ensure reimbursement for amounts they are disbursing on our
behalf, such as to beneficiaries under our self-funded insurance
programs. In addition, from time to time some customers require
us to post letters of credit to ensure payment to our
subcontractors and vendors under those contracts and to
guarantee performance under our contracts. Such letters of
credit are generally issued by a bank or similar financial
institution. The letter of credit commits the issuer to pay
specified amounts to the holder of the letter of credit if the
holder demonstrates that we have failed to perform specified
actions. If this were to occur, we would be required to
reimburse the issuer of the letter of credit. Depending on the
circumstances of such a reimbursement, we may also have to
record a charge to earnings for the reimbursement. To date, we
have not had a claim made against a letter of credit that
resulted in payments by the issuer of the letter of credit or by
us and do not believe that it is likely that any claims will be
made under a letter of credit in the foreseeable future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, we had
$96.7&nbsp;million in letters of credit outstanding under our
credit facility primarily to secure obligations under our
casualty insurance program. These are irrevocable stand-by
letters of credit with maturities expiring at various times
throughout 2004 and 2005. Upon maturity, it is expected that the
majority of these letters of credit will be renewed for
subsequent one-year periods. On March&nbsp;5, 2004, we issued an
additional $11.1&nbsp;million letter of credit to secure
additional obligations under our casualty insurance program. We
may be required to issue additional letters of credit during
2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, we had restricted
cash pursuant to an obligation with our casualty insurance
policy for the period from March&nbsp;1, 2003 to
February&nbsp;29, 2004. The total restricted cash will be
reduced by amounts used to pay claims in the future. As of
December&nbsp;31, 2003, the balance of restricted cash was
$9.3&nbsp;million of which $8.7&nbsp;million was classified in
other current assets and $0.6&nbsp;million was classified in
Other Assets, net.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Many customers, particularly in connection with
new construction, require us to post performance and payment
bonds issued by a financial institution known as a surety. These
bonds provide a guarantee to the customer that we will perform
under the terms of a contract and that we will pay
subcontractors and vendors. If we fail to perform under a
contract or to pay subcontractors and vendors, the customer may
demand that the surety make payments or provide services under
the bond. We must reimburse the surety for any expenses or
outlays it incurs. To date, we have not had any significant
reimbursements to our surety for bond-related costs. We believe
that it is unlikely that we will have to fund claims under our
surety arrangements in the foreseeable future. As of
December&nbsp;31, 2003, the total amount of outstanding
performance bonds was approximately $334.6&nbsp;million.
</FONT>

<P align="center"><FONT size="2">21
</FONT>

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<P align="left">
<I><FONT size="2">Contractual Obligations</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, our future
contractual obligations, including interest under capital
leases, were as follows (in thousands):
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2008</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Thereafter</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,208</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">326,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,493</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,825</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total contractual obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">547,049</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,529</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,358</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">328,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">Concentration of Credit Risk</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We grant credit, generally without collateral, to
our customers, which include electric power and gas companies,
telecommunications and cable television system operators,
governmental entities, general contractors, and builders, owners
and managers of commercial and industrial properties located
primarily in the United States. Consequently, we are subject to
potential credit risk related to changes in business and
economic factors throughout the United States. However, we
generally have certain lien rights on our services provided.
Under certain circumstances, such as foreclosures or negotiated
settlements, we may take title to the underlying assets in lieu
of cash in settlement of receivables. As previously discussed
herein, our customers in the telecommunications business have
experienced significant financial difficulties and in several
instances have filed for bankruptcy. A number of our utility
customers are also experiencing business challenges in the
current business climate. These economic conditions expose us to
increased risk related to collectibility of receivables for
services we have performed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2002, a large customer, Adelphia
Communications Corporation (Adelphia), filed for bankruptcy
protection under Chapter&nbsp;11 of the Bankruptcy Code, as
amended. We have filed liens on various properties to secure
substantially all of our pre-petition receivables. Our carrying
value is based upon our understanding of the current status of
the Adelphia bankruptcy proceeding and a number of assumptions,
including assumptions about the validity, priority and
enforceability of our security interests. We currently believe
we will collect a substantial majority of the balances owed.
Should any of the factors underlying our estimate change, the
amount of our allowance could change significantly. We are
uncertain as to whether such receivables will be collected
within one year and therefore have included this amount in
non-current assets as Accounts and Notes Receivable as of
December&nbsp;31, 2003. Also included in non-current Accounts
and Notes Receivable are amounts due from another customer
relating to the construction of independent power plants. We
have agreed to long-term payment terms for this customer. The
notes receivable are partially secured. We have provided
allowances for these notes receivable due to a substantial
deterioration in the estimated future cash flows of the plants,
resulting in a carrying value equal to the estimated value of
the collateral securing these notes. As of December&nbsp;31,
2003, the total long-term balances due from both of these
customers was $80.7&nbsp;million, with an allowance for doubtful
accounts of $46.4&nbsp;million.
</FONT>

<P align="left">
<I><FONT size="2">Litigation</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are from time to time a party to various
lawsuits, claims and other legal proceedings that arise in the
ordinary course of business. These actions typically seek, among
other things, compensation for alleged personal injury, breach
of contract, property damage, punitive damages, civil penalties
or other losses, or injunctive or declaratory relief. With
respect to all such lawsuits, claims and proceedings, we accrue
reserves when it is probable a liability has been incurred and
the amount of loss can be reasonably estimated. We do not expect
the outcome of any of these proceedings, separately or in the
aggregate to have a material adverse effect on our results of
operations or financial position.
</FONT>

<P align="left">
<I><FONT size="2">Change of Control</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have employment agreements with certain
employees that become effective upon a change of control of
Quanta (as defined in the employment agreements). The employment
agreements provide that, following a
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<DIV align="left">
<FONT size="2">change in control, if we terminate the employee
without cause (as defined in the employment agreements), the
employee terminates employment for good reason (as defined in
the employment agreements), or the employee&#146;s employment
terminates due to death or disability, we will pay certain
amounts to the employee, which may vary with the level of the
employee&#146;s responsibility and the terms of the
employee&#146;s prior employment arrangements. In addition, in
the case of certain senior executives except for
Mr.&nbsp;Colson, our chief executive officer, these payments
would also be due if the employee terminates his or her
employment within the 30-day window period commencing six months
after the change in control.
</FONT>
</DIV>

<P align="left">
<I><FONT size="2">Related Party Transactions</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the normal course of business, we from time to
time enter into transactions with related parties. These
transactions typically take the form of facility leases with
prior owners of acquired companies. In addition, we perform
network service work for Aquila, which had an investment in us
until 2003. Aquila sold all investments in us during 2003. See
additional discussion in Note&nbsp;12 of Notes to Consolidated
Financial Statements.
</FONT>

<P align="left">
<B><FONT size="2">Inflation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Due to relatively low levels of inflation
experienced during the years ended December&nbsp;31, 2001, 2002
and 2003, inflation did not have a significant effect on our
results.
</FONT>

<P align="left">
<B><FONT size="2">Significant Balance Sheet Changes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total assets increased approximately
$101.6&nbsp;million as of December&nbsp;31, 2003 compared to
December&nbsp;31, 2002. This increase is primarily due to the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Cash increased $151.7&nbsp;million due to cash
    flow from operations of $117.2&nbsp;million and cash flow from
    financing activities of $76.6&nbsp;million. Included in cash
    flow from operations is the receipt of $44.0&nbsp;million in tax
    refunds as a result of income tax carryback claims filed during
    2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Current deferred taxes decreased
    $23.6&nbsp;million due to certain items that we deducted for tax
    purposes in the 2002 tax return, which were originally not
    expected to be deducted in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Prepaid expenses and other current assets
    increased $31.8&nbsp;million due to an increase in income taxes
    receivable of $18.2&nbsp;million associated with the recording
    of a federal net operating loss in 2003, which we intend to file
    as a carryback claim with the Internal Revenue Service in 2004.
    The increase was also due to the net funding of a cash trust
    account for the current portion of self-insurance claims
    liability in the amount of $8.7&nbsp;million and to a net change
    in prepayments for insurance policy renewals in the amount of
    $3.6&nbsp;million, partially offset by monthly amortization of
    various prepaid balances.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Property and equipment, net decreased
    $28.0&nbsp;million due to depreciation expense of
    $59.5&nbsp;million recorded during the period and
    $4.4&nbsp;million for the sale of equipment that was no longer
    being used by certain of our subsidiaries, partially offset by
    increases as a result of capital expenditures of
    $35.9&nbsp;million.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Accounts and notes receivable, net decreased
    $16.6&nbsp;million primarily due to additional allowances
    recorded during the period.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Other assets, net increased $6.3&nbsp;million
    primarily due to deferred loan costs of approximately
    $12.1&nbsp;million associated with the issuance of convertible
    subordinated notes and a new credit facility partially offset by
    the write-off of approximately $3.3&nbsp;million of financing
    costs associated with the senior secured notes and our previous
    credit facility. In addition, an investment in a fiber network
    was disposed of at loss of approximately $2.9&nbsp;million.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">23
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, total liabilities increased
approximately $123.1&nbsp;million, redeemable common stock
decreased $72.9&nbsp;million and stockholders&#146; equity
increased approximately $51.5&nbsp;million compared to 2002.
These fluctuations were primarily due to the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Long-term debt, including current maturities,
    decreased $156.7&nbsp;million primarily due to the repayment of
    $210.0&nbsp;million of senior secured notes, partially offset by
    $56.0&nbsp;million drawn as a term loan under the new credit
    facility.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Convertible subordinated notes increased by
    $270.0&nbsp;million as the notes were issued during the fourth
    quarter of 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Deferred income taxes and other non-current
    liabilities increased $21.0&nbsp;million as a result of the
    recording of $14.0&nbsp;million in additional long-term tax
    liabilities and an increase of $8.8&nbsp;million in the
    long-term portion of our self-insurance reserves.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Redeemable common stock decreased
    $72.9&nbsp;million. On December&nbsp;20, 2002, First Reserve
    purchased from us approximately 2.4&nbsp;million shares of newly
    issued Series&nbsp;E Preferred Stock at $30.00&nbsp;per share,
    for an investment of approximately $72.9&nbsp;million. The
    shares of Series&nbsp;E Preferred Stock were converted into
    24.3&nbsp;million shares of common stock on December&nbsp;31,
    2002. Through February&nbsp;20, 2003, First Reserve had the
    right to require us to repurchase for cash the shares of common
    stock issued as a result of the conversion of the shares of
    Series&nbsp;E Preferred Stock if we had a change in control. As
    such, the investment had been reflected in the consolidated
    balance sheet as redeemable common stock at December&nbsp;31,
    2002. On February&nbsp;20, 2003, at the expiration of the right,
    the redeemable common stock was reclassified to
    stockholders&#146; equity.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Stockholders&#146; equity increased
    $51.5&nbsp;million primarily due to the reclassification of
    redeemable common stock of $72.9&nbsp;million to
    stockholders&#146; equity, the issuance of approximately
    $3.5&nbsp;million of common stock pursuant to our Employee Stock
    Purchase Plan, the issuance of approximately $3.6&nbsp;million
    of common stock pursuant to First Reserve&#146;s exercise of
    their preemptive rights and the net effect of amortization,
    grants and forfeitures of restricted stock in the amount of
    $2.8&nbsp;million. These increases were partially offset by a
    net loss attributable to common stock of $32.9&nbsp;million.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">24
</FONT>
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<P align="left">
<B><FONT size="2">Results of Operations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth selected
statements of operations data and such data as a percentage of
revenues for the years indicated (dollars in thousands):
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">&nbsp;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,014,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of services (including depreciation)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,601,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,513,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,442,958</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">413,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill impairment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">166,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,452</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) from operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,265</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(155,532</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36,072</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,866</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31,822</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on early extinguishment of debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(227</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,763</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before income tax provision
    (benefit) and cumulative effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(193,844</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(53,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before cumulative effect of change
    in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(174,134</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(619,556</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends on preferred stock, net of forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cash beneficial conversion charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,508</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Year ended December&nbsp;31, 2003 compared to
the year ended December&nbsp;31, 2002</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Revenues.</FONT></I><FONT size="2"> Revenues
decreased $107.9&nbsp;million to $1.6&nbsp;billion, or 6.2%, for
the year ended December&nbsp;31, 2003, with revenues derived
from the cable television network services industry decreasing
by approximately $81.5&nbsp;million and revenues from the
telecommunications network services industry decreasing by
approximately $48.9&nbsp;million. These decreases were partially
offset by increases in revenues derived from the electric power
and gas network services industry of approximately
$7.5&nbsp;million and revenues from ancillary services
increasing approximately $15.1&nbsp;million. The overall
decrease was due to the continued reduction in capital spending
by our customers, which negatively impacted the award of work to
specialty contractors. Pricing pressures have also contributed
to lower revenues as the competitive bid environment has
tightened.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Gross profit.</FONT></I><FONT size="2"> Gross
profit decreased $36.9&nbsp;million, or 15.6%, to
$199.9&nbsp;million for the year ended December&nbsp;31, 2003.
As a percentage of revenue, gross margin decreased from 13.5%
for the year ended December&nbsp;31, 2002 to 12.2% for the year
ended December&nbsp;31, 2003. The decrease in gross margin was
attributable to the negative impact of the factors affecting
revenue noted above, shutdowns, delays and substantial operating
inefficiencies resulting from severe snowfall in the Northeast
and Mountain regions of the United States during the first
quarter of 2003 and substantially higher than normal rainfall
amounts in the South and Southeast during the first and second
quarters of 2003, partially offset by increased margins on
telecommunications revenues.
</FONT>

<P align="center"><FONT size="2">25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Selling, general and administrative
expenses.</FONT></I><FONT size="2"> Selling, general and
administrative expenses decreased $48.9&nbsp;million, or 21.6%,
to $176.9&nbsp;million for the year ended December&nbsp;31,
2003. During the year ended December&nbsp;31, 2003, we recorded
$19.9&nbsp;million in bad debt expense. During the year ended
December&nbsp;31, 2002, we recorded $35.7&nbsp;million in bad
debt expense, $10.5&nbsp;million in proxy defense costs and
$4.5&nbsp;million in expensed loan and equity costs associated
with amendments of our then existing debt agreements and
issuances of stock. Absent these items, selling, general and
administrative expenses for the year ended December&nbsp;31,
2003 decreased approximately $18.1&nbsp;million primarily due to
reductions in salary and benefit costs, facility related costs
and travel and entertainment costs as a result of reductions in
personnel and the closure of certain offices.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Goodwill impairment.</FONT></I><FONT size="2">
During the year ended December&nbsp;31, 2003, as a result of our
annual impairment test, we recognized a non-cash
SFAS&nbsp;No.&nbsp;142 goodwill impairment charge of
$6.5&nbsp;million. During the year ended December&nbsp;31, 2002,
we recognized an interim non-cash SFAS&nbsp;No.&nbsp;142
goodwill impairment charge of $166.6&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest expense.</FONT></I><FONT size="2">
Interest expense decreased $4.0&nbsp;million, or 11.3%, to
$31.8&nbsp;million for the year ended December&nbsp;31, 2003.
This decrease was due to lower average levels of debt in 2003
and an expense of approximately $1.0&nbsp;million for
unamortized debt issuance costs relating to amendments of the
credit facility charged to interest expense during the year
ended December&nbsp;31, 2002. These decreases were partially
offset by increased interest rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Loss on early extinguishment of
debt.</FONT></I><FONT size="2"> During the year ended
December&nbsp;31, 2003, we recognized $35.1&nbsp;million of loss
on early extinguishment of debt comprised of make-whole
prepayment premiums in the amount of $31.3&nbsp;million, the
write-off of unamortized debt issuance costs of
$3.3&nbsp;million associated with the retirement of our senior
secured notes and the termination of our previous credit
facility together with other related costs of $0.5&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Provision (benefit) for income
taxes.</FONT></I><FONT size="2"> The benefit for income taxes
was $18.1&nbsp;million for the year ended December&nbsp;31,
2003, with an effective tax rate of 34.1%, compared to a benefit
of $19.7&nbsp;million for the year ended December&nbsp;31, 2002,
with an effective tax rate of 10.2%. The 2002 annual effective
tax rate reflects a benefit for income taxes at a rate that is
lower than the 2003 annual effective tax rate primarily due to
the significant 2002 interim goodwill impairment charge, the
majority of which was not deductible for tax purposes, thereby
reducing the amount of tax benefit recorded for the year ended
December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Dividends on preferred stock, net of
forfeitures.</FONT></I><FONT size="2"> For the year ended
December&nbsp;31, 2003, we recorded approximately
$2.1&nbsp;million in forfeitures of dividends on the
Series&nbsp;A Convertible Preferred Stock. During the first
quarter of 2003, all outstanding shares of Series&nbsp;A
Convertible Preferred Stock were converted into shares of common
stock and the series was eliminated during the second quarter of
2003. Any dividends that had accrued on the respective shares of
Series&nbsp;A Convertible Preferred Stock were forfeited and
reversed on the date of conversion.
</FONT>

<P align="left">
<B><FONT size="2">Year ended December&nbsp;31, 2002 compared to
the year ended December&nbsp;31, 2001</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Revenues.</FONT></I><FONT size="2"> Revenues
decreased $264.2&nbsp;million, or 13.1%, to $1.75&nbsp;billion
for the year ended December&nbsp;31, 2002, with revenues derived
from the telecommunications network services industry decreasing
by approximately $313.3&nbsp;million and revenues from the cable
television network services industry decreasing by approximately
$81.0&nbsp;million. These decreases were partially offset by
increases in revenues from the electric power and gas network
services industry of approximately $121.4&nbsp;million and
revenues from ancillary services increasing approximately
$8.8&nbsp;million. Also offsetting the decrease is a full year
of contributed revenues for those companies acquired during
2001. The overall decrease was due to the continued reduction in
capital spending by our customers, the inability of certain of
these customers to raise new capital, bankruptcies of certain
customers and the overall downturn in the national economy,
which had negatively impacted the award of work to specialty
contractors. Pricing pressures also contributed to lower
revenues as the competitive bid environment tightened.
</FONT>

<P align="center"><FONT size="2">26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Gross profit.</FONT></I><FONT size="2"> Gross
profit decreased $177.1&nbsp;million to $236.8&nbsp;million for
the year ended December&nbsp;31, 2002. Gross margin decreased
from 20.5% for the year ended December&nbsp;31, 2001 to 13.5%
for the year ended December&nbsp;31, 2002. The decrease in gross
margin resulted primarily from declining volumes due to economic
factors noted above, significantly lower margins on work
performed due to increased pricing pressures and lower asset
utilization. The decrease also resulted from higher than normal
transition costs during the first six months of 2002 on one
telecommunications outsourcing contract.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Selling, general and administrative
expenses.</FONT></I><FONT size="2"> Selling, general and
administrative expenses increased $31.2&nbsp;million, or 16.0%,
to $225.7&nbsp;million for the year ended December&nbsp;31,
2002. During the year ended December&nbsp;31, 2002, we recorded
$35.7&nbsp;million in bad debt expense, $10.5&nbsp;million in
proxy costs and $4.5&nbsp;million in expensed loan and equity
transaction costs associated with amendments of our existing
debt agreements and issuances of stock. During the year ended
December&nbsp;31, 2001, we recorded $20.3&nbsp;million in bad
debt expense and $1.1&nbsp;million in proxy costs. Excluding the
impact of these items, selling, general and administrative
expenses for the year ended December&nbsp;31, 2002 increased
approximately $1.8&nbsp;million, primarily due to the inclusion
of a full year of costs associated with companies acquired
during 2001 and higher professional fees due to increased
collection efforts on troubled accounts, partially offset by
reductions in personnel and bonuses. As a percentage of
revenues, selling, general and administrative expenses increased
due to the items noted above, as well as the impact of lower
revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Goodwill impairment.</FONT></I><FONT size="2">
During the year ended December&nbsp;31, 2002, we recognized an
interim non-cash SFAS&nbsp;No.&nbsp;142 goodwill impairment
charge of $166.6&nbsp;million. Any interim impairment
adjustments recognized after adoption are required to be
recognized as operating expenses. The primary factor
contributing to the interim impairment charge was the overall
deterioration of the business climate during 2002 in the markets
we serve.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest expense.</FONT></I><FONT size="2">
Interest expense decreased $0.2&nbsp;million, or 0.6%, to
$35.9&nbsp;million for the year ended December&nbsp;31, 2002,
due to lower average levels of debt outstanding during 2002,
partially offset by higher weighted average interest rates in
2002 and expensed loan costs associated with debt amendments in
2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Provision (benefit) for income
taxes.</FONT></I><FONT size="2"> The benefit for income taxes
was $19.7&nbsp;million for the year ended December&nbsp;31,
2002, with an effective tax rate of 10.2%, compared to a
provision of $71.2&nbsp;million for the year ended
December&nbsp;31, 2001 and an effective tax rate of 45.4%. The
lower tax rate in 2002 results primarily from the interim
goodwill impairment charge, the majority of which is not
deductible for tax purposes, thereby reducing the amount of tax
benefit recorded.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cumulative effect of change in accounting
principle, net of tax.</FONT></I><FONT size="2"> Based on our
transitional impairment test performed upon adoption of
SFAS&nbsp;No.&nbsp;142, we recognized a charge, net of tax, of
$445.4&nbsp;million to reduce the carrying value of the goodwill
of our reporting units to its implied fair value for the year
ended December&nbsp;31, 2002. Under SFAS&nbsp;No.&nbsp;142, the
impairment adjustment recognized at adoption of the new rule was
reflected as a cumulative effect of change in accounting
principle in the year ended December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net income (loss).</FONT></I><FONT size="2">
Net income decreased $705.3&nbsp;million to a net loss of
$619.6&nbsp;million for the year ended December&nbsp;31, 2002,
compared to net income of $85.8&nbsp;million for the year ended
December&nbsp;31, 2001, primarily due to impairments of goodwill
recorded pursuant to SFAS&nbsp;No.&nbsp;142 and decreased gross
profit as described above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Dividends on preferred
stock.</FONT></I><FONT size="2"> For the year ended
December&nbsp;31, 2002, we recorded approximately $11,000 in
negative dividends on preferred stock. In connection with their
investment in us, on October&nbsp;15, 2002, First Reserve
acquired approximately 0.9&nbsp;million shares of our
Series&nbsp;A Convertible Preferred Stock. On October&nbsp;15,
2002, First Reserve forgave approximately $780,000 in dividends
that had accrued on those shares. On December&nbsp;2, 2002, and
December&nbsp;23, 2002, 238,000&nbsp;shares and
7,000&nbsp;shares of Series&nbsp;A Convertible Preferred Stock,
respectively, were converted into shares of common stock. Any
dividends that had accrued on the respective shares of
Series&nbsp;A Convertible Preferred Stock were forfeited and
reversed on the date of conversion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Non-cash beneficial conversion
charge.</FONT></I><FONT size="2"> The original as-converted
share price negotiated with First Reserve for the Series&nbsp;E
Preferred Stock on October&nbsp;15, 2002 was $3.00&nbsp;per
share which was an above market
</FONT>

<P align="center"><FONT size="2">27
</FONT>

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<DIV align="left">
<FONT size="2">price. On December&nbsp;20, 2002, the date First
Reserve purchased the Series&nbsp;E Preferred Stock, our stock
closed at $3.35&nbsp;per share. Accordingly, we recorded a
non-cash beneficial conversion charge of $8.5&nbsp;million based
on the $0.35&nbsp;per share differential. The non-cash
beneficial conversion charge is recognized as a deemed dividend
to the Series&nbsp;E Preferred Stockholder and is recorded as a
decrease to net income attributable to common stock and an
increase in additional paid-in capital. The non-cash beneficial
conversion charge had no effect on our operating income, cash
flows or stockholders&#146; equity at December&nbsp;31, 2002.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">New Accounting Pronouncements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, the FASB issued
SFAS&nbsp;No.&nbsp;150, &#147;Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and
Equity.&#148; SFAS&nbsp;No.&nbsp;150 establishes standards for
classifying and measuring certain financial instruments with
characteristics of both liabilities and equity. Financial
instruments that fall within the scope of SFAS&nbsp;No.&nbsp;150
will be classified as liabilities (or assets in some
circumstances). This statement is effective at the beginning of
the first interim period beginning after June&nbsp;15, 2003. The
adoption of SFAS&nbsp;No.&nbsp;150 did not have a material
impact on our results of operations or financial position.
</FONT>

<P align="left">
<B><FONT size="2">Critical Accounting Policies</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The discussion and analysis of our financial
condition and results of operations are based on our
consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the
United States. The preparation of these consolidated financial
statements requires us to make estimates and assumptions that
affect the reported amounts of assets and liabilities,
disclosures of contingent assets and liabilities known to exist
at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting
period. We evaluate our estimates on an ongoing basis, based on
historical experience and on various other assumptions that are
believed to be reasonable under the circumstances. There can be
no assurance that actual results will not differ from those
estimates. Management has reviewed its development and selection
of critical accounting estimates with the audit committee of our
board of directors. We believe the following accounting
policies, which are also described in Note&nbsp;2 of Notes to
Consolidated Financial Statements, affect our more significant
judgments and estimates used in the preparation of our
consolidated financial statements:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Current and Non-Current Accounts and Notes
    Receivable and Provision for Doubtful
    Accounts.</FONT></I><FONT size="2"> We provide an allowance for
    doubtful accounts when collection of an account or note
    receivable is considered doubtful. Inherent in the assessment of
    the allowance for doubtful accounts are certain judgments and
    estimates including, among others, our customer&#146;s access to
    capital, our customer&#146;s willingness or ability to pay,
    general economic conditions and the ongoing relationship with
    the customer. For example, certain of our customers, primarily
    large public telecommunications carriers, have filed for
    bankruptcy or have been experiencing financial difficulties, and
    as a result we increased our allowance for doubtful accounts to
    reflect that certain customers may be unable to meet their
    obligations to us in the future. Should additional customers
    file for bankruptcy or experience difficulties, or should
    anticipated recoveries relating to the receivables in existing
    bankruptcies and other workout situations fail to materialize,
    we could experience reduced cash flows and losses in excess of
    current reserves.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Valuation of Long-Lived
    Assets.</FONT></I><FONT size="2"> As stated in Note&nbsp;2 of
    Notes to Consolidated Financial Statements,
    SFAS&nbsp;No.&nbsp;142 provides that goodwill and other
    intangible assets that have indefinite useful lives not be
    amortized, but instead must be tested at least annually for
    impairment, and intangible assets that have finite useful lives
    should continue to be amortized over their useful lives.
    SFAS&nbsp;No.&nbsp;142 also provides specific guidance for
    testing goodwill and other nonamortized intangible assets for
    impairment. Goodwill of a reporting unit shall be tested for
    impairment between annual tests if an event occurs or
    circumstances change that would more likely than not reduce the
    fair value of a reporting unit below its carrying amount.
    Examples of such events or circumstances may include a
    significant change in business climate or a loss of key
    personnel, among others. SFAS&nbsp;No.&nbsp;142 requires that
    management make certain estimates and assumptions in order to
    allocate goodwill to reporting units and to determine the fair
    value of reporting unit net assets and liabilities, including,
    among other things, an assessment of market
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">28
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">conditions, projected cash flows, cost of capital
    and growth rates, which could significantly impact the reported
    value of goodwill and other intangible assets. Estimating future
    cash flows requires significant judgment and our projections may
    vary from cash flows eventually realized.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">We review long-lived assets for impairment
    whenever events or changes in circumstances indicate that the
    carrying amount may not be realizable. If an evaluation is
    required, the estimated future undiscounted cash flows
    associated with the asset are compared to the asset&#146;s
    carrying amount to determine if an impairment of such asset is
    necessary. Estimating future cash flows requires significant
    judgement and our projections may vary from cash flows
    eventually realized. The effect of any impairment would be to
    expense the difference between the fair value of such asset and
    its carrying value. In addition, we estimate the useful lives of
    our long-lived assets and other intangibles. We periodically
    review factors to determine whether these lives are appropriate.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Revenue Recognition.</FONT></I><FONT size="2">
    We generally recognize revenue when services are performed
    except when work is being performed under fixed price contracts.
    We typically record revenues from fixed price contracts on a
    percentage-of-completion basis, using the cost-to-cost method
    based on the percentage of total costs incurred to date in
    proportion to total estimated costs to complete the contract.
    Changes in job performance, job conditions, estimated
    profitability and final contract settlements may result in
    revisions to costs and income and their effects are recognized
    in the period in which the revisions are determined.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Self-Insurance.</FONT></I><FONT size="2"> We
    are insured for employer&#146;s liability and general liability
    claims, subject to a deductible of $1,000,000&nbsp;per
    occurrence, and for auto liability and workers&#146;
    compensation insurance subject to a deductible of
    $2,000,000&nbsp;per occurrence. We also have a corporate
    non-union employee related health care benefit plan that is
    subject to a deductible of $250,000&nbsp;per claimant per year.
    Losses up to the deductible amounts are accrued based upon our
    estimates of the ultimate liability for claims incurred and an
    estimate of claims incurred but not reported. However, insurance
    liabilities are difficult to assess and estimate due to unknown
    factors, including the severity of an injury, the determination
    of our liability in proportion to other parties, the number of
    incidents not reported and the effectiveness of our safety
    program. The accruals are based upon known facts and historical
    trends and management believes such accruals to be adequate.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Stock Options.</FONT></I><FONT size="2"> We
    account for our stock option awards under Accounting Principles
    Board Opinion No.&nbsp;25 (APB Opinion No.&nbsp;25),
    &#147;Accounting for Stock Issued to Employees.&#148; Under this
    accounting method, no compensation expense is recognized in the
    consolidated statements of operations if no intrinsic value of
    the option exists at the date of grant. In October 1995, the
    FASB issued SFAS&nbsp;No.&nbsp;123, &#147;Accounting for Stock
    Based Compensation.&#148; SFAS&nbsp;No.&nbsp;123 encourages
    companies to account for stock-based compensation awards based
    on the fair value of the awards at the date they are granted.
    The resulting compensation costs would be shown as an expense in
    the consolidated statements of operations. Companies can choose
    not to apply the new accounting method and continue to apply
    current accounting requirements; however, disclosure is required
    as to what net income and earnings per share would have been had
    the new accounting method been followed. As a result of our
    stock option exchange offer during the first quarter of 2003, a
    majority of our stock options were exchanged for restricted
    shares of our common stock. The remaining eligible options that
    were not exchanged are required to be accounted for under
    variable plan accounting rules of APB opinion No.&nbsp;25. See
    additional discussion in Note&nbsp;10 to the Notes to Condensed
    Consolidated Financial Statements.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Outlook</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following statements are based on current
expectations. These statements are forward looking, and actual
results may differ materially.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Like many companies that provide installation and
maintenance services to the electric power, gas,
telecommunications and cable television industries, we are
facing a number of challenges. The telecommunications and
utility markets experienced substantial change during 2002 and
2003 as evidenced by an increased number of bankruptcies in the
telecommunications market, continued devaluation of many of our
customers&#146; debt and equity securities and pricing pressures
resulting from challenges faced by major industry participants.
</FONT>

<P align="center"><FONT size="2">29
</FONT>

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<DIV align="left">
<FONT size="2">These factors have contributed to the delay and
cancellation of projects and reduction of capital spending that
have impacted our operations and ability to grow at historical
levels.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We continue to focus on the elements of the
business we can control, including cost control, the margins we
accept on projects, collecting receivables, ensuring quality
service and right sizing initiatives to match the markets we
serve. These initiatives include aligning our work force with
our current revenue base, evaluating opportunities to reduce the
number of field offices and evaluating our non-core assets for
potential sale. Such initiatives could result in future charges
related to, among others, severance, facilities shutdown and
consolidation, property disposal and other exit costs as we
execute these initiatives.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We expect consistent demand for our services from
our electric power and gas customers throughout 2004 with
stabilization in the demand for our services from our
telecommunications and cable customers and relatively level
demand for our ancillary services. Financial and economic
pressures have led our customers to return to their core
competencies and focus on cost reductions, resulting in an
increased focus on outsourcing services. In addition, our
utility customers have an increasing awareness of transmission
and distribution network upgrade needs. We believe that we are
adequately positioned to provide these services because of our
proven full-service operating units with broad geographic reach,
financial capability and technical expertise.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Capital expenditures in 2004 are expected to be
approximately $40.0&nbsp;million to $50.0&nbsp;million. A
majority of the expenditures will be for operating equipment. We
expect expenditures for 2004 to be funded substantially through
internal cash flows and, to the extent necessary, from cash on
hand.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Sarbanes-Oxley
Act and New SEC Rules</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Several regulatory and legislative initiatives
were introduced in 2002 and 2003 in response to developments
during 2001 and 2002 regarding accounting issues at large public
companies, resulting disruptions in the capital markets and
ensuing calls for action to prevent repetition of those events.
We support the actions called for under these initiatives and
believe these steps will ultimately be successful in
accomplishing the stated objectives. However, implementation of
reforms in connection with these initiatives have added and will
add to the costs of doing business for all publicly-traded
entities, including Quanta. These costs will have an adverse
impact on future income and cash flows, especially in the near
term as legal, accounting and consulting costs are incurred to
analyze the new requirements, formalize current practices and
implement required changes to ensure that we maintain compliance
with these new rules. There is little in the way of historical
guidance to accurately predict these costs and we are not able
to estimate the magnitude of increase in our costs that will
result from such reforms.
</FONT>

<P align="left">
<B><FONT size="2">Uncertainty of Forward-Looking Statements and
Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This Annual Report on Form&nbsp;10-K includes
statements reflecting assumptions, expectations, projections,
intentions or beliefs about future events that are intended as
&#147;forward-looking statements&#148; under the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by the fact that they do not relate strictly to
historical or current facts. They use words such as
&#147;anticipate,&#148; &#147;estimate,&#148;
&#147;project,&#148; &#147;forecast,&#148; &#147;may,&#148;
&#147;will,&#148; &#147;should,&#148; &#147;could,&#148;
&#147;expect,&#148; &#147;believe&#148; and other words of
similar meaning. In particular, these include, but are not
limited to, statements relating to the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Projected operating or financial results;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Expectations regarding capital expenditures;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The effects of competition in our markets;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The duration and extent of the current economic
    downturn;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Materially adverse changes in economic conditions
    in the markets served by us or by our customers, and;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our ability to achieve cost savings.
    </FONT></TD>
</TR>

</TABLE>

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</FONT>

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<P align="left">
<FONT size="2">Any or all of our forward-looking statements may
turn out to be wrong. They can be affected by inaccurate
assumptions and by known or unknown risks and uncertainties,
including the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Quarterly variations in our operating results due
    to seasonality and adverse weather conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The future possibility of an economic downturn;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our dependence on fixed price contracts;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Material adverse changes in economic conditions
    in the markets served by us or by our customers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rapid technological and structural changes that
    could reduce the demand for the services we provide;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our ability to effectively compete for market
    share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Cancellation provisions within our
    contracts;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Potential liabilities relating to occupational
    health and safety matters;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Retention of key personnel and qualified
    employees;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The impact of our unionized workforce on our
    operations and acquisition strategy;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our growth outpacing our infrastructure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Potential exposure to environmental liabilities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The cost of borrowing, availability of credit,
    debt covenant compliance and other factors affecting our
    financing activities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our ability to generate internal growth;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The adverse impact of goodwill impairments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Replacement of our contracts as they are
    completed or expire;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our ability to effectively integrate the
    operations of our companies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Beliefs and assumptions about the collectibility
    of receivables;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Beliefs or assumptions about the outlook for
    markets we serve.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Many of these factors will be important in
determining our actual future results. Consequently, no
forward-looking statement can be guaranteed. Our actual future
results may vary materially from those expressed or implied in
any forward-looking statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of our forward-looking statements, whether
written or oral, are expressly qualified by these cautionary
statements and any other cautionary statements that may
accompany such forward-looking statements. In addition, we
disclaim any obligation to update any forward-looking statements
to reflect events or circumstances after the date of this report.
</FONT>

<P align="center"><FONT size="2">31
</FONT>

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<DIV align="left">
<A name='109'></A>
</DIV>

<!-- link1 "ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;7A.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Quantitative and Qualitative Disclosures
    About Market Risk</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are exposed to market risk related to
potential adverse changes in interest rates. Management does not
generally use derivative financial instruments for trading or to
speculate on changes in interest rates or commodity prices.
Management is actively involved in monitoring exposure to market
risk and continues to develop and utilize appropriate risk
management techniques. We are not exposed to any other
significant market risks, foreign currency exchange risk or
interest rate risk from the use of derivative financial
instruments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sensitivity analyses below, which illustrate
our hypothetical potential market risk exposure, estimate the
effects of hypothetical sudden and sustained changes in the
applicable market conditions on 2003 earnings. The sensitivity
analyses presented do not consider any additional actions we may
take to mitigate our exposure to such changes. The hypothetical
changes and assumptions may be different from what actually
occurs in the future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest Rates.</FONT></I><FONT size="2"> As
of December&nbsp;31, 2003, we had no derivative financial
instruments to manage interest rate risk. As such, we are
exposed to earnings and fair value risk due to changes in
interest rates with respect to our long-term obligations. As of
December&nbsp;31, 2002 and 2003, the fair value of our
fixed-rate debt of $392.3&nbsp;million and $449.6&nbsp;million
was approximately $317.3&nbsp;million and $449.2&nbsp;million,
respectively, based upon discounted future cash flows using
incremental borrowing rates and current market prices. As of
December&nbsp;31, 2003, the fair value of our variable rate debt
of $56.0&nbsp;million approximated book value and the
detrimental effect on our pretax earnings of a hypothetical
50&nbsp;basis point increase in variable interest rates would be
approximately $0.3&nbsp;million. As of December&nbsp;31, 2002,
we had no borrowings under our credit facility and no other
variable rate obligations.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<DIV align="left">
<A name='110'></A>
</DIV>

<!-- link1 "ITEM 8. Financial Statements and Supplementary Data" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;8.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Financial Statements and Supplementary
    Data</FONT></I></B></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">INDEX TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Quanta Services,&nbsp;Inc. and Subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Auditors
    (PricewaterhouseCoopers LLP)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Public Accountants (Arthur
    Andersen LLP)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Balance Sheets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Cash Flows
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Stockholders&#146;
    Equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes to Consolidated Financial Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">33
</FONT>

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<P align="center">
<B><FONT size="2">REPORT OF INDEPENDENT AUDITORS</FONT></B>

<P align="left">
<FONT size="2">To the Board of Directors and Stockholders of
Quanta Services,&nbsp;Inc.:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our opinion, the accompanying consolidated
balance sheets and the related consolidated statements of
operations, stockholders&#146; equity and cash flows present
fairly, in all material respects, the financial position of
Quanta Services,&nbsp;Inc. and its subsidiaries at
December&nbsp;31, 2002 and 2003, and the results of their
operations and their cash flows for each of the two years in the
period then ended in conformity with accounting principles
generally accepted in the United States of America. These
financial statements are the responsibility of the
Company&#146;s management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion. The consolidated financial statements of
Quanta Services,&nbsp;Inc. as of and for the year ended
December&nbsp;31, 2001, prior to the revisions discussed in
Note&nbsp;2, were audited by other independent public
accountants who have ceased operations. Those independent public
accountants expressed an unqualified opinion on those financial
statements in their report dated February&nbsp;14, 2002 (except
for the matters discussed in prior year Note&nbsp;16 (not
separately presented herein), as to which the date was
March&nbsp;25, 2002).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in Note&nbsp;2 to the consolidated
financial statements, effective January&nbsp;1, 2002, the
Company adopted Statement of Financial Accounting Standards
No.&nbsp;142, &#147;Goodwill and Other Intangible Assets&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed above, the consolidated financial
statements of Quanta Services,&nbsp;Inc. for the year ended
December&nbsp;31, 2001, prior to the revisions described in
Note&nbsp;2, were audited by other independent public
accountants who have ceased operations. As described in
Note&nbsp;2, these consolidated financial statements have been
revised to include the transitional disclosures required by
Statement of Financial Accounting Standards No.&nbsp;142,
&#147;Goodwill and Other Intangible Assets&#148;, which was
adopted by the Company as of January&nbsp;1, 2002. We audited
the transitional disclosures described in Note&nbsp;2. In our
opinion, the transitional disclosures for 2001 in Note&nbsp;2
are appropriate. However, we were not engaged to audit, review
or apply any procedures to the 2001 consolidated financial
statements of Quanta Services,&nbsp;Inc. other than with respect
to such disclosures and, accordingly, we do not express an
opinion or any other form of assurance on the 2001 consolidated
financial statements taken as a whole.
</FONT>

<P align="left">
<FONT size="2">PRICEWATERHOUSECOOPERS LLP
</FONT>

<P align="left">
<FONT size="2">Houston, Texas
</FONT>

<DIV align="left">
<FONT size="2">March&nbsp;10, 2004
</FONT>
</DIV>

<P align="center"><FONT size="2">34
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">NOTE:&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">This is a copy of a report previously issued by
    Arthur Andersen LLP, our former independent public accountants.
    This report has not been reissued by Arthur Andersen LLP in
    connection with the filing of Quanta Services,&nbsp;Inc.&#146;s
    Annual Report on Form&nbsp;10-K for the year ended
    December&nbsp;31, 2002. Quanta Services Inc.&#146;s consolidated
    balance sheet as of December&nbsp;31, 2000 and 2001 and the
    consolidated statements of operations, stockholders&#146; equity
    and cash flows for the years ended December&nbsp;31, 1999 and
    2000 are not required to be presented and are not included in
    this Form&nbsp;10-K. Additionally, the reference to Note&nbsp;16
    below is applicable to the Company&#146;s footnotes to their
    audited financial statements as of December&nbsp;31, 2001.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">REPORT OF INDEPENDENT PUBLIC
ACCOUNTANTS</FONT></B>

<P align="left">
<FONT size="2">To Quanta Services,&nbsp;Inc.:
</FONT>

<P align="left">
<FONT size="2">We have audited the accompanying consolidated
balance sheets of Quanta Services,&nbsp;Inc. (a Delaware
corporation) and subsidiaries as of December&nbsp;31, 2000 and
2001, and the related consolidated statements of operations,
cash flows and stockholders&#146; equity for each of the three
years in the period ended December&nbsp;31, 2001. These
financial statements are the responsibility of the
Company&#146;s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our
audits.
</FONT>

<P align="left">
<FONT size="2">We conducted our audits in accordance with
auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
</FONT>

<P align="left">
<FONT size="2">In our opinion, the consolidated financial
statements referred to above present fairly, in all material
respects, the financial position of Quanta Services,&nbsp;Inc.
and subsidiaries as of December&nbsp;31, 2000 and 2001, and the
results of their operations and their cash flows for each of the
three years in the period ended December&nbsp;31, 2001, in
conformity with accounting principles generally accepted in the
United States.
</FONT>

<P align="left">
<FONT size="2">ARTHUR ANDERSEN LLP
</FONT>

<P align="left">
<FONT size="2">Houston, Texas
</FONT>

<DIV align="left">
<FONT size="2">February&nbsp;14, 2002 (except for the matters
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">&nbsp;discussed in Note&nbsp;16, as to which
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">&nbsp;the date is March&nbsp;25, 2002)
</FONT>
</DIV>

<P align="center"><FONT size="2">35
</FONT>

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<P align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED BALANCE SHEETS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share
information)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="12" align="center" valign="top">
    <B><FONT size="2">ASSETS</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current Assets:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable, net of allowances of $37,585
    and $27,306, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">367,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">364,844</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Costs and estimated earnings in excess of
    billings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,749</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventories
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,646</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current deferred taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,414</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses and other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,927</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">529,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">676,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property and equipment, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">369,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">341,542</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts and notes receivable, net of allowances
    of $28,389 and $46,374, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,327</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other assets, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,591</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill and other intangibles, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">395,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">388,882</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,364,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,466,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="12"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="12" align="center" valign="top">
    <B><FONT size="2">LIABILITIES AND STOCKHOLDERS&#146;
    EQUITY</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current Liabilities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable and accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Billings in excess of costs and estimated
    earnings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">212,141</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt, net of current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Convertible subordinated notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">442,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes and other non-current
    liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,411</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,362</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">680,219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">803,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commitments and Contingencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Redeemable common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; Equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred stock, $.00001&nbsp;par value,
    10,000,000&nbsp;shares authorized:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A Convertible Preferred Stock,
    3,199,961 and no shares issued and outstanding, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common stock, $.00001&nbsp;par value,
    300,000,000&nbsp;shares authorized, 70,632,899 and
    116,426,215&nbsp;shares issued and 69,706,528 and
    115,499,775&nbsp;shares outstanding, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Limited Vote Common Stock, $.00001&nbsp;par
    value, 3,345,333&nbsp;shares authorized, 1,083,750 and
    1,067,750&nbsp;shares issued and outstanding, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">980,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,071,701</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(302</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,359</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retained deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(356,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(389,485</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Treasury stock, 926,371 and 926,440 common
    shares, at cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">611,671</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">663,132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities and stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,364,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,466,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">36
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF
OPERATIONS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share
information)</FONT></B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,014,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of services (including depreciation)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,601,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,513,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,442,958</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">413,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill impairments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">166,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,452</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) from operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,265</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(155,532</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36,072</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,866</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31,822</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on early extinguishment of debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(227</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,763</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss)&nbsp;before income tax provision
    (benefit)&nbsp;and cumulative effect of change in accounting
    principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(193,844</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(53,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit)&nbsp;for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss)&nbsp;before cumulative effect of
    change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(174,134</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(619,556</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends (forfeitures)&nbsp;on preferred stock,
    net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cash beneficial conversion charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,508</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)&nbsp;attributable to common
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Earnings (loss)&nbsp;per share:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share before cumulative
    effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.90</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7.08</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share before
    cumulative effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.90</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7.08</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Shares used in computing earnings (loss)&nbsp;per
    share:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,256</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,957</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,957</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">37
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="52%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash Flows from Operating Activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments to reconcile net income (loss)
    attributable to common stock to net cash provided by (used in)
    operating activities&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill impairment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">166,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,452</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,576</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on sale of property and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,729</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,244</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,098</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on early extinguishment of debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">230</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred stock dividends (forfeitures), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on disposition of fiber network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cash beneficial conversion charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,508</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Changes in operating assets and liabilities, net
    of non-cash transactions&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">(Increase) decrease in&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,378</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,881</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Costs and estimated earnings in excess of
    billings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,799</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,059</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventories
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,636</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(593</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,837</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses and other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,045</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,713</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,290</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase (decrease) in&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable and accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,026</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,342</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Billings in excess of costs and estimated
    earnings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,857</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,502</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,439</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,026</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash Flows from Investing Activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from sale of property and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additions of property and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,982</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(49,454</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,943</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash restricted for self-insurance programs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,293</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash paid for acquisitions, net of cash acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(119,496</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,740</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,252</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash used in investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(221,821</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(70,147</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,068</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash Flows from Financing Activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net borrowings (payments)&nbsp;under credit
    facilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(109,330</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,983</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">274,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payments on long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,016</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,805</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(217,590</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Debt issuance and amendment costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,163</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,102</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuances of stock, net of offering costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash portion of loss on early extinguishment of
    debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31,675</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock repurchases
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercise of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,086</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by (used in) financing
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(29,761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net Increase (Decrease)&nbsp;in Cash and Cash
    Equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,019</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,614</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and Cash Equivalents, beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and Cash Equivalents, end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Supplemental Disclosure of Cash Flow Information:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash paid during the year for&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income taxes, net of refunds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,316</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,140</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">38
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">QUANTA SERVICES, INC. AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#146;
EQUITY</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share
information)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Series&nbsp;A Convertible</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Limited Vote</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Preferred Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Paid-in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deferred</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Retained</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Treasury</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stockholders&#146;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Earnings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Balance, December&nbsp;31, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,444,961</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">56,400,546</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,765,912</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">882,344</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">186,612</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,068,956</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of shares under Employee Stock Purchase
    Program (ESPP)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">462,179</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,721</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,721</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Stock options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">395,158</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,945</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,945</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income tax benefit from stock options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,456</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,456</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Conversion of Limited Vote Common Stock to common
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">649,674</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(649,674</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Acquisition of purchased companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,649,707</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">49,486</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">49,486</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Purchases of common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(986,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(15,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(15,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of restricted stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">72,701</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amortization of deferred compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">230</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">230</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,428</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,428</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">84,836</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">84,836</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Balance, December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,444,961</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">59,643,965</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,116,238</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">952,380</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,770</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">271,448</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(15,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,206,751</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Conversion of Series&nbsp;A Preferred Stock to
    common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(245,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,225,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of shares under ESPP
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">662,147</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,872</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,872</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income tax benefit from disqualifying
    dispositions of ESPP shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,009</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,009</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Stock options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">119,265</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,086</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,086</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income tax benefit from stock options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">320</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">320</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Conversion of Limited Vote Common Stock to common
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">32,488</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(32,488</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Stock Employee Compensation Trust
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(15,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,307</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Purchases of common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(926,371</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Acquisition of purchased companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">251,079</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,418</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,418</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Equity investment by First Reserve, excluding
    Redeemable Common Stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,666,666</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">22,320</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">22,320</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Beneficial conversion of Series&nbsp;E Preferred
    Stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,508</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,508</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of restricted stock, net of forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">32,289</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,249</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,249</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amortization of deferred compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">219</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">219</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Tax impact of deferred compensation agreements
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(114</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(114</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,060</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,060</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net loss attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Balance, December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,199,961</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">69,706,528</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,083,750</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">980,303</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(302</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(356,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">611,671</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Conversion of Series&nbsp;A Preferred Stock to
    common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(3,199,961</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,999,805</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of stock under preemptive rights
    agreement
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,201,128</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,570</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,570</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Redeemable common stock reclassification
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">24,307,410</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">72,922</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">72,922</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of shares under ESPP
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,148,632</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,533</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,533</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income tax benefit from disqualifying
    dispositions of ESPP Shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">228</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">228</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Conversion of Limited Vote Common Stock to common
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(16,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Issuances of restricted stock, net of forfeitures
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,113,115</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,823</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(9,823</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amortization of deferred compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,766</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,766</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Stock options exercised
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,157</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income tax benefit from stock options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,301</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,301</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net loss attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Balance, December&nbsp;31, 2003
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">115,499,775</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,067,750</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,071,701</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(7,359</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(389,485</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(11,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">663,132</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">39
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.</FONT></B></TD>
    <TD>
    <B><FONT size="2">BUSINESS AND ORGANIZATION:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta Services,&nbsp;Inc. (Quanta) is a leading
provider of specialized contracting services, offering
end-to-end network solutions to the electric power, gas,
telecommunications and cable television industries.
Quanta&#146;s comprehensive services include designing,
installing, repairing and maintaining network infrastructure.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the course of its operations, Quanta is
subject to certain risk factors, including but not limited to
risks related to significant fluctuations in quarterly results,
economic downturn, contract terms, competition, occupational
health and safety matters, rapid technological and structural
changes in the industries Quanta serves, ability to obtain or
maintain performance bonds, management of growth, dependence on
key personnel, unionized workforce, availability of qualified
employees, self-insured against potential liabilities, potential
exposure to environmental liabilities, pursuit of additional
work in the government arena, requirements of Sarbanes-Oxley Act
of 2002, access to capital, internal growth and operating
strategies, recoverability of goodwill, replacing cancelled or
completed contracts, acquisition integration and financing and
anti-takeover measures.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">2.</FONT></B></TD>
    <TD>
    <B><FONT size="2">SUMMARY OF SIGNIFICANT ACCOUNTING
    POLICIES:</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Principles of Consolidation</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements of Quanta
include the accounts of Quanta and its wholly owned
subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Reclassifications</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain reclassifications have been made in prior
years&#146; financial statements to conform to classifications
used in the current year.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Use of Estimates</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The preparation of financial statements in
conformity with accounting principles generally accepted in the
United States requires the use of estimates and assumptions by
management in determining the reported amounts of assets and
liabilities, disclosures of contingent assets and liabilities
known to exist as of the date the financial statements are
published and the reported amount of revenues and expenses
recognized during the periods presented. Quanta reviews all
significant estimates affecting its consolidated financial
statements on a recurring basis and records the effect of any
necessary adjustments prior to their publication. Judgments and
estimates are based on Quanta&#146;s beliefs and assumptions
derived from information available at the time such judgments
and estimates are made. Uncertainties with respect to such
estimates and assumptions are inherent in the preparation of
financial statements. Estimates are primarily used in
Quanta&#146;s assessment of the allowance for doubtful accounts,
valuation of inventory, fair value assumptions in analyzing
goodwill and long-lived asset impairments, self-insured claims
liabilities, revenue recognition under percentage-of-completion
accounting and provision for income taxes.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Cash and Cash Equivalents</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta considers all highly liquid investments
purchased with an original maturity of three months or less to
be cash equivalents.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Supplemental Cash Flow Information</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta had non-cash investing and financing
activities, pursuant to its acquisition program. In 2002, Quanta
acquired assets through purchase acquisitions with an estimated
fair value, net of cash acquired, of $2.0&nbsp;million and
liabilities of $2.5&nbsp;million, resulting in the recording of
$11.8&nbsp;million in goodwill. In 2001,
</FONT>

<P align="center"><FONT size="2">40
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">Quanta acquired assets through purchase
acquisitions with an estimated fair value, net of cash acquired,
of $20.9&nbsp;million and liabilities of $13.1&nbsp;million
resulting in the recording of $156.9&nbsp;million in goodwill.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Current and Long-Term Accounts and Notes
    Receivable and Provision for Doubtful Accounts</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta provides an allowance for doubtful
accounts when collection of an account or note receivable is
considered doubtful. Inherent in the assessment of the allowance
for doubtful accounts are certain judgments and estimates
including, among others, our customer&#146;s access to capital,
the customer&#146;s willingness or ability to pay, general
economic conditions and the ongoing relationship with the
customer. Under certain circumstances such as foreclosures or
negotiated settlements, Quanta may take title to the underlying
assets in lieu of cash in settlement of receivables. As of
December&nbsp;31, 2002 and 2003, Quanta has provided allowances
for doubtful accounts of approximately $66.0&nbsp;million and
$73.7&nbsp;million. Certain of Quanta&#146;s customers, several
of them large public telecommunications carriers have filed for
bankruptcy or have been experiencing financial difficulties.
Also a number of Quanta&#146;s utility customers are
experiencing financial difficulties in the current business
climate. Should additional customers file for bankruptcy or
continue to experience difficulties, or should anticipated
recoveries relating to receivables in existing bankruptcies or
other workout situations fail to materialize, Quanta could
experience reduced cash flows and losses in excess of current
allowances provided. In addition, material changes in our
customers&#146; revenues or cash flows could affect our ability
to collect amounts due from them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2002, one of Quanta&#146;s customers,
Adelphia Communications Corporation, filed for bankruptcy
protection under Chapter&nbsp;11 of the Bankruptcy Code, as
amended. Quanta has filed liens on various properties to secure
substantially all of its pre-petition receivables. The carrying
value is based upon Quanta&#146;s understanding of the current
status of the Adelphia bankruptcy proceeding and a number of
assumptions, including assumptions about the validity, priority
and enforceability of our security interests. Quanta currently
believes it will collect a substantial majority of the balances
owed. Should any of the factors underlying Quanta&#146;s
estimate change, the amount of Quanta&#146;s allowance could
change significantly. Quanta is uncertain as to whether such
receivables will be collected within one year and therefore has
included this amount in non-current assets as Accounts and Notes
Receivable. Also included in Accounts and Notes Receivable are
amounts due from another customer relating to the construction
of independent power plants. Quanta has agreed to long-term
payment terms for this customer. The notes receivable are
partially secured. During 2002 and 2003, we provided allowances
for a significant portion of these notes receivable due to a
change in the economic viability of the plants securing them.
The collectibility of these notes may ultimately depend on the
value of the collateral securing these notes. As of
December&nbsp;31, 2002, the total balance due from both of these
customers was $78.4&nbsp;million, net of an allowance for
doubtful accounts of $28.4&nbsp;million. As of December&nbsp;31,
2003, the total balance from both of these customers was
$80.7&nbsp;million, with an allowance for doubtful accounts of
$46.4&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The balances billed but not paid by customers
pursuant to retainage provisions in certain contracts will be
due upon completion of the contracts and acceptance by the
customer. Based on Quanta&#146;s experience with similar
contracts in recent years, the majority of the retention balance
at each balance sheet date will be collected within the
subsequent fiscal year. Current retainage balances as of
December&nbsp;31, 2002 and 2003 were approximately
$47.2&nbsp;million and $37.2&nbsp;million, and are included in
accounts receivable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Due to contractual provisions, certain balances,
though the earnings process is complete, are not billable to
customers until defined milestones are reached. These balances
are considered to be unbilled receivables and are included in
accounts receivable at year-end. At December&nbsp;31, 2002 and
2003, these balances were approximately $39.7&nbsp;million and
$42.8&nbsp;million.
</FONT>

<P align="center"><FONT size="2">41
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Concentration of Credit Risk</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta grants credit, generally without
collateral, to its customers, which include electric power and
gas companies, telecommunications and cable television system
operators, governmental entities, general contractors, builders
and owners and managers of commercial and industrial properties
located primarily in the United States. Consequently, Quanta is
subject to potential credit risk related to changes in business
and economic factors throughout the United States. However,
Quanta generally is entitled to payment for work performed and
typically has certain lien rights on the services provided. No
customer accounted for more than 10% of accounts receivable or
revenues as of or for the years ended December&nbsp;31, 2002 or
2003.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Inventories</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Inventories consist of parts and supplies held
for use in the ordinary course of business and are valued by
Quanta at the lower of cost or market using the first-in,
first-out (FIFO)&nbsp;method. As of December&nbsp;31, 2002 and
2003, Quanta has recorded a valuation allowance of approximately
$3.0&nbsp;million.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Property and Equipment</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property and equipment are stated at cost, and
depreciation is computed using the straight-line method, net of
estimated salvage values, over the estimated useful lives of the
assets. Leasehold improvements are capitalized and amortized
over the lesser of the life of the lease or the estimated useful
life of the asset. Depreciation and amortization expense related
to property and equipment was approximately $53.4&nbsp;million,
$60.2&nbsp;million and $59.5&nbsp;million for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Expenditures for repairs and maintenance are
charged to expense when incurred. Expenditures for major
renewals and betterments, which extend the useful lives of
existing equipment, are capitalized and depreciated. Upon
retirement or disposition of property and equipment, the cost
and related accumulated depreciation are removed from the
accounts and any resulting gain or loss is recognized in the
statements of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management reviews long-lived assets for
impairment whenever events or changes in circumstances indicate
that the carrying amount may not be realizable. If an evaluation
is required, the estimated future undiscounted cash flows
associated with the asset are compared to the asset&#146;s
carrying amount to determine if an impairment of such asset is
necessary. The effect of any impairment would be to expense the
difference between the fair value of such asset and its carrying
value.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Debt Issuance Costs</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002 and 2003,
capitalized debt issuance costs related to Quanta&#146;s credit
facility, the convertible subordinated notes and the senior
secured notes were included in Other Assets, net and are being
amortized into interest expense over the terms of the respective
agreements. As of December&nbsp;31, 2002 and 2003, capitalized
debt issuance costs were $15.9&nbsp;million and
$17.8&nbsp;million with accumulated amortization of
$6.4&nbsp;million and $3.2&nbsp;million. For the years ended
December&nbsp;31, 2001, 2002 and 2003, amortization expense was
$2.0&nbsp;million, $3.6&nbsp;million and $3.5&nbsp;million,
respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta incurred $7.7&nbsp;million in debt
issuance costs related to the October 2003 4.5%&nbsp;convertible
subordinated notes offering, which were capitalized and are
being amortized over five years to October&nbsp;1, 2008, the
first date of the holders&#146; put option discussed in
Note&nbsp;7. Quanta capitalized debt issuance costs of
$4.4&nbsp;million in connection with the credit facility entered
into in December 2003. Upon retirement of the senior secured
notes and the termination of Quanta&#146;s former credit
facility in the fourth quarter of 2003 discussed in Note&nbsp;7,
Quanta expensed $3.3&nbsp;million of unamortized debt issuance
costs as part of the loss on early extinguishment of debt.
</FONT>

<P align="center"><FONT size="2">42
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Goodwill and Other Intangibles</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective January&nbsp;1, 2002, Quanta adopted
Statement of Financial Accounting Standards
(SFAS)&nbsp;No.&nbsp;142 &#147;Goodwill and Other Intangible
Assets,&#148; which establishes new accounting and reporting
requirements for goodwill and other intangible assets. Under
SFAS&nbsp;No.&nbsp;142, all goodwill amortization ceased
effective January&nbsp;1, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Material amounts of recorded goodwill
attributable to each of Quanta&#146;s reporting units were
tested for impairment by comparing the fair value of each
reporting unit with its carrying value. Fair value was
determined using a combination of the discounted cash flow,
market multiple and market capitalization valuation approaches.
These impairment tests are required to be performed at adoption
of SFAS&nbsp;No.&nbsp;142 and at least annually thereafter.
Significant estimates used in the methodologies include
estimates of future cash flows, future short-term and long-term
growth rates, weighted average cost of capital and estimates of
market multiples for each of the reportable units. On an ongoing
basis, absent any impairment indicators, Quanta performs
impairment tests annually during the fourth quarter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on Quanta&#146;s transitional impairment
test performed upon adoption of SFAS&nbsp;No.&nbsp;142 on
January&nbsp;1, 2002, it recognized a $488.5&nbsp;million
non-cash charge, ($445.4&nbsp;million, net of tax) to reduce the
carrying value of goodwill to the implied fair value of
Quanta&#146;s reporting units. This impairment is a result of
adopting a fair value approach, under SFAS&nbsp;No.&nbsp;142, to
testing impairment of goodwill as compared to the previous
method utilized, as permitted under accounting standards
existing at that time, in which evaluations of goodwill
impairment were made by Quanta using estimated future
undiscounted cash flows to determine if goodwill would be
recoverable. Under SFAS&nbsp;No.&nbsp;142, the impairment
adjustment recognized at adoption of the new rules was reflected
as a cumulative effect of change in accounting principle, net of
tax, in the year ended December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta further recognized an interim non-cash
goodwill impairment charge of $166.6&nbsp;million during the
year ended December&nbsp;31, 2002. Impairment adjustments
recognized after adoption are required to be recognized as
operating expenses. The primary factor contributing to the
interim impairment charge was the overall deterioration of the
business climate during 2002 in the markets Quanta serves as
evidenced at the time by an increased number of bankruptcies in
the telecommunications industry, continued devaluation of
several of Quanta&#146;s customers&#146; debt and equity
securities and pricing pressures resulting from challenges faced
by major industry participants. Fair value was determined using
a combination of the discounted cash flow, market multiple and
market capitalization valuation approaches.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the fourth quarter of 2003, as part of our
annual goodwill test for impairment, goodwill of
$6.5&nbsp;million was written off as a non-cash operating
expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of changes in Quanta&#146;s goodwill is
as follows (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="69%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance, January 1
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,036,982</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">393,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisitions and adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,829</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impairments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(655,052</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,452</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance, December&nbsp;31,
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">393,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">387,307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta recorded an Other Intangible Asset of
$2.1&nbsp;million related to customer relationships during 2002.
The estimated life of this intangible asset is eight years and
accumulated amortization as of December&nbsp;31, 2002 and 2003,
was approximately $0.3&nbsp;million and $0.5&nbsp;million.
Estimated annual amortization expense for future periods is
approximately $0.3&nbsp;million.
</FONT>

<P align="center"><FONT size="2">43
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The adjusted results of operations for the year
ended December&nbsp;31, 2001, reflect the operations of Quanta
had the non-amortization provisions of SFAS&nbsp;No.&nbsp;142
been adopted effective January&nbsp;1, 2001 (in thousands,
except per share data):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Addback goodwill amortization, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,960</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjusted net income attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reported basic earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjusted basic earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings per share before:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reported diluted earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjusted diluted earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Revenue Recognition</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta recognizes revenue when services are
performed except when work is being performed under a fixed
price contract. Revenues from fixed price contracts are
recognized on the percentage-of-completion method measured by
the percentage of costs incurred-to-date to total estimated
costs for each contract. Such contracts generally provide that
the customer accept completion of progress to date and
compensate Quanta for services rendered, measured typically in
terms of units installed, hours expended or some other measure
of progress. Contract costs typically include all direct
material, labor and subcontract costs and those indirect costs
related to contract performance, such as indirect labor,
supplies, tools, repairs and depreciation costs. Provisions for
the total estimated losses on uncompleted contracts are made in
the period in which such losses are determined. Changes in job
performance, job conditions, estimated profitability and final
contract settlements may result in revisions to costs and income
and their effects are recognized in the period in which the
revisions are determined.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current asset &#147;Costs and estimated
earnings in excess of billings on uncompleted contracts&#148;
represents revenues recognized in excess of amounts billed. The
current liability &#147;Billings in excess of costs and
estimated earnings on uncompleted contracts&#148; represents
billings in excess of revenues recognized.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Income Taxes</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta follows the liability method of accounting
for income taxes in accordance with SFAS&nbsp;No.&nbsp;109,
&#147;Accounting for Income Taxes.&#148; Under this method,
deferred assets and liabilities are recorded for future tax
consequences of temporary differences between the financial
reporting and tax bases of assets and liabilities, and are
measured using the enacted tax rates and laws that will be in
effect when the underlying assets or liabilities are recovered
or settled.
</FONT>

<P align="center"><FONT size="2">44
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Collective Bargaining Agreements</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the subsidiaries are party to various
collective bargaining agreements with certain of their
employees. The agreements require such subsidiaries to pay
specified wages and provide certain benefits to their union
employees. These agreements expire at various times.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Self-Insurance</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, Quanta is insured
for employer&#146;s liability and general liability claims,
subject to a deductible of $1,000,000&nbsp;per occurrence and
for auto liability and workers compensation, subject to a
deductible of $2,000,000&nbsp;per occurrence. In addition,
Quanta maintains a non-union employee related health care
benefits plan that is subject to a deductible of
$250,000&nbsp;per claimant per year. Losses up to the deductible
amounts are accrued based upon Quanta&#146;s estimates of the
ultimate liability for claims incurred and an estimate of claims
incurred but not reported. The accruals are based upon known
facts and historical trends and management believes such
accruals to be adequate. At December&nbsp;31, 2002 and 2003, the
amounts accrued for self-insurance claims were
$45.0&nbsp;million and $62.3&nbsp;million, with
$27.4&nbsp;million and $36.2&nbsp;million, considered to be
long-term and included in Other Non-Current Liabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, Quanta had
restricted cash pursuant to an obligation with Quanta&#146;s
casualty insurance policy for the period from March&nbsp;1, 2003
to February&nbsp;29, 2004. The total restricted cash will be
reduced by amounts used to pay claims in the future. As of
December&nbsp;31, 2003, the balance of restricted cash was
$9.3&nbsp;million of which $8.7&nbsp;million was classified in
other current assets and $0.6&nbsp;million was classified in
Other Assets, net.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Fair Value of Financial Instruments</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The carrying values of cash and cash equivalents,
accounts receivable, accounts payable, the credit facility and
notes payable to various financial institutions approximate fair
value. The fair value of the senior secured notes was estimated
based on interest rates for the same or similar debt offered to
Quanta having the same or similar remaining maturities and
collateral requirements. At December&nbsp;31, 2002, the fair
value of Quanta&#146;s senior secured notes of
$210.0&nbsp;million approximated fair value. The fair value of
the convertible subordinated notes is estimated based on quoted
secondary market prices for these notes as of year-end. At
December&nbsp;31, 2002 and 2003, the fair value of Quanta&#146;s
4.0%&nbsp;convertible subordinated notes of $172.5&nbsp;million
was approximately $97.5&nbsp;million and $157.2&nbsp;million.
The fair value of Quanta&#146;s 4.5%&nbsp;convertible
subordinated notes of $270.0&nbsp;million was approximately
$284.9&nbsp;million at December&nbsp;31, 2003.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Stock Based Compensation</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta accounts for its stock-based compensation
under APB Opinion No.&nbsp;25 &#147;Accounting for Stock Issued
to Employees.&#148; Under this accounting method, no
compensation expense is recognized in the consolidated
statements of operations if no intrinsic value of the option
exists at the date of grant. In October 1995, the FASB issued
SFAS&nbsp;No.&nbsp;123, &#147;Accounting for Stock-Based
Compensation.&#148; SFAS&nbsp;No.&nbsp;123, as amended,
encourages companies to account for stock based compensation
awards based on the fair value of the awards at the date they
are granted. The resulting compensation cost would be shown as
an expense in the consolidated statements of operations.
Companies can choose not to apply the new accounting method and
continue to apply current accounting requirements; however,
disclosure is required as to what net income and earnings per
share would have been had the new accounting method been
followed. In addition, Quanta has an Employee Stock Purchase
Plan (ESPP). SFAS&nbsp;No.&nbsp;123 requires the inclusion of
stock issued pursuant to an ESPP. The accounting for the
restricted stock awards are the same under APB Opinion
No.&nbsp;25 and SFAS No.&nbsp;123.
</FONT>

<P align="center"><FONT size="2">45
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The fair market value of each option grant is
estimated on the date of grant using the Black-Scholes
option-pricing model with the following assumptions for 2001 and
2002: (i)&nbsp;risk-free interest rates ranging from 4.64% to
4.84% and 3.45% to 5.27%, (ii)&nbsp;expected life of 7.9 and
6.7&nbsp;years, (iii)&nbsp;average volatility of 66.9% and
144.5% (iv)&nbsp;dividend yield of 0%. There were no option
grants during 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the ESPP, compensation cost approximates the
difference between the fair value of Quanta&#146;s common stock
and the actual common stock purchase price on the date of grant.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Had compensation costs for the 2001 Stock
Incentive Plan and the ESPP been determined consistent with
SFAS&nbsp;No.&nbsp;123, Quanta&#146;s net income attributable to
common stock and earnings per share would have been reduced to
the following as adjusted amounts (in thousands, except per
share information):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock as
    reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Add: stock-based employee compensation expense
    included in reported net income, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deduct: total stock-based employee compensation
    expense determined under fair value based method for all awards,
    net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,150</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,030</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common
    stock&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Adjusted&nbsp;&#151; Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(650,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,223</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Adjusted&nbsp;&#151; Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(650,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,223</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Earnings (loss) per share&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Reported&nbsp;&#151; Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Adjusted&nbsp;&#151; Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10.33</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Reported&nbsp;&#151; Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9.98</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.30</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As Adjusted&nbsp;&#151; Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10.33</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effects of applying SFAS&nbsp;No.&nbsp;123 in
the as adjusted disclosure may not be indicative of future
amounts as additional awards may or may not be awarded. See
Note&nbsp;10 for additional discussion of Quanta&#146;s stock
incentive plans.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">New Accounting Pronouncements</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, the FASB issued
SFAS&nbsp;No.&nbsp;150, &#147;Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and
Equity.&#148; SFAS&nbsp;No.&nbsp;150 establishes standards for
classifying and measuring certain financial instruments with
characteristics of both liabilities and equity. Financial
instruments that fall within the scope of SFAS&nbsp;No.&nbsp;150
will be classified as liabilities (or assets in some
circumstances). This statement is effective at the beginning of
the first interim period beginning after June&nbsp;15, 2003. The
adoption of SFAS&nbsp;No.&nbsp;150 did not have a material
impact on our results of operations or financial position.
</FONT>

<P align="center"><FONT size="2">46
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.</FONT></B></TD>
    <TD>
    <B><FONT size="2">PER SHARE INFORMATION:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Earnings (loss) per share amounts are based on
the weighted average number of shares of common stock and common
stock equivalents outstanding during the period. The weighted
average number of shares used to compute basic and diluted
earnings per share for 2001, 2002 and 2003 is illustrated below
(in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NET INCOME (LOSS):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends on convertible preferred stock, if
    assumed conversion is dilutive
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) for basic earnings (loss) per
    share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of convertible subordinated notes under
    the &#147;if converted&#148; method&nbsp;&#151; interest expense
    addback, net of taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) for diluted earnings (loss) per
    share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(628,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">WEIGHTED AVERAGE SHARES:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares outstanding for basic
    earnings (loss) per share, including convertible preferred
    stock, if dilutive
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,256</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,957</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of dilutive stock options and restricted
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">982</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of convertible subordinated notes under
    the &#147;if converted&#148; method&nbsp;&#151; weighted
    convertible shares issuable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares outstanding for diluted
    earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,957</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to EITF Topic&nbsp;D-95, &#147;Effect of
Participating Convertible Securities on the Computation of Basic
Earnings Per Share,&#148; the impact of the Series&nbsp;A
Convertible Preferred Stock has been included in the computation
of basic earnings per share for the year ended December&nbsp;31,
2001 using the if-converted method. For the years ended
December&nbsp;31, 2001, 2002 and 2003, stock options for
approximately 3.9&nbsp;million, 7.9&nbsp;million and
0.9&nbsp;million shares, respectively, were excluded from the
computation of diluted earnings per share because the
options&#146; exercise prices were greater than the average
market price of Quanta&#146;s common stock. For the years ended
December&nbsp;31, 2002 and 2003, approximately 116,000 and
16,000 stock options with exercise prices lower than the average
market price of Quanta&#146;s common stock were also excluded
from the computation of diluted earnings per share because the
effect of including them would be antidilutive. For the years
ended December&nbsp;31, 2001, 2002 and 2003, the effect of
assuming conversion of the convertible subordinated notes would
be antidilutive and they were therefore excluded from the
calculation of diluted earnings per share. For the years ended
December&nbsp;31, 2001, 2002 and 2003, shares of non-vested
restricted stock were excluded from the calculation of diluted
earnings per share as the impact would have been antidilutive.
See Note&nbsp;10 for further discussion on restricted stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">4.</FONT></B></TD>
    <TD>
    <B><FONT size="2">BUSINESS COMBINATIONS:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2001, Quanta completed 9&nbsp;acquisitions
accounted for as purchases. The aggregate consideration paid in
these transactions consisted of $119.9&nbsp;million in cash and
2.4&nbsp;million shares of common stock. The following
summarized unaudited pro forma financial information adjusts the
historical financial information by
</FONT>

<P align="center"><FONT size="2">47
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">assuming the acquisition of the companies
acquired during 2001 occurred on January&nbsp;1, 2001 (in
thousands, except per share information):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Unaudited)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,057,279</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,266</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pro forma adjustments included in the amounts
above primarily relate to: (a)&nbsp;contractually agreed
reductions in salaries and benefits for former owners, and
certain key employees; (b)&nbsp;adjustments to amortization
expense due to the purchase price allocations; (c)&nbsp;an
assumed increase in interest expense in connection with
financing the acquisitions; and (d)&nbsp;the adjustment to the
federal and state income tax provisions based on the combined
operations. The pro forma financial data does not purport to
represent what the Company&#146;s combined financial position or
results of operations would actually have been if such
transactions had in fact occurred on the dates indicated and are
not necessarily representative of Quanta&#146;s financial
position or results of operations for any future period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2002, Quanta completed
two&nbsp;acquisitions. The aggregate consideration paid in these
transactions consisted of $8.0&nbsp;million in cash, net of cash
acquired, and 251,079&nbsp;shares of common stock. The pro forma
effects of these transactions were not material. During 2003,
Quanta did not complete any acquisitions.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">5.</FONT></B></TD>
    <TD>
    <B><FONT size="2">PROPERTY AND EQUIPMENT:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property and equipment consists of the following
(in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Useful</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Lives in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings and leasehold improvements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5-30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,107</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating equipment and vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5-25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">512,948</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">534,278</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment, furniture and fixtures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3-7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">551,815</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">574,562</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Accumulated depreciation and
    amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(182,247</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(233,020</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property and equipment, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">369,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">341,542</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">48
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">6.</FONT></B></TD>
    <TD>
    <B><FONT size="2">DETAIL OF CERTAIN BALANCE SHEET
    ACCOUNTS:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Activity in Quanta&#146;s current and long-term
allowance for doubtful accounts consists of the following (in
thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,612</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquired balances
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,088</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Charged to expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,710</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deductions for uncollectible receivables written
    off, net of recoveries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,103</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,612</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,184</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,680</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accounts payable and accrued expenses consists of
the following (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="75%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable, trade
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,437</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued compensation and related expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,607</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued insurance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued interest and fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,454</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Federal and state taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Contracts in progress are as follows (in
thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Costs incurred on contracts in progress
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">451,603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">517,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Estimated earnings, net of estimated losses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,417</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">528,621</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">596,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Billings to date
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(490,281</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(570,430</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,562</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Costs and estimated earnings in excess of
    billings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,749</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Billings in excess of costs and
    estimated earnings on uncompleted contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,409</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,911</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,562</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">49
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">7.</FONT></B></TD>
    <TD>
    <B><FONT size="2">LONG-TERM OBLIGATIONS:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta&#146;s long-term debt obligations consist
of the following (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Credit facilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior secured notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4.0%&nbsp;convertible subordinated notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4.5%&nbsp;convertible subordinated notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">270,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes payable to various financial institutions,
    interest ranging from 0.0% to 9.06%, secured by certain
    equipment and other assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,372</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">392,319</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,652</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,034</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total long-term debt obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">385,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Credit
Facility</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;19, 2003, Quanta entered into a
$185.0&nbsp;million credit facility with various lenders, which
replaced our previous credit facility discussed below. The
credit facility consists of a $150.0&nbsp;million letter of
credit facility maturing on June&nbsp;19, 2008, which also
provides for term loans, and a $35.0&nbsp;million revolving
credit facility maturing on December&nbsp;19, 2007, which
provides for revolving loans and letters of credit. The letter
of credit facility is linked to a $150.0&nbsp;million deposit
made by the lenders, which is held in an account with Bank of
America, N.A. This deposit may be used either to support letters
of credit or, to the extent that amounts available under the
facility are not used to support letters of credit, for term
loans. As of December&nbsp;31, 2003, Quanta had approximately
$93.6&nbsp;million of letters of credit issued under the letter
of credit facility, approximately $3.1&nbsp;million of letters
of credit issued under the revolving facility and
$56.0&nbsp;million outstanding as a term loan under the credit
facility with an interest rate of 4.15% as of December&nbsp;31,
2003. Quanta&#146;s borrowing availability was
$31.9&nbsp;million as of December&nbsp;31, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the letter of credit facility, Quanta is
subject to a fee equal to 3.00% of the letters of credit
outstanding, plus an additional 0.15% of the amount outstanding
to the extent the funds in the deposit account do not earn the
LIBOR, as defined in the credit facility. Term loans under the
facility bear interest at a rate equal to either (a)&nbsp;the
Eurodollar Rate (as defined in the credit facility) plus 3.00%
or (b)&nbsp;the Base Rate (as described below) plus 3.00%. The
Base Rate equals the higher of (i)&nbsp;the Federal Funds Rate
(as defined in the credit facility) plus 1/2 of 1% and
(ii)&nbsp;the bank&#146;s prime rate. The maximum availability
under the facility is automatically reduced on December&nbsp;31
of each year by $1.5&nbsp;million, beginning December&nbsp;31,
2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts borrowed under the revolving facility
bear interest at a rate equal to either (a)&nbsp;the Eurodollar
Rate plus 1.75% to 3.00%, as determined by the ratio of our
total funded debt to EBITDA, or (b)&nbsp;the Base Rate plus
0.25% to 1.50%, as determined by the ratio of our total funded
debt to EBITDA. Letters of credit issued under the revolving
facility are subject to a letter of credit fee of 1.75% to
3.00%, based on the ratio of our total funded debt to EBITDA. If
Quanta chooses to cash collateralize letters of credit issued
under the revolving facility, those letters of credit will be
subject to a letter of credit fee of 0.50%. Quanta is also
subject to a commitment fee of 0.375% to 0.625%, based on the
ratio of its total funded debt to EBITDA, on any unused
availability under the revolving facility.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The credit facility contains certain covenants,
including a maximum funded debt to EBITDA ratio, a maximum
senior debt to EBITDA ratio, a minimum interest coverage ratio,
a minimum asset coverage ratio
</FONT>

<P align="center"><FONT size="2">50
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">and a minimum consolidated net worth covenant.
The credit facility also limits acquisitions, capital
expenditures and asset sales and, subject to some exceptions,
prohibits stock repurchase programs and the payment of dividends
(other than dividend payments or other distributions payable
solely in capital stock). After December&nbsp;31, 2004, however,
Quanta may pay dividends and engage in stock repurchase programs
in any fiscal year in an aggregate amount up to twenty-five
percent of Quanta&#146;s consolidated net income (plus the
amount of non-cash charges that reduced such consolidated net
income) for the immediately prior fiscal year. The credit
facility carries cross-default provisions with Quanta&#146;s
other debt instruments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The credit facility is secured by a pledge of all
of the capital stock of Quanta&#146;s U.S.&nbsp;subsidiaries,
65% of the capital stock of Quanta&#146;s foreign subsidiaries
and substantially all of Quanta&#146;s assets, and it restricts
pledges on all material assets. Borrowings under the credit
facility are to be used for working capital, capital
expenditures and for other general corporate purposes.
Quanta&#146;s U.S.&nbsp;subsidiaries guarantee the repayment of
all amounts due under the credit facility. Quanta&#146;s
obligations under the credit facility constitute designated
senior indebtedness under our convertible subordinated notes.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">2000
Credit Facility</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, Quanta had a
$250.0&nbsp;million credit facility, as amended, (2000 Credit
Facility) with 14 participating banks, which was to mature on
June&nbsp;14, 2004. Upon closing of the above discussed credit
facility, the 2000 Credit Facility was terminated. In connection
with the termination of the agreement, the related unamortized
debt issuance costs in the amount of approximately
$0.8&nbsp;million were expensed in the fourth quarter of 2003 as
part of the loss on early extinguishment of debt discussed
below. As of December&nbsp;31, 2002, Quanta had no outstanding
borrowings under the 2000 Credit Facility and $71.1&nbsp;million
of letters of credit outstanding.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">4.0%&nbsp;Convertible
Subordinated Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the third quarter of 2000, Quanta issued
$172.5&nbsp;million principal amount of convertible subordinated
notes. These convertible subordinated notes bear interest at
4.0%&nbsp;per year and are convertible into shares of
Quanta&#146;s common stock at a price of $54.53&nbsp;per share,
subject to adjustment as a result of certain events. The
4.0%&nbsp;convertible subordinated notes require semi-annual
interest payments beginning December&nbsp;31, 2000, until the
notes mature on July&nbsp;1, 2007. Quanta has the option to
redeem the 4.0%&nbsp;convertible subordinated notes beginning
July&nbsp;3, 2003 at specified redemption prices, together with
accrued and unpaid interest; however redemption is prohibited by
Quanta&#146;s credit facility. If certain fundamental changes
occur, as described in the indenture, holders of the
4.0%&nbsp;convertible subordinated notes may require Quanta to
purchase all or part of the notes at a purchase price equal to
100% of the principal amount, plus accrued and unpaid interest.
In the event of such circumstance, consent to repurchase the
4.0%&nbsp;convertible subordinated notes would be required under
Quanta&#146;s credit facility.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">4.5%&nbsp;Convertible
Subordinated Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 2003, Quanta issued
$270.0&nbsp;million principal amount of 4.5%&nbsp;convertible
subordinated notes. These convertible subordinated notes bear
interest at 4.5%&nbsp;per year and are convertible into shares
of Quanta&#146;s common stock at a conversion price of
$11.14&nbsp;per share, subject to adjustment as a result of
certain events. The 4.5%&nbsp;convertible subordinated notes
require semi-annual interest payments beginning April&nbsp;1,
2004, until they mature on October&nbsp;1, 2023.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 4.5%&nbsp;convertible subordinated notes are
convertible by the holder if (i)&nbsp;during any fiscal quarter
commencing after December&nbsp;31, 2003 the last reported sale
price of Quanta&#146;s common stock is greater than or equal to
120% of the conversion price for at least 20 trading days in the
period of 30 consecutive trading days ending on the first
trading day of such fiscal quarter, (ii)&nbsp;during the five
business day period after any five consecutive trading day
period in which the trading price per note for each day of that
period was less than
</FONT>

<P align="center"><FONT size="2">51
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">98% of the product of the last reported sale
price of Quanta&#146;s common stock and the conversion rate,
(iii)&nbsp;upon Quanta calling the notes for redemption or
(iv)&nbsp;upon the occurrence of specified corporate
transactions. If the notes become convertible under one of these
circumstances, Quanta has the option to deliver cash, shares of
Quanta&#146;s common stock or a combination thereof, with a
value equal to the par value of the notes divided by the
conversion price multiplied by the average trading price of
Quanta&#146;s common stock. The maximum number of shares of
common stock that could be issued under these circumstances is
equal to the par value of the notes divided by the conversion
price.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning October&nbsp;8, 2008, Quanta may redeem
for cash some or all of the 4.5%&nbsp;convertible subordinated
notes at par value plus accrued and unpaid interest. The holders
of the 4.5%&nbsp;convertible subordinated notes may require
Quanta to repurchase all or some of the notes at par value plus
accrued and unpaid interest on October&nbsp;1, 2008, 2013 or
2018, or upon the occurrence of a fundamental change, as defined
by the indenture under which Quanta issued the notes. We must
pay any required repurchases on October&nbsp;1, 2008 in cash.
For all other required repurchases, Quanta has the option to
deliver cash, shares of our common stock or a combination
thereof to satisfy our repurchase obligation. Quanta presently
does not anticipate using stock to satisfy any future
obligations. If Quanta were to satisfy the obligation with
shares of our common stock, the number of shares delivered will
equal the dollar amount to be paid in common stock divided by
98.5% of the market price of Quanta&#146;s common stock, as
defined by the indenture. The number of shares to be issued
under this circumstance is not limited. The right to settle for
shares of common stock can be surrendered by Quanta. The
4.5%&nbsp;convertible subordinated notes carry cross-default
provisions with Quanta&#146;s credit facility and any other debt
instrument that exceeds $10.0&nbsp;million in borrowings.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Senior
Secured Notes</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the fourth quarter of 2003, Quanta retired its
$210.0&nbsp;million of senior secured notes and paid associated
make-whole prepayment premiums in the amount of
$31.3&nbsp;million. The make-whole prepayment premiums, along
with the related unamortized debt issuance costs for the senior
notes in the amount of approximately $2.5&nbsp;million were
expensed in the fourth quarter of 2003 as part of the loss on
early extinguishment of debt discussed below.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Loss
on Early Extinguishment of Debt</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the year ended December&nbsp;31, 2003,
Quanta recognized a $35.1&nbsp;million loss on early
extinguishment of debt relating to the termination of the 2000
Credit Facility and the retirement of the senior secured notes
discussed above. Included in this amount is a make-whole
prepayment premium for $31.3&nbsp;million, write-off of
unamortized debt issuance costs of $3.3&nbsp;million together
with other related costs of $0.5&nbsp;million.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Maturities</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The maturities of long-term debt obligations,
excluding capital leases, as of December&nbsp;31, 2003, are as
follows (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="86%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year Ending December&nbsp;31&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,208</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2007
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2008
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">326,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">52
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See discussion of capital leases in Note&nbsp;13.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">8.</FONT></B></TD>
    <TD>
    <B><FONT size="2">INCOME TAXES:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The components of the provision (benefit) for
income taxes are as follows (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Federal&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,507</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(29,118</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(43,446</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,618</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,677</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Actual income tax provision (benefit) differs
from the income tax provision (benefit) computed by applying the
U.S.&nbsp;federal statutory corporate rate to the income before
provision for income taxes as follows (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) at the statutory rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,938</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(67,845</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,574</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increases (decreases)&nbsp;resulting
    from&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State income taxes, net of federal benefit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,186</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,357</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">FAS&nbsp;142 interim goodwill impairment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-deductible goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-deductible expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,614</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,026</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Change in valuation allowance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">825</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax credits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,115</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,165</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">53
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred income taxes result from temporary
differences in the recognition of income and expenses for
financial reporting purposes and for tax purposes. The tax
effects of these temporary differences, representing deferred
tax assets and liabilities, result principally from the
following (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax liabilities&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(90,551</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(96,675</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Book/tax accounting method difference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,702</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,354</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred income tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,253</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(119,029</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax assets&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts and other reserves
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,567</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,538</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net operating loss carryforwards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventory and other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,261</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,297</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,554</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,171</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Valuation allowance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,874</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,699</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred income tax assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,680</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total net deferred income tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,573</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28,557</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2003, Quanta had federal net
operating loss carryforwards, the tax effect of which is
approximately $10.4&nbsp;million. These carryforwards, which may
provide future tax benefits, begin to expire in 2020. Quanta
also had state net operating loss carryforwards, the tax effect
of which is approximately $11.8&nbsp;million. These
carryforwards will expire as follows: 2006, $0.1&nbsp;million;
2007, $0.6&nbsp;million; 2008, $1.1&nbsp;million and
$10.0&nbsp;million thereafter. As of December&nbsp;31, 2003,
Quanta had a $31.3&nbsp;million federal income tax receivable as
the result of a federal net operating loss incurred during 2003,
which currently is classified in Prepaid Expenses and Other
Current Assets. Quanta intends to file a carryback claim with
the Internal Revenue Service in 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In assessing the value of deferred tax assets at
December&nbsp;31, 2003, Quanta considered whether it was more
likely than not that some or all of the deferred tax assets
would not be realized. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences become
deductible. Quanta considers the scheduled reversal of deferred
tax liabilities, projected future taxable income and tax
planning strategies in making this assessment. Based upon these
considerations, Quanta provided a valuation allowance to reduce
the carrying value of certain of its deferred tax assets to
their net expected realizable value at December&nbsp;31, 2003. A
portion of the valuation allowance was recorded through the
cumulative effect of change in accounting principle, as it
related to deferred tax assets recorded as part of the adoption
of SFAS&nbsp;No.&nbsp;142.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">9.</FONT></B></TD>
    <TD>
    <B><FONT size="2">STOCKHOLDERS&#146; EQUITY:</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Series&nbsp;A Convertible Preferred
    Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 1999, Quanta issued shares of
Series&nbsp;A Convertible Preferred Stock, $.00001&nbsp;par
value per share. The holders of the Series&nbsp;A Convertible
Preferred Stock were entitled to receive dividends in cash at a
rate of 0.5% per annum on an amount equal to $53.99 per share,
plus all unpaid dividends accrued. In connection with the First
Reserve Fund&nbsp;IX, L.P. (First Reserve) investment in Quanta,
on October&nbsp;15, 2002,
</FONT>

<P align="center"><FONT size="2">54
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">First Reserve acquired approximately
0.9&nbsp;million shares of our Series&nbsp;A Convertible
Preferred Stock. On October&nbsp;15, 2002, First Reserve forgave
approximately $780,000 in dividends that had accrued on those
shares. During the fourth quarter of 2002, 245,000&nbsp;shares
of Series&nbsp;A Convertible Preferred Stock were converted into
shares of common stock. During the first quarter of 2003, all
remaining outstanding shares of Series&nbsp;A Convertible
Preferred Stock were converted into shares of common stock and
the series was eliminated during the second quarter of 2003. Any
dividends that had accrued on the respective shares of
Series&nbsp;A Preferred Stock were forfeited and reversed on the
date of conversion.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Series&nbsp;E Preferred Stock and Redeemable
    Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the fourth quarter of 2002, First Reserve
purchased from Quanta approximately 2.4&nbsp;million shares of
newly issued Series&nbsp;E Preferred Stock at $30.00&nbsp;per
share. The Series&nbsp;E Preferred Stock was converted into
24.3&nbsp;million shares of common stock on December&nbsp;31,
2002 and the series was eliminated during the second quarter of
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The original as-converted share price negotiated
with First Reserve for the Series&nbsp;E Preferred Stock on
October&nbsp;15, 2002 was $3.00&nbsp;per share which was an
above market price. On December&nbsp;20, 2002, the date First
Reserve purchased the Series&nbsp;E Preferred Stock,
Quanta&#146;s stock closed at $3.35&nbsp;per share. Accordingly,
Quanta recorded a non-cash beneficial conversion charge of
$8.5&nbsp;million based on the $0.35&nbsp;per share
differential. The non-cash beneficial conversion charge is
recognized as a deemed dividend to the Series&nbsp;E Preferred
Stockholder and is recorded as a decrease to net income
attributable to common stock and an increase in additional
paid-in capital. The non-cash beneficial conversion charge had
no effect on Quanta&#146;s operating income, cash flows or
stockholders&#146; equity at December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Through February&nbsp;20, 2003, First Reserve had
the right to require Quanta to repurchase for cash the shares of
common stock issued as a result of the conversion of the shares
of Series&nbsp;E Preferred Stock if Quanta had a change in
control. As such, the $72.9&nbsp;million investment was
reflected in the consolidated balance sheet as Redeemable Common
Stock at December&nbsp;31, 2002. On February&nbsp;20, 2003, at
the expiration of this right, the Redeemable Common Stock was
reclassified to stockholders&#146; equity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with their investment, First
Reserve is entitled to a pre-emptive right to purchase shares of
common stock upon Quanta&#146;s issuance of shares to third
parties. During 2003, First Reserve acquired
1,201,128&nbsp;shares pursuant to such right.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Stockholder Rights Plan</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;8, 2000, the board of directors
adopted a Stockholder Rights Plan. The Stockholder Rights Plan
was amended several times in 2001 and 2002 and was amended and
restated on October&nbsp;24, 2002. Under the Stockholder Rights
Plan, as amended, a dividend of one preferred share purchase
right (a Right) was declared on each outstanding share of
Quanta&#146;s common stock (including Quanta&#146;s limited vote
common stock) and Series&nbsp;A Convertible Preferred Stock (on
an as-converted basis) for holders of record as of the close of
business on March&nbsp;27, 2000. The Rights also attach to all
common stock (including Quanta&#146;s limited vote common stock)
and Series&nbsp;A Convertible Preferred Stock that become
outstanding between March&nbsp;27, 2000 and the earliest of the
Distribution Date, the Redemption Date and the Final Expiration
Date (as such terms are defined in the Stockholder Rights Plan).
No separate certificates evidencing the Rights will be issued
unless and until they become exercisable. Each Right has an
initial exercise price of $153.33. The Rights will be
exercisable if a person or group (other than Aquila or First
Reserve and their transferees) becomes the beneficial owner of
15% or more of the voting power of Quanta&#146;s common shares,
assuming conversion, or commences a tender offer which if
completed would result in that person or group becoming the
beneficial owner of 15% or more of Quanta&#146;s common shares.
The Rights also will be exercisable if Aquila or First Reserve,
together with any affiliates or associates, becomes the
beneficial owner of more than 37.71% or 37.00%, respectively, of
the voting power of Quanta&#146;s common shares, assuming
conversion. Upon a &#147;Flip-In
</FONT>

<P align="center"><FONT size="2">55
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">Event&#148; as defined in the Stockholder Rights
Plan, the Rights held by anyone other than the Acquiring Person,
as defined in the Stockholder&#146;s Rights Plan, and its
transferees would be exercisable for common stock of Quanta at a
discount. The Rights will expire on March&nbsp;8, 2010.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The term &#147;assuming conversion&#148; means
assuming conversion of all outstanding equity securities,
whether or not then convertible, and excluding the conversion of
outstanding options, warrants and other similar rights. When
used in reference to First Reserve or any of its transferees,
however, &#147;assuming conversion&#148; means assuming
conversion of all outstanding equity securities, whether or not
then convertible, including the conversion of outstanding
options, warrants and other similar rights to acquire equity
securities of Quanta.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Limited Vote Common Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The shares of Limited Vote Common Stock have
rights similar to shares of common stock, except that such
shares are entitled to elect one member of the board of
directors and are entitled to one-tenth of one vote for each
share held on all other matters. Each share of Limited Vote
Common Stock will convert into common stock upon disposition by
the holder of such shares in accordance with the transfer
restrictions applicable to such shares. In 2001,
649,674&nbsp;shares, in 2002, 32,488&nbsp;shares and 2003,
16,000&nbsp;shares of Limited Vote Common Stock, respectively,
were converted to common stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Treasury Stock</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The board of directors of Quanta authorized a
Stock Repurchase Plan under which up to $75.0&nbsp;million of
Quanta&#146;s common stock could be repurchased. Under the Stock
Repurchase Plan, Quanta could conduct purchases through open
market transactions in accordance with applicable securities
laws. During 2001, Quanta purchased 986,000&nbsp;shares of
common stock for approximately $15.3&nbsp;million. On
March&nbsp;13, 2002, the 986,000&nbsp;shares of common stock
were sold to Quanta&#146;s Stock Employee Compensation Trust
(SECT), a trust formed in 2002 to fund certain of Quanta&#146;s
future employee benefit obligations using Quanta&#146;s common
stock, and were no longer considered treasury stock. These
shares were subsequently retired on June&nbsp;28, 2002, after
Quanta terminated the SECT. During the second quarter of 2002,
Quanta purchased 924,500&nbsp;shares of its common stock for
approximately $11.7&nbsp;million under the Stock Repurchase
Plan. As of July&nbsp;1, 2002, the independent committee of
Quanta&#146;s board of directors determined to cease the Stock
Repurchase Plan. Quanta acquired into treasury 1,871&nbsp;shares
in 2002 and 69&nbsp;shares in 2003, of previously restricted
stock for settlement of employee tax liabilities pursuant to the
2001 Stock Incentive Plan discussed in Note&nbsp;10.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Deferred Compensation</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the 2001 Stock Incentive Plan discussed in
Note&nbsp;10, shares of Quanta&#146;s common stock are issued at
the fair market value of the common stock at the date of
issuance. As restricted stock, the shares are subject to
forfeiture and other restrictions until they vest, generally
over three years in equal annual installments. However, during
the restriction period, the plan participants are entitled to
vote and receive dividends on such shares. Upon issuance of
shares of restricted stock under the plan, an unamortized
compensation expense equivalent to the market value of the
shares on the date of grant is charged to stockholders&#146;
equity and is amortized over the restriction period as non-cash
compensation expense. If shares of restricted stock are
cancelled during a given period, any remaining unamortized
deferred compensation expense related to the issuance is
reversed against additional paid-in capital. Compensation
expense recognized with respect to restricted stock awards
during the years ended December&nbsp;31, 2001, 2002 and 2003 was
approximately $230,000, $219,000 and $2.8&nbsp;million,
respectively.
</FONT>

<P align="center"><FONT size="2">56
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">10.</FONT></B></TD>
    <TD>
    <B><FONT size="2">LONG-TERM INCENTIVE PLANS:</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Stock Incentive Plan</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 1997, the board of directors adopted,
and the stockholders of Quanta approved, the 1997 Stock Option
Plan. In May 2000, the 1997 Stock Option Plan was amended to
expand the definition of &#147;Stock&#148; to include
Quanta&#146;s Series&nbsp;A Convertible Preferred Stock, common
stock and Limited Vote Common Stock. In May 2001, the 1997 Stock
Option Plan was amended and renamed the 2001 Stock Incentive
Plan. In November 2001, the plan was amended to allow certain
employees to participate. The plan was further amended during
2002 to make explicit the Compensation Committee&#146;s power to
grant shares of restricted stock in exchange for options and to
reduce the aggregate number of shares available for issuance
under the plan from 15% to 12% of the outstanding shares of
stock. The purpose of the plan is to provide directors, key
employees, officers and certain advisors with additional
incentives by increasing their proprietary interest in Quanta.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 2001 Stock Incentive Plan provides for the
grant of incentive stock options (ISOs) as defined in
Section&nbsp;422 of the Internal Revenue Code of 1986, as
amended (the Code), nonqualified stock options and restricted
stock (collectively, the Awards). The amount of ISOs that may be
granted under the 2001 Stock Incentive Plan is limited to
3,571,275&nbsp;shares. The 2001 Stock Incentive Plan is
administered by the Compensation Committee of the Board of
Directors. The Compensation Committee has, subject to applicable
regulation and the terms of the 2001 Stock Incentive Plan, the
authority to grant Awards under the 2001 Stock Incentive Plan,
to construe and interpret the 2001 Stock Incentive Plan and to
make all other determinations and take any and all actions
necessary or advisable for the administration of the 2001 Stock
Incentive Plan; provided, however, that Quanta&#146;s Chief
Executive Officer has the authority to grant restricted stock or
nonqualified stock options to individuals who are not officers,
provided that (i)&nbsp;the aggregate number of shares of common
stock issuable upon the exercise of non-qualified stock options
granted in any one calendar quarter does not exceed
100,000&nbsp;shares and the aggregate value of awards of
restricted stock granted in any one calendar quarter does not
exceed $250,000 determined based on the fair market value of the
common stock at the time of the grants, and (ii)&nbsp;the
aggregate number of shares of common stock issuable upon the
exercise of non-qualified stock options granted to any
individual in any one calendar quarter does not exceed
20,000&nbsp;shares of common stock and the aggregate value of
awards of restricted stock granted in any one calendar quarter
to any individual does not exceed $25,000 determined based on
the fair market value of the common stock at the time of the
grants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of Quanta&#146;s employees (including
officers), non-employee directors and certain consultants and
advisors are eligible to receive Awards under the 2001 Stock
Incentive Plan, but only employees of Quanta are eligible to
receive ISOs. Awards will be exercisable during the period
specified in each Award agreement and will generally become
exercisable in installments pursuant to a vesting schedule
designated by the Compensation Committee. Unless specifically
provided otherwise in the Award agreement, Awards become
immediately vested and exercisable in the event of a
&#147;change in control&#148; (as defined in the 2001 Stock
Incentive Plan) of Quanta. No option will remain exercisable
later than ten years after the date of grant (or five years in
the case of ISOs granted to employees owning more than 10% of
the voting capital stock).
</FONT>

<P align="center"><FONT size="2">57
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes option activity
under the 2001 Stock Incentive Plan for the years ended
December&nbsp;31, 2001, 2002 and 2003 (shares in thousands):
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,849</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.97</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,084</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.81</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(395</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forfeited and canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(565</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,973</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,310</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.74</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forfeited and canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,389</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.92</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forfeited and canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,356</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,416</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Options exercisable at&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,023</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,780</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, options exercisable are based on term
vesting periods as outlined in each option agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes information for
outstanding options at December&nbsp;31, 2003 (shares in
thousands):
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Options Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Options Exercisable</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Contractual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable As</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Range of Exercise Prices</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Life in Years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of 12/31/03</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;0.0000-$6.1500
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.88</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;6.1501-$12.3000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.09</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">456</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$12.3001-$18.4500
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.93</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$18.4501-$24.6000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$24.6001-$30.7500
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$30.7501-$36.9000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$36.9001-$43.0500
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$43.0501-$49.2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$49.2001-$55.3500
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$55.3501-$61.5000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56.67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,416</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">58
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed below, on January&nbsp;21, 2003,
Quanta offered eligible employees and consultants the
opportunity to exchange certain outstanding stock options, with
an exercise price of $10.00 or more, for restricted shares of
Quanta&#146;s common stock at an exchange ratio of one share of
restricted stock for every 2.24 option shares tendered. The
remaining eligible options that were not exchanged will be
required to be accounted for under variable plan accounting
under APB Opinion No.&nbsp;25. In the future, to the extent that
Quanta&#146;s stock price exceeds the exercise price of an
eligible option that was not exchanged, the difference will be
recorded as a non-cash compensation charge with an offset to
additional paid-in capital. No charges have been recorded with
respect to these options under variable plan accounting through
December&nbsp;31, 2003.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Restricted
Stock</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the 2001 Stock Incentive Plan
discussed above, Quanta granted 72,701&nbsp;shares,
95,903&nbsp;shares, and 3,431,354&nbsp;shares of restricted
stock with a weighted average grant price of $27.51, $3.27 and
$3.10, respectively, during the years ended December&nbsp;31,
2001, 2002 and 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;21, 2003, Quanta offered eligible
employees and consultants the opportunity to exchange certain
outstanding stock options, with an exercise price of $10.00 or
more, for restricted shares of Quanta&#146;s common stock at an
exchange ratio of one share of restricted stock for every 2.24
option shares tendered. Regardless of the vesting schedule of
the eligible options offered for exchange, the restricted stock
granted in the offer vests on February&nbsp;28 of each year,
beginning February&nbsp;28, 2004, assuming the employee or
consultant continues to meet the requirements for vesting. On
March&nbsp;10, 2003, Quanta accepted for exchange and canceled
eligible options to purchase an aggregate of
6,769,483&nbsp;shares of its common stock, representing
approximately 93% of the 7,289,750 options that were eligible to
be tendered in the offer as of the expiration date. Pursuant to
the terms of the offer, Quanta granted restricted stock
representing an aggregate of 3,022,112&nbsp;shares of its common
stock, or approximately $9.0&nbsp;million in value, in exchange
for the tendered eligible options which will be amortized as
non-cash compensation expense over the three-year vesting period
of the restricted stock.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Employee
Stock Purchase Plan</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An Employee Stock Purchase Plan (the ESPP) was
adopted by the board of directors of Quanta and was approved by
the stockholders of Quanta in May 1999. The purpose of the ESPP
is to provide an incentive for employees of Quanta and any
Participating Company (as defined in the ESPP) to acquire or
increase a proprietary interest in Quanta through the purchase
of shares of Quanta&#146;s common stock. At the date hereof, all
of the existing subsidiaries of Quanta have been designated as
Participating Companies. The ESPP is intended to qualify as an
&#147;Employee Stock Purchase Plan&#148; under Section&nbsp;423
of the Internal Revenue Code of 1986, as amended (the Code). The
provisions of the ESPP are construed in a manner consistent with
the requirements of that section of the Code. The ESPP is
administered by a committee, appointed from time to time, by the
board of directors. The ESPP is not subject to any of the
provisions of the Employee Retirement Income Security Act of
1974, as amended. During 2001, 2002 and 2003, respectively,
Quanta issued a total of 462,179&nbsp;shares,
662,147&nbsp;shares and 1,148,632&nbsp;shares, respectively,
pursuant to the ESPP.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">11.</FONT></B></TD>
    <TD>
    <B><FONT size="2">EMPLOYEE BENEFIT PLANS:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Union&#146;s
Multi-Employer Pension Plans</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with its collective bargaining
agreements with various unions, Quanta participates with other
companies in the unions&#146; multi-employer pension plans.
These plans cover all of Quanta&#146;s employees who are members
of such unions. The Employee Retirement Income Security Act of
1974, as amended by the Multi-Employer Pension Plan Amendments
Act of 1980, imposes certain liabilities upon employers who are
contributors to a multi-employer plan in the event of the
employer&#146;s withdrawal from, or upon termination of such
plan. Quanta has no plans to withdraw from these plans. The
plans do not maintain information on the
</FONT>

<P align="center"><FONT size="2">59
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">net assets and actuarial present value of the
plans&#146; unfunded vested benefits allocable to Quanta, and
the amounts, if any, for which Quanta may be contingently
liable, are not ascertainable at this time. Contributions to all
union multi-employer pension plans by Quanta were approximately
$41.8&nbsp;million for the year ended December&nbsp;31, 2003.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">401(k)
Plan</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective February&nbsp;1, 1999, Quanta adopted a
401(k) plan pursuant to which employees who are not provided
retirement benefits through a collective bargaining agreement
may make contributions through a payroll deduction. Quanta will
make a matching cash contribution of 100% of each
employee&#146;s contribution up to 3% of that employee&#146;s
salary and 50% of each employee&#146;s contribution between 3%
and 6% of such employee&#146;s salary, up to the maximum amount
permitted by law. Prior to joining Quanta&#146;s 401(k) plan,
certain subsidiaries of Quanta provided various defined
contribution plans to their employees. Contributions to all
non-union defined contribution plans by Quanta were
approximately $7.3&nbsp;million, $7.2&nbsp;million and
$6.0&nbsp;million for the years ended December&nbsp;31, 2001,
2002 and 2003, respectively.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">12.</FONT></B></TD>
    <TD>
    <B><FONT size="2">RELATED PARTY TRANSACTIONS:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Aquila Inc. (Aquila) has made investments in
Quanta in the form of Series&nbsp;A Convertible Preferred Stock.
See additional discussion in Note&nbsp;9. During 2003, Aquila
sold all investments in Quanta. Quanta had transactions in the
normal course of business with Aquila during 2003. Subsequent to
the initial investment by Aquila, revenues from Aquila in 2001,
2002 and 2003 were approximately $17.2&nbsp;million,
$29.7&nbsp;million and $15.4&nbsp;million, respectively, and
balances due Quanta at year-end were approximately
$2.4&nbsp;million, $2.6&nbsp;million and $3.1&nbsp;million,
respectively. In addition, Quanta performed work for an
affiliate of Aquila with revenues in 2001 and 2002 of
$19.3&nbsp;million and $0.4&nbsp;million, and balances due
Quanta at December&nbsp;31, 2002 were approximately
$3.4&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of Quanta&#146;s subsidiaries have
entered into related party lease arrangements for operational
facilities. These lease agreements generally have a term of five
years. Related party lease expense for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively, was
approximately $2.8&nbsp;million, $3.6&nbsp;million and
$3.2&nbsp;million.
</FONT>

<P align="center"><FONT size="2">60
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">13.</FONT></B></TD>
    <TD>
    <B><FONT size="2">COMMITMENTS AND CONTINGENCIES:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Leases</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta leases certain buildings and equipment
under non-cancelable lease agreements including related party
leases as discussed in Note&nbsp;12. The following schedule
shows the future minimum lease payments under these leases as of
December&nbsp;31, 2003 (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="66%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Operating</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Leases</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Leases</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year Ending December&nbsp;31&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,493</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2007
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,825</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2008
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thereafter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total minimum lease payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Amounts representing interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Present value of minimum lease payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less&nbsp;&#151; Current portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total long-term obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Rent expense related to operating leases was
approximately $24.1&nbsp;million, $31.3&nbsp;million and
$48.5&nbsp;million for the years ended December&nbsp;31, 2001,
2002 and 2003, respectively. Assets under capital leases are
included as part of property and equipment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta has guaranteed the residual value on
certain of its equipment operating leases. Quanta guarantees the
difference between this residual value and the fair market value
of the underlying asset at the date of termination of the
leases. At December&nbsp;31, 2003, the maximum guaranteed
residual value would have been approximately
$118.8&nbsp;million. Quanta believes that no significant
payments will be made as a result of the difference between the
fair market value of the leased equipment and the guaranteed
residual value. However, there can be no assurance that future
significant payments will not be required.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Litigation</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta is from time to time party to various
other lawsuits, claims and other legal proceedings that arise in
the ordinary course of business. These actions typically seek,
among other things, compensation for alleged personal injury,
breach of contract, property damage, punitive damages, civil
penalties or other losses, or injunctive or declaratory relief.
With respect to such lawsuits, claims and proceedings, Quanta
accrues reserves when it is probable a liability has been
incurred and the amount of loss can be reasonably estimated.
Quanta does not expect the outcome of any of these other
proceedings, separately or in the aggregate to have a material
adverse effect on Quanta&#146;s results of operations or
financial position.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Performance
Bonds</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In certain circumstances, Quanta is required to
provide performance bonds in connection with its contractual
commitments. Quanta has indemnified the surety for any expenses
potentially paid out under
</FONT>

<P align="center"><FONT size="2">61
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">these performance bonds. As of December&nbsp;31,
2003, the total amount of outstanding performance bonds was
approximately $334.6&nbsp;million.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Contingent
Payments</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta is subject to an agreement with the former
owners of an operating unit that was acquired in 2000. Under the
terms of this agreement and depending upon the ultimate
profitability or losses on certain projects and the collection
of the underlying receivables, Quanta may be required to make
additional payments to such former owners with a combination of
common stock and cash. At December&nbsp;31, 2003, the amount of
additional payments based on performance to date could equal up
to $15.5&nbsp;million, depending on the contingencies outlined
above. This amount may be adjusted significantly higher or lower
over the term of the agreement.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Employment
Agreements</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta has entered into various employment
agreements with certain executives which provide for
compensation and certain other benefits and for severance
payments under certain circumstances. In addition, certain
employment agreements contain clauses which become effective
upon a change of control of Quanta. Upon any of the defined
events in the various employment agreements, Quanta will pay
certain amounts to the employee, which vary with the level of
the employee&#146;s responsibility.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Other</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the course of its operations, Quanta is
subject to audit by tax authorities for varying periods in
various federal, state and local foreign tax jurisdictions.
Disputes arise during the course of such audits as to facts and
matters of law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta has indemnified various parties against
specified liabilities that those parties might incur in the
future in connection with companies previously acquired or
disposed of by Quanta. These indemnities usually are contingent
upon the other party incurring liabilities that reach specified
thresholds. As of December&nbsp;31, 2003, Quanta is not aware of
circumstances that would lead to future indemnity claims against
it for material amounts in connection with these transactions.
</FONT>

<P align="center"><FONT size="2">62
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">14.</FONT></B></TD>
    <TD>
    <B><FONT size="2">QUARTERLY FINANCIAL DATA
    (UNAUDITED):</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below sets forth the unaudited
consolidated operating results by quarter for the years ended
December&nbsp;31, 2002 and 2003 (in thousands, except per share
information).
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">For the Three Months Ended,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June&nbsp;30</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September&nbsp;30</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">449,220</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">432,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">436,215</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">432,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,658</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before cumulative effect of change
    in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,266</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(177,197</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,316</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(435,388</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(177,429</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,550</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,686</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share before cumulative
    effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5.69</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5.56</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share before
    cumulative effect of change in accounting principle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of change in accounting
    principle, net of tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5.66</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5.53</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2003:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">367,129</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">408,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">436,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">431,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,612</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) attributable to common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,734</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,835</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,399</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.03</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.08</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.23</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings (loss) per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.03</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.08</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.23</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sum of the individual quarterly earnings per
share amounts may not agree with year-to-date earnings per share
as each period&#146;s computation is based on the weighted
average number of shares outstanding during the period.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">15.</FONT></B></TD>
    <TD>
    <B><FONT size="2">SEGMENT INFORMATION:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta has aggregated each of its individual
operating units into one reportable segment as a specialty
contractor. Quanta provides comprehensive network solutions to
the electric power, gas, telecommunications and cable television
industries, including designing, installing, repairing and
maintaining network infrastructure. In addition, Quanta provides
ancillary services such as inside electrical wiring, intelligent
traffic networks, cable and control systems for light rail
lines, airports and highways, and specialty rock trenching,
directional boring and road milling for industrial and
commercial customers. Each of these services is provided
</FONT>

<P align="center"><FONT size="2">63
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">QUANTA SERVICES,&nbsp;INC. AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED
FINANCIAL&nbsp;STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<P align="left">
<FONT size="2">by various Quanta subsidiaries and discrete
financial information is not provided to management at the
service level. The following table presents information
regarding revenues derived from the industries noted above.
Certain reclassifications have been made to the prior periods in
order to conform to the current period presentation.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Years Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Electric power and gas network services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">850,278</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">971,646</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">979,140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telecommunications network services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">600,433</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287,117</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">238,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable television network services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">284,098</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203,083</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ancillary services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">280,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">288,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">303,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,014,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Quanta does not have significant operations or
long-lived assets in countries outside of the United States. We
derived $15.1&nbsp;million of our revenues from foreign
operations during 2003.
</FONT>

<P align="center"><FONT size="2">64
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='111'></A>
</DIV>

<!-- link1 "ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;9.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June 28, 2002, Quanta dismissed its former
independent public accountants and appointed
PricewaterhouseCoopers LLP as its new independent public
accountants for its fiscal year ending December&nbsp;31, 2002.
This determination followed Quanta&#146;s decision to seek
proposals from independent public accountants to audit the
financial statements of Quanta, and was approved by
Quanta&#146;s board of directors upon the recommendation of its
Audit Committee. Prior to the selection of
PricewaterhouseCoopers LLP, Arthur Andersen LLP served as the
company&#146;s independent auditors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Arthur Andersen&#146;s reports on Quanta&#146;s
consolidated financial statements for the year ended
December&nbsp;31, 2001 did not contain an adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope or accounting principles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the year ended December&nbsp;31, 2001 and
through June&nbsp;28, 2002, there were no disagreements with
Arthur Andersen on any matter of accounting principle or
practice, financial statement disclosure, or auditing scope or
procedure which, if not resolved to Arthur Andersen&#146;s
satisfaction, would have caused them to make reference to the
subject matter in connection with their report on Quanta&#146;s
consolidated financial statements for such years. During the
year ended December&nbsp;31, 2001 and through June&nbsp;28,
2002, there were no reportable events of the kind listed in
Item&nbsp;304(a)(1)(v) of Regulation&nbsp;S-K. Quanta requested
that Arthur Andersen furnish a letter addressed to the
Securities and Exchange Commission stating whether or not they
agreed with the statements made in the Form&nbsp;8-K filed on
July&nbsp;8, 2002. A letter was received from Arthur Andersen
that corroborated the statements contained in the Form&nbsp;8-K
and was filed with the Form&nbsp;8-K and is incorporated by
reference into this Form&nbsp;10-K as exhibit&nbsp;16.1.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the year ended December&nbsp;31, 2001 and
through June&nbsp;28, 2002. Quanta did not consult with
PricewaterhouseCoopers regarding any of the matters or events
set forth in Item&nbsp;304(a)(2)(i) or (ii) of
Regulation&nbsp;S-K.
</FONT>

<DIV align="left">
<A name='112'></A>
</DIV>

<!-- link1 "ITEM 9A. Controls and Procedures" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;9A.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Controls and Procedures</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our management evaluated, with the participation
of our Chairman and Chief Executive Officer and Chief Financial
Officer the effectiveness of our disclosure controls and
procedures (as defined in Rules&nbsp;13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as amended (Exchange
Act)), as of December&nbsp;31, 2003. Based on their evaluation,
our Chairman and Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures
were effective as of December&nbsp;31, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There has been no change in our internal control
over financial reporting (as defined in Rules&nbsp;13a-15(f) and
15d-15(f) under the Exchange Act) that occurred during the
quarter ended December&nbsp;31, 2003, that has materially
affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
</FONT>

<DIV align="left">
<A name='113'></A>
</DIV>

<!-- link1 "PART III" -->

<P align="center">
<B><FONT size="2">PART&nbsp;III</FONT></B>

<DIV align="left">
<A name='114'></A>
</DIV>

<!-- link1 "ITEM 10. Directors and Executive Officers of the Registrant" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;10.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Directors and Executive Officers of the
    Registrant</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information required by Item&nbsp;10 is
incorporated by reference to the information set forth in
Quanta&#146;s Definitive Proxy Statement for the 2004 Annual
Meeting of Stockholders.
</FONT>

<DIV align="left">
<A name='115'></A>
</DIV>

<!-- link1 "ITEM 11. Executive Compensation" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;11.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Executive Compensation</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information required by Item&nbsp;11 is
incorporated by reference to the information set forth in
Quanta&#146;s Definitive Proxy Statement for the 2004 Annual
Meeting of Stockholders.
</FONT>

<DIV align="left">
<A name='116'></A>
</DIV>

<!-- link1 "ITEM 12. Security Ownership of Certain Beneficial Owners and Management" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;12.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Security Ownership of Certain Beneficial
    Owners and Management</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information required by Item&nbsp;12 is
incorporated by reference to the information set forth in
Quanta&#146;s Definitive Proxy Statement for the 2004 Annual
Meeting of Stockholders.
</FONT>

<P align="center"><FONT size="2">65
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='117'></A>
</DIV>

<!-- link1 "ITEM 13. Certain Relationships and Related Transactions" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;13.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Certain Relationships and Related
    Transactions</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information required by Item&nbsp;13 is
incorporated by reference to the information set forth in
Quanta&#146;s Definitive Proxy Statement for the 2004 Annual
Meeting of Stockholders.
</FONT>

<DIV align="left">
<A name='118'></A>
</DIV>

<!-- link1 "ITEM 14. Principal Accountant Fees and Services" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;14.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Principal Accountant Fees and
    Services</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information required by Item&nbsp;14 is
incorporated by reference to the information set forth in
Quanta&#146;s Definitive Proxy Statement for the 2004 Annual
Meeting of Stockholders.
</FONT>

<DIV align="left">
<A name='119'></A>
</DIV>

<!-- link1 "PART IV" -->

<P align="center">
<B><FONT size="2">PART&nbsp;IV</FONT></B>

<DIV align="left">
<A name='120'></A>
</DIV>

<!-- link1 "ITEM 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K" -->

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;15.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Exhibits, Financial Statement Schedules,
    and Reports on Form&nbsp;8-K</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following financial statements, schedules and
exhibits are filed as part of this Report
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(1)&nbsp;Financial Statements. Reference is made
to the Index to Consolidated Financial Statements on
page&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of this Report.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(2)&nbsp;All schedules are omitted because they
are not applicable or the required information is shown in the
financial statements or the notes to the financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(3)&nbsp;Exhibits
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Elimination of the Designation of
    the Series&nbsp;A Convertible Preferred Stock (previously filed
    as Exhibit&nbsp;3.1 to the Company&#146;s Form&nbsp;10-Q for the
    quarterly period ended June&nbsp;30, 2003 (No.&nbsp;001-13831)
    filed August&nbsp;14, 2003 and incorporated herein by Reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Elimination of the Designation of
    the Series&nbsp;E Convertible Preferred Stock (previously filed
    as Exhibit&nbsp;3.2 to the Company&#146;s Form&nbsp;10-Q for the
    quarterly period ended June&nbsp;30, 2003 (No.&nbsp;001-13831)
    filed August&nbsp;14, 2003 and incorporated herein by Reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation (previously
    filed as Exhibit&nbsp;3.3 to the Company&#146;s Form&nbsp;10-Q
    (No.&nbsp;001-13831) filed August&nbsp;14, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws (previously filed as
    Exhibit&nbsp;3.2 to the Company&#146;s 2000 Form&nbsp;10-K
    (No.&nbsp;001-13831) filed April&nbsp;2, 2001 and incorporated
    herein by reference) Registration Statement on Form&nbsp;S-3
    (No.&nbsp;333-90961) filed November&nbsp;15, 1999 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Common Stock Certificate (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Registration
    Statement on Form&nbsp;S-1 (No.&nbsp;333-42957) and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Rights Agreement dated as of
    March&nbsp;8, 2000 amended and restated as of October&nbsp;24,
    2002 between Quanta Services,&nbsp;Inc. and American Stock
    Transfer&nbsp;&#38; Trust Company, as Rights Agent, which
    includes as Exhibit&nbsp;B thereto the Form of Right Certificate
    (previously filed as Exhibit&nbsp;1.1 to the Company&#146;s
    Form&nbsp;8-A12B/ A (No.&nbsp;001-13831) filed October&nbsp;25,
    2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Subordinated Indenture regarding
    4.0%&nbsp;Convertible Subordinated Debentures dated
    July&nbsp;25, 2000 by and between Quanta Services,&nbsp;Inc. and
    Chase Bank of Texas, National Association, as Trustee
    (previously filed as Exhibit&nbsp;4.1 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed July&nbsp;26, 2000 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">First Supplemental Indenture regarding
    4.0%&nbsp;Convertible Subordinated Debentures dated
    July&nbsp;25, 2000 by and between Quanta Services,&nbsp;Inc. and
    Chase Bank of Texas, National Association, as Trustee
    (previously filed as Exhibit&nbsp;4.2 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;0001-13831) filed July&nbsp;26, 2003 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;3 to Note Purchase Agreement
    dated as of September&nbsp;30, 2003 between Quanta
    Services,&nbsp;Inc. and the Purchasers named therein (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;4 to Note Purchase Agreement
    dated as of October&nbsp;9, 2003 between Quanta
    Services,&nbsp;Inc. and the Purchasers named therein (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">66
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indenture regarding 4.5%&nbsp;Convertible
    Subordinated Debentures between Quanta Services,&nbsp;Inc. and
    Wells Fargo Bank, N.A., Trustee, dated as of October&nbsp;17,
    2003 (previously filed as Exhibit&nbsp;4.1 to the to the
    Company&#146;s Form&nbsp;10-Q (No.&nbsp;001-13831) filed
    November&nbsp;14, 2003 and incorporated herein by reference.)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Employment Agreement (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Registration Statement
    on Form&nbsp;S-1 (No.&nbsp;333-42957) and incorporated herein by
    reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.13*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2001 Stock Incentive Plan as amended and restated
    March&nbsp;13, 2003 (previously filed as Exhibit&nbsp;10.43 to
    the Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    March&nbsp;31, 2003 (No.&nbsp;001-13831) filed May&nbsp;15, 2003
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and John R. Colson
    (previously filed as Exhibit&nbsp;10.3 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Peter T. Dameris
    (previously filed as Exhibit&nbsp;10.4 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Dana A. Gordon
    (previously filed as Exhibit&nbsp;10.5 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Nicholas M.
    Grindstaff (previously filed as Exhibit&nbsp;10.6 to the
    Company&#146;s Form&nbsp;8-K (No. 001-13831) filed
    March&nbsp;21, 2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Frederick M. Haag
    (previously filed as Exhibit&nbsp;10.7 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and James H. Haddox
    (previously filed as Exhibit&nbsp;10.8 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Derrick A. Jensen
    (previously filed as Exhibit&nbsp;10.9 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Elliott C. Robbins
    (previously filed as Exhibit&nbsp;10.10 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Gary W. Smith
    (previously filed as Exhibit&nbsp;10.11 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Luke T. Spalj
    (previously filed as Exhibit&nbsp;10.12 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Gary A. Tucci
    (previously filed as Exhibit&nbsp;10.13 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and John R. Wilson
    (previously filed as Exhibit&nbsp;10.14 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of March&nbsp;13,
    2002, by and between Quanta Services,&nbsp;Inc. and James F.
    O&#146;Neil,&nbsp;III (previously filed as Exhibit&nbsp;10.30 to
    the Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2002 (No. 001-13831) filed August&nbsp;14, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Settlement and Governance Agreement between
    Quanta Services,&nbsp;Inc. and Aquila,&nbsp;Inc., dated as of
    May&nbsp;20, 2002 (previously filed as Exhibit&nbsp;10.1 to the
    Company&#146;s Form&nbsp;8-K (No. 001-13831) filed May&nbsp;22,
    2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Investors&#146; Rights
    Agreement between Quanta Services,&nbsp;Inc. and
    Aquila,&nbsp;Inc. dated as of May&nbsp;20, 2002 (previously
    filed as Exhibit&nbsp;10.2 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed May&nbsp;22, 2002 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">67
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Securities Purchase Agreement dated
    October&nbsp;15, 2002 between Quanta Services,&nbsp;Inc. and
    First Reserve Fund&nbsp;IX, L.P. (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;22, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investors&#146; Rights Agreement dated
    October&nbsp;15, 2002 between Quanta Services,&nbsp;Inc. and
    First Reserve Fund&nbsp;IX, L.P. (previously filed as
    Exhibit&nbsp;10.2 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;22, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent Letter dated October&nbsp;15, 2002
    between Quanta Services,&nbsp;Inc. and Aquila,&nbsp;Inc.
    (previously filed as Exhibit&nbsp;10.3 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed October&nbsp;22, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to Securities Purchase
    Agreement dated December&nbsp;6, 2002 between Quanta
    Services,&nbsp;Inc. and First Reserve Fund&nbsp;IX, L.P.
    (previously filed as Exhibit&nbsp;10.1 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed December&nbsp;11, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.41*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Separation Agreement and General Release dated
    October&nbsp;24, 2002 between Peter Dameris and Quanta
    Services,&nbsp;Inc. (previously filed as Exhibit&nbsp;10.41 to
    the Company&#146;s 2002 Form&nbsp;10-K (No.&nbsp;001-13831)
    filed March&nbsp;31, 2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.42*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to Employment Agreement
    between Quanta Services,&nbsp;Inc. and John R. Colson dated
    June&nbsp;1, 2002 (previously filed as Exhibit&nbsp;10.42 to the
    Company&#146;s 2002 Form&nbsp;10-K (No.&nbsp;001-13831) filed
    March&nbsp;31, 2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Quanta Services, Inc. 2001 Stock Incentive Plan
    (as amended and restated March&nbsp;13, 2003) (previously filed
    as Exhibit&nbsp;10.43 to the Company&#146;s Form&nbsp;10-Q for
    the quarterly period ended March&nbsp;31, 2003
    (No.&nbsp;001-13831) filed May&nbsp;15, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment to No.&nbsp;2 to Settlement and
    Governance Agreement between Quanta Services,&nbsp;Inc. and
    Aquila,&nbsp;Inc. dated as of April&nbsp;10, 2003 (previously
    filed as Exhibit&nbsp;10.43 to the Company&#146;s Form&nbsp;10-Q
    for the quarterly period ended June&nbsp;30, 2003
    (No.&nbsp;001-13831) filed August&nbsp;14, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.45*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and John R.
    Colson (previously filed as Exhibit&nbsp;10.44 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.46*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and James H.
    Haddox (previously filed as Exhibit&nbsp;10.45 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and Incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.47*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and John R.
    Wilson (previously filed as Exhibit&nbsp;10.46 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.48*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and Luke T.
    Spalj (previously filed as Exhibit&nbsp;10.47 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Tenth Amendment to Third Amended and Restated
    Secured Credit Agreement dated as of September&nbsp;30, 2003
    between Quanta Services,&nbsp;Inc. and Bank of America, N.A., as
    administrative agent for the Lenders (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Eleventh Amendment to Third Amended and Restated
    Secured Credit Agreement dated as of October&nbsp;9, 2003
    between Quanta Services,&nbsp;Inc. and Bank of America, N.A., as
    administrative agent for the Lenders (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;17, 2003 and
    incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">4.5%&nbsp;Convertible Subordinated Debentures
    Resale Registration Rights Agreement dated October&nbsp;17, 2003
    (previously filed as Exhibit&nbsp;10.1 to the Company&#146;s
    Form&nbsp;10-Q for the quarterly period ended September&nbsp;30,
    2003 (No.&nbsp;001-13831) filed November&nbsp;14, 2003 and
    incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fourth Amended and Restated Secured Credit
    Agreement (previously Filed as Exhibit&nbsp;10.2 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    September&nbsp;30, 2003 (No.&nbsp;001-13831) filed
    November&nbsp;14, 2003 and incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Credit Agreement dated as of December&nbsp;19,
    2003 among Quanta Services,&nbsp;Inc., the subsidiaries of
    Quanta Services,&nbsp;Inc. identified therein, Bank of America,
    N.A., and other Lenders identified therein (filed herewith)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">68
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Security Agreement dated as of December&nbsp;19,
    2003 among the Pledgors identified therein and Bank of America,
    N.A., as administrative agent for the Lenders (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Pledge Agreement dated as of December&nbsp;19,
    2003 among the Debtors identified therein and Bank of America,
    N.A., as administrative agent for the Lenders (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">16</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Letter of Arthur Andersen LLP regarding change in
    certifying accountant (previously filed as Exhibit&nbsp;16.1 to
    the Company&#146;s Form&nbsp;8-K (No.&nbsp;001-13831) filed
    July&nbsp;8, 2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Subsidiaries (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers LLP (filed
    herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Executive Officer pursuant to Rule&nbsp;13a-14(a)/ 15d-14(a) and
    pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002
    (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Financial Officer pursuant to Rule&nbsp;13a-14(a)/ 15d-14(a) and
    pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002
    (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Executive Officer pursuant to 18&nbsp;U.S.C. Section&nbsp;1350,
    as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley
    Act of 2002 (furnished herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Financial Officer pursuant to 18&nbsp;U.S.C. Section&nbsp;1350,
    as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley
    Act of 2002 (furnished herewith)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Management contracts or compensatory plans or
    arrangements
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(b)&nbsp;<I>Reports on Form&nbsp;8-K:</I>
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;Quanta filed a form 8-K on
    October&nbsp;3, 2003 in which it reported, among other matters,
    that Quanta obtained waivers from the lenders under its then
    existing credit facility and from its senior secured noteholders
    for potential events of default under certain of its financial
    covenants.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;Quanta filed a Form&nbsp;8-K on
    October&nbsp;9, 2003 in which it reported, among other matters,
    the offering of convertible subordinated debentures.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(3)&nbsp;Quanta filed a Form&nbsp;8-K on
    October&nbsp;10, 2003 in which it reported, among other matters,
    the pricing of the offering of convertible subordinated
    debentures.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(4)&nbsp;Quanta filed a Form&nbsp;8-K on
    October&nbsp;17, 2003 in which it reported agreements with the
    lenders under its then existing credit facility and its senior
    secured noteholders that among other things, increased the
    maximum permitted aggregate principal amount of the convertible
    subordinated debentures.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(5)&nbsp;Quanta filed a Form&nbsp;8-K on
    October&nbsp;21, 2003 in which it reported, among other matters,
    the completion of the convertible subordinated debenture
    offering.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(6)&nbsp;Quanta filed a Form&nbsp;8-K on
    October&nbsp;24, 2003 in which it reported, among other matters,
    the issuance of additional convertible subordinated debentures.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(7)&nbsp;Quanta furnished a Form&nbsp;8-K on
    November&nbsp;13, 2003 announcing under Item&nbsp;12 its press
    release reporting earnings for the third quarter of 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(8)&nbsp;Quanta furnished a Form&nbsp;8-K on
    February&nbsp;26, 2004 announcing under Item&nbsp;12 its press
    release reporting earnings for the fourth quarter of 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">69
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of Section&nbsp;13
or 15(d) of the Securities Exchange Act of 1934, Quanta
Services,&nbsp;Inc. has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized, in the
City of Houston, State of Texas, on March&nbsp;12, 2004.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">QUANTA SERVICES,&nbsp;INC.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By&nbsp;</FONT></TD>
    <TD align="center">
    <FONT size="2">/s/ JOHN R. COLSON
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">John R. Colson
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">Chief Executive Officer</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Exchange Act of 1934, this Report has been signed by the
following persons in the capacities indicated on March&nbsp;12,
2004.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JOHN R. COLSON<BR>
    <HR size="1" noshade>John R. Colson
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Executive Officer, Director<BR>
    (Principal Executive&nbsp;Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JAMES H. HADDOX<BR>
    <HR size="1" noshade>James H. Haddox
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Financial Officer (Principal
    Financial&nbsp;Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ DERRICK A. JENSEN<BR>
    <HR size="1" noshade>Derrick A. Jensen
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Vice President, Controller and Chief
    Accounting&nbsp;Officer
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <BR>
    <HR size="1" noshade><FONT size="2">James R. Ball
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ VINCENT D. FOSTER<BR>
    <HR size="1" noshade>Vincent D. Foster
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ LOUIS C. GOLM<BR>
    <HR size="1" noshade>Louis C. Golm
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ BEN A. GUILL<BR>
    <HR size="1" noshade>Ben A. Guill
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JAMES A. NATTIER<BR>
    <HR size="1" noshade>James A. Nattier
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <BR>
    <HR size="1" noshade><FONT size="2">Thomas J. Sikorski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GARY A. TUCCI<BR>
    <HR size="1" noshade>Gary A. Tucci
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JOHN R. WILSON<BR>
    <HR size="1" noshade>John R. Wilson
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">70
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">INDEX TO EXHIBITS</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Elimination of the Designation of
    the Series&nbsp;A Convertible Preferred Stock (previously filed
    as Exhibit&nbsp;3.1 to the Company&#146;s Form&nbsp;10-Q for the
    quarterly period ended June&nbsp;30, 2003 (No.&nbsp;001-13831)
    filed August&nbsp;14, 2003 and incorporated herein by Reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Elimination of the Designation of
    the Series&nbsp;E Convertible Preferred Stock (previously filed
    as Exhibit&nbsp;3.2 to the Company&#146;s Form&nbsp;10-Q for the
    quarterly period ended June&nbsp;30, 2003 (No.&nbsp;001-13831)
    filed August&nbsp;14, 2003 and incorporated herein by Reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation (previously
    filed as Exhibit&nbsp;3.3 to the Company&#146;s Form&nbsp;10-Q
    (No.&nbsp;001-13831) filed August&nbsp;14, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws (previously filed as
    Exhibit&nbsp;3.2 to the Company&#146;s 2000 Form&nbsp;10-K
    (No.&nbsp;001-13831) filed April&nbsp;2, 2001 and incorporated
    herein by reference) Registration Statement on Form&nbsp;S-3
    (No.&nbsp;333-90961) filed November&nbsp;15, 1999 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Common Stock Certificate (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Registration
    Statement on Form&nbsp;S-1 (No.&nbsp;333-42957) and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Rights Agreement dated as of
    March&nbsp;8, 2000 amended and restated as of October&nbsp;24,
    2002 between Quanta Services,&nbsp;Inc. and American Stock
    Transfer&nbsp;&#38; Trust Company, as Rights Agent, which
    includes as Exhibit&nbsp;B thereto the Form of Right Certificate
    (previously filed as Exhibit&nbsp;1.1 to the Company&#146;s
    Form&nbsp;8-A12B/ A (No.&nbsp;001-13831) filed October&nbsp;25,
    2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Subordinated Indenture regarding
    4.0%&nbsp;Convertible Subordinated Debentures dated
    July&nbsp;25, 2000 by and between Quanta Services,&nbsp;Inc. and
    Chase Bank of Texas, National Association, as Trustee
    (previously filed as Exhibit&nbsp;4.1 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed July&nbsp;26, 2000 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">First Supplemental Indenture regarding
    4.0%&nbsp;Convertible Subordinated Debentures dated
    July&nbsp;25, 2000 by and between Quanta Services,&nbsp;Inc. and
    Chase Bank of Texas, National Association, as Trustee
    (previously filed as Exhibit&nbsp;4.2 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;0001-13831) filed July&nbsp;26, 2003 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;3 to Note Purchase Agreement
    dated as of September&nbsp;30, 2003 between Quanta
    Services,&nbsp;Inc. and the Purchasers named therein (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;4 to Note Purchase Agreement
    dated as of October&nbsp;9, 2003 between Quanta
    Services,&nbsp;Inc. and the Purchasers named therein (previously
    filed as Exhibit&nbsp;4.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indenture regarding 4.5%&nbsp;Convertible
    Subordinated Debentures between Quanta Services,&nbsp;Inc. and
    Wells Fargo Bank, N.A., Trustee, dated as of October&nbsp;17,
    2003 (previously filed as Exhibit&nbsp;4.1 to the to the
    Company&#146;s Form&nbsp;10-Q (No.&nbsp;001-13831) filed
    November&nbsp;14, 2003 and incorporated herein by reference.)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Employment Agreement (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Registration Statement
    on Form&nbsp;S-1 (No.&nbsp;333-42957) and incorporated herein by
    reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.13*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2001 Stock Incentive Plan as amended and restated
    March&nbsp;13, 2003 (previously filed as Exhibit&nbsp;10.43 to
    the Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    March&nbsp;31, 2003 (No.&nbsp;001-13831) filed May&nbsp;15, 2003
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and John R. Colson
    (previously filed as Exhibit&nbsp;10.3 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Peter T. Dameris
    (previously filed as Exhibit&nbsp;10.4 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Dana A. Gordon
    (previously filed as Exhibit&nbsp;10.5 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Nicholas M.
    Grindstaff (previously filed as Exhibit&nbsp;10.6 to the
    Company&#146;s Form&nbsp;8-K (No. 001-13831) filed
    March&nbsp;21, 2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Frederick M. Haag
    (previously filed as Exhibit&nbsp;10.7 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and James H. Haddox
    (previously filed as Exhibit&nbsp;10.8 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Derrick A. Jensen
    (previously filed as Exhibit&nbsp;10.9 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Elliott C. Robbins
    (previously filed as Exhibit&nbsp;10.10 to the Company&#146;s
    Form&nbsp;8-K (No. 001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Gary W. Smith
    (previously filed as Exhibit&nbsp;10.11 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Luke T. Spalj
    (previously filed as Exhibit&nbsp;10.12 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and Gary A. Tucci
    (previously filed as Exhibit&nbsp;10.13 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated March&nbsp;13, 2002,
    by and between Quanta Services,&nbsp;Inc. and John R. Wilson
    (previously filed as Exhibit&nbsp;10.14 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed March&nbsp;21, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of March&nbsp;13,
    2002, by and between Quanta Services,&nbsp;Inc. and James F.
    O&#146;Neil,&nbsp;III (previously filed as Exhibit&nbsp;10.30 to
    the Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2002 (No. 001-13831) filed August&nbsp;14, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Settlement and Governance Agreement between
    Quanta Services,&nbsp;Inc. and Aquila,&nbsp;Inc., dated as of
    May&nbsp;20, 2002 (previously filed as Exhibit&nbsp;10.1 to the
    Company&#146;s Form&nbsp;8-K (No. 001-13831) filed May&nbsp;22,
    2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Investors&#146; Rights
    Agreement between Quanta Services,&nbsp;Inc. and
    Aquila,&nbsp;Inc. dated as of May&nbsp;20, 2002 (previously
    filed as Exhibit&nbsp;10.2 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed May&nbsp;22, 2002 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Securities Purchase Agreement dated
    October&nbsp;15, 2002 between Quanta Services,&nbsp;Inc. and
    First Reserve Fund&nbsp;IX, L.P. (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;22, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Investors&#146; Rights Agreement dated
    October&nbsp;15, 2002 between Quanta Services,&nbsp;Inc. and
    First Reserve Fund&nbsp;IX, L.P. (previously filed as
    Exhibit&nbsp;10.2 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;22, 2002 and
    incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent Letter dated October&nbsp;15, 2002
    between Quanta Services,&nbsp;Inc. and Aquila,&nbsp;Inc.
    (previously filed as Exhibit&nbsp;10.3 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed October&nbsp;22, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to Securities Purchase
    Agreement dated December&nbsp;6, 2002 between Quanta
    Services,&nbsp;Inc. and First Reserve Fund&nbsp;IX, L.P.
    (previously filed as Exhibit&nbsp;10.1 to the Company&#146;s
    Form&nbsp;8-K (No.&nbsp;001-13831) filed December&nbsp;11, 2002
    and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.41*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Separation Agreement and General Release dated
    October&nbsp;24, 2002 between Peter Dameris and Quanta
    Services,&nbsp;Inc. (previously filed as Exhibit&nbsp;10.41 to
    the Company&#146;s 2002 Form&nbsp;10-K (No.&nbsp;001-13831)
    filed March&nbsp;31, 2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.42*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to Employment Agreement
    between Quanta Services,&nbsp;Inc. and John R. Colson dated
    June&nbsp;1, 2002 (previously filed as Exhibit&nbsp;10.42 to the
    Company&#146;s 2002 Form&nbsp;10-K (No.&nbsp;001-13831) filed
    March&nbsp;31, 2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Quanta Services, Inc. 2001 Stock Incentive Plan
    (as amended and restated March&nbsp;13, 2003) (previously filed
    as Exhibit&nbsp;10.43 to the Company&#146;s Form&nbsp;10-Q for
    the quarterly period ended March&nbsp;31, 2003
    (No.&nbsp;001-13831) filed May&nbsp;15, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment to No.&nbsp;2 to Settlement and
    Governance Agreement between Quanta Services,&nbsp;Inc. and
    Aquila,&nbsp;Inc. dated as of April&nbsp;10, 2003 (previously
    filed as Exhibit&nbsp;10.43 to the Company&#146;s Form&nbsp;10-Q
    for the quarterly period ended June&nbsp;30, 2003
    (No.&nbsp;001-13831) filed August&nbsp;14, 2003 and incorporated
    herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.45*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and John R.
    Colson (previously filed as Exhibit&nbsp;10.44 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.46*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and James H.
    Haddox (previously filed as Exhibit&nbsp;10.45 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and Incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.47*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and John R.
    Wilson (previously filed as Exhibit&nbsp;10.46 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.48*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated as of May&nbsp;21,
    2003, by and between Quanta Services,&nbsp;Inc. and Luke T.
    Spalj (previously filed as Exhibit&nbsp;10.47 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    June&nbsp;30, 2003 (No.&nbsp;001-13831) filed August&nbsp;14,
    2003 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Tenth Amendment to Third Amended and Restated
    Secured Credit Agreement dated as of September&nbsp;30, 2003
    between Quanta Services,&nbsp;Inc. and Bank of America, N.A., as
    administrative agent for the Lenders (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;3, 2003 and incorporated
    herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Eleventh Amendment to Third Amended and Restated
    Secured Credit Agreement dated as of October&nbsp;9, 2003
    between Quanta Services,&nbsp;Inc. and Bank of America, N.A., as
    administrative agent for the Lenders (previously filed as
    Exhibit&nbsp;10.1 to the Company&#146;s Form&nbsp;8-K
    (No.&nbsp;001-13831) filed October&nbsp;17, 2003 and
    incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">4.5%&nbsp;Convertible Subordinated Debentures
    Resale Registration Rights Agreement dated October&nbsp;17, 2003
    (previously filed as Exhibit&nbsp;10.1 to the Company&#146;s
    Form&nbsp;10-Q for the quarterly period ended September&nbsp;30,
    2003 (No.&nbsp;001-13831) filed November&nbsp;14, 2003 and
    incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fourth Amended and Restated Secured Credit
    Agreement (previously Filed as Exhibit&nbsp;10.2 to the
    Company&#146;s Form&nbsp;10-Q for the quarterly period ended
    September&nbsp;30, 2003 (No.&nbsp;001-13831) filed
    November&nbsp;14, 2003 and incorporated herein by reference.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Credit Agreement dated as of December&nbsp;19,
    2003 among Quanta Services,&nbsp;Inc., the subsidiaries of
    Quanta Services,&nbsp;Inc. identified therein, Bank of America,
    N.A., and other Lenders identified therein (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Security Agreement dated as of December&nbsp;19,
    2003 among the Pledgors identified therein and Bank of America,
    N.A., as administrative agent for the Lenders (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Pledge Agreement dated as of December&nbsp;19,
    2003 among the Debtors identified therein and Bank of America,
    N.A., as administrative agent for the Lenders (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">16</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Letter of Arthur Andersen LLP regarding change in
    certifying accountant (previously filed as Exhibit&nbsp;16.1 to
    the Company&#146;s Form&nbsp;8-K (No.&nbsp;001-13831) filed
    July&nbsp;8, 2002 and incorporated herein by reference)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Subsidiaries (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers LLP (filed
    herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Executive Officer pursuant to Rule&nbsp;13a-14(a)/ 15d-14(a) and
    pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002
    (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Financial Officer pursuant to Rule&nbsp;13a-14(a)/ 15d-14(a) and
    pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002
    (filed herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Executive Officer pursuant to 18&nbsp;U.S.C. Section&nbsp;1350,
    as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley
    Act of 2002 (furnished herewith)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certification of Periodic Report by Chief
    Financial Officer pursuant to 18&nbsp;U.S.C. Section&nbsp;1350,
    as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley
    Act of 2002 (furnished herewith)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Management contracts or compensatory plans or
    arrangements
    </FONT></TD>
</TR>

</TABLE>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.53
<SEQUENCE>3
<FILENAME>h13605exv10w53.txt
<DESCRIPTION>CREDIT AGREEMENT DATED 12/19/2003
<TEXT>
<PAGE>

================================================================================

                                CREDIT AGREEMENT

                          Dated as of December 19, 2003

                                      among

                             QUANTA SERVICES, INC.,
                                as the Borrower,

               THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN,
                               as the Guarantors,

                             BANK OF AMERICA, N.A.,
           as Administrative Agent, Swing Line Lender, L/C Issuer and
                            Credit-Linked L/C Issuer,

                                       and

                         THE OTHER LENDERS PARTY HERETO

                         BANC OF AMERICA SECURITIES LLC,

                     as Lead Arranger and Joint Book Manager

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                <C>
ARTICLE I  DEFINITIONS AND ACCOUNTING TERMS..................................................................       1
     1.01     Defined Terms..................................................................................       1
     1.02     Other Interpretive Provisions..................................................................      26
     1.03     Accounting Terms...............................................................................      27
     1.04     Rounding.......................................................................................      27
     1.05     References to Agreements and Laws..............................................................      27
     1.06     Times of Day...................................................................................      28
     1.07     Letter of Credit Amounts.......................................................................      28
ARTICLE II  THE COMMITMENTS AND CREDIT EXTENSIONS............................................................      28
     2.01     Revolving Loans and Credit-Linked Deposits.....................................................      28
     2.02     Borrowings, Conversions and Continuations of Revolving Loans...................................      28
     2.03     Letters of Credit..............................................................................      30
     2.04     Swing Line Loans...............................................................................      37
     2.05     Credit-Linked Deposits and Credit Extensions...................................................      40
     2.06     Conversion to Funded Term Loans; Conversion to Credit-Linked Deposits..........................      50
     2.07     Prepayments....................................................................................      53
     2.08     Termination or Reduction of Commitments........................................................      55
     2.09     Repayment of Loans.............................................................................      56
     2.10     Interest.......................................................................................      56
     2.11     Fees...........................................................................................      57
     2.12     Computation of Interest and Fees...............................................................      57
     2.13     Evidence of Debt...............................................................................      58
     2.14     Payments Generally.............................................................................      58
     2.15     Sharing of Payments............................................................................      60
ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY..........................................................      60
     3.01     Taxes..........................................................................................      60
     3.02     Illegality.....................................................................................      62
     3.03     Inability to Determine Rates...................................................................      62
     3.04     Increased Cost and Reduced Return; Capital Adequacy............................................      62
     3.05     Funding Losses.................................................................................      63
     3.06     Matters Applicable to all Requests for Compensation............................................      64
     3.07     Survival.......................................................................................      64
ARTICLE IV  GUARANTY.........................................................................................      64
     4.01     The Guaranty...................................................................................      64
     4.02     Obligations Unconditional......................................................................      64
     4.03     Reinstatement..................................................................................      65
     4.04     Certain Additional Waivers.....................................................................      65
     4.05     Remedies.......................................................................................      66
     4.06     Rights of Contribution.........................................................................      66
     4.07     Guarantee of Payment; Continuing Guarantee.....................................................      67
ARTICLE V  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS.........................................................      67
     5.01     Conditions of Initial Credit Extension.........................................................      67
     5.02     Conditions to all Credit Extensions............................................................      69
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                <C>
     5.03     Conditions to Term Loans.......................................................................      70
ARTICLE VI  REPRESENTATIONS AND WARRANTIES...................................................................      70
     6.01     Existence, Qualification and Power.............................................................      70
     6.02     Authorization; No Contravention................................................................      71
     6.03     Governmental Authorization; Other Consents.....................................................      71
     6.04     Binding Effect.................................................................................      71
     6.05     Financial Statements; No Material Adverse Effect...............................................      71
     6.06     Litigation.....................................................................................      72
     6.07     No Default.....................................................................................      72
     6.08     Ownership of Property; Liens...................................................................      72
     6.09     Environmental Compliance.......................................................................      72
     6.10     Insurance......................................................................................      73
     6.11     Taxes..........................................................................................      73
     6.12     ERISA Compliance...............................................................................      73
     6.13     Subsidiaries...................................................................................      74
     6.14     Margin Regulations; Investment Company Act; Public Utility Holding Company Act.................      74
     6.15     Disclosure.....................................................................................      75
     6.16     Compliance with Laws...........................................................................      75
     6.17     Intellectual Property; Licenses, Etc...........................................................      75
     6.18     Solvency.......................................................................................      75
     6.19     Perfection of Security Interests in the Collateral.............................................      75
     6.20     Business Locations.............................................................................      75
     6.21     Brokers' Fees..................................................................................      76
     6.22     Labor Matters..................................................................................      76
     6.23     Subordination..................................................................................      76
     6.24     Tax Shelter Regulations........................................................................      76
ARTICLE VII  AFFIRMATIVE COVENANTS...........................................................................      76
     7.01     Financial Statements...........................................................................      77
     7.02     Certificates; Other Information................................................................      77
     7.03     Notices........................................................................................      79
     7.04     Payment of Obligations.........................................................................      79
     7.05     Preservation of Existence, Etc.................................................................      79
     7.06     Maintenance of Properties......................................................................      80
     7.07     Maintenance of Insurance.......................................................................      80
     7.08     Compliance with Laws...........................................................................      80
     7.09     Books and Records..............................................................................      80
     7.10     Inspection Rights..............................................................................      81
     7.11     Use of Proceeds................................................................................      81
     7.12     Additional Subsidiaries........................................................................      81
     7.13     ERISA Compliance...............................................................................      81
     7.14     Pledged Assets.................................................................................      82
ARTICLE VIII  NEGATIVE COVENANTS.............................................................................      83
     8.01     Liens..........................................................................................      83
     8.02     Investments....................................................................................      85
     8.03     Indebtedness...................................................................................      85
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                               <C>
     8.04     Fundamental Changes............................................................................      87
     8.05     Dispositions...................................................................................      87
     8.06     Restricted Payments............................................................................      87
     8.07     Change in Nature of Business...................................................................      88
     8.08     Transactions with Affiliates and Insiders......................................................      88
     8.09     Burdensome Agreements..........................................................................      88
     8.10     Use of Proceeds................................................................................      89
     8.11     Financial Covenants............................................................................      89
     8.12     Prepayment of Other Indebtedness, Etc..........................................................      89
     8.13     Organization Documents; Fiscal Year; Legal Name, State of Formation and Form of Entity.........      90
     8.14     Ownership of Subsidiaries......................................................................      90
     8.15     Sale Leasebacks................................................................................      90
     8.16     Capital Expenditures...........................................................................      90
ARTICLE IX  EVENTS OF DEFAULT AND REMEDIES...................................................................      91
     9.01     Events of Default..............................................................................      91
     9.02     Remedies Upon Event of Default.................................................................      93
     9.03     Application of Funds...........................................................................      94
ARTICLE X  ADMINISTRATIVE AGENT..............................................................................      95
     10.01    Appointment and Authorization of Administrative Agent..........................................      95
     10.02    Delegation of Duties...........................................................................      96
     10.03    Liability of Administrative Agent..............................................................      96
     10.04    Reliance by Administrative Agent...............................................................      97
     10.05    Notice of Default..............................................................................      97
     10.06    Credit Decision; Disclosure of Information by Administrative Agent.............................      97
     10.07    Indemnification of Administrative Agent........................................................      98
     10.08    Administrative Agent in its Individual Capacity................................................      98
     10.09    Successor Administrative Agent.................................................................      99
     10.10    Administrative Agent May File Proofs of Claim..................................................      99
     10.11    Collateral and Guaranty Matters................................................................     100
     10.12    Other Agents; Arrangers and Managers...........................................................     100
ARTICLE XI  MISCELLANEOUS....................................................................................     101
     11.01    Amendments, Etc................................................................................     101
     11.02    Notices and Other Communications; Facsimile Copies.............................................     102
     11.03    No Waiver; Cumulative Remedies.................................................................     103
     11.04    Attorney Costs, Expenses and Taxes.............................................................     103
     11.05    Indemnification by the Borrower................................................................     104
     11.06    Payments Set Aside.............................................................................     105
     11.07    Successors and Assigns.........................................................................     105
     11.08    Confidentiality................................................................................     108
     11.09    Set-off........................................................................................     109
     11.10    Interest Rate Limitation.......................................................................     109
     11.11    Counterparts...................................................................................     109
     11.12    Integration....................................................................................     109
     11.13    Survival of Representations and Warranties.....................................................     110
     11.14    Severability...................................................................................     110
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                               <C>
     11.15    Tax Forms......................................................................................     110
     11.16    Replacement of Lenders.........................................................................     112
     11.17    Governing Law..................................................................................     112
     11.18    Waiver of Right to Trial by Jury...............................................................     112
     11.19    Designated Senior Indebtedness.................................................................     113
     11.20    USA Patriot Act Notice.........................................................................     113
</TABLE>

<PAGE>

SCHEDULES

     1.01(a)           Dispositions
     1.01(b)(1)        Existing Credit-Linked Letters of Credit
     1.01(b)(2)        Existing Letters of Credit
     1.01(c)           Permitted Charges
     2.01              Commitments and Pro Rata Shares
     6.10              Insurance
     6.13              Subsidiaries
     6.17              IP Rights
     6.20(a)           Locations of Real Property
     6.20(b)           Locations of Tangible Personal Property
     6.20(c)           Location of Chief Executive Office, Etc.
     8.01              Liens Existing on the Closing Date
     8.02              Investments Existing on the Closing Date
     8.03              Indebtedness Existing on the Closing Date
     8.08              Affiliate Transactions
     11.02             Certain Addresses for Notices

EXHIBITS

     A                 Form of Letter of Credit Transfer Notice
     B                 Form of Loan Notice
     C                 Form of Request for Credit-Linked Deposit
     D                 Form of Swing Line Loan Notice
     E-1               Form of Revolving Note
     E-2               Form of Swing Line Note
     E-3               Form of Credit-Linked Note
     F                 Form of Compliance Certificate
     G                 Form of Assignment and Assumption
     H                 Form of Joinder Agreement
     I                 Form of Money Market Account Agreement

<PAGE>

                                CREDIT AGREEMENT

         This CREDIT AGREEMENT is entered into as of December __, 2003 among
QUANTA SERVICES, INC., a Delaware corporation (the "Borrower"), the Guarantors
(defined herein), the Lenders (defined herein) and BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer.

         The Borrower has requested that the Lenders provide $185,000,000 in
credit facilities for the purposes set forth herein, and the Lenders are willing
to do so on the terms and conditions set forth herein.

         In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

1.01     Defined Terms.

         As used in this Agreement, the following terms shall have the meanings
set forth below:

         "Acquisition", by any Person, means the acquisition by such Person, in
a single transaction or in a series of related transactions, of all or any
substantial portion of the Property of another Person or at least a majority of
the Voting Stock of another Person, in each case whether or not involving a
merger or consolidation with such other Person and whether for cash, property,
services, assumption of Indebtedness, securities or otherwise.

         "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

         "Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 11.02 or such
other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

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

         "Affiliate" means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. "Control"
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. "Controlling" and
"Controlled" have meanings correlative thereto. Without limiting the generality
of the foregoing, a Person shall be deemed to be Controlled by another Person if
such other Person possesses, directly or indirectly, power to vote 10% or more
of the securities having ordinary voting power for the election of directors,
managing general partners or the equivalent.

         "Agent-Related Persons" means the Administrative Agent, together with
its Affiliates (including, in the case of Bank of America in its capacity as the
Administrative Agent, BAS), and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and Affiliates.

<PAGE>

         "Aggregate Credit-Linked Commitments" means the Credit-Linked
Commitments of all the Credit-Linked Lenders. The aggregate principal amount of
the Credit-Linked Commitment of all the Lenders as in effect on the Closing Date
is ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000).

         "Aggregate Revolving Commitments" means the Revolving Commitments of
all the Lenders. The initial amount of the Aggregate Revolving Commitments in
effect on the Closing Date is THIRTY FIVE MILLION DOLLARS ($35,000,000).

         "Agreement" means this Credit Agreement, as amended, modified,
supplemented and extended from time to time.

         "Applicable Rate" means the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 7.02(a):

<TABLE>
<CAPTION>
                                                              Cash
                                                             Secured            Revolving Loans
               Consolidated                    Letter of    Letter of      --------------------------
Pricing          Leverage        Commitment     Credit       Credit       Eurodollar       Base Rate
 Level            Ratio             Fee          Fee           Fee          Loans            Loans
 -----            -----             ---          ---           ---          -----            -----
<S>        <C>                   <C>           <C>          <C>           <C>              <C>
    1        < 2.5:1.0             0.375%        1.75%         0.50%        1.75%            0.25%
    2      > or = 2.5:1.0 but      0.375%        2.00%         0.50%        2.00%            0.50%
             < 3.0:1.0

    3      > or = 3.0:1.0 but       0.50%        2.25%         0.50%        2.25%            0.75%
             < 3.5:1.0

    4      > or = 3.5:1.0 but       0.50%        2.50%         0.50%        2.50%            1.00%
             < 4.0:1.0

    5      > or = 4.0:1.0 but       0.50%        2.75%         0.50%        2.75%            1.25%
             < 4.5:1.0

    6      > or = 4.5:1.0          0.625%        3.00%         0.50%        3.00%            1.50%
</TABLE>

Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is required to be
delivered pursuant to Section 7.02(a); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then
Pricing Level 6 shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered and shall
continue to apply until the first Business Day immediately following the date a
Compliance Certificate is delivered in accordance with Section 7.02(a),
whereupon the Applicable Rate shall be adjusted based upon the calculation of
the Consolidated Leverage Ratio contained in such Compliance Certificate. The
Applicable Rate in effect from the Closing Date through the first Business Day
immediately following the date a Compliance Certificate is required to be
delivered pursuant to Section 7.02(a) for the fiscal quarter ending December 31,
2003 shall be determined based upon Pricing Level 6.

         "Assignment and Assumption" means an Assignment and Assumption
substantially in the form of Exhibit G.

         "Attorney Costs" means and includes all reasonable fees, expenses and
disbursements of any law firm or other external counsel.

<PAGE>

         "Attributable Indebtedness" means, on any date, (a) in respect of any
Capital Lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
(b) in respect of any Synthetic Lease, the capitalized amount of the remaining
lease payments under the relevant lease that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a Capital Lease and (c) in respect of any Securitization
Transaction of any Person, the outstanding principal amount of such financing,
after taking into account reserve accounts and making appropriate adjustments,
determined by the Administrative Agent in its reasonable judgment.

         "Audited Financial Statements" means the audited consolidated balance
sheet of the Borrower and its Subsidiaries for the fiscal year ended December
31, 2002, and the related consolidated statements of income or operations,
shareholders' equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

         "Auto-Renewal Credit-Linked Letter of Credit" has the meaning specified
in Section 2.05(b)(iii).

         "Auto-Renewal Letter of Credit" has the meaning specified in Section
2.03(b)(iii).

         "Availability Period" means, (a) with respect to the Revolving
Commitments, the period from and including the Closing Date to the earliest of
(i) the Maturity Date, (ii) the date of termination of the Aggregate Revolving
Commitments pursuant to Section 2.08, and (iii) the date of termination of the
commitment of each Lender to make Loans and of the obligation of the L/C Issuer
to make L/C Credit Extensions pursuant to Section 9.02 and (b) with respect to
the Credit-Linked Commitments, the period from and including the Closing Date to
the earliest of (i) the Maturity Date, (ii) the date of termination of the
Credit-Linked Commitments pursuant to Section 2.08 and (iii) the date of
termination of the commitment of each Credit-Linked Lender to make Term Loans
pursuant to Section 9.02.

         "Bank of America" means Bank of America, N.A. and its successors.

         "BAS" means Banc of America Securities LLC, in its capacity as sole
lead arranger and sole book manager.

         "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." The "prime rate" is a rate set by Bank of America
based upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in the "prime rate" announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

         "Base Rate Loan" means a Loan that bears interest based on the Base
Rate.

         "Benchmark Rate" has the meaning set forth in Section 2.05(i).

         "Borrower" has the meaning specified in the introductory paragraph
hereto.

         "Borrowing" means a borrowing consisting of simultaneous Revolving
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the
same Interest Period made by each of the Lenders pursuant to Section 2.01.

<PAGE>

         "Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the state where the Administrative Agent's Office is located
and, if such day relates to any Eurodollar Rate Loan, means any such day on
which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market.

         "Businesses" means, at any time, a collective reference to the
businesses operated by the Borrower and its Subsidiaries at such time.

         "Capital Lease" means, as applied to any Person, any lease of any
Property by that Person as lessee which, in accordance with GAAP, is required to
be accounted for as a capital lease on the balance sheet of that Person.

         "Capital Stock" means (a) in the case of a corporation, capital stock,
(b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock, (c) in the case of a partnership, partnership interests (whether
general or limited), (d) in the case of a limited liability company, membership
interests and (e) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

         "Cash Collateralize" means to pledge and deposit with or deliver to (a)
the Administrative Agent, for the benefit of the L/C Issuer and the Lenders with
a Revolving Commitment, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the L/C Issuer (which documents are
hereby consented to by the Lenders) or (b) the Administrative Agent, for the
benefit of the Credit-Linked L/C Issuer and the Credit-Linked Lenders, as
collateral for the Credit-Linked L/C Obligations, cash or deposit account
balances pursuant to documentation in form and substance reasonably satisfactory
to the Administrative Agent and the Credit-Linked L/C Issuer (which documents
are hereby consented to by the Credit-Linked Lenders), as the context may
require. Derivatives of such term have corresponding meanings.

         "Cash Equivalents" means, as at any date, (a) securities issued or
directly and fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States is pledged in support thereof) having maturities of not more than twelve
months from the date of acquisition, (b) Dollar denominated time deposits and
certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of
recognized standing having capital and surplus in excess of $500,000,000 or
(iii) any bank whose short-term commercial paper rating from S&P is at least A-1
or the equivalent thereof or from Moody's is at least P-1 or the equivalent
thereof (any such bank being an "Approved Bank"), in each case with maturities
of not more than one (1) year from the date of acquisition, (c) commercial paper
and variable or fixed rate notes issued by any Approved Bank (or by the parent
company thereof) or any variable rate notes issued by, or guaranteed by, any
domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or
P-1 (or the equivalent thereof) or better by Moody's and maturing within twelve
(12) months of the date of acquisition, (d) repurchase agreements entered into
by any Person with a bank or trust company (including any of the Lenders) or
recognized securities dealer having capital and surplus in excess of
$500,000,000 for direct obligations issued by or fully guaranteed by the United
States in which such Person shall have a perfected first priority security
interest (subject to no other Liens) and having, on the date of purchase
thereof, a fair market value of at least 100% of the amount of the repurchase
obligations and (e) Investments, classified in accordance with GAAP as current
assets, in money market investment programs registered under the Investment
Company Act of 1940, as amended, which are administered by reputable

<PAGE>

financial institutions having capital of at least $500,000,000 and the
portfolios of which are limited such that 95% of such Investments are of the
character described in the foregoing subdivisions (a) through (d).

         "Cash-Secured Letter of Credit" means any Letter of Credit issued
pursuant to Section 2.03 which is secured by cash pledged and deposited with the
Administrative Agent pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the L/C Issuer.

         "Change of Control" means an event or series of events by which:

                  (a)      any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
         excluding any employee benefit plan of such person or its subsidiaries,
         and any person or entity acting in its capacity as trustee, agent or
         other fiduciary or administrator of any such plan) becomes the
         "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
         Securities Exchange Act of 1934, except that (i) a person or group
         shall be deemed to have "beneficial ownership" of all Capital Stock
         that such person or group has the right to acquire (such right, an
         "option right"), whether such right is exercisable immediately or only
         after the passage of time and (ii) an entity shall not be deemed to
         have "beneficial ownership" of any Capital Stock owned by any member of
         the Borrower's board of directors employed by or affiliated with such
         entity), directly or indirectly, of thirty eight percent (38%) of the
         Capital Stock of the Borrower entitled to vote for members of the board
         of directors or equivalent governing body of the Borrower on a fully
         diluted basis (and taking into account all such securities that such
         person or group has the right to acquire pursuant to any option right);
         or

                  (b)      during any period of 24 consecutive months, a
         majority of the members of the board of directors or other equivalent
         governing body of the Borrower cease to be composed of individuals (i)
         who were members of that board or equivalent governing body on the
         first day of such period, (ii) whose election or nomination to that
         board or equivalent governing body was approved by individuals referred
         to in clause (i) above constituting at the time of such election or
         nomination at least a majority of that board or equivalent governing
         body or (iii) whose election or nomination to that board or other
         equivalent governing body was approved by individuals referred to in
         clauses (i) and (ii) above constituting at the time of such election or
         nomination at least a majority of that board or equivalent governing
         body (excluding, in the case of both clause (ii) and clause (iii), any
         individual whose initial nomination for, or assumption of office as, a
         member of that board or equivalent governing body occurs as a result of
         an actual or threatened solicitation of proxies or consents for the
         election or removal of one or more directors by any person or group
         other than a solicitation for the election of one or more directors by
         or on behalf of the board of directors); or

                  (c)      the occurrence of a "Fundamental Change" (or any
         comparable term) under, and as defined in, the 2000 Subordinated
         Documents; or

                  (d)      the occurrence of a "Fundamental Change" (or any
         comparable term) under, and as defined in, the 2003 Convertible
         Subordinated Debentures Documents.

         "Closing Date" means the date hereof.

         "Collateral" means a collective reference to all real and personal
Property with respect to which Liens in favor of the Administrative Agent are
purported to be granted pursuant to and in accordance with the terms of the
Collateral Documents.

<PAGE>

         "Collateral Documents" means a collective reference to the Security
Agreement, the Pledge Agreement, the Money Market Account Agreement, the
Mortgages and other security documents as may be executed and delivered by the
Loan Parties pursuant to the terms of Section 7.14.

         "Commitment" means, as to each Lender, the Revolving Commitment of such
Lender and/or the Credit-Linked Commitment of such Lender.

         "Compliance Certificate" means a certificate substantially in the form
of Exhibit F.

         "Consolidated Asset Coverage Ratio" means, as of any date of
determination, the ratio of (a) Consolidated Net Assets to (b) Consolidated
Funded Indebtedness (other than Subordinated Indebtedness) as of such date minus
unrestricted cash and Cash Equivalents in excess of $25,000,000 held by the
Borrower and its Subsidiaries which would appear on a consolidated balance sheet
of the Borrower and its Subsidiaries as of such date.

         "Consolidated Capital Expenditures" means, for any period, for the
Borrower and its Subsidiaries on a consolidated basis, all capital expenditures
(including, without limitation, any capitalized software development costs), as
determined in accordance with GAAP; provided, however, that Consolidated Capital
Expenditures shall not include (a) expenditures made with proceeds of any
Involuntary Disposition to the extent such expenditures are used to purchase
Property that is the same as or similar to the Property subject to such
Involuntary Disposition or (b) Permitted Acquisitions.

         "Consolidated EBIT" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income
for such period plus the following to the extent deducted in calculating such
Consolidated Net Income: (a) Consolidated Interest Expense for such period, (b)
the provision for taxes based on income or revenues payable by the Borrower and
its Subsidiaries for such period, (c) without duplication, the Permitted Charges
for such period and (d) without duplication, Non-Cash Charges for such period,
as determined in accordance with GAAP. Notwithstanding the foregoing, for
purposes of calculating the Consolidated Interest Coverage Ratio, the
Consolidated Leverage Ratio and the Consolidated Senior Leverage Ratio as of the
end of the fiscal quarters ending December 31, 2003 and March 31, 2004,
Consolidated EBIT for the twelve month period ending as of the applicable fiscal
quarter shall be determined as follows:

         Date of Fiscal Quarter End

         December 31, 2003          $18,050,000 plus actual Consolidated EBIT
                                    for the six month period ending on December
                                    31, 2003

         March 31, 2004             $18,050,000 plus actual Consolidated EBIT
                                    for the nine month period ending on March
                                    31, 2004

         "Consolidated EBITDA" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to (a) Consolidated EBIT
for such period plus (b) the amount of depreciation and amortization expense for
such period (to the extent deducted in calculating Consolidated Net Income for
such period), all as determined in accordance with GAAP. Notwithstanding the
foregoing, for purposes of calculating the Consolidated Interest Coverage Ratio,
the Consolidated Leverage Ratio and the Consolidated Senior Leverage Ratio as of
the end of the fiscal quarters ending December 31, 2003 and March 31, 2004,
Consolidated EBITDA for the twelve month period ending as of the applicable
fiscal quarter shall be determined as follows:

         Date of Fiscal Quarter End

<PAGE>

         December 31, 2003          $48,550,000 plus actual Consolidated EBITDA
                                    for the six month period ending on December
                                    31, 2003

         March 31, 2004             $33,750,000 plus actual Consolidated EBITDA
                                    for the nine month period ending on March
                                    31, 2004

         "Consolidated Funded Indebtedness" means Funded Indebtedness of the
Borrower and its Subsidiaries on a consolidated basis determined in accordance
with GAAP.

         "Consolidated Interest Expense" means, for any period, for the Borrower
and its Subsidiaries on a consolidated basis, an amount equal to the sum of all
interest, premium payments, debt discount, fees, charges and related expenses of
the Borrower and its Subsidiaries in connection with borrowed money (including
capitalized interest) or in connection with the deferred purchase price of
assets, in each case to the extent treated as interest in accordance with GAAP;
provided, however, that Consolidated Interest Expense for the twelve month
period ending as of the fiscal quarters ending December 31, 2003, March 31,
2004, June 30, 2004 and September 30, 2004 shall equal the following:

         Date of Fiscal Quarter End

         December 31, 2003          $21,500,000

         March 31, 2004             $16,125,000 plus actual Consolidated
                                    Interest Expense for the three month period
                                    ending on March 31, 2004

         June 30, 2004              $10,750,000 plus actual Consolidated
                                    Interest Expense for the six month period
                                    ending on June 30, 2004

         September 30, 2004         $5,375,000 plus actual Consolidated Interest
                                    Expense for the nine month period ending on
                                    September 30, 2004

         "Consolidated Interest Coverage Ratio" means, as of any date of
determination, the ratio of (a) Consolidated EBIT for the period of the four
fiscal quarters most recently ended for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b) to (b) the sum of (i)
Consolidated Interest Expense for the period of the four fiscal quarters most
recently ended for which the Borrower has delivered financial statements
pursuant to Section 7.01(a) or (b) minus (ii) all interest expense attributable
to capitalized loan costs and the amount of fees paid in connection with the
issuance of letters of credit on behalf of the Borrower or any Subsidiary during
such period.

         "Consolidated Leverage Ratio" means, as of any date of determination,
the ratio of (a) Consolidated Funded Indebtedness as of such date minus
unrestricted cash and Cash Equivalents in excess of $25,000,000 held by the
Borrower and its Subsidiaries which would appear on a consolidated balance sheet
of the Borrower and its Subsidiaries as of such date to (b) Consolidated EBITDA
for the period of the four fiscal quarters most recently ended for which the
Borrower has delivered financial statements pursuant to Section 7.01(a) or (b).

         "Consolidated Net Accounts" means, as of any date of determination,
accounts receivable set out in the balance sheet of the Borrower and its
Subsidiaries as accounts receivable, net of allowances, and in each case, as
determined in accordance with GAAP.

<PAGE>

         "Consolidated Net Assets" means, as of any date of determination, the
sum of (a) Consolidated Net Accounts plus (b) Consolidated Net PP&E.

         "Consolidated Net Income" means, for any period, for the Borrower and
its Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries (excluding extraordinary gains and extraordinary losses) for that
period.

         "Consolidated Net PP&E" means, as of any date of determination, the
difference of (a) total property, plant and equipment of the Borrower and its
Subsidiaries set out in the consolidated balance sheet of the Borrower and its
Subsidiaries minus (b) accumulated depreciation expense attributed to such
items, set out in the consolidated balance sheet of the Borrower and its
Subsidiaries as "property and equipment, net" and in each case, as determined in
accordance with GAAP.

         "Consolidated Net Worth" means, as of any date of determination,
consolidated shareholders' equity of the Borrower and its Subsidiaries as of
that date determined in accordance with GAAP.

         "Consolidated Senior Leverage Ratio" means, as of any date of
determination, the ratio of (a) Consolidated Funded Indebtedness (other than
Subordinated Indebtedness) as of such date minus unrestricted cash and Cash
Equivalents in excess of $25,000,000 held by the Borrower and its Subsidiaries
which would appear on a consolidated balance sheet of the Borrower and its
Subsidiaries as of such date to (b) Consolidated EBITDA for the period of the
four fiscal quarters most recently ended for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b).

         "Contractual Obligation" means, 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" has the meaning specified in the definition of "Affiliate."

         "Credit Extension" means each of the following: (a) a Borrowing, (b) an
L/C Credit Extension and (c) a Credit-Linked Credit Extension (including the
making of certain proceeds in the Credit Linked Deposit Account available as a
Term Loan).

         "Credit-Linked Commitment" means, as to each Lender, its obligation (a)
to make the Credit-Linked Deposit to the Administrative Agent pursuant to
Section 2.01(b) in the principal amount set forth opposite such Lender's name on
Schedule 2.01 and (b) to make Term Loans to the Borrower with the Dollars
deposited in the Credit-Linked Deposit pursuant to Section 2.06(a), as such
amount may be reduced from time to time in accordance with this Agreement.

         "Credit-Linked Credit Extension" means (a) with respect to any
Credit-Linked Letter of Credit, the issuance thereof or extension of the expiry
date thereof, or the renewal, reinstatement or increase of the amount thereof,
(b) the transfer of a Letter of Credit to a Credit-Linked Letter of Credit and
(c) the making of any Term Loans.

         "Credit-Linked Deposit" has the meaning set forth in Section
2.05(c)(ii).

         "Credit-Linked Deposit Account" means the deposit account established
by the Administrative Agent in its name and under its sole and exclusive control
at its offices in Dallas, Texas, designated as the "Bank of America, N.A. as
Administrative Agent Quanta Services, Inc. Credit Linked Deposit Account" that
shall be used solely for the purposes set forth in Sections 2.05(c)(ii) and
(iii) and in Section 2.06(a)(iii).

<PAGE>

         "Credit-Linked Expiration Date" means the day that is thirty days prior
to the Maturity Date then in effect (or, if such day is not a Business Day, the
next preceding Business Day).

         "Credit-Linked Facility Fee" has the meaning set forth in Section
2.05(k).

         "Credit-Linked Fronting Fee" has the meaning set forth in Section
2.05(l).

         "Credit-Linked Honor Date" has the meaning set forth in Section
2.05(c)(i).

         "Credit-Linked Issuance Limits" has the meaning set forth in Section
2.05(a)(ii).

         "Credit-Linked L/C Advance" means, with respect to each Credit-Linked
Lender, such Credit-Linked Lender's funding of its participation in any
Credit-Linked L/C Borrowing in accordance with its Pro Rata Share pursuant to
Section 2.05(c).

         "Credit-Linked L/C Borrowing" means, without duplication, an extension
of credit resulting from a drawing under any Credit-Linked Letter of Credit
which has not been reimbursed on the date when made or refinanced by a
Credit-Linked L/C Advance or a Term Loan.

         "Credit-Linked L/C Issuer" means Bank of America in its capacity as
issuer of Credit-Linked Letters of Credit hereunder, or any successor issuer of
Credit-Linked Letters of Credit hereunder.

         "Credit-Linked L/C Issuer Documents" means with respect to any
Credit-Linked Letter of Credit issued by the Credit-Linked L/C Issuer, such
Credit-Linked Letter of Credit, any applications for issuance or amendment of
such Credit-Linked Letter of Credit, and any other document, agreement and
instrument entered into by the Credit-Linked L/C Issuer and the Borrower or by
the Borrower in favor of the Credit-Linked L/C Issuer and relating to any such
Credit-Linked Letter of Credit, including any of the Credit-Linked L/C Issuer's
standard form documents for issuances and amendments of letters of credit and
guarantees or other similar undertakings.

         "Credit-Linked L/C Obligations" means, as at any date of determination,
the aggregate undrawn amount of all outstanding Credit-Linked Letters of Credit
plus the aggregate of all outstanding Unreimbursed Credit-Linked Amounts in
respect to any Credit-Linked Letters of Credit, including, without duplication,
all Credit-Linked L/C Borrowings arising from any Credit-Linked Letters of
Credit.

         "Credit-Linked Lenders" means the Lenders that have a Credit-Linked
Commitment.

         "Credit-Linked Letter of Credit" means (a) any letter of credit issued
pursuant to Section 2.05, (b) any Letter of Credit transferred to a
Credit-Linked Letter of Credit pursuant to Section 2.05(a)(vi) and (c) any
Existing Credit-Linked Letter of Credit. A Credit-Linked Letter of Credit may be
a commercial letter of credit or a standby letter of credit.

         "Credit-Linked Letter of Credit Application" means an application and
agreement for the issuance or amendment of a letter of credit in the form from
time to time in use by the Credit-Linked L/C Issuer.

         "Credit-Linked Nonrenewal Notice Date" has the meaning set forth in
Section 2.05(b)(iii).

         "Credit-Linked Note" has the meaning set forth in Section 2.13(a).

<PAGE>

         "Credit-Linked Obligations means, without duplication, as at any date
of determination, the aggregate of all Credit-Linked L/C Obligations on such
date plus the aggregate amount of the Term Loans outstanding on such date.

         "Credit-Linked Participation" has the meaning set forth in Section
2.05(c)(ii).

         "Debt Issuance" means the issuance by the Borrower or any Subsidiary of
any Indebtedness.

         "Debtor Relief Laws" means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

         "Default" means any event or condition that constitutes an Event of
Default or that, with the giving of any notice, the passage of time, or both,
would be an Event of Default.

         "Default Rate" means an interest rate equal to (a) the Base Rate plus
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate Loan or
Credit-Linked L/C Advance, the Default Rate shall be an interest rate equal to
the interest rate (including any Applicable Rate) otherwise applicable to such
Loan or Credit-Linked L/C Advance plus 2% per annum, in each case to the fullest
extent permitted by applicable Laws. For purposes of this definition, the
"Applicable Rate" with respect to any Term Loan or Credit-Linked L/C Advance
shall be deemed to be 3.00% per annum.

         "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Loans or the Credit-Linked Deposits, participations in L/C
Obligations or Credit-Linked L/C Obligations or participations in Swing Line
Loans required to be funded by it hereunder within one (1) Business Day of the
date required to be funded by it hereunder, (b) has otherwise failed to pay over
to the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

         "Disposition" or "Dispose" means the sale, transfer, license, lease or
other disposition (including any Sale and Leaseback Transaction) of any Property
by the Borrower or any Subsidiary (including the Capital Stock of any
Subsidiary), including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith, but excluding (i) the sale, lease, license, transfer or
other disposition of inventory in the ordinary course of business of the
Borrower and its Subsidiaries, (ii) the sale, lease, license, transfer or other
disposition of machinery and equipment no longer used or useful in the conduct
of business of the Borrower and its Subsidiaries, (iii) any sale, lease,
license, transfer or other disposition of Property by the Borrower or any
Subsidiary to any Loan Party, provided that the Loan Parties shall cause to be
executed and delivered such documents, instruments and certificates as the
Administrative Agent may reasonably request so as to cause the Loan Parties to
be in compliance with the terms of Section 7.14 after giving effect to such
transaction, (iv) any Involuntary Disposition by the Borrower or any Subsidiary,
(v) any Disposition by the Borrower or any Subsidiary to the extent constituting
a Permitted Investment, (vi) any sale, lease, license, transfer or other
disposition of Property by any Foreign Subsidiary to another Foreign Subsidiary,
and (vii) any sale, transfer or other disposition of those assets identified on
Schedule 1.01(a) attached hereto.

         "Dollar" and "$" mean lawful money of the United States.

<PAGE>

         "Domestic Subsidiary" means any Subsidiary that is organized under the
laws of any political subdivision of the United States.

         "Earn Out Obligations" means, with respect to an Acquisition, all
obligations of the Borrower or any Subsidiary to make earn out or other
contingency payments pursuant to the documentation relating to such Acquisition.
The amount of any Earn Out Obligation shall be deemed to be the aggregate
liability in respect thereof as recorded on the balance sheet of the Borrower
and its Subsidiaries in accordance with GAAP.

         "Eligible Assets" means Property that is used or useful in the same or
a similar line of business as the Borrower and its Subsidiaries were engaged in
on the Closing Date (or any reasonable extensions or expansions thereof).

         "Eligible Assignee" has the meaning set forth in Section 11.07(g).

         "Environmental Laws" means any and all federal, state, local, foreign
and other applicable statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements
or governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

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

         "Equity Issuance" means any issuance by the Borrower or any Subsidiary
to any Person of shares of its Capital Stock, other than (a) any issuance of
shares of its Capital Stock pursuant to the exercise of options or warrants, (b)
any issuance of shares of its Capital Stock pursuant to the conversion of any
debt securities to equity or the conversion of any class equity securities to
any other class of equity securities, (c) any issuance of options or warrants
relating to its Capital Stock, and (d) any issuance by the Borrower of shares of
its Capital Stock as consideration for a Permitted Acquisition. The term "Equity
Issuance" shall not be deemed to include any Disposition.

         "ERISA" means the Employee Retirement Income Security Act of 1974.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o)
of the Internal Revenue Code for purposes of provisions relating to Section 412
of the Internal Revenue Code).

         "ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate,

<PAGE>

the treatment of a Plan amendment as a termination under Sections 4041 or 4041A
of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

         "Eurodollar Base Rate" means, for any Interest Period with respect to
any Eurodollar Rate Loan:

                  (a)      the rate per annum equal to the rate determined by
         the Administrative Agent to be the offered rate that appears on the
         page of the Telerate screen (or any successor thereto) that displays an
         average British Bankers Association Interest Settlement Rate for
         deposits in Dollars (for delivery on the first day of such Interest
         Period) with a term equivalent to such Interest Period, determined as
         of approximately 11:00 a.m. (London time) two Business Days prior to
         the first day of such Interest Period, or

                  (b)      if the rate referenced in the preceding clause (a)
         does not appear on such page or service or such page or service shall
         not be available, the rate per annum equal to the rate determined by
         the Administrative Agent to be the offered rate on such other page or
         other service that displays an average British Bankers Association
         Interest Settlement Rate for deposits in Dollars (for delivery on the
         first day of such Interest Period) with a term equivalent to such
         Interest Period, determined as of approximately 11:00 a.m. (London
         time) two Business Days prior to the first day of such Interest Period,
         or

                  (c)      if the rates referenced in the preceding clauses (a)
         and (b) are not available, the rate per annum (rounded upward to the
         next 1/100th of 1%) determined by the Administrative Agent as the rate
         of interest at which deposits in Dollars for delivery on the first day
         of such Interest Period in same day funds in the approximate amount of
         the Eurodollar Rate Loan being made, continued or converted by Bank of
         America and with a term equivalent to such Interest Period would be
         offered by Bank of America's London Branch to major banks in the London
         interbank eurodollar market at their request at approximately 4:00 p.m.
         (London time) two Business Days prior to the first day of such Interest
         Period.

         "Eurodollar Rate" means for any Interest Period with respect to any
Eurodollar Rate Loan, a rate per annum determined by the Administrative Agent to
be equal to the quotient obtained by dividing (a) the Eurodollar Base Rate for
such Eurodollar Loan for such Interest Period by (b) one minus the Eurodollar
Reserve Percentage for such Eurodollar Loan for such Interest Period.

         "Eurodollar Rate Loan" means a Loan that bears interest at a rate based
on the Eurodollar Rate.

         "Eurodollar Reserve Percentage" means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, carried out to five
decimal places) in effect on such day, whether or not applicable to any Lender,
under regulations issued from time to time by the FRB for determining the
maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurodollar funding (currently
referred to as "Eurocurrecy liabilities"). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of the
effective date of any change in the Eurodollar Reserve Percentage.

         "Event of Default" has the meaning set forth in Section 9.01.

<PAGE>

         "Excluded Property" means, with respect to any Loan Party, including
any Person that becomes a Loan Party after the Closing Date as contemplated by
Section 7.12, (a) any owned or leased real or personal Property which is located
outside of the United States unless requested by the Administrative Agent or the
Required Lenders, (b) any personal Property (including, without limitation,
motor vehicles) in respect of which perfection of a Lien is not either (i)
governed by the Uniform Commercial Code or (ii) effected by appropriate evidence
of the Lien being filed in either the United States Copyright Office or the
United States Patent and Trademark Office, unless requested by the
Administrative Agent or the Required Lenders, and (c) any Property which,
subject to the terms of Section 8.09, is subject to a Lien of the type described
in Section 8.01(i) pursuant to documents which prohibit such Loan Party from
granting any other Liens in such Property.

         "Existing Credit-Linked Letters of Credit" means the letters of credit
described by date of issuance, letter of credit number, undrawn amount, name of
beneficiary and date of expiry on Schedule 1.01(b)(1).

         "Existing Letters of Credit" means the letters of credit described by
date of issuance, letter of credit number, undrawn amount, name of beneficiary
and date of expiry on Schedule 1.01(b)(2).

         "Facilities" means, at any time, a collective reference to the
facilities and real properties owned, leased or operated by the Borrower or any
Subsidiary.

         "Federal Funds Rate" means, for any day, the rate per annum equal to
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers on such
day, as published by the Federal Reserve Bank on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate (rounded upward,
if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

         "Fee Letter" means the letter agreement, dated November 12, 2003 among
the Borrower, the Administrative Agent and BAS.

         "Foreign Lender" has the meaning set forth in Section 11.15(a)(i).

         "Foreign Subsidiary" means any Subsidiary that is not a Domestic
Subsidiary.

         "FRB" means the Board of Governors of the Federal Reserve System of the
United States.

         "Funded Indebtedness" means, as to any Person at a particular time,
without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP:

                  (a)      all obligations for borrowed money, whether current
         or long-term (including the Obligations) and all obligations of such
         Person evidenced by bonds, debentures, notes, loan agreements or other
         similar instruments;

                  (b)      all purchase money Indebtedness;

                  (c)      all obligations arising under letters of credit
         (including standby and commercial), bankers' acceptances, bank
         guaranties and similar instruments;

<PAGE>

                  (d)      all obligations in respect of the deferred purchase
         price of property or services (other than trade accounts payable in the
         ordinary course of business), including without limitation, any Earn
         Out Obligations;

                  (e)      the Attributable Indebtedness of Capital Leases and
         Synthetic Leases;

                  (f)      the Attributable Indebtedness of Securitization
         Transactions;

                  (g)      all preferred stock or other equity interests
         providing for mandatory redemptions, sinking fund or like payments
         prior to the Maturity Date;

                  (h)      all Guarantees with respect to Indebtedness of the
         types specified in clauses (a) through (g) above of another Person; and

                  (i)      all Indebtedness of the types referred to in clauses
         (a) through (h) above of any partnership or joint venture (other than a
         joint venture that is itself a corporation or limited liability
         company) in which such Person is a general partner or joint venturer,
         except to the extent that Indebtedness is expressly made non-recourse
         to such Person.

         For purposes hereof, (x) the amount of any direct obligation arising
         under letters of credit (including standby and commercial), bankers'
         acceptances, bank guaranties, surety bonds and similar instruments
         shall be the maximum amount available to be drawn thereunder and (y)
         the amount of any Guarantee shall be the amount of the Indebtedness
         subject to such Guarantee.

         "GAAP" means generally accepted accounting principles in the United
States set forth in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board, consistently
applied.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

         "Guarantee" means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation payable or performable by
another Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i)
to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of
such Indebtedness or other obligation of the payment or performance of such
Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of
income or cash flow of the primary obligor so as to enable the primary obligor
to pay such Indebtedness or other obligation, or (iv) entered into for the
purpose of assuring in any other manner the obligee in respect of such
Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or
(b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person. The amount of any Guarantee shall be
deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is
made or, if not stated or determinable, the

<PAGE>

maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term "Guarantee" as a verb has a
corresponding meaning.

         "Guaranty" means the Guaranty made by the Guarantors in favor of the
Administrative Agent and the Lenders pursuant to Article IV hereof.

         "Guarantors" means each Domestic Subsidiary of the Borrower and each
other Person that joins as a Guarantor pursuant to Section 7.12, together with
their successors and permitted assigns.

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

         "Honor Date" has the meaning set forth in Section 2.03(c).

         "Indebtedness" means, as to any Person at a particular time, without
duplication, all of the following, whether or not included as indebtedness or
liabilities in accordance with GAAP:

                  (a)      all Funded Indebtedness;

                  (b)      net obligations under any Swap Contract;

                  (c)      all obligations arising under surety bonds;

                  (d)      all Guarantees with respect to outstanding
         Indebtedness of the types specified in clauses (a), (b) and (c) above
         of any other Person; and

                  (e)      all Indebtedness of the types referred to in clauses
         (a) through (d) above of any partnership or joint venture (other than a
         joint venture that is itself a corporation or limited liability
         company) in which the Borrower or a Subsidiary is a general partner or
         joint venturer, unless such Indebtedness is expressly made non-recourse
         to the Borrower or such Subsidiary.

         For purposes hereof (y) the amount of any net obligation under any Swap
         Contract on any date shall be deemed to be the Swap Termination Value
         thereof as of such date and (z) the amount of any Guarantee shall be
         the amount of the Indebtedness subject to such Guarantee.

         "Indemnified Liabilities" has the meaning set forth in Section 11.05.

         "Indemnitees" has the meaning set forth in Section 11.05.

         "Interest Payment Date" means (a) as to any Loan other than a Base Rate
Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan),
the last Business Day of each March, June, September and December and the
Maturity Date.

         "Interest Period" means, (a) as to the Credit-Linked Deposits, the
period commencing on the date any such Credit-Linked Deposit is made and ending
on the date three months thereafter, (b) as to Credit-Linked L/C Advances and
Term Loans, the period commencing on the date any such Credit-Linked L/C

<PAGE>

Advance or Term Loan is made (except with respect to Term Loans made from the
proceeds of the Credit-Linked Deposits pursuant to Sections 2.06(a)(i)(A) or
(B), the Interest Period shall be deemed to commence on the same day as the
Interest Period commencement date for the Credit-Linked Deposits, and with
respect to Term Loans made through the conversion of Credit-Linked L/C Advances
pursuant to Section 2.06(a)(i)(C), the Interest Period shall be deemed to
commence on the same day as the Interest Period commencement date for the
Credit-Linked Deposits, if any, on the date of such conversion) and ending on
the earlier of (x) the date three months thereafter and (y) the last day of the
Interest Period with respect to the Credit-Linked Deposits, (c) after the
initial Interest Periods described in (a) and (b) above as to Credit-Linked
Deposits, Credit-Linked L/C Advances and Term Loans, the period commencing on
the last day of the immediately preceding Interest Period and ending on the date
three months thereafter and (d) as to each Revolving Loan that is a Eurodollar
Rate Loan, the period commencing on the date such Eurodollar Rate Loan is
disbursed or converted to or continued as a Eurodollar Rate Loan and ending on
the date one, two, three or six months thereafter, as selected by the Borrower
in its Loan Notice; provided that:

                           (i)      any Interest Period that would otherwise end
                  on a day that is not a Business Day shall be extended to the
                  next succeeding Business Day unless such Business Day falls in
                  another calendar month, in which case such Interest Period
                  shall end on the next preceding Business Day;

                           (ii)     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 the calendar month at the end of such Interest
                  Period; and

                           (iii)    no Interest Period shall extend beyond the
                  Maturity Date;

                  provided further that after the occurrence and during the
continuance of an Event of Default, the Required Credit-Linked Lenders, acting
through the Administrative Agent, may designate one or more Interest Periods for
the Credit-Linked L/C Advances and/or the Term Loans which are shorter than that
set forth above, such designation to be effective after the last day of the
applicable existing Interest Period.

         "Interim Financial Statements" has the meaning set forth in Section
5.01(c).

         "Internal Revenue Code" means the Internal Revenue Code of 1986.

         "Investment" means, as to any Person, any direct or indirect
acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition of Capital Stock of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person, or (c) an Acquisition. For purposes of covenant compliance, the
amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such
Investment.

         "Involuntary Disposition" means any loss of, damage to or destruction
of, or any condemnation or other taking for public use of, any Property of the
Borrower or any of its Subsidiaries.

         "IP Rights" has the meaning set forth in Section 6.17.

         "IRS" means the United States Internal Revenue Service.

<PAGE>

         "Issuers" means the collective reference to the L/C Issuer and the
Credit-Linked L/C Issuer and "Issuer" means any one of them.

         "Issuer-Related Persons" means any Issuer, together with its
Affiliates, and the officers, directors, employees, agents and attorneys-in-fact
of such Issuer and its Affiliates.

         "Joinder Agreement" means a joinder agreement substantially in the form
of Exhibit H executed and delivered by a Domestic Subsidiary in accordance with
the provisions of Section 7.12.

         "Laws" means, collectively, all international, foreign, federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

         "L/C Advance" means, with respect to each Lender, such Lender's funding
of its participation in any L/C Borrowing in accordance with its Pro Rata Share.

         "L/C Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Borrowing of Revolving Loans.

         "L/C Credit Extension" means, with respect to any Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the renewal or
increase of the amount thereof.

         "L/C Issuer" means Bank of America in its capacity as issuer of Letters
of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

         "L/C Obligations" means, as at any date of determination, the aggregate
undrawn amount of all outstanding Letters of Credit plus the aggregate of all
outstanding Unreimbursed Amounts, including, without duplication, all L/C
Borrowings.

         "Lenders" means each of the Persons identified as a "Lender" on the
signature pages hereto and their successors and assigns and, as the context
requires, includes the L/C Issuer, the Credit-Linked L/C Issuer and the Swing
Line Lender.

         "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such in such Lender's Administrative Questionnaire, or such
other office or offices as a Lender may from time to time notify the Borrower
and the Administrative Agent.

         "Letter of Credit" means (a) any letter of credit issued pursuant to
Section 2.03 and (b) any Existing Letter of Credit. A Letter of Credit may be a
commercial letter of credit or a standby letter of credit.

         "Letter of Credit Application" means an application and agreement for
the issuance or amendment of a letter of credit in the form from time to time in
use by the L/C Issuer.

         "Letter of Credit Expiration Date" means the day that is thirty days
prior to the Maturity Date then in effect (or, if such day is not a Business
Day, the next preceding Business Day).

<PAGE>

         "Letter of Credit Sublimit" means an amount equal to the lesser of (a)
the Aggregate Revolving Commitments and (b) $35,000,000 (as such amount may be
increased pursuant to Section 2.02(f)). The Letter of Credit Sublimit is part
of, and not in addition to, the Aggregate Revolving Commitments.

         "Letter of Credit Transfer Notice" means a notice of transfer of a
Letter of Credit to a Credit-Linked Letter of Credit pursuant to Section
2.05(a)(vi), which shall be substantially in the form of Exhibit A.

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

         "Loan" means an extension of credit by a Lender to the Borrower under
Article II in the form of a Revolving Loan, Swing Line Loan or Term Loan.

         "Loan Documents" means this Agreement, each Note, each Letter of
Credit, each Letter of Credit Application, each Joinder Agreement, the
Collateral Documents, each Request for Credit Extension, each Compliance
Certificate, the Fee Letter and each other document, instrument or agreement
from time to time executed by the Borrower or any of its Subsidiaries or any
Responsible Officer thereof and delivered in connection with this Agreement.

         "Loan Notice" means a notice of (a) a Borrowing of Revolving Loans, (b)
a conversion of Loans from one Type to the other, (c) a request for the making
of Term Loans from the proceeds of the Credit-Linked Deposits pursuant to
Section 2.06(a) or (d) a continuation of Eurodollar Rate Loans, pursuant to
Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit B.

         "Loan Parties" means, collectively, the Borrower and each Guarantor.

         "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities,
financial condition or prospects of the Borrower and its Subsidiaries taken as a
whole; (b) a material impairment of the ability of the Loan Parties taken as a
whole to perform their obligations under the Loan Documents; or (c) a material
adverse effect upon the legality, validity, binding effect or enforceability
against any Loan Party of any Loan Document to which it is a party.

         "Maturity Date" means (a) as to the Revolving Loans, Swing Line Loans
and Letters of Credit (and the related L/C Obligations), December 19, 2007 and
(b) as to the Credit-Linked Letters of Credit (and the related Credit-Linked L/C
Obligations) and the Term Loans, June 19, 2008.

         "Money Market Account Agreement" means the Money Market Account
Agreement dated as of the Closing Date between the Administrative Agent and Bank
of America, as depository, substantially in the form of Exhibit I attached
hereto, concerning the Credit-Linked Deposit Account, as amended, modified,
restated or supplemented from time to time.

         "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

         "Mortgaged Property" means any real property that is owned or leased by
a Loan Party and is subject to a Mortgage.

<PAGE>

         "Mortgages" means the mortgages, deeds of trust or deeds to secure debt
that purport to grant to the Administrative Agent a security interest in the fee
interest and/or leasehold interests of any Loan Party in (i) each of the real
properties designated as a "Mortgaged Property" on Schedule 6.20(a) and (ii)
each real property (other than Excluded Property) acquired or leased by a Loan
Party subsequent to the Closing Date, as the same may be amended, modified,
restated or supplemented from time to time.

         "Multiemployer Plan" means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA
Affiliate makes or is obligated to make contributions, or during the preceding
five plan years, has made or been obligated to make contributions.

         "Non-Cash Charges" means, for any period, the amount of non-cash
charges determined in accordance with GAAP; provided that if any cash outlay is
made during such period in respect of such non-cash charge, only the amount of
such non-cash charge which exceeds the amount of the cash outlay may be added
back to Consolidated Net Income for purposes of calculating Consolidated EBIT.

         "Nonrenewal Notice Date" has the meaning specified in Section
2.03(b)(iii).

         "Note" or "Notes" means the Revolving Notes, the Swing Line Note and/or
the Credit-Linked Notes, individually or collectively, as appropriate.

         "Obligations" means all advances to, and debts, liabilities,
indemnities, obligations, covenants and duties of, any Loan Party arising under
any Loan Document or otherwise with respect to any Loan, Letter of Credit or
Credit-Linked Letter of Credit, whether direct or indirect (including those
acquired by assumption), absolute or contingent, due or to become due, now
existing or hereafter arising and including interest and fees that accrue after
the commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding. The foregoing shall also include any Swap Contract between any
Loan Party and any Lender or Affiliate of a Lender.

         "Organization Documents" means, (a) with respect to any corporation,
the certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

         "Outstanding Amount" means (i) with respect to any Loans on any date,
the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of any Loans occurring on such date;
(ii) with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in the
maximum amount available for drawing under Letters of Credit taking effect on
such date; and (iii) with respect to any Credit-Linked L/C Obligations on any
date, the amount of such Credit-Linked L/C Obligations on such date after giving
effect to any Credit-Linked Credit Extension occurring

<PAGE>

on such date and any other changes in the aggregate amount of the Credit-Linked
L/C Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Credit-Linked Letters of Credit or any
reductions in the maximum amount available for drawing under Credit-Linked
Letters of Credit taking effect on such date.

         "Participant" has the meaning specified in Section 11.07(d).

         "PBGC" means the Pension Benefit Guaranty Corporation.

         "Pension Plan" means any "employee pension benefit plan" (as such term
is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Borrower or
any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

         "Permitted Acquisitions" means Investments consisting of an Acquisition
by the Borrower or any Subsidiary of the Borrower, provided that (i) the
Property acquired (or the Property of the Person acquired) in such Acquisition
is used or useful in the same or a similar line of business as the Borrower and
its Subsidiaries were engaged in on the Closing Date (or any reasonable
extensions or expansions thereof), (ii) the Administrative Agent shall have
received all items in respect of the Capital Stock or Property acquired in such
Acquisition required to be delivered by the terms of Section 7.12 and/or Section
7.14, (iii) in the case of an Acquisition of the Capital Stock of another
Person, the board of directors (or other comparable governing body) of such
other Person shall have duly approved such Acquisition, (iv) the Borrower shall
have delivered to the Administrative Agent a Pro Forma Compliance Certificate
demonstrating that, upon giving effect to such Acquisition on a Pro Forma Basis,
the Loan Parties would be in compliance with the financial covenants set forth
in Section 8.11(b) and (c) as of the most recent fiscal quarter for which the
Borrower has delivered financial statements pursuant to Section 7.01(a) or (b),
(v) the representations and warranties made by the Loan Parties in any Loan
Document shall be true and correct in all material respects at and as if made as
of the date of such Acquisition (after giving effect thereto) except to the
extent such representations and warranties expressly relate to an earlier date,
(vi) if such transaction involves the purchase of an interest in a partnership
between the Borrower (or a Subsidiary of the Borrower) as a general partner and
entities unaffiliated with the Borrower or such Subsidiary as the other
partners, such transaction shall be effected by having such equity interest
acquired by a corporate holding company directly or indirectly wholly-owned by
the Borrower, (vii) immediately after giving effect to such Acquisition, there
shall be at least $10,000,000 of availability existing under the Aggregate
Revolving Commitments, (viii) the cash consideration paid for any such
Acquisition shall not exceed (a) if the Consolidated Leverage Ratio (calculated
on a Pro Forma Basis) is greater than or equal to 3.5 to 1.0, $20,000,000 or (b)
if the Consolidated Leverage Ratio (calculated on a Pro Forma Basis) is less
than 3.5 to 1.0, $40,000,000 and (ix) the aggregate cash consideration for all
such Acquisitions occurring during any fiscal year shall not exceed (a) if the
Consolidated Leverage Ratio (calculated on a Pro Forma Basis) is greater than or
equal to 3.5 to 1.0, $40,000,000 or (b) if the Consolidated Leverage Ratio
(calculated on a Pro Forma Basis) is less than 3.5 to 1.0, $80,000,000.

         "Permitted Charges" means, for any period, the sum of (a) lease
termination expenses and severance costs not exceeding $5,000,000 in the
aggregate which relate to the organizational restructuring of the Borrower and
its Subsidiaries, plus the amounts attributable to written off loan costs and
any make whole amounts plus (b) those costs and expenses of the Borrower
identified on Schedule 1.01(c) attached hereto to the extent incurred during
such period.

<PAGE>

         "Permitted Investments" means, at any time, Investments by the Borrower
or any of its Subsidiaries permitted to exist at such time pursuant to the terms
of Section 8.02.

         "Permitted Liens" means, at any time, Liens in respect of Property of
the Borrower or any of its Subsidiaries permitted to exist at such time pursuant
to the terms of Section 8.01.

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

         "Plan" means any "employee benefit plan" (as such term is defined in
Section 3(3) of ERISA) established by the Borrower or, with respect to any such
plan that is subject to Section 412 of the Internal Revenue Code or Title IV of
ERISA, any ERISA Affiliate.

         "Pledge Agreement" means the pledge agreement dated as of the Closing
Date executed in favor of the Administrative Agent by each of the Loan Parties,
as amended, modified, restated or supplemented from time to time.

         "Pro Forma Basis" means, for purposes of calculating the Consolidated
Leverage Ratio (including for purposes of determining the Applicable Rate) and
the Consolidated Senior Leverage Ratio, that any Acquisition shall be deemed to
have occurred as of the first day of the most recent four fiscal quarter period
preceding the date of such Acquisition for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b). In connection with the
foregoing, (a) income statement items attributable to the Person or Property
acquired shall be included to the extent relating to any period applicable in
such calculations to the extent (A) such items are not otherwise included in
such income statement items for the Borrower and its Subsidiaries in accordance
with GAAP or in accordance with any defined terms set forth in Section 1.01 and
(B) such items are supported by financial statements or other information
reasonably satisfactory to the Administrative Agent and (ii) any Indebtedness
incurred or assumed by the Borrower or any Subsidiary (including the Person or
Property acquired) in connection with such transaction and any Indebtedness of
the Person or Property acquired which is not retired in connection with such
transaction shall be deemed to have been incurred as of the first day of the
applicable period.

         "Pro Forma Compliance Certificate" means a certificate of a Responsible
Officer of the Borrower containing reasonably detailed calculation of the
Consolidated Leverage Ratio and the Consolidated Senior Leverage Ratio as of the
most recent fiscal quarter end for which the Borrower has delivered financial
statements pursuant to Section 7.01(a) or (b) after giving effect to the
applicable transaction on a Pro Forma Basis.

         "Pro Rata Share" means, as to each Lender at any time, (a) with respect
to such Lender's Revolving Commitment at any time, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the amount of the Revolving Commitment of such Lender at such time and the
denominator of which is the amount of the Aggregate Revolving Commitments at
such time; provided that if the commitment of each Lender to make Revolving
Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have
been terminated pursuant to Section 9.02, then the Pro Rata Share of each Lender
shall be determined based on the Pro Rata Share of such Lender immediately prior
to such termination and after giving effect to any subsequent assignments made
pursuant to the terms hereof, and (b) with respect to such Lender's
Credit-Linked Commitment at any time, a fraction (expressed as a percentage,
carried out to the ninth decimal place), the numerator of which is the aggregate
principal amount of (i) the Term Loans held by such Lender at such time and (ii)
the amount of Credit-Linked Deposits held by such Lender at such time and the
denominator of which is the aggregate principal amount of (i) the Term Loans at
such time and (ii) the Total Credit-Linked Deposit at such time;

<PAGE>

provided that if the commitment of the Credit-Linked L/C Issuer to make
Credit-Linked Credit Extensions has been terminated pursuant to Section 9.02,
then the numerator of such fraction shall be such Lender's Outstanding Amount of
all Obligations, and the denominator shall be the Outstanding Amount of all
Obligations of all Lenders at such time. The initial Pro Rata Share of each
Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable.

         "Property" means any interest of any kind in any property or asset,
whether real, personal or mixed, or tangible or intangible.

         "Register" has the meaning set forth in Section 11.07(c).

         "Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the thirty-day notice period has been
waived.

         "Request for Credit Extension" means (a) with respect to a Borrowing, a
making of proceeds in the Credit-Linked Deposit, a Term Loan or the conversion
or continuation of Loans, a Loan Notice, (b) with respect to an L/C Credit
Extension or Credit-Linked Credit Extension (other than a Term Loan), a Letter
of Credit Application or Credit-Linked Letter of Credit Application, as
applicable and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice,
or in the event that an "auto borrow" or "zero balance" or similar arrangement
shall be in place with the Swing Line Lender, such form of request required by
such alternative notice arrangements.

         "Request for Credit-Linked Deposit" means a request to prepay the Term
Loans by depositing Dollars in the Credit-Linked Deposit Account, which shall be
substantially in the form of Exhibit C.

         "Required Credit-Linked Lenders" means, at any time, Credit-Linked
Lenders holding in the aggregate more than fifty percent (50%) of the
Credit-Linked Deposits, the outstanding Credit-Linked L/C Obligations and the
outstanding Term Loans. The Credit-Linked Deposits of, the outstanding
Credit-Linked Obligations and the outstanding Term Loans held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination
of Required Credit-Linked Lenders.

         "Required Lenders" means, at any time, Lenders holding in the aggregate
more than fifty percent (50%) of (a)(i) the Revolving Commitments and (ii) the
Credit-Linked Deposits, the outstanding Credit-Linked L/C Obligations and the
outstanding Term Loans or (b) if the Revolving Commitments have been terminated,
the Credit-Linked Deposits, the outstanding Loans, L/C Obligations,
Credit-Linked L/C Obligations and Swing Line Loans and participations therein.
The Revolving Commitments of, Credit-Linked Deposits of, the outstanding
Credit-Linked Obligations and the outstanding Term Loans held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination
of Required Lenders.

         "Required Revolving Lenders" means, at any time, Lenders holding in the
aggregate more than fifty percent (50%) of (a) the Revolving Commitments or (b)
if the Revolving Commitments have been terminated, the outstanding Revolving
Loans, L/C Obligations and Swing Line Loans and participations therein. The
Revolving Commitments of any Defaulting Lender shall be excluded for purposes of
making a determination of Required Revolving Lenders.

         "Responsible Officer" means the chief executive officer, president,
chief financial officer, chief accounting officer, treasurer or general counsel
of a Loan Party. Any document delivered hereunder that is signed by a
Responsible Officer of a Loan Party shall be conclusively presumed to have been

<PAGE>

authorized by all necessary corporate, partnership and/or other action on the
part of such Loan Party and such Responsible Officer shall be conclusively
presumed to have acted on behalf of such Loan Party.

         "Restricted Payment" means any dividend or other distribution (whether
in cash, securities or other Property) with respect to any Capital Stock of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or other
Property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Capital Stock or of any option, warrant or other right to acquire any
such Capital Stock.

         "Revolving Commitment" means, as to each Lender, its obligation to (a)
make Revolving Loans to the Borrower pursuant to Section 2.01, (b) purchase
participations in L/C Obligations, and (c) purchase participations in Swing Line
Loans, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender's name on Schedule 2.01 or in
the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be reduced or increased from time to
time in accordance with this Agreement.

         "Revolving Loan" has the meaning specified in Section 2.01(a).

         "Revolving Note" has the meaning specified in Section 2.13(a).

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

         "Sale and Leaseback Transaction" means, with respect to the Borrower or
any Subsidiary, any arrangement, directly or indirectly, with any Person whereby
the Borrower or such Subsidiary shall sell or transfer any Property, used or
useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease such Property or other Property that it intends to use for
substantially the same purpose or purposes as the Property being sold or
transferred.

         "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

         "Securitization Transaction" means any financing transaction or series
of related financing transactions (including factoring arrangements) pursuant to
which the Borrower or any Subsidiary may sell, convey or otherwise transfer, or
grant a security interest in, accounts, payments, receivables, rights to future
lease payments or residuals or similar rights to payment to a special purpose
subsidiary or affiliate of the Borrower that is not a Loan Party.

         "Security Agreement" means the security agreement dated as of the
Closing Date executed in favor of the Administrative Agent by each of the Loan
Parties, as amended, modified, restated or supplemented from time to time.

         "Solvent" or "Solvency" means, with respect to any Person as of a
particular date, that on such date (a) such Person is able to pay its debts and
other liabilities, contingent obligations and other commitments as they mature
in the ordinary course of business, (b) such Person does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature in their ordinary course,
(c) such Person is not engaged in a business or a transaction, and is not about
to engage in a business or a transaction, for which such Person's Property would
constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged or is to
engage, (d) the fair value of the Property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent
liabilities, of such Person and (e) the present fair salable value of the

<PAGE>

assets of such Person is not less than the amount that will be required to pay
the probable liability of such Person on its debts as they become absolute and
matured. In computing the amount of contingent liabilities at any time, it is
intended that such liabilities will be computed at the amount which, 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 liability.

         "Subsidiary" of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of Capital Stock having ordinary voting power for the election of
directors or other governing body (other than Capital Stock having such power
only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person. Unless
otherwise specified, all references herein to a "Subsidiary" or to
"Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

         "Subordinated Indebtedness" means the (a) unsecured Indebtedness under
(i) the 2000 Subordinated Documents, as amended or modified from time to time in
accordance with the terms hereof and (ii) the 2003 Convertible Subordinated
Debentures, as amended or modified from time to time in accordance with the
terms hereof and (b) any other unsecured Indebtedness of the Borrower or any
Subsidiary which by its terms is expressly subordinated in right of payment to
the prior payment of the Obligations under this Agreement and the other Loan
Documents on terms and conditions and evidenced by documentation reasonably
satisfactory to the Administrative Agent.

         "Swap Contract" means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options or forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a "Master Agreement"), including
any such obligations or liabilities under any Master Agreement.

         "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender).

         "Swing Line Lender" means Bank of America in its capacity as provider
of Swing Line Loans, or any successor swing line lender hereunder.

         "Swing Line Loan" has the meaning specified in Section 2.04(a).

<PAGE>

         "Swing Line Loan Notice" means a notice of a Borrowing of Swing Line
Loans pursuant to Section 2.04(b), which, if in writing, shall be substantially
in the form of Exhibit D.

         "Swing Line Note" has the meaning specified in Section 2.13(a).

         "Swing Line Sublimit" means an amount equal to the lesser of (a)
$10,000,000 and (b) the Aggregate Revolving Commitments. The Swing Line Sublimit
is part of, and not in addition to, the Aggregate Revolving Commitments.

         "Synthetic Lease" means any synthetic lease, tax retention operating
lease, off-balance sheet loan or similar off-balance sheet financing arrangement
whereby the arrangement is considered borrowed money indebtedness for tax
purposes but is classified as an operating lease or does not otherwise appear on
the balance sheet under GAAP.

         "Term Loan" has the meaning specified in Section 2.06(a)(i).

         "Term Loan Issuance Date" has the meaning specified in Section
2.06(a)(iii).

         "Threshold Amount" means $2,000,000.

         "Total Credit-Linked Deposit" means, at any time, the sum of all
Credit-Linked Lenders' Credit-Linked Deposits, as the same may be reduced from
time to time. As of the Closing Date, the amount of the Total Credit-Linked
Deposit is ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000).

         "Total Revolving Outstandings" means the aggregate Outstanding Amount
of all Revolving Loans, all Swing Line Loans and all L/C Obligations.

         "Type" means, with respect to any Loan, its character as a Base Rate
Loan or a Eurodollar Rate Loan.

         "UCP" has the meaning specified in Section 2.03(h).

         "Unfunded Pension Liability" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Pension Plan's assets, determined in accordance with the assumptions
used for funding the Pension Plan pursuant to Section 412 of the Internal
Revenue Code for the applicable plan year.

         "United States" and "U.S." mean the United States of America.

         "Unreimbursed Amount" has the meaning set forth in Section 2.03(c)(i).

         "Unreimbursed Credit-Linked Amount" has the meaning set forth in
Section 2.05(c)(i).

         "Unused Amount" has the meaning set forth in Section 2.06(a)(i).

         "Voting Stock" means, with respect to any Person, Capital Stock issued
by such Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even though the right so to vote
has been suspended by the happening of such a contingency.

<PAGE>

         "Wholly Owned Subsidiary" means any Person 100% of whose Capital Stock
is at the time owned by the Borrower directly or indirectly through other
Persons 100% of whose Capital Stock is at the time owned, directly or
indirectly, by the Borrower.

         "2000 Subordinated Documents" means the 2000 Subordinated Indenture and
all other documents executed and delivered in connection with the 2000
Subordinated Indenture, in each case as in effect on the Closing Date and as the
same may be amended, modified or supplemented from time to time in accordance
with the terms hereof and thereof.

         "2000 Subordinated Indenture" means that certain Subordinated Indenture
dated as of July 25, 2000 as supplemented by that certain First Supplemental
Indenture dated as of July 25, 2000, in each case between the Borrower, as
issuer and Chase Bank of Texas, National Association, as trustee, as amended,
modified, restated or supplemented and in effect from time to time in accordance
with the terms hereof and thereof.

         "2003 Convertible Subordinated Debentures" means those 4.5% Convertible
Subordinated Debentures of the Borrower due 2023 issued pursuant to the 2003
Subordinated Indenture, as in effect on the Closing Date and as the same may be
amended, modified or supplemented from time to time in accordance with the terms
hereof and thereof.

         "2003 Convertible Subordinated Debentures Documents" means the 2003
Convertible Subordinated Debentures, the 2003 Subordinated Indenture and all
other documents executed and delivered in respect of the 2003 Convertible
Subordinated Debentures and the 2003 Subordinated Indenture, in each case as in
effect on the Closing Date and as the same may be amended, modified or
supplemented from time to time in accordance with the terms hereof and thereof.

         "2003 Subordinated Indenture" means that certain Indenture dated as of
October 17, 2003 between the Borrower, as issuer, and Wells Fargo Bank, N.A., as
trustee, as amended, modified, restated or supplemented and in effect from time
to time in accordance with the terms hereof and thereof.

1.02     Other Interpretive Provisions.

         With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

                  (a)      The meanings of defined terms are equally applicable
         to the singular and plural forms of the defined terms.

                  (b)      (i)      The words "herein," "hereto," "hereof" and
         "hereunder" and words of similar import when used in any Loan Document
         shall refer to such Loan Document as a whole and not to any particular
         provision thereof.

                           (ii)     Article, Section, Exhibit and Schedule
                  references are to the Loan Document in which such reference
                  appears.

                           (iii)    The term "including" is by way of example
                  and not limitation.

                           (iv)     The term "documents" includes any and all
                  instruments, documents, agreements, certificates, notices,
                  reports, financial statements and other writings, however
                  evidenced, whether in physical or electronic form.

<PAGE>

                  (c)      In the computation of periods of time from a
         specified date to a later specified date, the word "from" means "from
         and including;" the words "to" and "until" each mean "to but
         excluding;" and the word "through" means "to and including."

                  (d)      Section headings herein and in the other Loan
         Documents are included for convenience of reference only and shall not
         affect the interpretation of this Agreement or any other Loan Document.

1.03     Accounting Terms.

         (a)      Except as otherwise specifically prescribed herein, all
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations except as expressly provided herein) required
to be submitted pursuant to this Agreement shall be prepared in conformity with,
GAAP applied on a consistent basis, as in effect from time to time, applied in a
manner consistent with that used in preparing the Audited Financial Statements;
provided, however, that calculations of Attributable Indebtedness under any
Synthetic Lease or the implied interest component of any Synthetic Lease shall
be made by the Borrower in accordance with accepted financial practice and
consistent with the terms of such Synthetic Lease.

         (b)      The Borrower will provide a written summary of changes in GAAP
that are material to the Borrower and in the consistent application thereof with
each annual and quarterly Compliance Certificate delivered in accordance with
Section 7.02(a). If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either
the Borrower or the Required Lenders shall so request, the Administrative Agent,
the Lenders and the Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

         (c)      Notwithstanding the above, the parties hereto acknowledge and
agree that all calculations of the Consolidated Leverage Ratio (including for
purposes of determining the Applicable Rate) and the Consolidated Senior
Leverage Ratio shall be made on a Pro Forma Basis.

1.04     Rounding.

         Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be carried to two decimal places and shall be calculated
by dividing the appropriate component by the other component, carrying the
result to three decimal places and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number).

1.05     References to Agreements and Laws.

         Unless otherwise expressly provided herein, (a) references to
Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications

<PAGE>

are not prohibited by any Loan Document; and (b) references to any Law shall
include all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting such Law.

1.06     Times of Day.

         Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

1.07     Letter of Credit Amounts.

         Unless otherwise specified, (a) all references herein to the amount of
a Letter of Credit at any time shall be deemed to mean the maximum face amount
of such Letter of Credit after giving effect to all increases thereof
contemplated by such Letter of Credit or the Letter of Credit Application
therefor, whether or not such maximum face amount is in effect at such time and
(b) all references herein to the amount of a Credit-Linked Letter of Credit at
any time shall be deemed to mean the maximum face amount of such Credit-Linked
Letter of Credit after giving effect to all increases thereof contemplated by
such Credit-Linked Letter of Credit or the Credit-Linked Letter of Credit
Application therefor, whether or not such maximum face amount is in effect at
such time.

                                   ARTICLE II

                      THE COMMITMENTS AND CREDIT EXTENSIONS

2.01     Revolving Loans and Credit-Linked Deposits.

         (a)      Revolving Loans. Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a "Revolving
Loan") to the Borrower in Dollars from time to time on any Business Day during
the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of such Lender's Revolving Commitment; provided, however,
that after giving effect to any Borrowing of Revolving Loans, (i) the Total
Revolving Outstandings shall not exceed the Aggregate Revolving Commitments, and
(ii) the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus
such Lender's Pro Rata Share of the Outstanding Amount of all L/C Obligations,
plus such Lender's Pro Rata Share of the Outstanding Amount of all Swing Line
Loans shall not exceed such Lender's Revolving Commitment. Within the limits of
each Lender's Revolving Commitment, and subject to the other terms and
conditions hereof, the Borrower may borrow under this Section 2.01, prepay under
Section 2.07, and reborrow under this Section 2.01. Revolving Loans may be Base
Rate Loans or Eurodollar Rate Loans, as further provided herein, provided,
however, all Borrowings made on the Closing Date shall be made as Base Rate
Loans.

         (b)      Credit-Linked Deposits. Subject to the terms and conditions
set forth herein, each Credit-Linked Lender severally agrees to fund such
Lender's Credit-Linked Deposit to the Administrative Agent in Dollars on the
Closing Date in an amount equal to its Credit-Linked Commitment for deposit by
the Administrative Agent in the Credit-Linked Deposit Account.

2.02     Borrowings, Conversions and Continuations of Revolving Loans.

         (a)      Each Borrowing, each conversion of Revolving Loans from one
Type to the other, and each continuation of Revolving Loans that are Eurodollar
Rate Loans shall be made upon the Borrower's irrevocable notice to the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (i) three
Business Days prior to the

<PAGE>

requested date of any Borrowing of, conversion to or continuation of, Revolving
Loans that are Eurodollar Rate Loans or any conversion of Revolving Loans that
are Eurodollar Rate Loans to Base Rate Loans and (ii) on the requested date of
any Borrowing of Revolving Loans that are Base Rate Loans. Each telephonic
notice by the Borrower pursuant to this Section 2.02(b) must be confirmed
promptly by delivery to the Administrative Agent of a written Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.
Each Borrowing of Revolving Loans that are Eurodollar Rate Loans shall be in a
principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof. Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of
Revolving Loans that are Base Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof. Each Loan Notice
(whether telephonic or written) shall specify (i) whether the Borrower is
requesting a Borrowing, a conversion of Revolving Loans from one Type to the
other, or a continuation of Revolving Loans that are Eurodollar Rate Loans, (ii)
the requested date of the Borrowing, conversion or continuation, as the case may
be (which shall be a Business Day), (iii) the principal amount of Revolving
Loans to be borrowed, converted or continued, (iv) the Type of Revolving Loans
to be borrowed or to which existing Revolving Loans are to be converted, and (v)
if applicable, the duration of the Interest Period with respect thereto. If the
Borrower fails to specify a Type of a Revolving Loan in a Loan Notice or if the
Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable Revolving Loans shall be made as, or converted to, Base Rate
Loans. Any such automatic conversion to Base Rate Loans shall be effective as of
the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

         (b)      Following receipt of a Loan Notice pursuant to Section
2.02(a), the Administrative Agent shall promptly notify each Lender with a
Revolving Commitment of the amount of its Pro Rata Share of the applicable
Revolving Loans, and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender with
a Revolving Commitment of the details of any automatic conversion to Base Rate
Loans as described in the preceding subsection. In the case of a Borrowing, each
Lender with a Revolving Commitment shall make the amount of its Revolving Loan
available to the Administrative Agent in immediately available funds at the
Administrative Agent's Office not later than 1:00 p.m. on the Business Day
specified in the applicable Loan Notice. Upon satisfaction of the applicable
conditions set forth in Section 5.02 (and, if such Borrowing is the initial
Credit Extension, Section 5.01), the Administrative Agent shall make all funds
so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date of a Borrowing of Revolving Loans, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing shall be applied,
first, to the payment in full of any such L/C Borrowings, and second, to the
Borrower as provided above.

         (c)      Except as otherwise provided herein, a Revolving Loan that is
a Eurodollar Rate Loan may be continued or converted only on the last day of the
Interest Period for such Eurodollar Rate Loan. During the existence of a Default
or Event of Default, no Revolving Loans may be requested as, converted to or
continued as Eurodollar Rate Loans without the consent of the Required Lenders,
and the Required Lenders may demand that any or all of the then outstanding
Eurodollar Rate Loans be converted immediately to Base Rate Loans.

         (d)      The Administrative Agent shall promptly notify the Borrower
and the Lenders with a Revolving Commitment of the interest rate applicable to
any Interest Period for Revolving Loans that are Eurodollar Rate Loans upon
determination of such interest rate. The determination of the Eurodollar Rate

<PAGE>

by the Administrative Agent shall be conclusive in the absence of manifest
error. At any time that Revolving Loans that are Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
with a Revolving Commitment of any change in Bank of America's prime rate used
in determining the Base Rate promptly following the public announcement of such
change.

         (e)      After giving effect to all Borrowings, all conversions of
Revolving Loans from one Type to the other, and all continuations of Revolving
Loans as the same Type, there shall not be more than 5 Interest Periods in
effect with respect to Revolving Loans.

         (f)      The Borrower may at any time and from time to time, upon prior
written notice by the Borrower to the Administrative Agent, increase the
Aggregate Revolving Commitments by up to FIFTY MILLION DOLLARS ($50,000,000)
with additional Revolving Commitments from any existing Lender or new Revolving
Commitments from any other Person selected by the Borrower and approved by the
Administrative Agent (not to be unreasonably withheld); provided that:

                  (i)      any such increase shall be in a minimum principal
         amount of $5 million and in integral multiples of $5 million in excess
         thereof;

                  (ii)     no Default or Event of Default shall be continuing at
         the time of any such increase;

                  (iii)    no existing Lender shall be under any obligation to
         increase its Revolving Commitment and any such decision whether to
         increase its Revolving Commitment shall be in such Lender's sole and
         absolute discretion; and

                  (iv)     any new Lender shall join this Agreement by executing
         such joinder documents reasonably required by the Administrative Agent.

In connection with any such increase in the Aggregate Revolving Commitments, the
Letter of Credit Sublimit shall be increased by the same amount and Schedule
2.01 shall be revised by the Administrative Agent to reflect the new Revolving
Commitments and distributed to the Lenders.

2.03     Letters of Credit.

         (a)      The Letter of Credit Commitment.

                  (i)      Subject to the terms and conditions set forth herein,
         (A) the L/C Issuer agrees, in reliance upon the agreements of the other
         Lenders with a Revolving Commitment set forth in this Section 2.03, (1)
         from time to time on any Business Day during the period from the
         Closing Date until the Letter of Credit Expiration Date, to issue
         Letters of Credit in Dollars for the account of the Borrower or any of
         its Subsidiaries, and to amend or renew Letters of Credit previously
         issued by it, in accordance with subsection (b) below, and (2) to honor
         drafts under the Letters of Credit; and (B) the Lenders with a
         Revolving Commitment severally agree to participate in Letters of
         Credit issued for the account of the Borrower or any Subsidiary;
         provided that the L/C Issuer shall not be obligated to make any L/C
         Credit Extension with respect to any Letter of Credit, and no Lender
         with a Revolving Commitment shall be obligated to participate in any
         Letter of Credit if as of the date of such L/C Credit Extension, (x)
         the Total Revolving Outstandings would exceed the Aggregate Revolving
         Commitments, (y) the aggregate Outstanding Amount of the Revolving
         Loans of any Lender, plus such Lender's Pro Rata Share of the
         Outstanding Amount of all L/C Obligations, plus such Lender's Pro Rata
         Share of the Outstanding Amount of all Swing Line Loans would exceed
         such Lender's Revolving Commitment or (z) the Outstanding

<PAGE>

         Amount of the L/C Obligations would exceed the Letter of Credit
         Sublimit. Within the foregoing limits, and subject to the terms and
         conditions hereof, the Borrower's ability to obtain Letters of Credit
         shall be fully revolving, and accordingly the Borrower may, during the
         foregoing period, obtain Letters of Credit to replace Letters of Credit
         that have expired or that have been drawn upon and reimbursed.

                  (ii)     The L/C Issuer shall be under no obligation to issue
         any Letter of Credit if:

                           (A)      any order, judgment or decree of any
                  Governmental Authority or arbitrator shall by its terms
                  purport to enjoin or restrain the L/C Issuer from issuing such
                  Letter of Credit, or any Law applicable to the L/C Issuer or
                  any request or directive (whether or not having the force of
                  law) from any Governmental Authority with jurisdiction over
                  the L/C Issuer shall prohibit, or request that the L/C Issuer
                  refrain from, the issuance of letters of credit generally or
                  such Letter of Credit in particular or shall impose upon the
                  L/C Issuer with respect to such Letter of Credit any
                  restriction, reserve or capital requirement (for which the L/C
                  Issuer is not otherwise compensated hereunder) not in effect
                  on the Closing Date, or shall impose upon the L/C Issuer any
                  unreimbursed loss, cost or expense which was not applicable on
                  the Closing Date and which the L/C Issuer in good faith deems
                  material to it;

                           (B)      subject to Section 2.03(b)(iii), the expiry
                  date of such requested Letter of Credit would occur more than
                  twelve months after the date of issuance or last renewal,
                  unless the Required Revolving Lenders have approved such
                  expiry date;

                           (C)      the expiry date of such requested Letter of
                  Credit would occur after the Letter of Credit Expiration Date,
                  unless all the Lenders have approved such expiry date;

                           (D)      the issuance of such Letter of Credit would
                  violate one or more policies of the L/C Issuer applicable to
                  borrowers generally; or

                           (E)      such Letter of Credit is in an initial
                  amount less than $100,000, in the case of a commercial Letter
                  of Credit, or $200,000, in the case of a standby Letter of
                  Credit, or is to be denominated in a currency other than
                  Dollars (or such lesser amount as may be agreed to by the L/C
                  Issuer, in its sole discretion).

                  (iii)    The L/C Issuer shall be under no obligation to amend
         any Letter of Credit if (A) the L/C Issuer would have no obligation at
         such time to issue such Letter of Credit in its amended form under the
         terms hereof, or (B) the beneficiary of such Letter of Credit does not
         accept the proposed amendment to such Letter of Credit.

                  (iv)     The L/C Issuer shall be under no obligation to issue
         or amend any Letter of Credit if the L/C Issuer has received written
         notice from any Lender, the Administrative Agent or any Loan Party, on
         or prior to the Business Day prior to the requested date of issuance or
         amendment of such Letter of Credit, that one or more applicable
         conditions contained in Article V shall not then be satisfied.

         (b)      Procedures for Issuance and Amendment of Letters of Credit;
Auto-Renewal Letters of Credit.

                  (i)      Each Letter of Credit shall be issued or amended, as
         the case may be, upon the request of the Borrower delivered to the L/C
         Issuer (with a copy to the Administrative Agent) in

<PAGE>

         the form of a Letter of Credit Application, appropriately completed and
         signed by a Responsible Officer of the Borrower. Such Letter of Credit
         Application must be received by the L/C Issuer and the Administrative
         Agent not later than 11:00 a.m. at least three (3) Business Days (or
         such later date and time as the L/C Issuer may agree in a particular
         instance in its sole discretion) prior to the proposed issuance date or
         date of amendment, as the case may be. In the case of a request for an
         initial issuance of a Letter of Credit, such Letter of Credit
         Application shall (x) be accompanied by a written notification from the
         Borrower stating that such application is related to a Letter of Credit
         to be issued pursuant to Section 2.03 and (y) specify in form and
         detail reasonably satisfactory to the L/C Issuer: (A) the proposed
         issuance date of the requested Letter of Credit (which shall be a
         Business Day); (B) the amount thereof; (C) the expiry date thereof; (D)
         the name and address of the beneficiary thereof; (E) whether or not the
         requested Letter of Credit will be a Cash-Secured Letter of Credit
         pursuant to the Borrower's pledge and deposit of cash pursuant to
         documentation in form and substance reasonably satisfactory to the
         Administrative Agent and the L/C Issuer; (F) the documents to be
         presented by such beneficiary in case of any drawing thereunder; (G)
         the full text of any certificate to be presented by such beneficiary in
         case of any drawing thereunder; and (H) such other matters as the L/C
         Issuer may reasonably require. In the case of a request for an
         amendment of any outstanding Letter of Credit, such Letter of Credit
         Application shall specify in form and detail reasonably satisfactory to
         the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed
         date of amendment thereof (which shall be a Business Day); (C) the
         nature of the proposed amendment; and (D) such other matters as the L/C
         Issuer may reasonably require.

                  (ii)     Promptly after receipt of any Letter of Credit
         Application, the L/C Issuer will confirm with the Administrative Agent
         (by telephone or in writing) that the Administrative Agent has received
         a copy of such Letter of Credit Application from the Borrower and, if
         not, the L/C Issuer will provide the Administrative Agent with a copy
         thereof. Upon receipt by the L/C Issuer of confirmation from the
         Administrative Agent that the requested issuance or amendment is
         permitted in accordance with the terms hereof, then, subject to the
         terms and conditions hereof, the L/C Issuer shall, on the requested
         date, issue a Letter of Credit for the account of the Borrower or any
         Subsidiary, as the case may be, or enter into the applicable amendment,
         as the case may be, in each case in accordance with the L/C Issuer's
         usual and customary business practices. Immediately upon the issuance
         of each Letter of Credit, each Lender with a Revolving Commitment shall
         be deemed to, and hereby irrevocably and unconditionally agrees to,
         purchase from the L/C Issuer a risk participation in such Letter of
         Credit in an amount equal to the product of such Lender's Pro Rata
         Share times the amount of such Letter of Credit.

                  (iii)    If the Borrower so requests in any applicable Letter
         of Credit Application, the L/C Issuer may, in its sole and absolute
         discretion, agree to issue a Letter of Credit that has automatic
         renewal provisions (each, an "Auto-Renewal Letter of Credit"); provided
         that any such Auto-Renewal Letter of Credit must permit the L/C Issuer
         to prevent any such renewal at least once in each twelve-month period
         (commencing with the date of issuance of such Letter of Credit) by
         giving prior notice to the beneficiary thereof not later than a day
         (the "Nonrenewal Notice Date") in each such twelve-month period to be
         agreed upon at the time such Letter of Credit is issued. Unless
         otherwise directed by the L/C Issuer, the Borrower shall not be
         required to make a specific request to the L/C Issuer for any such
         renewal. Once an Auto-Renewal Letter of Credit has been issued, the
         Lenders shall be deemed to have authorized (but may not require) the
         L/C Issuer to permit the renewal of such Letter of Credit at any time
         to an expiry date not later than the Letter of Credit Expiration Date;
         provided, however, that the L/C Issuer shall not permit any such
         renewal if (A) the L/C Issuer has determined that it would have no
         obligation at such time to issue such Letter of Credit in its renewed
         form under the terms hereof (by reason of the provisions of Section
         2.03(a)(ii) or otherwise), or (B) it has received notice (which may be
         by

<PAGE>

         telephone or in writing) on or before the day that is five Business
         Days before the Nonrenewal Notice Date (1) from the Administrative
         Agent that the Required Lenders have elected not to permit such renewal
         or (2) from the Administrative Agent, any Lender or the Borrower that
         one or more of the applicable conditions specified in Section 5.02 is
         not then satisfied.

                  (iv)     Promptly after its delivery of any Letter of Credit
         or any amendment to a Letter of Credit to an advising bank with respect
         thereto or to the beneficiary thereof, the L/C Issuer will also deliver
         to the Borrower and the Administrative Agent a true and complete copy
         of such Letter of Credit or amendment.

         (c)      Drawings and Reimbursements; Funding of Participations.

                  (i)      Upon receipt from the beneficiary of any Letter of
         Credit of any notice of drawing under such Letter of Credit, the L/C
         Issuer shall notify the Borrower and the Administrative Agent thereof.
         Not later than 11:00 a.m. on the date of any payment by the L/C Issuer
         under a Letter of Credit (each such date, an "Honor Date"), the
         Borrower shall reimburse the L/C Issuer through the Administrative
         Agent in an amount equal to the amount of such drawing. If the Borrower
         fails to so reimburse the L/C Issuer by such time, the Administrative
         Agent shall promptly notify each Lender of the Honor Date, the amount
         of the unreimbursed drawing (the "Unreimbursed Amount"), and the amount
         of such Lender's Pro Rata Share thereof. In such event, the Borrower
         shall be deemed to have requested a Borrowing of Base Rate Loans to be
         disbursed on the Honor Date in an amount equal to the Unreimbursed
         Amount, without regard to the minimum and multiples specified in
         Section 2.02 for the principal amount of Base Rate Loans, but subject
         to the amount of the unutilized portion of the Aggregate Revolving
         Commitments. Any notice given by the L/C Issuer or the Administrative
         Agent pursuant to this Section 2.03(c)(i) may be given by telephone if
         immediately confirmed in writing; provided that the lack of such an
         immediate confirmation shall not affect the conclusiveness or binding
         effect of such notice. Notwithstanding the foregoing, if the Borrower
         elects to deposit cash with the Administrative Agent to secure any
         Letter of Credit, any Unreimbursed Amount with respect to such Letter
         of Credit shall be funded with such cash on the Honor Date.

                  (ii)     Each Lender with a Revolving Commitment (including
         the Lender acting as L/C Issuer) shall upon any notice pursuant to
         Section 2.03(c)(i) make funds available to the Administrative Agent for
         the account of the L/C Issuer at the Administrative Agent's Office in
         an amount equal to its Pro Rata Share of the Unreimbursed Amount not
         later than 1:00 p.m. on the Business Day specified in such notice by
         the Administrative Agent, whereupon, subject to the provisions of
         Section 2.03(c)(iii), each Lender that so makes funds available shall
         be deemed to have made a Base Rate Loan to the Borrower in such amount.
         The Administrative Agent shall remit the funds so received to the L/C
         Issuer.

                  (iii)    With respect to any Unreimbursed Amount that is not
         fully refinanced by (A) a Borrowing of Base Rate Loans because the
         conditions set forth in Section 5.02 cannot be satisfied or for any
         other reason or (B) with cash pledged and deposited with the
         Administrative Agent to secure such Unreimbursed Amount, the Borrower
         shall be deemed to have incurred from the L/C Issuer an L/C Borrowing
         in the amount of the Unreimbursed Amount that is not so refinanced,
         which L/C Borrowing shall be due and payable on demand (together with
         interest) and shall bear interest at the Default Rate. In such event,
         each Lender's payment to the Administrative Agent for the account of
         the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment
         in respect of its participation in such L/C Borrowing and shall
         constitute an L/C Advance from such Lender in satisfaction of its
         participation obligation under this Section 2.03.

<PAGE>

                  (iv)     Until each Lender funds its Revolving Loan or L/C
         Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer
         for any amount drawn under any Letter of Credit, interest in respect of
         such Lender's Pro Rata Share of such amount shall be solely for the
         account of the L/C Issuer.

                  (v)      Each Lender's obligation to make Revolving Loans or
         L/C Advances to reimburse the L/C Issuer for amounts drawn under
         Letters of Credit, as contemplated by this Section 2.03(c), shall be
         absolute and unconditional and shall not be affected by any
         circumstance, including (A) any set-off, counterclaim, recoupment,
         defense or other right which such Lender may have against the L/C
         Issuer, the Borrower or any other Person for any reason whatsoever; (B)
         the occurrence or continuance of a Default or an Event of Default, or
         (C) any other occurrence, event or condition, whether or not similar to
         any of the foregoing; provided, however, that each Lender's obligation
         to make Revolving Loans pursuant to this Section 2.03(c) is subject to
         the conditions set forth in Section 5.02 (other than delivery by the
         Borrower of a Loan Notice). No such making of an L/C Advance shall
         relieve or otherwise impair the obligation of the Borrower to reimburse
         the L/C Issuer for the amount of any payment made by the L/C Issuer
         under any Letter of Credit, together with interest as provided herein.

                  (vi)     If any Lender with a Revolving Commitment fails to
         make available to the Administrative Agent for the account of the L/C
         Issuer any amount required to be paid by such Lender pursuant to the
         foregoing provisions of this Section 2.03(c) by the time specified in
         Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover from
         such Lender (acting through the Administrative Agent), on demand, such
         amount with interest thereon for the period from the date such payment
         is required to the date on which such payment is immediately available
         to the L/C Issuer at a rate per annum equal to the Federal Funds Rate
         from time to time in effect. A certificate of the L/C Issuer submitted
         to any Lender (through the Administrative Agent) with respect to any
         amounts owing under this clause (vi) shall be conclusive absent
         manifest error.

                  (vii)    Notwithstanding that a Letter of Credit issued or
         outstanding hereunder is in support of any obligations of a Subsidiary
         of the Borrower, the Borrower shall be obligated to reimburse the L/C
         Issuer hereunder for the full amount of any and all drawings under such
         Letter of Credit.

         (d)      Repayment of Participations.

                  (i)      At any time after the L/C Issuer has made a payment
         under any Letter of Credit and has received from any Lender such
         Lender's L/C Advance in respect of such payment in accordance with
         Section 2.03(c), if the Administrative Agent receives for the account
         of the L/C Issuer any payment in respect of the related Unreimbursed
         Amount or interest thereon (whether directly from the Borrower or
         otherwise, including proceeds of cash collateral applied thereto by the
         Administrative Agent), the Administrative Agent will distribute to such
         Lender its Pro Rata Share thereof (appropriately adjusted, in the case
         of interest payments, to reflect the period of time during which such
         Lender's L/C Advance was outstanding) in the same funds as those
         received by the Administrative Agent.

                  (ii)     If any payment received by the Administrative Agent
         for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is
         required to be returned under any of the circumstances described in
         Section 11.06 (including pursuant to any settlement entered into by the
         L/C Issuer in its discretion), each Lender with a Revolving Commitment
         shall pay to the Administrative Agent for the account of the L/C Issuer
         its Pro Rata Share thereof on demand of the Administrative

<PAGE>

         Agent, plus interest thereon from the date of such demand to the date
         such amount is returned by such Lender, at a rate per annum equal to
         the Federal Funds Rate from time to time in effect.

         (e)      Obligations Absolute. The obligation of the Borrower to
reimburse the L/C Issuer for each drawing under each Letter of Credit and to
repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

                  (i)      any lack of validity or enforceability of such Letter
         of Credit, this Agreement, any other Loan Document or any other
         agreement or instrument relating thereto;

                  (ii)     the existence of any claim, counterclaim, set-off,
         defense or other right that the Borrower may have at any time against
         any beneficiary or any transferee of such Letter of Credit (or any
         Person for whom any such beneficiary or any such transferee may be
         acting), the L/C Issuer or any other Person, whether in connection with
         this Agreement, the transactions contemplated hereby or by such Letter
         of Credit or any agreement or instrument relating thereto, or any
         unrelated transaction;

                  (iii)    any draft, demand, certificate or other document
         presented under such Letter of Credit proving to be forged, fraudulent,
         invalid or insufficient in any respect or any statement therein being
         untrue or inaccurate in any respect; or any loss or delay in the
         transmission or otherwise of any document required in order to make a
         drawing under such Letter of Credit;

                  (iv)     any payment by the L/C Issuer under such Letter of
         Credit against presentation of a draft or certificate that does not
         strictly comply with the terms of such Letter of Credit; or any payment
         made by the L/C Issuer under such Letter of Credit to any Person
         purporting to be a trustee in bankruptcy, debtor-in-possession,
         assignee for the benefit of creditors, liquidator, receiver or other
         representative of or successor to any beneficiary or any transferee of
         such Letter of Credit, including any arising in connection with any
         proceeding under any Debtor Relief Law; or

                  (v)      any other circumstance or happening whatsoever,
         whether or not similar to any of the foregoing, including any other
         circumstance that might otherwise constitute a defense available to, or
         a discharge of, the Borrower.

         The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower's instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer. The Borrower shall be
conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

         (f)      Role of L/C Issuer. Each Lender and the Borrower agree that,
in paying any drawing under a Letter of Credit, the L/C Issuer shall not have
any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the
L/C Issuer, any Agent-Related Person nor any of the respective correspondents,
participants or assignees of the L/C Issuer shall be liable to any Lender for
(i) any action taken or omitted in connection herewith at the request or with
the approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Letter of Credit Application. The Borrower hereby assumes

<PAGE>

all risks of the acts or omissions of any beneficiary or transferee with respect
to its use of any Letter of Credit; provided, however, that this assumption is
not intended to, and shall not, preclude the Borrower's pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under
any other agreement. None of the L/C Issuer, any Agent-Related Person, nor any
of the respective correspondents, participants or assignees of the L/C Issuer,
shall be liable or responsible for any of the matters described in clauses (i)
through (v) of Section 2.03(e); provided, however, that anything in such clauses
to the contrary notwithstanding, the Borrower may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrower which the Borrower proves were caused by the
L/C Issuer's willful misconduct or gross negligence or the L/C Issuer's willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation
of the foregoing, the L/C Issuer may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

         (g)      Cash Collateral. Upon the request of the Administrative Agent,
(i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any Letter of Credit may for any
reason remain outstanding and partially or wholly undrawn, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of such L/C
Obligations (in an amount equal to such Outstanding Amount determined as of the
date of such L/C Borrowing or the Letter of Credit Expiration Date, as the case
may be). The Borrower hereby grants to the Administrative Agent, for the benefit
of the L/C Issuer and the Lenders with a Revolving Commitment, a security
interest in all such cash, deposit accounts and all balances in the applicable
cash collateral accounts and all proceeds therein. Such cash collateral shall be
maintained in blocked deposit accounts at Bank of America. Furthermore, at the
time of the issuance of any Letter of Credit pursuant to Section 2.03(b), the
Borrower may, in its sole and absolute discretion, deposit with or deliver to
the Administrative Agent, for the benefit of the L/C Issuer and the Lenders with
a Revolving Commitment, as collateral for such Letter of Credit, cash pursuant
to documentation in form and substance reasonably satisfactory to the
Administrative Agent and the L/C Issuer.

         (h)      Applicability of ISP98 and UCP. Unless otherwise expressly
agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued, (i)
the rules of the "International Standby Practices 1998" published by the
Institute of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance) shall apply to each standby Letter
of Credit, and (ii) the rules of the Uniform Customs and Practice for
Documentary Credits, as most recently published by the International Chamber of
Commerce (the "UCP") at the time of issuance shall apply to each commercial
Letter of Credit.

         (i)      Letter of Credit Fees. The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share (i) a Letter of Credit fee for each commercial Letter of Credit equal
to the Applicable Rate times the daily maximum amount available to be drawn
under such Letter of Credit (whether or not such maximum amount is then in
effect under such Letter of Credit) and (ii) a Letter of Credit fee for each
standby Letter of Credit equal to the Applicable Rate times the daily maximum
amount available to be drawn under such Letter of Credit (whether or not such
maximum amount is then in effect under such Letter of Credit). Such Letter of
Credit fees shall be computed on a quarterly basis in arrears. Such letter of
credit fees shall be due and payable on the first Business Day after the end of
each March, June, September and December, commencing with the first

<PAGE>

such date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily maximum amount of each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect.

         (j)      Fronting Fee and Documentary and Processing Charges Payable to
L/C Issuer. The Borrower shall pay directly to the L/C Issuer for its own
account (i) a one time fronting fee for each commercial Letter of Credit equal
to 1/8 of 1% times the amount of such commercial Letter of Credit, due and
payable at the time of issuance and (ii) a fronting fee with respect to each
standby Letter of Credit in an amount equal to 1/8 of 1% per annum on the daily
maximum amount available to be drawn thereunder (whether or not such maximum
amount is then in effect under such Letter of Credit), due and payable quarterly
in arrears on the Business Day immediately following the last Business Day of
each March, June, September and December, commencing with the first such date to
occur after the issuance of such standby Letter of Credit, and on the Letter of
Credit Expiration Date. In addition, the Borrower shall pay directly to the L/C
Issuer for its own account the customary issuance, presentation, amendment and
other processing fees, and other standard costs and charges, of the L/C Issuer
relating to letters of credit as from time to time in effect. Such customary
fees and standard costs and charges are due and payable on demand and are
nonrefundable.

         (k)      Conflict with Letter of Credit Application. In the event of
any conflict between the terms hereof and the terms of any Letter of Credit
Application, the terms hereof shall control.

         (l)      Transfer of Letter of Credit to Credit-Linked Letter of
Credit. The Borrower may elect, one time per fiscal quarter, to transfer Letters
of Credit to Credit-Linked Letters of Credit provided that any such transfer
complies with the terms of Section 2.05(a)(vi).

         (m)      Designation of Subsidiaries as Account Parties.
Notwithstanding anything to the contrary set forth in this Agreement, including
without limitation Section 2.03(a), a Letter of Credit issued hereunder shall
upon the request of the Borrower be issued for the account of any Subsidiary of
the Borrower, provided that notwithstanding such request, the Borrower shall be
the actual account party for all purposes of this Agreement for such Letter of
Credit and such request shall not affect the Borrower's reimbursement
obligations hereunder with respect to such Letter of Credit.

2.04     Swing Line Loans.

         (a)      Swing Line Facility. Subject to the terms and conditions set
forth herein, the Swing Line Lender agrees to make loans (each such loan, a
"Swing Line Loan") to the Borrower in Dollars from time to time on any Business
Day during the Availability Period in an aggregate amount not to exceed at any
time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact
that such Swing Line Loans, when aggregated with the Pro Rata Share of the
Outstanding Amount of Revolving Loans and L/C Obligations of the Swing Line
Lender in its capacity as a Lender of Revolving Loans, may exceed the amount of
such Lender's Revolving Commitment; provided, however, that after giving effect
to any Swing Line Loan, (i) the Total Revolving Outstandings shall not exceed
the Aggregate Revolving Commitments, and (ii) the aggregate Outstanding Amount
of the Revolving Loans of any Lender, plus such Lender's Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender's Pro Rata Share of
the Outstanding Amount of all Swing Line Loans shall not exceed such Lender's
Revolving Commitment, and provided, further, that the Borrower shall not use the
proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.
Within the foregoing limits, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.04, prepay under Section
2.07, and reborrow under this Section 2.04. Each Swing Line Loan shall be a Base
Rate Loan. Immediately upon the making of a Swing Line Loan, each Lender with a
Revolving Commitment shall be deemed to, and

<PAGE>

hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Lender's Pro Rata Share times the amount of such Swing Line
Loan.

         (b)      Borrowing Procedures. Each Borrowing of Swing Line Loans shall
be made upon the Borrower's irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to
be borrowed, which shall be a minimum principal amount of $100,000 and integral
multiples of $100,000 in excess thereof, and (ii) the requested borrowing date,
which shall be a Business Day. Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower. Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof. Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 2:00 p.m. on the date of the proposed
Borrowing of Swing Line Loans (A) directing the Swing Line Lender not to make
such Swing Line Loan as a result of the limitations set forth in the proviso to
the first sentence of Section 2.04(a), or (B) that one or more of the applicable
conditions specified in Article V is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Notice, make the
amount of its Swing Line Loan available to the Borrower. Notwithstanding the
foregoing, however, in the event that an "auto borrow" or "zero balance" or
similar arrangement shall then be in place with the Swing Line Lender, the
Borrower shall request Swing Line Loans pursuant to such alternative notice
arrangements, if any, provided thereunder or in connection therewith, and each
Swing Line Loan advance shall be in such minimum amounts, if any, provided by
such arrangement.

         (c)      Refinancing of Swing Line Loans.

                  (i)      The Swing Line Lender at any time in its sole and
         absolute discretion may request, on behalf of the Borrower (which
         hereby irrevocably requests and authorizes the Swing Line Lender to so
         request on its behalf), that each Lender with a Revolving Commitment
         make a Base Rate Loan in an amount equal to such Lender's Pro Rata
         Share of the amount of Swing Line Loans then outstanding. Such request
         shall be made in writing (which written request shall be deemed to be a
         Loan Notice for purposes hereof) and in accordance with the
         requirements of Section 2.02, without regard to the minimum and
         multiples specified therein for the principal amount of Base Rate
         Loans, but subject to the unutilized portion of the Aggregate Revolving
         Commitments and the conditions set forth in Section 5.02. The Swing
         Line Lender shall furnish the Borrower with a copy of the applicable
         Loan Notice promptly after delivering such notice to the Administrative
         Agent. Each Lender with a Revolving Commitment shall make an amount
         equal to its Pro Rata Share of the amount specified in such Loan Notice
         available to the Administrative Agent in immediately available funds
         for the account of the Swing Line Lender at the Administrative Agent's
         Office not later than 1:00 p.m. on the day specified in such Loan
         Notice, whereupon, subject to Section 2.04(c)(ii), each Lender that so
         makes funds available shall be deemed to have made a Base Rate Loan to
         the Borrower in such amount. The Administrative Agent shall remit the
         funds so received to the Swing Line Lender.

                  (ii)     If for any reason any Swing Line Loan cannot be
         refinanced by such a Borrowing of Revolving Loans in accordance with
         Section 2.04(c)(i), the request for Base Rate Loans

<PAGE>

         submitted by the Swing Line Lender as set forth herein shall be deemed
         to be a request by the Swing Line Lender that each of the Lenders with
         a Revolving Commitment fund its risk participation in the relevant
         Swing Line Loan and each Lender's payment to the Administrative Agent
         for the account of the Swing Line Lender pursuant to Section 2.04(c)(i)
         shall be deemed payment in respect of such participation.

                  (iii)    If any Lender with a Revolving Commitment fails to
         make available to the Administrative Agent for the account of the Swing
         Line Lender any amount required to be paid by such Lender pursuant to
         the foregoing provisions of this Section 2.04(c) by the time specified
         in Section 2.04(c)(i), the Swing Line Lender shall be entitled to
         recover from such Lender (acting through the Administrative Agent), on
         demand, such amount with interest thereon for the period from the date
         such payment is required to the date on which such payment is
         immediately available to the Swing Line Lender at a rate per annum
         equal to the Federal Funds Rate from time to time in effect. A
         certificate of the Swing Line Lender submitted to any Lender (through
         the Administrative Agent) with respect to any amounts owing under this
         clause (iii) shall be conclusive absent manifest error.

                  (iv)     Each Lender's obligation to make Revolving Loans or
         to purchase and fund risk participations in Swing Line Loans pursuant
         to this Section 2.04(c) shall be absolute and unconditional and shall
         not be affected by any circumstance, including (A) any set-off,
         counterclaim, recoupment, defense or other right that such Lender may
         have against the Swing Line Lender, the Borrower or any other Person
         for any reason whatsoever, (B) the occurrence or continuance of a
         Default, or (C) any other occurrence, event or condition, whether or
         not similar to any of the foregoing; provided, however, that each
         Lender's obligation to make Revolving Loans pursuant to this Section
         2.04(c) is subject to the conditions set forth in Section 5.02. No such
         purchase or funding of risk participations shall relieve or otherwise
         impair the obligation of the Borrower to repay Swing Line Loans,
         together with interest as provided herein.

         (d)      Repayment of Participations.

                  (i)      At any time after any Lender has purchased and funded
         a risk participation in a Swing Line Loan, if the Swing Line Lender
         receives any payment on account of such Swing Line Loan, the Swing Line
         Lender will distribute to such Lender its Pro Rata Share of such
         payment (appropriately adjusted, in the case of interest payments, to
         reflect the period of time during which such Lender's risk
         participation was funded) in the same funds as those received by the
         Swing Line Lender.

                  (ii)     If any payment received by the Swing Line Lender in
         respect of principal or interest on any Swing Line Loan is required to
         be returned by the Swing Line Lender under any of the circumstances
         described in Section 11.06 (including pursuant to any settlement
         entered into by the Swing Line Lender in its discretion), each Lender
         with a Revolving Commitment shall pay to the Swing Line Lender its Pro
         Rata Share thereof on demand of the Administrative Agent, plus interest
         thereon from the date of such demand to the date such amount is
         returned, at a rate per annum equal to the Federal Funds Rate. The
         Administrative Agent will make such demand upon the request of the
         Swing Line Lender.

         (e)      Interest for Account of Swing Line Lender. The Swing Line
Lender shall be responsible for invoicing the Borrower for interest on the Swing
Line Loans. Until each Lender funds its Revolving Loans that are Base Rate Loans
or risk participation pursuant to this Section 2.04 to refinance such Lender's
Pro Rata Share of any Swing Line Loan, interest in respect of such Pro Rata
Share shall be solely for the account of the Swing Line Lender.

<PAGE>

         (f)      Payments Directly to Swing Line Lender. The Borrower shall
make all payments of principal and interest in respect of the Swing Line Loans
directly to the Swing Line Lender.

2.05     Credit-Linked Deposits and Credit Extensions.

         (a)      Credit-Linked Letters of Credit.

                  (i)      Subject to the terms and conditions set forth herein,
         (A) the Credit-Linked L/C Issuer agrees, in reliance upon the
         agreements of the Credit-Linked Lenders set forth in this Section 2.05,
         from time to time on any Business Day during the period from the
         Closing Date until the Credit-Linked Expiration Date, to issue
         Credit-Linked Letters of Credit denominated in Dollars for the account
         of the Borrower or any Subsidiary, and (B) the Credit-Linked L/C Issuer
         agrees, in reliance upon the agreements of the Lenders set forth in
         this Section 2.05, (1) to amend, extend, reinstate or renew
         Credit-Linked Letters of Credit previously issued by it, in accordance
         with subsection (b) below, and (2) to honor drawings under the
         Credit-Linked Letters of Credit; and (C) the Credit-Linked Lenders
         severally agree to participate in Credit-Linked Letters of Credit
         issued or outstanding hereunder for the account of the Borrower or any
         Subsidiary as provided in Section 2.05(c), and all reimbursement
         obligations and rights hereunder in respect thereof and the
         Credit-Linked L/C Issuer Documents with respect thereto and the
         Credit-Linked L/C Issuer hereby grants to the Credit-Linked Lenders
         such participation interests in such Credit-Linked Letters of Credit
         and all reimbursement obligations and rights hereunder in respect
         thereof and such related Credit-Linked L/C Issuer Documents; provided
         that the Borrower shall not request the issuance of any Credit-Linked
         Letter of Credit, the Credit-Linked L/C Issuer shall not be obligated
         to issue any Credit-Linked Letter of Credit, and no Credit-Linked
         Lender shall participate in any Credit-Linked Letter of Credit if as of
         the date of such Credit-Linked Credit Extension, (I) the sum of the
         Outstanding Amount of (x) all Credit-Linked Letters of Credits plus (y)
         the aggregate of the Unreimbursed Credit-Linked Amounts with respect to
         Credit-Linked Letters of Credit would exceed the principal amount of
         the Total Credit-Linked Deposit; (II) any Credit-Linked Lender's Pro
         Rata Share of the sum of the Outstanding Amount of (x) all
         Credit-Linked Letters of Credits and (y) the aggregate of the
         Unreimbursed Credit-Linked Amounts with respect to the Credit-Linked
         Letters of Credit would exceed the principal amount of such
         Credit-Linked Lender's Credit-Linked Deposit; or (III) the expiry date
         of any such requested Credit-Linked Letter of Credit would occur after
         the Credit-Linked Expiration Date, unless all the Credit-Linked Lenders
         have approved such expiry date; and provided further that in
         determining the availability hereunder with respect to any
         Credit-Linked Letter of Credit issued or outstanding hereunder, the
         Total Credit-Linked Deposit will be deemed to be utilized in respect of
         each Credit-Linked Letter of Credit in an amount equal to the maximum
         amount available to be drawn under each such Credit-Linked Letter of
         Credit after giving effect to all increases thereof contemplated by
         such Credit-Linked Letter of Credit (whether or not such maximum amount
         is in effect at such time). Furthermore, the Credit-Linked L/C Issuer
         shall not be obligated to issue any Credit-Linked Letter of Credit if
         after giving effect to the issuance of such Credit-Linked Letter of
         Credit, the aggregate Outstanding Amount of Credit-Linked Letters of
         Credit having expiry dates after the applicable reduction date
         specified in Section 2.08(c) plus the aggregate of Unreimbursed
         Credit-Linked Amount plus the aggregate Term Loans outstanding would
         exceed the aggregate amount of the Credit-Linked Deposits and Term
         Loans on such applicable dates permitted by Section 2.08(c).

                  (ii)     Within the foregoing limits (the "Credit-Linked
         Issuance Limits"), and subject to the terms and conditions hereof, the
         Borrower's ability to obtain Credit-Linked Letters of Credit shall be
         fully revolving, and accordingly the Borrower may, during the foregoing
         period, obtain

<PAGE>

         Credit-Linked Letters of Credit to replace Credit-Linked Letters of
         Credit that have expired, been terminated or cancelled, or that have
         been drawn upon and reimbursed. Notwithstanding anything to the
         contrary set forth herein, (a) if any portion of the Total
         Credit-Linked Deposit is utilized to reimburse the Credit-Linked L/C
         Issuer for any amounts drawn under any Credit-Linked Letter of Credit
         pursuant to Section 2.05(c) hereof, the Total Credit-Linked Deposit
         shall be permanently reduced by the corresponding amount utilized to
         reimburse the Credit-Linked L/C Issuer and shall not be reinstated or
         (b) if any portion of the Total Credit-Linked Deposit is utilized to
         make Term Loans pursuant to Section 2.06(a) hereof, the Total
         Credit-Linked Deposit shall be reduced by the corresponding amount
         utilized to make Term Loans.

                  (iii)    The Credit-Linked L/C Issuer shall be under no
         obligation to issue any Credit-Linked Letter of Credit if:

                           (A)      any order, judgment or decree of any
                  Governmental Authority or arbitrator shall by its terms
                  purport to enjoin or restrain the Credit-Linked L/C Issuer
                  from issuing such Credit-Linked Letter of Credit, or any Law
                  applicable to the Credit-Linked L/C Issuer or any request or
                  directive (whether or not having the force of law) from any
                  Governmental Authority with jurisdiction over the
                  Credit-Linked L/C Issuer shall prohibit, or request that the
                  Credit-Linked L/C Issuer refrain from, the issuance of letters
                  of credit generally or such Credit-Linked Letter of Credit in
                  particular or shall impose upon the Credit-Linked L/C Issuer
                  with respect to such Credit-Linked Letter of Credit any
                  restriction, reserve or capital requirement (for which the
                  Credit-Linked L/C Issuer is not otherwise compensated
                  hereunder) not in effect on the Closing Date, or shall impose
                  upon the Credit-Linked L/C Issuer any unreimbursed loss, cost
                  or expense which was not applicable on the Closing Date and
                  which the Credit-Linked L/C Issuer in good faith deems
                  material to it;

                           (B)      subject to Section 2.05(b)(iii), the expiry
                  date of such requested Credit-Linked Letter of Credit would
                  occur more than twelve months after the date of issuance or
                  last renewal, unless the Required Credit-Linked Lenders have
                  approved such expiry date;

                           (C)      the expiry date of such requested
                  Credit-Linked Letter of Credit would occur after the Letter of
                  Credit Expiration Date, unless all the Lenders have approved
                  such expiry date;

                           (D)      the issuance of such Credit-Linked Letter of
                  Credit would violate one or more policies of the Credit-Linked
                  L/C Issuer applicable to borrowers generally; or

                           (E)      except as otherwise agreed by the
                  Administrative Agent and the Credit-Linked L/C Issuer, such
                  Credit-Linked Letter of Credit is in a face amount less than
                  $1,000,000, or is to be denominated in a currency other than
                  Dollars.

                  (iv)     The Credit-Linked L/C Issuer shall be under no
         obligation to amend any Credit-Linked Letter of Credit if (A) the
         Credit-Linked L/C Issuer would have no obligation at such time to issue
         such Credit-Linked Letter of Credit in its amended form under the terms
         hereof, or (B) the beneficiary of such Credit-Linked Letter of Credit
         does not accept the proposed amendment to such Credit-Linked Letter of
         Credit.

                  (v)      The Credit-Linked L/C Issuer shall be under no
         obligation to issue or amend any Credit-Linked Letter of Credit if the
         Credit-Linked L/C Issuer has received written notice from

<PAGE>

         any Credit-Linked Lender, the Administrative Agent or any Loan Party,
         on or prior to the Business Day prior to the requested date of issuance
         or amendment of such Credit-Linked Letter of Credit, that one or more
         applicable conditions contained in Article V shall not then be
         satisfied.

                  (vi)     The Credit-Linked L/C Issuer and the Credit-Linked
         Lenders agree that the Borrower may transfer (not more than one time
         per fiscal quarter) Letters of Credit issued pursuant to the terms of
         Section 2.03 to Credit-Linked Letters of Credit; provided that (A) the
         Borrower has delivered to the Credit-Linked L/C Issuer (with a copy to
         the Administrative Agent) a Letter of Credit Transfer Notice,
         appropriately completed and signed by a Responsible Officer of the
         Borrower not later than 11:00 a.m. at least three (3) Business Days
         prior to the proposed transfer date, (B) such Letter of Credit together
         with any other Letters of Credit being transferred pursuant to this
         Section 2.05(a)(vi) are in an aggregate face amount of not less than
         $1,000,000, (C) except as provided in Section 2.05(a)(vi)(B), such
         Letter of Credit satisfies all of the requirements contained in Section
         2.05(a)(iii), (D) after giving effect to such Credit-Linked Credit
         Extension, (I) the sum, without duplication, of the Outstanding Amount
         of (x) all Credit-Linked Letters of Credits and (y) the aggregate of
         the Unreimbursed Credit-Linked Amounts with respect to Credit-Linked
         Letters of Credit does not exceed the principal amount of the Total
         Credit-Linked Deposit; (II) any Credit-Linked Lender's Pro Rata Share
         of the sum, without duplication, of the Outstanding Amount of (x) all
         Credit-Linked Letters of Credits and (y) the aggregate of the
         Unreimbursed Credit-Linked Amounts with respect to the Credit-Linked
         Letters of Credit does not exceed the principal amount of such
         Credit-Linked Lender's Credit-Linked Deposit, (E) the expiry date of
         such Letter of Credit does not occur after the Credit-Linked Expiration
         Date, unless all the Credit-Linked Lenders have approved such expiry
         date and (F) all of the conditions contained in Section 5.02 have been
         satisfied on and as of the date of the applicable transfer. Immediately
         upon the transfer of a Letter of Credit to a Credit-Linked Letter of
         Credit pursuant to the terms of this Section 2.05(a)(vi), each
         Credit-Linked Lender shall be deemed to, and hereby irrevocably and
         unconditionally agrees to, purchase from the Credit-Linked L/C Issuer a
         risk participation in such Credit-Linked Letter of Credit in an amount
         equal to the product of such Credit-Linked Lender's Pro Rata Share
         times the amount of such Credit-Linked Letter of Credit which risk
         participation shall be satisfied solely from such Credit-Linked
         Lender's Pro Rata Share of the Credit-Linked Deposits in the
         Credit-Linked Deposit Account in accordance with the provisions of
         Section 2.05(c).

         (b)      Procedures for Issuance and Amendment of Credit-Linked Letters
of Credit; Auto-Renewal Credit-Linked Letters of Credit.

                  (i)      Each Credit-Linked Letter of Credit shall be issued
         or amended, as the case may be, upon the request of the Borrower
         delivered to the Credit-Linked L/C Issuer (with a copy to the
         Administrative Agent) in the form of a Credit-Linked Letter of Credit
         Application, appropriately completed and signed by a Responsible
         Officer of the Borrower. Such Credit-Linked Letter of Credit
         Application must be received by the Credit-Linked L/C Issuer and the
         Administrative Agent not later than 11:00 a.m. at least three (3)
         Business Days (or such later date and time as the Credit-Linked L/C
         Issuer may agree in a particular instance in its sole discretion) prior
         to the proposed issuance date or date of amendment, as the case may be.
         In the case of a request for an initial issuance of a Credit-Linked
         Letter of Credit, such Credit-Linked Letter of Credit Application shall
         (x) be accompanied by a written notification from the Borrower stating
         that such application is related to a Credit-Linked Letter of Credit to
         be issued pursuant to Section 2.05 and (y) shall specify in form and
         detail reasonably satisfactory to the Credit-Linked L/C Issuer: (A) the
         proposed issuance date of the requested Credit-Linked Letter of Credit
         (which shall be a Business Day); (B) the amount thereof; (C) the expiry
         date thereof; (D) the name and address of the beneficiary thereof; (E)
         the documents to be presented by such beneficiary in case

<PAGE>

         of any drawing thereunder; (F) the full text of any certificate to be
         presented by such beneficiary in case of any drawing thereunder; and
         (G) such other matters as the Credit-Linked L/C Issuer may reasonably
         require. In the case of a request for an amendment of any outstanding
         Credit-Linked Letter of Credit, such Credit-Linked Letter of Credit
         Application shall specify in form and detail reasonably satisfactory to
         the Credit-Linked L/C Issuer (A) the Credit-Linked Letter of Credit to
         be amended; (B) the proposed date of amendment thereof (which shall be
         a Business Day); (C) the nature of the proposed amendment; and (D) the
         delivery instructions with respect to the amendment. Additionally, the
         Borrower shall furnish to the Credit-Linked L/C Issuer and the
         Administrative Agent such other documents and information pertaining to
         such requested Credit-Linked Letter of Credit issuance or amendment,
         including any Credit-Linked L/C Issuer Documents as the Credit-Linked
         L/C Issuer or the Administrative Agent may reasonably require. Without
         limiting the generality of the foregoing, the delivery of a
         Credit-Linked Letter of Credit Application is additional to, and not in
         replacement or substitution of, any other Credit-Linked L/C Issuer
         Document that the Credit-Linked L/C Issuer may require. Upon the
         effectiveness of any issuance or amendment of a Credit-Linked Letter of
         Credit that will constitute a Credit-Linked Letter of Credit hereunder,
         the Administrative Agent and the Lenders shall be entitled to assume
         that the Credit-Linked L/C Issuer has obtained such Credit-Linked L/C
         Issuer Documents as it shall have requested, executed by the relevant
         parties thereto to the extent required hereby.

                  (ii)     Promptly after receipt of any Credit-Linked Letter of
         Credit Application, the Credit-Linked L/C Issuer will confirm with the
         Administrative Agent (by telephone or in writing) (if the
         Administrative Agent is different from the Credit-Linked L/C Issuer)
         that the Administrative Agent has received a copy of such Credit-Linked
         Letter of Credit Application from the Borrower and, if not, the
         Credit-Linked L/C Issuer will provide the Administrative Agent with a
         copy thereof (if the Administrative Agent is different from the
         Credit-Linked L/C Issuer). Upon receipt by the Credit-Linked L/C Issuer
         of confirmation from the Administrative Agent that the requested
         issuance or amendment is permitted in accordance with the terms hereof,
         then, subject to the terms and conditions hereof, the Credit-Linked L/C
         Issuer shall, on the requested date, issue a Credit-Linked Letter of
         Credit for the account of the Borrower, or its Subsidiary, as the case
         may be, or enter into the applicable amendment, as the case may be, in
         each case in accordance with the Credit-Linked L/C Issuer's usual and
         customary business practices. Immediately upon the issuance of each
         Credit-Linked Letter of Credit, each Credit-Linked Lender shall be
         deemed to, and hereby irrevocably and unconditionally agrees to,
         purchase from the Credit-Linked L/C Issuer a risk participation in such
         Credit-Linked Letter of Credit in an amount equal to the product of
         such Credit-Linked Lender's Pro Rata Share times the amount of such
         Credit-Linked Letter of Credit which risk participation shall be
         satisfied solely from such Credit-Linked Lender's Pro Rata Share of the
         Credit-Linked Deposits in the Credit-Linked Deposit Account in
         accordance with the provisions of Section 2.05(c).

                  (iii)    If the Borrower so requests in any applicable
         Credit-Linked Letter of Credit Application, the Credit-Linked L/C
         Issuer may, in its sole and absolute discretion, agree to issue a
         Credit-Linked Letter of Credit that has automatic renewal provisions
         (each, an "Auto-Renewal Credit-Linked Letter of Credit"); provided that
         any such Auto-Renewal Credit-Linked Letter of Credit must permit the
         Credit-Linked L/C Issuer to prevent any such renewal at least once in
         each twelve-month period (commencing with the date of issuance of such
         Credit-Linked Letter of Credit) by giving prior notice to the
         beneficiary thereof not later than a day (the "Credit-Linked Nonrenewal
         Notice Date") in each such twelve-month period to be agreed upon at the
         time such Credit-Linked Letter of Credit is issued. Unless otherwise
         directed by the Credit-Linked L/C Issuer, the Borrower shall not be
         required to make a specific request to the Credit-Linked L/C Issuer for
         any such renewal. Once an Auto-Renewal Credit-Linked Letter of Credit
         has been issued, the Credit-Linked Lenders shall be deemed to have
         authorized (but may not require) the

<PAGE>

         Credit-Linked L/C Issuer to permit the renewal of such Credit-Linked
         Letter of Credit at any time to an expiry date not later than the
         Credit-Linked Expiration Date; provided, however, that the
         Credit-Linked L/C Issuer shall not permit any such renewal if (A) the
         Credit-Linked L/C Issuer has determined that it would have no
         obligation at such time to issue such Credit-Linked Letter of Credit in
         its renewed form under the terms hereof (by reason of the provisions of
         Section 2.05(a)(ii) or otherwise), or (B) it has received notice (which
         may be by telephone or in writing) on or before the day that is five
         (5) Business Days before the Credit-Linked Nonrenewal Notice Date (1)
         from the Administrative Agent that the Required Credit-Linked Lenders
         have elected not to permit such renewal or (2) from the Administrative
         Agent, any Credit-Linked Lender or the Borrower that one or more of the
         applicable conditions specified in Section 5.02 is not then satisfied.

                  (iv)     If the Credit-Linked L/C Issuer shall issue any
         Credit-Linked Letter of Credit or amend any Credit-Linked Letter of
         Credit (if the effect thereof is to increase the face amount), without
         obtaining prior consent from the Administrative Agent (if the
         Administrative Agent is different from the Credit-Linked L/C Issuer)
         (as provided in clause (ii) above), or if the Credit-Linked L/C Issuer
         shall permit the extension or renewal of an Auto-Renewal Credit without
         giving timely prior notice to the Administrative Agent (if the
         Administrative Agent is different from the Credit-Linked L/C Issuer) or
         when such extension or renewal is not permitted hereunder (as provided
         in clause (iii) above), such Credit-Linked Letter of Credit (in the
         case of any such amendment, to the extent of the increased face amount
         thereof, and in the case of any reinstatement, to the extent of the
         reinstated amount thereof) (A) shall for all purposes be deemed to have
         been issued by the Credit-Linked L/C Issuer solely for its own account
         and risk and without recourse to any Credit-Linked Deposits in the
         Credit-Linked Deposit Account or any Collateral, and (B) shall not be
         considered a Credit-Linked Letter of Credit outstanding under this
         Agreement, and no Credit-Linked Lender shall be deemed to have any
         participation therein, effective as of the date of such issuance,
         amendment, reinstatement, extension or renewal, as the case may be,
         unless the Required Credit-Linked Lenders expressly consent thereto.

                  (v)      Promptly after its delivery of any Credit-Linked
         Letter of Credit or any amendment to a Credit-Linked Letter of Credit
         to an advising bank with respect thereto or to the beneficiary thereof,
         the Credit-Linked L/C Issuer will also deliver to the Borrower and the
         Administrative Agent a true and complete copy of such Credit-Linked
         Letter of Credit or amendment.

         (c)      Drawings and Reimbursements; Credit-Linked Deposits.

                  (i)      Upon receipt from the beneficiary of any
         Credit-Linked Letter of Credit of any notice of drawing under such
         Credit-Linked Letter of Credit, the Credit-Linked L/C Issuer shall
         notify the Borrower and the Administrative Agent thereof. Not later
         than 11:00 a.m. on the date of any payment by the Credit-Linked L/C
         Issuer under a Credit-Linked Letter of Credit (each such date, a
         "Credit-Linked Honor Date"), the Borrower shall reimburse the
         Credit-Linked L/C Issuer through the Administrative Agent in an amount
         equal to the amount of such drawing. If the Borrower fails to so
         reimburse the Credit-Linked L/C Issuer by such time, the Administrative
         Agent shall promptly notify each Credit-Linked Lender of the
         Credit-Linked Honor Date, the amount of the unreimbursed drawing (the
         "Unreimbursed Credit-Linked Amount"), and the amount of such
         Credit-Linked Lender's Pro Rata Share. In such event the Administrative
         Agent shall also notify each Credit-Linked Lender that Credit-Linked
         L/C Advances will be funded by application of such Credit-Linked
         Lender's Pro Rata Share of the Credit-Linked Deposits in the
         Credit-Linked Deposit Account on the sixth Business Day after such
         Credit-Linked Honor Date to the extent the Unreimbursed Credit-Linked
         Amount (or any portion thereof) remains

<PAGE>

         outstanding on such day. Any notice given by the Credit-Linked L/C
         Issuer or the Administrative Agent pursuant to this Section 2.05(c)(i)
         may be given by telephone if immediately confirmed in writing; provided
         that the lack of such an immediate confirmation shall not affect the
         conclusiveness or binding effect of such notice.

                  (ii)     The Credit-Linked L/C Issuer hereby irrevocably
         grants to each Credit-Linked Lender, and each Credit-Linked Lender
         hereby irrevocably accepts and purchases from the Credit-Linked L/C
         Issuer on the terms and conditions hereinafter stated, for such
         Credit-Linked Lender's own account and risk, an undivided interest
         equal to its Pro Rata Share in the Credit-Linked L/C Issuer's
         obligations and rights with respect to the Credit-Linked Letters of
         Credit issued pursuant to this Agreement (as to each Credit-Linked
         Lender, its "Credit-Linked Participation"), which purchase price when
         paid to the Administrative Agent shall not be a deposit obligation of
         the Administrative Agent. The consideration for the Credit-Linked
         Participation of each Credit-Linked Lender shall consist of the payment
         by such Credit-Linked Lender to the Administrative Agent of an amount
         equal to the Dollar amount set forth opposite such Credit-Linked
         Lender's name in Schedule 2.01 under the heading "Credit-Linked
         Deposit" (as the same may be reduced from time to time in accordance
         with this Agreement, such Lender's "Credit-Linked Deposit"), subject to
         the conditions precedent set forth in Article V hereof. Each
         Credit-Linked Lender shall pay to the Administrative Agent its
         Credit-Linked Deposit in full on the Closing Date. The Credit-Linked
         Deposits of all Credit-Linked Lenders shall be held by, and in the name
         of, the Administrative Agent in the Credit-Linked Deposit Account under
         the sole dominion and control of the Administrative Agent. Each
         Credit-Linked Lender unconditionally and irrevocably agrees with the
         Administrative Agent and the Credit-Linked L/C Issuer that, if a
         drawing is paid under any Credit-Linked Letter of Credit for which the
         Credit-Linked L/C Issuer is not reimbursed in full by the Borrower in
         cash within five (5) Business Days after the applicable Credit-Linked
         Honor Date or converted into a Term Loan under Section 2.06(a), such
         Credit-Linked Lender hereby authorizes the Administrative Agent to
         reimburse to the Credit-Linked L/C Issuer the Unreimbursed
         Credit-Linked Amount (or the outstanding portion thereof) related to
         such drawing on or after the sixth Business Day after such
         Credit-Linked Honor Date, to the extent of such Credit-Linked Lender's
         Pro Rata Share of the Unreimbursed Credit-Linked Amount, solely from
         such Credit-Linked Lender's Pro Rata Share of the Credit-Linked
         Deposits in the Credit-Linked Deposit Account, and each Credit-Linked
         Lender hereby irrevocably authorizes the Administrative Agent to charge
         the Credit-Linked Deposit Account for such purpose, in satisfaction of
         such Credit-Linked Lender's reimbursement obligation arising with
         respect to such drawing hereunder. Notwithstanding the foregoing,
         following the occurrence of an Event of Default (including without
         limitation the occurrence of an actual or deemed entry of an order for
         relief with respect to the Borrower under the Bankruptcy Code of the
         United States), the Credit-Linked Lenders hereby agree that the
         Administrative Agent may immediately reimburse to the Credit-Linked L/C
         Issuer the Unreimbursed Credit-Linked Amount (or the outstanding
         portion thereof) related to any drawing under any Credit-Linked Letter
         of Credit on the Credit-Linked Honor Date with Dollars deposited in the
         Credit-Linked Deposit Account in an amount equal to each such
         Credit-Linked Lender's Pro Rata Share of such Unreimbursed
         Credit-Linked Amount. Without limiting the generality of Section 11.01,
         in charging the Credit-Linked Deposit Account or otherwise exercising
         any rights of set-off with respect thereto, the Administrative Agent
         acts as the agent of the Credit-Linked L/C Issuer. The amount of each
         Credit-Linked Lender's Pro Rata Share of such Unreimbursed
         Credit-Linked Amount (or portion thereof) which is paid to the
         Credit-Linked L/C Issuer as set forth above shall be deemed to be a
         Credit-Linked L/C Advance by such Credit-Linked Lender to the Borrower
         hereunder. The outstanding principal amount of each Credit-Linked L/C
         Advance, together with interest thereon as provided in Section 2.10,
         shall be due and payable, in Dollars, on demand. Each Credit-Linked
         Lender shall be subrogated to the rights and remedies of the
         Credit-Linked L/C Issuer

<PAGE>

         against the Borrower and any Subsidiary liable under such Credit-Linked
         Letter of Credit to the extent such Credit-Linked Lender has reimbursed
         the Credit-Linked L/C Issuer as set forth in this Section 2.05(c)(ii).
         The Credit-Linked L/C Issuer shall reasonably cooperate in exercising
         and enforcing such rights and remedies as may be requested by the
         Required Credit-Linked Lenders (and such cooperation shall be subject
         to any applicable indemnification set forth in Section 10.07 or Section
         11.05 of this Agreement). The Credit-Linked L/C Issuer shall have no
         right to withdraw or set-off against monies on deposit in the
         Credit-Linked Deposit Account other than as set forth in this Section
         2.05(c)(ii).

                  (iii)    The Credit-Linked Deposits shall be held by the
         Administrative Agent in its name in the Credit-Linked Deposit Account
         and no Person other than the Administrative Agent shall have a right of
         withdrawal from the Credit-Linked Deposit Account nor any other right
         or power with respect to the Credit-Linked Deposits or the
         Credit-Linked Deposit Account. Notwithstanding anything in this
         Agreement to the contrary, the sole funding obligation of each
         Credit-Linked Lender in respect of its Credit-Linked Participation
         shall be satisfied upon funding of its Credit-Linked Deposit on the
         Closing Date.

                  (iv)     Until a Credit-Linked Advance is funded pursuant to
         this Section 2.05(c) to reimburse the Credit-Linked L/C Issuer for the
         Unreimbursed Credit-Linked Amount in respect of any Credit-Linked
         Letter of Credit, or such Unreimbursed Credit-Linked Amount is
         converted to a Term Loan pursuant to Section 2.06, interest in respect
         of each Credit-Linked Lender's Pro Rata Share of the Credit-Linked L/C
         Borrowing in the amount of such Unreimbursed Credit-Linked Amount shall
         be solely for the account of the Credit-Linked L/C Issuer.

                  (v)      Except as expressly provided herein, each
         Credit-Linked Lender's agreement to fund Credit-Linked L/C Advances, by
         application of such Credit-Linked Lender's Pro Rata Share of the
         Credit-Linked Deposits, and to reimburse the Credit-Linked L/C Issuer
         for amounts drawn under Credit-Linked Letters of Credit issued by the
         Credit-Linked L/C Issuer, as contemplated by this Section 2.05(c),
         shall be absolute and unconditional and shall not be affected by any
         circumstance, including (A) any set-off, counterclaim, recoupment,
         defense or other right which such Credit-Linked Lender may have against
         the Credit-Linked L/C Issuer, the Borrower, any Subsidiary or any other
         Person for any reason whatsoever, (B) the occurrence or continuance of
         a Default or Event of Default, or (C) any other occurrence, event or
         condition, whether or not similar to any of the foregoing.

                  (vi)     Notwithstanding that a Credit-Linked Letter of Credit
         issued or outstanding hereunder is in support of any obligations of a
         Subsidiary, the Borrower shall be obligated to reimburse the
         Credit-Linked L/C Issuer hereunder for the full amount of any and all
         drawings under such Credit-Linked Letter of Credit.

         (d)      Repayment of Participations.

                  (i)      At any time after the Credit-Linked L/C Issuer has
         made a payment under any Credit-Linked Letter of Credit and has
         received from the Credit-Linked Deposit the proceeds of Credit-Linked
         L/C Advances by the Credit-Linked Lenders in respect of such payment in
         accordance with Section 2.05(c), if the Administrative Agent receives
         for the account of the Credit-Linked L/C Issuer any payment in respect
         of the related Unreimbursed Credit-Linked Amount or interest thereon
         (whether directly from the Borrower or otherwise, including proceeds of
         cash collateral applied thereto by the Administrative Agent), the
         Administrative Agent will distribute to such Credit-Linked Lender its
         Pro Rata Share thereof (appropriately adjusted, in the case of interest
         payments, to reflect the period of time during which such Credit-Linked
         Lender's

<PAGE>

         Credit-Linked L/C Advance was outstanding) in Dollars and in the same
         funds as those received by the Administrative Agent. If a Credit-Linked
         L/C Borrowing has occurred hereunder, the Borrower shall repay the
         Credit-Linked Unreimbursed Amount and interest thereon as provided in
         Sections 2.05(c) and 2.10. Notwithstanding the foregoing, if the
         Credit-Linked L/C Issuer shall have received from the Credit-Linked
         Deposit the proceeds of Credit-Linked L/C Advances by the Credit-Linked
         Lenders and thereafter shall receive any direct payment from the
         Borrower in respect of a Credit-Linked L/C Advance, the Credit-Linked
         L/C Issuer shall immediately pay the amount received to the
         Administrative Agent for distribution to the Credit-Linked Lenders in
         accordance with this Section 2.05(d).

                  (ii)     If any payment received by the Administrative Agent
         for the account of the Credit-Linked L/C Issuer pursuant to Section
         2.05(d)(i) and distributed to the Credit-Linked Lenders by the
         Administrative Agent is required to be returned under any of the
         circumstances described in Section 11.06 (including pursuant to any
         settlement entered into by the Credit-Linked L/C Issuer), each
         Credit-Linked Lender shall pay to the Administrative Agent for the
         account of the Credit-Linked L/C Issuer its Pro Rata Share thereof on
         demand of the Administrative Agent, plus interest thereon from the date
         of such demand to the date such amount is returned by such
         Credit-Linked L/C Lender, at a rate per annum equal to the Federal
         Funds Rate from time to time in effect.

         (e)      Obligations Absolute. The obligation of the Borrower to
reimburse the Credit-Linked L/C Issuer for each drawing under each Credit-Linked
Letter of Credit and to repay each Credit-Linked L/C Borrowing, shall be
absolute, unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including
the following:

                  (i)      any lack of validity or enforceability of such
         Credit-Linked Letter of Credit, this Agreement, or any other Loan
         Document;

                  (ii)     the existence of any claim, counterclaim, set-off,
         defense or other right that the Borrower or any Subsidiary may have at
         any time against any beneficiary or any transferee of such
         Credit-Linked Letter of Credit (or any Person for whom any such
         beneficiary or any such transferee may be acting), the Credit-Linked
         L/C Issuer or any other Person, whether in connection with this
         Agreement, the transactions contemplated hereby or by such
         Credit-Linked Letter of Credit or any agreement or instrument relating
         thereto, or any unrelated transaction;

                  (iii)    any draft, demand, certificate or other document
         presented under such Credit-Linked Letter of Credit proving to be
         forged, fraudulent, invalid or insufficient in any respect or any
         statement therein being untrue or inaccurate in any respect, or any
         loss or delay in the transmission or otherwise of any document required
         in order to make a drawing under such Credit-Linked Letter of Credit;

                  (iv)     any payment by the Credit-Linked L/C Issuer under
         such Credit-Linked Letter of Credit against presentation of a draft or
         certificate that does not strictly comply with the terms of such
         Credit-Linked Letter of Credit; or any payment made by the
         Credit-Linked L/C Issuer under such Credit-Linked Letter of Credit to
         any Person purporting to be a trustee in bankruptcy,
         debtor-in-possession, assignee for the benefit of creditors,
         liquidator, receiver or other representative of or successor to any
         beneficiary or any transferee of such Credit-Linked Letter of Credit,
         including any arising in connection with any proceeding under any
         Debtor Relief Law; or

                  (v)      any other circumstance or happening whatsoever,
         whether or not similar to any of the foregoing, including any other
         circumstance that might otherwise constitute a defense

<PAGE>

         available to, or a discharge of, the Borrower or any Subsidiary.

The Borrower shall promptly examine a copy of each Credit-Linked Letter of
Credit and each amendment thereto that is delivered to it and, in the event of
any claim of noncompliance with the Borrower's instructions or other
irregularity, the Borrower will promptly notify the Credit-Linked L/C Issuer.
The Borrower shall be conclusively deemed to have waived any such claim against
the Credit-Linked L/C Issuer and its correspondents unless such notice is given
as aforesaid.

         (f)      Role of Credit-Linked L/C Issuer. Each Credit-Linked Lender
and the Borrower agree that, in paying any drawing under a Credit-Linked Letter
of Credit, the Credit-Linked L/C Issuer shall not have any responsibility to
obtain any document (other than any sight draft, certificates and documents
expressly required by the Credit-Linked Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the Credit-Linked
L/C Issuer, any Issuer-Related Person nor any of the respective correspondents,
participants or assignees of the Credit-Linked L/C Issuer or any Issuer-Related
Person shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Required Lenders
or the Required Credit-Linked Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Credit-Linked Letter of Credit or Request for Credit
Extension. The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Credit-Linked Letter of
Credit; provided, however, that this assumption is not intended to, and shall
not, preclude the Borrower's pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement. None
of the Credit-Linked L/C Issuer, any Issuer-Related Person, nor any of the
respective correspondents, participants or assignees of the Credit-Linked L/C
Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.05(e); provided, however, that anything in
such clauses to the contrary notwithstanding, the Borrower may have a claim
against the Credit-Linked L/C Issuer, and the Credit-Linked L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by the Borrower which
the Borrower proves were caused by the Credit-Linked L/C Issuer's willful
misconduct or gross negligence or the Credit-Linked L/C Issuer's willful failure
to pay under any Credit-Linked Letter of Credit after the presentation to it by
the beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Credit-Linked Letter of Credit. In furtherance and not
in limitation of the foregoing, the Credit-Linked L/C Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and the Credit-Linked L/C Issuer shall not be responsible for the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign a Credit-Linked Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

         (g)      Applicability of ISP98 and UCP. Unless otherwise expressly
agreed by the Credit-Linked L/C Issuer and the Borrower when a Credit-Linked
Letter of Credit is issued, (i) the rules of the "International Standby
Practices 1998" published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance) shall apply to each standby Credit-Linked Letter of Credit, and (ii)
the rules of the UCP at the time of issuance shall apply to each commercial
Credit-Linked Letter of Credit.

         (h)      Credit-Linked L/C Issuer Documents. In the event of any
conflict between the terms hereof and the terms of any Credit-Linked Letter of
Credit Application, the terms hereof shall control.

         (i)      Interest on Credit-Linked Deposit; Repayment of Credit-Linked
Deposit.

<PAGE>

                  (i)      The Administrative Agent hereby agrees to cause Bank
         of America to pay interest to the Administrative Agent, as holder of
         the Credit-Linked Deposit Account, and the Administrative Agent, as
         holder of the Credit-Linked Deposit Account, agrees to distribute to
         each Credit-Linked Lender, from such interest payments received from
         Bank of America, such Credit-Linked Lender's Pro Rata Share of the
         interest earned on the outstanding amount of the Credit-Linked Deposits
         in the Credit-Linked Deposit Account. Such interest will be distributed
         to the Credit-Linked Lenders by the Administrative Agent quarterly in
         arrears on the first Business Day following the end of each Interest
         Period relating to the Credit-Linked Deposits. The Administrative Agent
         hereby agrees that the Credit-Linked Deposits in the Credit-Linked
         Deposit Account shall earn interest at the rate per annum at least
         equal to the LIBO Rate (as defined in the Money Market Account
         Agreement) (the "Benchmark Rate") minus fifteen (15) basis points. In
         addition to the foregoing payments by the Administrative Agent, the
         Borrower agrees to make payments to the Credit-Linked Lenders quarterly
         in arrears when the Credit-Linked Facility Fees are payable pursuant to
         Section 2.05(k) in an amount equal to the shortfall between the rate of
         interest actually earned on the Credit-Linked Deposits and the
         Benchmark Rate (which shortfall shall in no event exceed fifteen (15)
         basis points). The Administrative Agent shall compute all amounts due
         under this Section 2.05(i) and shall notify the Borrower and such
         Credit-Linked Lender of each such amount due. Notwithstanding the
         foregoing, to the extent the Credit-Linked Deposits earn interest in
         excess of the Benchmark Rate for any Interest Period the Administrative
         Agent shall return such excess to the Borrower.

                  (ii)     Subject to, and to the extent of, the Borrower's
         compliance with the cash-collateralization requirements set forth in
         Section 2.05(j), the Administrative Agent shall distribute the
         aggregate amount of any remaining Credit-Linked Deposits to the
         Credit-Linked Lenders on the Maturity Date to the extent of the amount
         credited to the Credit-Linked Deposit Account. The Credit-Linked
         Deposit Account is a deposit account in the name of the Administrative
         Agent under its sole dominion and control, and held by it subject to
         the terms and conditions of this Agreement. No Credit-Linked Lender,
         whether upon the receivership or liquidation of such Credit-Linked
         Lender or otherwise, shall be entitled to its Credit-Linked Deposit
         other than as expressly provided in this Agreement.

                  (iii)    The Borrower shall have no right, title or interest
         in or to the Credit-Linked Deposits or the Credit-Linked Deposit
         Account and no obligations with respect thereto, it being acknowledged
         and agreed by the parties hereto that the making of the Credit-Linked
         Deposits by the Credit-Linked Lenders, the deposit by the
         Administrative Agent of the Credit-Linked Deposits in the Credit-Linked
         Deposit Account, the provisions of this Section 2.05(i) and the
         application of the Credit-Linked Deposits in the manner contemplated by
         Section 2.05(c) constitute agreements among the Administrative Agent,
         the Credit-Linked L/C Issuer and each Credit-Linked Lender in respect
         of the funding obligations of each Credit-Linked Lender in respect of
         its Credit-Linked Participation in Credit-Linked Letters of Credit, and
         do not constitute any loan or extension of credit to the Borrower.

         (j)      Cash Collateral. Upon the request of the Administrative Agent,
if as of the Credit-Linked Expiration Date, any Credit-Linked Letter of Credit
may for any reason remain outstanding and partially or wholly undrawn, the
Borrower shall immediately Cash Collateralize the then Outstanding Amount of
such Credit-Linked L/C Obligations (in an amount equal to such Outstanding
Amount determined as of the Credit-Linked Expiration Date). The Borrower hereby
grants to the Administrative Agent, for the benefit of the Credit-Linked L/C
Issuer and the Credit-Linked Lenders, a security interest in all such cash,
deposit accounts and all balances in the applicable cash collateral accounts and
all proceeds therein. Such cash collateral shall be maintained in blocked
deposit accounts at Bank of America.

<PAGE>

         (k)      Credit-Linked Facility Fee. The Borrower shall pay to the
Administrative Agent for the account of each Credit-Linked Lender in accordance
with its Pro Rata Share, a fee (the "Credit-Linked Facility Fee") equal to 3.00%
times the actual daily amount of such Credit-Linked Lender's Credit-Linked
Deposit. The Credit-Linked Facility Fee shall accrue effective as of the Closing
Date and shall be calculated quarterly in arrears by the Administrative Agent.
The Credit-Linked Facility Fee shall be due and payable quarterly in arrears on
the last Business Day of each March, June, September and December, commencing
with the first such date to occur after the Closing Date and on the
Credit-Linked Expiration Date and thereafter on demand; provided that, in
connection with any reduction of the Aggregate Credit-Linked Commitments
pursuant to Section 2.08(b), the accrued Credit-Linked Facility Fee calculated
for the period ending on such date shall also be paid on the date of such
reduction, and the following quarterly payment shall be calculated on the basis
of the period from such reduction date to such quarterly payment date. The
Credit-Linked Facility Fee shall accrue at all times, including at any time
during which one or more of the conditions in Article V is not met.

         (l)      Credit-Linked Fronting Fee and Processing Charges. The
Borrower shall pay directly to the Credit-Linked L/C Issuer for its own account
(the "Credit-Linked Fronting Fee") (i) a one time fronting fee for each
commercial Credit-Linked Letter of Credit equal to 1/8 of 1% times the amount of
such commercial Credit-Linked Letter of Credit, due and payable at the time of
issuance and (ii) a fronting fee with respect to each standby Credit-Linked
Letter of Credit in an amount equal to 1/8 of 1% per annum on the daily maximum
amount available to be drawn thereunder (whether or not such maximum amount is
then in effect under such Credit-Linked Letter of Credit), due and payable
quarterly in arrears on the Business Day immediately following the last Business
Day of each March, June, September and December, commencing with the first such
date to occur after the issuance of such standby Credit-Linked Letter of Credit,
and on the Credit-Linked Expiration Date. In addition, the Borrower shall pay
directly to the Credit-Linked L/C Issuer for its own account the customary and
standard issuance, commission, presentation, amendment and other processing
fees, and other standard costs and charges (if any), of the Credit-Linked L/C
Issuer or any Affiliate of the Credit-Linked L/C Issuer, relating to its
Credit-Linked Letters of Credit as from time to time in effect and agreed upon
between the Borrower and the Credit-Linked L/C Issuer. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

         (m)      Designation of Subsidiaries as Account Parties.
Notwithstanding anything to the contrary set forth in this Agreement, including
without limitation Section 2.05(a), a Credit-Linked Letter of Credit issued
hereunder shall upon the request of the Borrower be issued for the account of
any Subsidiary of the Borrower, provided that notwithstanding such request, the
Borrower shall be the actual account party for all purposes of this Agreement
for such Credit-Linked Letter of Credit and such request shall not affect the
Borrower's reimbursement obligations hereunder with respect to such
Credit-Linked Letter of Credit.

2.06     Conversion to Funded Term Loans; Conversion to Credit-Linked Deposits.

(a)      Term Loans.

         (i)      Subject to the terms and conditions set forth herein
(including satisfaction of the conditions precedent specified in Sections 5.02
and 5.03), each Credit-Linked Lender severally agrees (A) to make loans (each
such loan, a "Term Loan") to the Borrower from time to time (but not more than
one time per fiscal quarter (and at such additional times as approved by the
Administrative Agent in its sole discretion)) on any Business Day during the
Availability Period solely with the Dollars funded by each such Credit-Linked
Lender to the Credit-Linked Deposit pursuant to Section 2.01(b) in an aggregate
principal amount up to the excess of (I) the principal amount of the Total
Credit-Linked Deposit minus (II) the Outstanding Amount of all Credit-Linked L/C
Obligations (the amount of such excess being the

<PAGE>

"Unused Amount"), (B) to make Term Loans to the Borrower from time to time on
any Business Day solely with the Dollars funded by each such Credit-Linked
Lender to the Credit-Linked Deposit pursuant to Section 2.01(b) in an aggregate
principal amount up to the amount of any Credit-Linked L/C Borrowing then
outstanding by converting such Credit-Linked L/C Borrowing to Term Loans and (C)
to make Term Loans to the Borrower from time to time on any Business Day solely
with the Dollars funded by each such Credit-Linked Lender to the Credit-Linked
Deposit pursuant to Section 2.01(b) in an aggregate principal amount up to the
amount of any Credit-Linked L/C Advances then outstanding by converting such
Credit Linked L/C Advances to Term Loans; in each case in accordance with the
procedures set forth in this Section 2.06(a); provided, however, that after
giving effect to the making of any such Term Loan pursuant to this Section
2.06(a), (x) the aggregate Outstanding Amount of the Credit-Linked Obligations
shall not exceed the Aggregate Credit-Linked Commitments or the Total
Credit-Linked Deposit and (y) the Pro Rata Share of any Credit-Linked Lender of
the aggregate Outstanding Amount of the Credit-Linked Obligations shall not
exceed such Credit-Linked Lender's Credit-Linked Commitment. Any Term Loans made
under this Section 2.06(a) and subsequently repaid or prepaid may not be
reborrowed, except to the extent any such Term Loan is repaid pursuant to the
provisions of Section 2.06(b).

         (ii)     The Borrower may irrevocably request the making of one or more
Term Loans in an aggregate amount up to the Unused Amount or in an aggregate
amount up to the anticipated drawing on a Credit-Linked Letter of Credit from
the proceeds of Credit-Linked Deposits, or in an aggregate amount up to the
aggregate amount of Credit-Linked L/C Advances then outstanding by converting
such Credit-Linked L/C Advances to Term Loans, as applicable, by delivering a
Loan Notice therefor to the Administrative Agent, appropriately completed and
signed by a Responsible Officer of the Borrower, not later than three (3)
Business Days prior to the proposed date of making of the Term Loans; provided
that the Borrower shall pay the amounts, if any, payable under Section 3.05; and
provided further that the minimum aggregate amount of Term Loans made on any
date shall be $5,000,000 (or such lesser amount agreed to by the Administrative
Agent). Each Loan Notice delivered pursuant to this Section shall specify (A)
the requested date of the borrowing (which shall be a Business Day), (B) the
principal amount of the Term Loans to be borrowed, (C) the Type of Term Loans to
be borrowed and (D) if applicable, the duration of the Interest Period with
respect thereto. If the Borrower fails to specify a Type of Loan in a Loan
Notice, then the applicable Term Loans shall be made as Base Rate Loans. If the
Borrower requests a borrowing of Eurodollar Rate Loans in any Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

         (iii)    Following receipt of a Loan Notice pursuant to Section
2.06(a)(ii), the Administrative Agent shall promptly notify each Credit-Linked
Lender of its Pro Rata Share of the applicable Term Loans, and if no timely
notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Credit-Linked Lender of the details of
any automatic conversion to Base Rate Loans as described in the preceding
subsection. Upon satisfaction of the applicable conditions set forth in Sections
5.02 and 5.03, the Administrative Agent shall (A) in the case of Term Loans made
pursuant to Section 2.06(a)(i)(A), debit the Credit-Linked Deposit Account in an
amount equal to the aggregate amount of the proposed Term Loans (but not
exceeding the Unused Amount) and shall make such funds available to the Borrower
either by (i) crediting the account of the Borrower on the books of Bank of
America with the amount of such funds or (ii) wire transferring such funds, in
each case in accordance with instructions provided to (and reasonably acceptable
to) the Administrative Agent by the Borrower, (B) in the case of Term Loans made
pursuant to Section 2.06(a)(i)(B), debit the Credit-Linked Deposit Account in an
amount equal to the aggregate amount of the proposed Term Loans and transfer
such funds to the Credit-Linked L/C Issuer in reimbursement of the applicable
drawing on a Credit-Linked Letter of Credit, and (C) in the case of Term Loans
made pursuant to Section 2.06(a)(i)(C) record in its books and records and on
the Register the conversion of the applicable Credit-Linked L/C Advances into
Term Loans, which credit or transfer or recordation, as applicable, shall be
deemed to be

<PAGE>

the making of the Term Loans by the Credit-Linked Lenders hereunder, and such
date shall be the "Term Loan Issuance Date" (and the Administrative Agent shall
forthwith deliver a notice to each Credit-Linked Lender informing such
Credit-Linked Lender of the applicable Term Loan Issuance Date). Each
Credit-Linked Lender hereby irrevocably authorizes the Administrative Agent to
charge the Credit-Linked Deposit Account for such purpose. No Credit-Linked
Lender shall have any obligation to make Term Loans to the Borrower other than
from the proceeds of its Credit-Linked Deposits.

         (iv)     Each conversion of Term Loans from one Type to the other, and
each continuation of Term Loans that are Eurodollar Rate Loans shall be made
upon the Borrower's irrevocable notice to the Administrative Agent, which may be
given by telephone. Each such notice must be received by the Administrative
Agent not later than 11:00 a.m. three (3) Business Days prior to the requested
date of any conversion to or continuation of, Term Loans that are Eurodollar
Rate Loans or any conversion of Term Loans that are Eurodollar Rate Loans to
Base Rate Loans. Each telephonic notice by the Borrower pursuant to this Section
2.06(a)(iv) must be confirmed promptly by delivery to the Administrative Agent
of a written Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower. Each Loan Notice (whether telephonic or written) shall
specify (i) whether the Borrower is requesting a conversion of Term Loans from
one Type to the other or a continuation of Term Loans that are Eurodollar Rate
Loans, (ii) the requested date of the conversion or continuation, as the case
may be (which shall be a Business Day), (iii) the principal amount of Term Loans
to be converted or continued, (iv) the Type of Term Loans to which existing Term
Loans are to be converted, if applicable, and (v) if applicable, the duration of
the Interest Period with respect thereto. If the Borrower fails to give a timely
notice requesting a conversion or continuation, then the applicable Term Loans
shall be made as, or converted to, Base Rate Loans. Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans. If the Borrower requests a conversion to, or continuation of Eurodollar
Rate Loans in any Loan Notice, but fails to specify an Interest Period, it will
be deemed to have specified an Interest Period of one month.

         (v)      Except as otherwise provided herein, a Term Loan that is a
Eurodollar Rate Loan may be continued or converted only on the last day of the
Interest Period for such Eurodollar Rate Loan. During the existence of a Default
or Event of Default, no Term Loans may be requested as, converted to or
continued as Eurodollar Rate Loans without the consent of the Required
Credit-Linked Lenders, and the Required Credit-Linked Lenders may demand that
any or all of the then outstanding Eurodollar Rate Loans be converted
immediately to Base Rate Loans.

         (vi)     The Administrative Agent shall promptly notify the Borrower
and the Credit-Linked Lenders of the interest rate applicable to any Interest
Period for Term Loans that are Eurodollar Rate Loans upon determination of such
interest rate. The determination of the Eurodollar Rate by the Administrative
Agent shall be conclusive in the absence of manifest error. At any time that
Term Loans that are Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Credit-Linked Lenders of any change in Bank of
America's prime rate used in determining the Base Rate promptly following the
public announcement of such change.

         (vii)    After giving effect to all borrowings of Term Loans, all
conversions of Term Loans from one Type to the other, and all continuations of
Term Loans as the same Type, there shall not be more than 5 Interest Periods in
effect with respect to Term Loans.

         (b)      Conversion Back to Credit-Linked Deposits.

         (i)      Subject to the terms and conditions set forth herein, the
Borrower may repay all or any portion of the outstanding amount of the Term
Loans then in existence by paying Dollars to the Administrative Agent for
deposit by the Administrative Agent of such Dollars in the Credit-Linked

<PAGE>

Deposit Account in an amount equal to the Term Loans being repaid.

         (ii)     The Borrower may prepay the Term Loans in the manner provided
for in Section 2.06(b)(i), by delivering a Request for Credit-Linked Deposit to
the Administrative Agent, appropriately completed and signed by a Responsible
Officer of the Borrower, not later than three (3) Business Days prior to the
date of proposed prepayment; provided that the Borrower shall pay the amounts,
if any, payable under Section 3.05; and provided, further that the minimum
aggregate amount of Term Loans prepaid on any date pursuant to Section
2.06(b)(i) shall be $5,000,000.

         (iii)    Following receipt of any Request for Credit-Linked Deposit,
the Administrative Agent shall promptly notify each Credit-Linked Lender of its
Pro Rata Share of the Term Loan being prepaid. Upon the satisfaction of the
procedures contained in this Section 2.06(b), the Borrower shall make the
prepayment of the applicable Term Loans to the Administrative Agent, and the
Administrative Agent shall deposit such proceeds received in the Credit-Linked
Deposit Account. Such proceeds being paid back to the Credit-Linked Deposit
Account shall be credited to each Credit-Linked Lender according to its Pro Rata
Share. Subject to the other terms and conditions of this Agreement, any amount
prepaid by the Borrower pursuant to this Section 2.06(b) may be reborrowed.

2.07     Prepayments.

         (a)      Voluntary Prepayments of Loans.

                  (i)      Revolving Loans. The Borrower may, upon notice from
         the Borrower to the Administrative Agent, at any time or from time to
         time voluntarily prepay Revolving Loans in whole or in part without
         premium or penalty; provided that (A) such notice must be received by
         the Administrative Agent not later than 11:00 a.m. (1) three (3)
         Business Days prior to any date of prepayment of Eurodollar Rate Loans
         and (2) on the date of prepayment of Base Rate Loans; (B) any such
         prepayment of Eurodollar Rate Loans shall be in a principal amount of
         $5,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if
         less, the entire principal amount thereof then outstanding) and (C) any
         prepayment of Base Rate Loans shall be in a principal amount of
         $1,000,000 or a whole multiple of $500,000 in excess thereof (or, if
         less, the entire principal amount thereof then outstanding). Each such
         notice shall specify the date and amount of such prepayment and the
         Type(s) of Revolving Loans to be prepaid. The Administrative Agent will
         promptly notify each Lender with a Revolving Commitment of its receipt
         of each such notice, and of the amount of such Lender's Pro Rata Share
         of such prepayment. If such notice is given by the Borrower, the
         Borrower shall make such prepayment and the payment amount specified in
         such notice shall be due and payable on the date specified therein. Any
         prepayment of a Eurodollar Rate Loan shall be accompanied by all
         accrued interest thereon, together with any additional amounts required
         pursuant to Section 3.05. Each such prepayment shall be applied to the
         Revolving Loans of the Lenders in accordance with their respective Pro
         Rata Shares.

                  (ii)     Swing Line Loans. The Borrower may, upon notice to
         the Swing Line Lender (with a copy to the Administrative Agent), at any
         time or from time to time, voluntarily prepay Swing Line Loans in whole
         or in part without premium or penalty; provided that (i) such notice
         must be received by the Swing Line Lender and the Administrative Agent
         not later than 1:00 p.m. on the date of the prepayment, and (ii) any
         such prepayment shall be in a minimum principal amount of $250,000 or a
         whole multiple of $100,000 in excess thereof (or, if less, the entire
         principal thereof then outstanding). Each such notice shall specify the
         date and amount of such prepayment. If such notice is given by the
         Borrower, the Borrower shall make such prepayment and the payment
         amount specified in such notice shall be due and payable on the date
         specified therein. Notwithstanding the foregoing, however, in the event
         that an "auto borrow" or "zero

<PAGE>

         balance" or similar arrangement shall then be in place with the Swing
         Line Lender, the Borrower may make voluntary prepayments on Swing Line
         Loans pursuant to such alternative notice arrangements and in such
         minimum amounts, if any, provided thereunder or in connection
         therewith.

                  (iii)    Term Loans. In addition to prepaying the Term Loans
         by paying Dollars to the Administrative Agent for deposit in the
         Credit-Linked Deposit Account pursuant to Section 2.06(b), the Borrower
         may, at its option, upon notice to the Administrative Agent as provided
         below, prepay on any Business Day all, or from time to time any part
         of, the Term Loans (subject to the limitations sets forth below);
         provided that (i) any such notice shall be received by the
         Administrative Agent not later than 1:00 p.m., two (2) Business Days
         prior to the date of prepayment, and (ii) any such partial prepayment
         shall be in an aggregate amount of $1,000,000 or any whole multiple of
         $1,000,000 in excess thereof, or such lesser amount as would reduce the
         Term Loans to $0. Such notice shall specify the proposed effective date
         of such prepayment, the aggregate principal amount of the Term Loans to
         be prepaid on such date and the interest to be paid on the prepayment
         date with respect to such principal amount being prepaid, which shall
         be the last day of the Interest Period therefor. The Administrative
         Agent will promptly notify the Credit-Linked Lenders of any such notice
         of prepayment of the Term Loans. Once prepaid in accordance with this
         Section, such Term Loans may not be reborrowed. Upon any such
         prepayment, the Administrative Agent shall promptly remit to each
         Credit-Linked Lender its Pro Rata Share of the amount of the prepayment
         of the Term Loans.

         (b)      Mandatory Prepayments of Loans.

                  (i)      Revolving Commitments. If for any reason the Total
         Revolving Outstandings at any time exceed the Aggregate Revolving
         Commitments then in effect, the Borrower shall immediately prepay
         Revolving Loans and/or the Swing Line Loans and/or Cash Collateralize
         the L/C Obligations in an aggregate amount equal to such excess;
         provided, however, that the Borrower shall not be required to Cash
         Collateralize the L/C Obligations pursuant to this Section 2.07(b)(i)
         unless after the prepayment in full of the Revolving Loans and Swing
         Line Loans the Total Revolving Outstandings exceed the Aggregate
         Revolving Commitments then in effect.

                  (ii)     Credit-Linked Commitments. If for any reason the
         Outstanding Amount of (A) all Credit-Linked Letters of Credit and (B)
         the aggregate of the Unreimbursed Credit-Linked Amounts exceeds the
         Total Credit-Linked Deposit, the Borrower shall immediately pay the
         Unreimbursed Credit-Linked Amounts and/or Cash Collateralize the
         Credit-Linked Letters of Credit in an aggregate amount equal to such
         excess.

                  (iii)    Application of Mandatory Prepayments. All amounts
         required to be paid pursuant to Section 2.07(b)(i) shall be applied to
         Revolving Loans and Swing Line Loans and (after all Revolving Loans and
         all Swing Line Loans have been repaid) to Cash Collateralize L/C
         Obligations. All amounts required to be paid pursuant to Section
         2.07(b)(ii) shall be applied to the Unreimbursed Credit-Linked Amounts
         and (after all Unreimbursed Credit-Linked Amounts have been repaid) to
         Cash Collateralize the Credit-Linked Letters of Credit.

         Within the parameters of the applications set forth above, prepayments
         shall be applied first to Base Rate Loans and then to Eurodollar Rate
         Loans in direct order of Interest Period maturities. All prepayments
         under this Section 2.07(b) shall be subject to Section 3.05, but
         otherwise without premium or penalty, and shall be accompanied by
         interest on the principal amount prepaid through the date of
         prepayment.

<PAGE>

2.08     Termination or Reduction of Commitments.

         (a)      Optional Reductions of Revolving Commitments. The Borrower
may, upon notice to the Administrative Agent, terminate the Aggregate Revolving
Commitments, or from time to time permanently reduce the Aggregate Revolving
Commitments to an amount not less than the Outstanding Amount of Revolving
Loans, Swing Line Loans and L/C Obligations; provided that (i) any such notice
shall be received by the Administrative Agent not later than 12:00 noon five (5)
Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $5,000,000 or any whole
multiple of $1,000,000 in excess thereof and (iii) if, after giving effect to
any reduction of the Aggregate Revolving Commitments, the Letter of Credit
Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate
Revolving Commitments, such sublimit shall be automatically reduced by the
amount of such excess. The Administrative Agent will promptly notify the Lenders
of any such notice of termination or reduction of the Aggregate Revolving
Commitments. Any reduction of the Aggregate Revolving Commitments shall be
applied to the Revolving Commitment of each Lender according to its Pro Rata
Share. All fees accrued with respect thereto until the effective date of any
termination of the Aggregate Revolving Commitments shall be paid on the
effective date of such termination.

         (b)      Optional Reduction of Credit-Linked Commitments. The Borrower
may, upon notice to the Administrative Agent, terminate the Aggregate
Credit-Linked Commitments, or from time to time permanently reduce the Aggregate
Credit-Linked Commitments to an amount not less than the Credit-Linked
Obligations; provided that (i) any such notice shall be received by the
Administrative Agent not later than 12:00 noon five (5) Business Days prior to
the date of termination or reduction, (ii) any such partial reduction shall be
in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in
excess thereof, or such lesser amount as would reduce the Aggregate
Credit-Linked Commitments to zero and (iii) the Borrower shall not direct the
Administrative Agent to reduce the Aggregate Credit-Linked Commitments if, after
giving effect to such reduction, the aggregate Credit-Linked Obligations would
exceed the Aggregate Credit-Linked Commitments. The Administrative Agent shall
promptly notify the Credit-Linked Lenders of any such notice of termination or
reduction of the Aggregate Credit-Linked Commitments. Any such reduction or
termination of the Aggregate Credit-Linked Commitments shall be applied to the
Credit-Linked Commitment of each Lender according to its Pro Rata Share, and the
Administrative Agent shall return all amounts in the Credit-Linked Deposit in
the amount of such reduction or termination to the Credit-Linked Lenders in
accordance with their respective Pro Rata Share. Once reduced in accordance with
this Section 2.08(b), the Credit-Linked Commitments may not be increased. All
fees accrued with respect thereto until the effective date of any termination or
reduction of the Aggregate Credit-Linked Commitments shall be paid on the
effective date of such termination or reduction. Upon any such termination or
reduction, the Administrative Agent shall promptly remit to each Credit-Linked
Lender Dollars in the Credit-Linked Deposit Account equal to its Pro Rata Share
of termination or reduction of the Aggregate Credit-Linked Commitments.

         (c)      Mandatory Reductions of Credit-Linked Deposits and Term Loans.
The Borrower shall repay the Term Loans and/or permanently reduce the Aggregate
Credit-Linked Commitments pursuant to Section 2.08(b) on December 31 of each
fiscal year such that the aggregate of the Credit-Linked Deposits and the Term
Loans then outstanding shall not exceed the following amounts as of the
following dates:

<TABLE>
<CAPTION>
    Date                                        Amount
    ----                                        ------
<S>                                         <C>
December 31, 2004                           $148,500,000.00

December 31, 2005                           $147,000,000.00
</TABLE>

<PAGE>

<TABLE>
<S>                                         <C>
December 31, 2006                           $145,500,000.00

December 31, 2007                           $144,000,000.00
</TABLE>

2.09     Repayment of Loans.

         (a)      Revolving Loans. The Borrower shall repay to the Lenders on
the Maturity Date the aggregate principal amount of all Revolving Loans
outstanding on such date.

         (b)      Swing Line Loans. The Borrower shall repay each Swing Line
Loan on the earlier to occur of (i) demand by the Swing Line Lender and (ii) the
Maturity Date.

         (c)      Term Loans. The Borrower shall repay to the Lenders on the
Maturity Date the outstanding principal amount of all Term Loans outstanding on
such date, unless accelerated sooner pursuant to Section 9.02.

2.10     Interest.

         (a)      Revolving Loans and Swing Line Loans.

                  (i)      Subject to the provisions of subsection (ii) below,
         (A) each Revolving Loan that is a Eurodollar Rate Loan shall bear
         interest on the outstanding principal amount thereof for each Interest
         Period at a rate per annum equal to the sum of (I) the Eurodollar Rate
         for such Interest Period plus (II) the Applicable Rate; (B) each
         Revolving Loan that is a Base Rate Loan shall bear interest on the
         outstanding principal amount thereof from the applicable borrowing date
         at a rate per annum equal to the Base Rate plus the Applicable Rate;
         and (C) each Swing Line Loan shall bear interest on the outstanding
         principal amount thereof from the applicable borrowing date at a rate
         per annum equal to the Base Rate plus the Applicable Rate.

                  (ii)     Interest on each Revolving Loan and Swing Line Loan
         shall be due and payable in arrears on each Interest Payment Date
         applicable thereto and at such other times as may be specified herein.
         Interest hereunder shall be due and payable in accordance with the
         terms hereof before and after judgment, and before and after the
         commencement of any proceeding under any Debtor Relief Law.

         (b)      Term Loans.

                  (i)      Subject to the provisions of subsection (ii) below,
         (A) each Term Loan that is a Eurodollar Loan shall bear interest on the
         outstanding principal amount thereof for each Interest Period at a rate
         per annum equal to the sum of (I) the Eurodollar Rate for such Interest
         Period plus (II) 3.00% and (B) each Term Loan that is a Base Rate Loan
         shall bear interest on the outstanding principal amount thereof from
         the applicable borrowing date at a rate per annum equal to the Base
         Rate plus 3.00%.

                  (ii)     Interest on each Term Loan shall be due and payable
         in arrears on each Interest Payment Date applicable thereto and at such
         other times as may be specified herein. Interest hereunder shall be due
         and payable in accordance with the terms hereof before and after
         judgment, and before and after the commencement of any proceeding under
         any Debtor Relief Law.

         (c)      Interest on Credit-Linked L/C Borrowings and Credit-Linked L/C
Advances.

<PAGE>

                  (i)      Each Credit-Linked L/C Borrowing shall bear interest
         on the outstanding principal amount thereof (A) from and including the
         applicable Credit-Linked L/C Borrowing date to and excluding the date
         six (6) Business Days thereafter at an interest rate per annum equal at
         all times to the Base Rate plus 3.00%, and (B) from and including the
         sixth Business Day after the applicable Credit-Linked L/C Borrowing
         date at an interest rate per annum equal at all times to the Default
         Rate.

                  (ii)     Each Credit-Linked L/C Advance shall bear interest on
         the outstanding principal amount thereof for each Interest Period at a
         rate per annum equal to the sum of (A) the Eurodollar Rate for such
         Interest Period plus (B) 3.00%.

         (d)      Default Rate. Upon the occurrence and during the continuation
of an Event of Default, the Borrower shall pay interest on the principal amount
of all outstanding Obligations at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable
Laws.

2.11     Fees.

         In addition to certain fees described in subsections (i) and (j) of
Section 2.03 and subsections (k) and (l) of Section 2.05:

                  (a)      Commitment Fee. The Borrower shall pay to the
         Administrative Agent for the account of each Lender in accordance with
         its Pro Rata Share, a commitment fee equal to the product of (i) the
         Applicable Rate times (ii) the actual daily amount by which the
         Aggregate Revolving Commitments exceed the sum of (y) the Outstanding
         Amount of Revolving Loans and (z) the Outstanding Amount of L/C
         Obligations. The commitment fee shall accrue at all times during the
         Availability Period, including at any time during which one or more of
         the conditions in Article V is not met, and shall be due and payable
         quarterly in arrears on the last Business Day of each March, June,
         September and December, commencing with the first such date to occur
         after the Closing Date, and on the Maturity Date. The commitment fee
         shall be calculated quarterly in arrears, and if there is any change in
         the Applicable Rate during any quarter, the actual daily amount shall
         be computed and multiplied by the Applicable Rate separately for each
         period during such quarter that such Applicable Rate was in effect. For
         purposes of clarification, Swing Line Loans shall not be considered
         outstanding for purposes of determining the unused portion of the
         Aggregate Revolving Commitments.

                  (b)      Fee Letter. The Borrower shall pay to BAS and the
         Administrative Agent for their own respective accounts fees in the
         amounts and at the times specified in the Fee Letter. Such fees shall
         be fully earned when paid and shall be non-refundable for any reason
         whatsoever.

2.12     Computation of Interest and Fees.

         All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America's "prime rate" shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Credit-Linked L/C Advance or Loan for the day on which the
Credit-Linked L/C

<PAGE>

Advance or Loan is made, and shall not accrue on a Credit-Linked L/C Advance or
Loan, or any portion thereof, for the day on which the Credit-Linked L/C
Advance, Loan or such portion is paid, provided that any Credit-Linked L/C
Advance or Loan that is repaid on the same day on which it is made shall bear
interest for one day.

2.13     Evidence of Debt.

         (a)      The Credit Extensions made by each Lender shall be evidenced
by one or more accounts or records maintained by such Lender and by the
Administrative Agent in the ordinary course of business. The accounts or records
maintained by the Administrative Agent and each Lender shall be conclusive
absent manifest error of the amount of the Credit Extensions made by the Lenders
to the Borrower and the interest and payments thereon. Any failure to so record
or any error in doing so shall not, however, limit or otherwise affect the
obligation of the Borrower hereunder to pay any amount owing with respect to the
Obligations. In the event of any conflict between the accounts and records
maintained by any Lender and the accounts and records of the Administrative
Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. Upon the request of any
Lender made through the Administrative Agent, the Borrower shall execute and
deliver to such Lender (through the Administrative Agent) a promissory note,
which shall evidence such Lender's Loans in addition to such accounts or
records. Each such promissory note shall (i) in the case of Revolving Loans, be
in the form of Exhibit E-1 (a "Revolving Note") and (ii) in the case of Swing
Line Loans, be in the form of Exhibit E-2 (a "Swing Line Note"). Furthermore,
the Credit-Linked Deposit of, and the obligations of the Borrower to pay
Credit-Linked L/C Advances and Term Loans to, each Credit-Linked Lender shall be
evidenced by a Credit-Linked Note in the form of Exhibit E-3 (a "Credit-Linked
Note") executed by the Borrower. Each Lender may attach schedules to its Note
and endorse thereon the date, Type (if applicable), amount and maturity of its
Loans and payments with respect thereto.

         (b)      In addition to the accounts and records referred to in
subsection (a), each Lender and the Administrative Agent shall maintain in
accordance with its usual practice accounts or records evidencing the purchases
and sales by such Lender of participations in Letters of Credit and Swing Line
Loans. In the event of any conflict between the accounts and records maintained
by the Administrative Agent and the accounts and records of any Lender in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error.

2.14     Payments Generally.

         (a)      All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 2:00 p.m. on
the date specified herein. The Administrative Agent will promptly distribute to
the L/C Issuer or the Credit-Linked L/C Issuer, as the case may be, its
applicable share or each Lender its Pro Rata Share (or other applicable share as
provided herein) of such payment in like funds as received by wire transfer to
such Lender's Lending Office. All payments received by the Administrative Agent
after 2:00 p.m. shall be deemed received on the next succeeding Business Day and
any applicable interest or fee shall continue to accrue.

         (b)      Subject to the definition of "Interest Period", if any payment
to be made by the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

         (c)      If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, L/C
Borrowings, Credit-Linked L/C Borrowings, interest and fees

<PAGE>

then due hereunder, such funds shall be applied (i) first, toward costs and
expenses (including Attorney Costs and amounts payable under Article III)
incurred by the Administrative Agent and each Lender, (ii) second, toward
repayment of interest and fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to
such parties, and (iii) third, toward repayment of principal, L/C Borrowings and
Credit-Linked L/C Borrowings then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal, L/C Borrowings and
Credit-Linked L/C Borrowings then due to such parties.

         (d)      Unless the Borrower or any Lender has notified the
Administrative Agent, prior to the date any payment is required to be made by it
to the Administrative Agent hereunder, that the Borrower or such Lender, as the
case may be, will not make such payment, the Administrative Agent may assume
that the Borrower or such Lender, as the case may be, has timely made such
payment and may (but shall not be so required to), in reliance thereon, make
available a corresponding amount to the Person entitled thereto. If and to the
extent that such payment was not in fact made to the Administrative Agent in
immediately available funds, then:

                  (i)      if the Borrower failed to make such payment, each
         Lender shall forthwith on demand repay to the Administrative Agent the
         portion of such assumed payment that was made available to such Lender
         in immediately available funds, together with interest thereon in
         respect of each day from and including the date such amount was made
         available by the Administrative Agent to such Lender to the date such
         amount is repaid to the Administrative Agent in immediately available
         funds at the Federal Funds Rate from time to time in effect; and

                  (ii)     if any Lender failed to make such payment, such
         Lender shall forthwith on demand pay to the Administrative Agent the
         amount thereof in immediately available funds, together with interest
         thereon for the period from the date such amount was made available by
         the Administrative Agent to the Borrower to the date such amount is
         recovered by the Administrative Agent (the "Compensation Period") at a
         rate per annum equal to the Federal Funds Rate from time to time in
         effect. If such Lender pays such amount to the Administrative Agent,
         then such amount shall constitute such Lender's Loan included in the
         applicable Borrowing. If such Lender does not pay such amount forthwith
         upon the Administrative Agent's demand therefor, the Administrative
         Agent may make a demand therefor upon the Borrower, and the Borrower
         shall pay such amount to the Administrative Agent, together with
         interest thereon for the Compensation Period at a rate per annum equal
         to the rate of interest applicable to the applicable Borrowing. Nothing
         herein shall be deemed to relieve any Lender from its obligation to
         fulfill its Commitment or to prejudice any rights which the
         Administrative Agent or the Borrower may have against any Lender as a
         result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender or the Borrower with
         respect to any amount owing under this subsection (d) shall be
         conclusive, absent manifest error.

         (e)      If any Lender makes available to the Administrative Agent
funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the
Borrower by the Administrative Agent because the conditions to the applicable
Credit Extension set forth in Article V are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without
interest.

         (f)      The obligations of the Lenders hereunder to make Loans, to
fund participations in Letters of Credit and Swing Line Loans and to fund
participations in Credit-Linked Letters of Credit are several and not joint. The
failure of any Lender to make any Loan, to fund any such participation in
Letters of

<PAGE>

Credit or Swing Line Loans or to fund participations in Credit-Linked Letters of
Credit on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, purchase
its participation in Letters of Credit or Swing Line Loans or purchase
participations in Credit-Linked Letters of Credit.

         (g)      Nothing herein shall be deemed to obligate any Lender to
obtain the funds for any Loan or the Credit-Linked Deposit in any particular
place or manner or to constitute a representation by any Lender that it has
obtained or will obtain the funds for any Loan or the Credit-Linked Deposit in
any particular place or manner.

2.15     Sharing of Payments.

         If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Loans made by it, or the participations in L/C
Obligations, Credit-Linked L/C Obligations or in Swing Line Loans held by it
(but not including any amounts applied by the Swing Line Lender to outstanding
Swing Line Loans), any payment (whether voluntary, involuntary, through the
exercise of any right of set-off, or otherwise) in excess of its ratable share
(or other share contemplated hereunder) thereof, such Lender shall immediately
(a) notify the Administrative Agent of such fact, and (b) purchase from the
other Lenders such participations in the Loans made by them and/or such
subparticipations in the participations in L/C Obligations, Credit-Linked L/C
Obligations or Swing Line Loans held by them, as the case may be, as shall be
necessary to cause such purchasing Lender to share the excess payment in respect
of such Loans or such participations, as the case may be, pro rata with each of
them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Lender under any of the circumstances
described in Section 11.06 (including pursuant to any settlement entered into by
the purchasing Lender in its discretion), such purchase shall to that extent be
rescinded and each other Lender shall repay to the purchasing Lender the
purchase price paid therefor, together with an amount equal to such paying
Lender's ratable share (according to the proportion of (i) the amount of such
paying Lender's required repayment to (ii) the total amount so recovered from
the purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered, without further
interest thereon. The Borrower agrees that any Lender so purchasing a
participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject
to Section 11.09) with respect to such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such participation.
The Administrative Agent will keep records (which shall be conclusive and
binding in the absence of manifest error) of participations purchased under this
Section and will in each case notify the Lenders following any such purchases or
repayments. Each Lender that purchases a participation pursuant to this Section
shall from and after such purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased.

                                   ARTICLE III

                     TAXES, YIELD PROTECTION AND ILLEGALITY

3.01     Taxes.

         (a)      Subject to Section 11.15 and except as provided in this
Section 3.01, any and all payments by any Loan Party to or for the account of
the Administrative Agent, any Issuer or any Lender under any Loan Document shall
be made free and clear of and without deduction for any and all present

<PAGE>

or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto,
excluding, in the case of the Administrative Agent, each Issuer and each Lender,
taxes imposed on or measured by its overall net income or overall gross
receipts, and franchise taxes and similar taxes imposed on it, by the
jurisdiction (or any political subdivision thereof) under the Laws of which the
Administrative Agent, such Issuer or such Lender, as the case may be, is
organized or maintains a lending office or maintained a lending office from
which Credit Extensions were made (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as "Taxes"). If any Loan Party shall
be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Administrative Agent, any Issuer or any
Lender, (i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section), each of the Administrative Agent, such Issuer and
such Lender receives an amount equal to the sum it would have received had no
such deductions been made, (ii) such Loan Party shall make such deductions,
(iii) such Loan Party shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable Laws, and
(iv) within thirty days after the date of such payment, such Loan Party shall
furnish to the Administrative Agent (which shall forward the same to such
Lender) the original or a certified copy of a receipt evidencing payment
thereof.

         (b)      In addition, the Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

         (c)      The Borrower agrees to indemnify the Administrative Agent,
each Issuer and each Lender for (i) the full amount of Taxes and Other Taxes
(including any Taxes or Other Taxes imposed or asserted by any jurisdiction on
amounts payable under this Section) paid by the Administrative Agent, such
Issuer and such Lender and (ii) any liability (including additions to tax,
penalties, interest and expenses) arising therefrom or with respect thereto, in
each case whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority; provided the
Administrative Agent, such Issuer and such Lender, as the case may be, provides
the Borrower with a written record therefor setting forth in reasonable detail
the basis and calculation of such amounts. Payment under this subsection (c)
shall be made within thirty days after the date the Lender, the Issuer or the
Administrative Agent makes a demand therefor.

         (d)      Each Lender agrees that, upon the occurrence of any event
giving rise to the operation of Section 3.01(a) or Section 3.01(c) with respect
to such Lender, it will, if requested by the Borrower, use reasonable commercial
efforts (subject to such Lender's overall internal policies of general
application) to designate another lending office for any Loan, Letter of Credit
or Credit-Linked Letter of Credit 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 reasonable judgment of such Lender, cause such Lender and
its lending office(s) to suffer no material economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section 3.01(c) shall
affect or postpone any of the Obligations of the Borrower or the rights of such
Lender pursuant to Section 3.01(a) and Section 3.01(c).

         (e)      Notwithstanding any provision contained herein to the
contrary, any indemnity with respect to taxes, duties, levies, imposts,
deductions, assessments, fees, withholdings or similar charges imposed by any
Governmental Authority on any payment made by any Loan Party to or for the
account of the Administrative Agent, any Issuer or any Lender under any Loan
Document, or any liabilities with

<PAGE>

respect thereto, shall be governed solely and exclusively by this Section 3.01
and Section 11.15.

3.02     Illegality.

         If any Lender reasonably determines that any Law has made it unlawful,
or that any Governmental Authority has asserted that it is unlawful, for any
Lender or its applicable Lending Office to make, maintain or fund Eurodollar
Rate Loans, or to determine or charge interest rates based upon the Eurodollar
Rate, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate Loans.
Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted. Each Lender agrees to designate
a different Lending Office if such designation will avoid the need for such
notice and will not, in the good faith judgment of such Lender, otherwise be
materially disadvantageous to such Lender.

3.03     Inability to Determine Rates.

         If the Administrative Agent reasonably determines that for any reason
adequate and reasonable means do not exist for determining the Eurodollar Base
Rate for any requested Interest Period with respect to a proposed Eurodollar
Rate Loan, or that the Eurodollar Base Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan does not adequately and fairly
reflect the cost to the Lenders of funding such Loan, the Administrative Agent
will promptly notify the Borrower and all Lenders. Thereafter, the obligation of
the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent revokes such notice. Upon receipt of such notice, the
Borrower may revoke (without regard to any notice period that may otherwise be
required hereunder) any pending request for a Borrowing, conversion or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Borrowing of Base Rate Loans in the
amount specified therein.

3.04     Increased Cost and Reduced Return; Capital Adequacy.

         (a)      If any Lender reasonably determines that as a result of the
introduction of or any change in or in the interpretation of any Law, or such
Lender's compliance therewith, there shall be any increase in the cost to such
Lender of agreeing to make or making, funding or maintaining Eurodollar Rate
Loans or (as the case may be) issuing or participating in Letters of Credit, or
a reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 3.01 and Section 11.15 shall govern), (ii) changes in
the basis of taxation of overall net income, overall gross income, franchise
taxes or similar taxes by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office or maintained a lending office from which
Credit Extensions were made, and (iii) reserve requirements utilized, as to
Eurodollar Rate Loans, in the determination of the Eurodollar Rate), then from
time to time upon demand of such Lender setting forth in reasonable detail such
increased costs (with a copy of such demand to the Administrative Agent), the
Borrower shall pay to such Lender such additional amounts as will compensate
such Lender for such increased cost or reduction.

<PAGE>

         (b)      If any Lender reasonably determines that the introduction of
any Law regarding capital adequacy or any change therein or in the
interpretation thereof, or compliance by such Lender (or its Lending Office)
therewith, has the effect of reducing the rate of return on the capital of such
Lender or any corporation controlling such Lender as a consequence of such
Lender's obligations hereunder (taking into consideration its policies with
respect to capital adequacy and such Lender's desired return on capital), then
from time to time upon demand of such Lender setting forth in reasonable detail
such additional amounts (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender for such reduction.

         (c)      The Borrower shall not be required to compensate a Lender
pursuant to Section 3.04(a) or (b) for any such increased cost or reduction
incurred more than one hundred eighty (180) days prior to the date that such
Lender demands, or notifies the Borrower of its intention to demand,
compensation therefor; provided that, if the circumstance giving rise to such
increased cost or reduction is retroactive, then such 180-day period referred to
above shall be extended to include the period of retroactive effect thereof.

3.05     Funding Losses.

         Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any loss, cost or reasonable expense actually
incurred by it as a result of:

                  (a)      any continuation, conversion, payment or prepayment
         of any Loan other than a Base Rate Loan on a day other than the last
         day of the Interest Period for such Loan (whether voluntary, mandatory,
         automatic, by reason of acceleration, or otherwise);

                  (b)      any reduction of the Total Credit-Linked Deposits on
         a day other than the last day of an Interest Period therefor;

                  (c)      any failure by the Borrower (for a reason other than
         the failure of such Lender to make a Loan) to prepay, borrow, continue
         or convert any Loan other than a Base Rate Loan on the date or in the
         amount notified by the Borrower; or

                  (d)      any assignment of a Eurodollar Rate Loan on a day
         other than the last day of the Interest Period therefor as a result of
         a request by the Borrower pursuant to Section 11.16;

including any loss or expense arising from the liquidation or reemployment of
funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any
customary administrative fees charged by such Lender in connection with the
foregoing.

         For purposes of calculating amounts payable by the Borrower to the
Lenders under this Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining
the Eurodollar Rate for such Loan by a matching deposit or other borrowing in
the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.

<PAGE>

3.06     Matters Applicable to all Requests for Compensation.

         (a)      A certificate of the Administrative Agent or any Lender
claiming compensation under this Article III and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods.

         (b)      Upon any Lender's making a claim for compensation under
Section 3.01 or 3.04, the Borrower may replace such Lender in accordance with
Section 11.16.

3.07     Survival.

         All of the Borrower's obligations under this Article III shall survive
the termination of the Aggregate Revolving Commitments, the termination of the
Credit-Linked Commitments and the Credit-Linked Deposits and repayment of all
other Obligations hereunder.

                                   ARTICLE IV

                                    GUARANTY

4.01     The Guaranty.

         Each of the Guarantors hereby jointly and severally guarantees to each
Lender, each Affiliate of a Lender that enters into a Swap Contract, and the
Administrative Agent as hereinafter provided, as primary obligor and not as
surety, the prompt payment of the Obligations in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) strictly in accordance with the terms thereof.
The Guarantors hereby further agree that if any of the Obligations are not paid
in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise), the
Guarantors will, jointly and severally, promptly pay the same, without any
demand or notice whatsoever, and that in the case of any extension of time of
payment or renewal of any of the Obligations, the same will be promptly paid in
full when due (whether at extended maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) in accordance
with the terms of such extension or renewal.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Loan Documents or Swap Contracts, the obligations of each
Guarantor under this Agreement and the other Loan Documents shall be limited to
an aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under the Debtor Relief Laws or any comparable
provisions of any applicable state law.

4.02     Obligations Unconditional.

         The obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Loan Documents or Swap
Contracts, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor, it being the intent of this Section 4.02 that the obligations of the
Guarantors hereunder shall be absolute and unconditional under any and all
circumstances. Each Guarantor agrees that such Guarantor shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other Guarantor for amounts paid

<PAGE>

under this Article IV until such time as the Obligations have been paid in full
and the Commitments have expired or terminated. Without limiting the generality
of the foregoing, it is agreed that, to the fullest extent permitted by law, the
occurrence of any one or more of the following shall not alter or impair the
liability of any Guarantor hereunder, which shall remain absolute and
unconditional as described above:

                  (a)      at any time or from time to time, without notice to
         any Guarantor, the time for any performance of or compliance with any
         of the Obligations shall be extended, or such performance or compliance
         shall be waived;

                  (b)      any of the acts mentioned in any of the provisions of
         any of the Loan Documents, any Swap Contract between any Loan Party and
         any Lender, or any Affiliate of a Lender, or any other agreement or
         instrument referred to in the Loan Documents or such Swap Contracts
         shall be done or omitted;

                  (c)      the maturity of any of the Obligations shall be
         accelerated, or any of the Obligations shall be modified, supplemented
         or amended in any respect, or any right under any of the Loan
         Documents, any Swap Contract between any Loan Party and any Lender, or
         any Affiliate of a Lender, or any other agreement or instrument
         referred to in the Loan Documents or such Swap Contracts shall be
         waived or any other guarantee of any of the Obligations or any security
         therefor shall be released, impaired or exchanged in whole or in part
         or otherwise dealt with;

                  (d)      any Lien granted to, or in favor of, the
         Administrative Agent or any Lender or Lenders as security for any of
         the Obligations shall fail to attach or be perfected; or

                  (e)      any of the Obligations shall be determined to be void
         or voidable (including, without limitation, for the benefit of any
         creditor of any Guarantor) or shall be subordinated to the claims of
         any Person (including, without limitation, any creditor of any
         Guarantor).

         With respect to its obligations hereunder, each Guarantor hereby
expressly waives diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that the Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against any Person under
any of the Loan Documents, any Swap Contract between any Loan Party and any
Lender, or any Affiliate of a Lender, or any other agreement or instrument
referred to in the Loan Documents or such Swap Contracts, or against any other
Person under any other guarantee of, or security for, any of the Obligations.

4.03     Reinstatement.

         The obligations of the Guarantors under this Article IV shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result
of any proceedings in bankruptcy or reorganization or otherwise, and each
Guarantor agrees that it will indemnify the Administrative Agent and each Lender
on demand for all reasonable costs and expenses (including, without limitation,
fees and expenses of counsel) incurred by the Administrative Agent or such
Lender in connection with such rescission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

4.04     Certain Additional Waivers.

<PAGE>

         Each Guarantor further agrees that such Guarantor shall have no right
of recourse to security for the Obligations, except through the exercise of
rights of subrogation pursuant to Section 4.02 and through the exercise of
rights of contribution pursuant to Section 4.06.

4.05     Remedies.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Obligations may be declared to be forthwith due
and payable as provided in Section 9.02 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section
9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing the Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or the Obligations being deemed to have become
automatically due and payable), the Obligations (whether or not due and payable
by any other Person) shall forthwith become due and payable by the Guarantors
for purposes of Section 4.01. The Guarantors acknowledge and agree that their
obligations hereunder are secured in accordance with the terms of the Collateral
Documents and that the Lenders may exercise their remedies thereunder in
accordance with the terms thereof.

4.06     Rights of Contribution.

         The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment. The
payment obligations of any Guarantor under this Section 4.06 shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been paid in full and the Commitments have expired or
terminated, and none of the Guarantors shall exercise any right or remedy under
this Section 4.06 against any other Guarantor until such Obligations have been
paid in full and the Commitments have expired or terminated. For purposes of
this Section 4.06, (a) "Excess Payment" shall mean the amount paid by any
Guarantor in excess of its Ratable Share of any Guaranteed Obligations; (b)
"Ratable Share" shall mean, for any Guarantor in respect of any payment of
Obligations, the ratio (expressed as a percentage) as of the date of such
payment of Guaranteed Obligations of (i) the amount by which the aggregate
present fair salable value of all of its assets and properties exceeds the
amount of all debts and liabilities of such Guarantor (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of such Guarantor hereunder) to (ii) the amount by which the
aggregate present fair salable value of all assets and other properties of all
of the Loan Parties exceeds the amount of all of the debts and liabilities
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of the Loan Parties hereunder) of the Loan
Parties; provided, however, that, for purposes of calculating the Ratable Shares
of the Guarantors in respect of any payment of Obligations, any Guarantor that
became a Guarantor subsequent to the date of any such payment shall be deemed to
have been a Guarantor on the date of such payment and the financial information
for such Guarantor as of the date such Guarantor became a Guarantor shall be
utilized for such Guarantor in connection with such payment; (c) "Contribution
Share" shall mean, for any Guarantor in respect of any Excess Payment made by
any other Guarantor, the ratio (expressed as a percentage) as of the date of
such Excess Payment of (i) the amount by which the aggregate present fair
salable value of all of its assets and properties exceeds the amount of all
debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of such
Guarantor hereunder) to (ii) the amount by which the aggregate present fair
salable value of all assets and other properties of the Loan Parties other than
the maker of such Excess Payment exceeds the amount of all of the debts and
liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the Loan Parties) of the Loan
Parties other than the maker of such Excess Payment; provided, however, that,
for purposes of calculating the Contribution Shares of the Guarantors in respect
of any Excess Payment, any Guarantor that became a

<PAGE>

Guarantor subsequent to the date of any such Excess Payment shall be deemed to
have been a Guarantor on the date of such Excess Payment and the financial
information for such Guarantor as of the date such Guarantor became a Guarantor
shall be utilized for such Guarantor in connection with such Excess Payment; and
(d) "Guaranteed Obligations" shall mean the Obligations guaranteed by the
Guarantors pursuant to this Article IV. This Section 4.06 shall not be deemed to
affect any right of subrogation, indemnity, reimbursement or contribution that
any Guarantor may have under Law against the Borrower in respect of any payment
of Guaranteed Obligations. Notwithstanding the foregoing, all rights of
contribution against any Guarantor shall terminate from and after such time, if
ever, that such Guarantor shall be relieved of its obligations in accordance
with Section 10.11.

4.07     Guarantee of Payment; Continuing Guarantee.

         The guarantee in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

                                    ARTICLE V

                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

5.01     Conditions of Initial Credit Extension.

         The obligation of each Lender to make its initial Credit Extension
hereunder is subject to satisfaction of the following conditions precedent:

                  (a)      Loan Documents. Receipt by the Administrative Agent
         of executed counterparts of this Agreement and the other Loan
         Documents, each properly executed by a Responsible Officer of the
         signing Loan Party and, in the case of this Agreement, by each Lender.

                  (b)      Opinions of Counsel. Receipt by the Administrative
         Agent of favorable opinions of general counsel of the Loan Parties and
         legal counsel to the Loan Parties, addressed to the Administrative
         Agent and each Lender, dated as of the Closing Date, and in form and
         substance reasonably satisfactory to the Administrative Agent.

                  (c)      Financial Statements. The Administrative Agent shall
         have received:

                           (i)      consolidated financial statements of the
                  Borrower and its Subsidiaries for the fiscal years ended
                  December 31, 2000, December 31, 2001 and December 31, 2002,
                  including balance sheets and income and cash flow statements,
                  in each case audited by independent public accountants of
                  recognized national standing and prepared in conformity with
                  GAAP; and

                           (ii)     unaudited consolidated financial statements
                  of the Borrower and its Subsidiaries for the nine month period
                  ending September 30, 2003, including balance sheets and
                  statements of income or operations, shareholders' equity and
                  cash flows (the "Interim Financial Statements").

                  (d)      No Material Adverse Change. There shall not have
         occurred a material adverse change since June 30, 2003 in the business,
         assets, liabilities, operations, financial condition or prospects of
         the Borrower and its Subsidiaries taken as a whole.

<PAGE>

                  (e)      Litigation. There shall not exist any action, suit,
         investigation or proceeding pending or threatened in any court or
         before an arbitrator or Governmental Authority that could reasonably be
         expected to have a Material Adverse Effect.

                  (f)      Organization Documents, Resolutions, Etc. Receipt by
         the Administrative Agent of the following, each of which shall be
         originals or facsimiles (followed promptly by originals), in form and
         substance reasonably satisfactory to the Administrative Agent and its
         legal counsel:

                           (i)      copies of the Organization Documents of each
                  Loan Party certified to be true and complete as of a recent
                  date by the appropriate Governmental Authority of the state or
                  other jurisdiction of its incorporation or organization, where
                  applicable, and certified by a secretary or assistant
                  secretary of such Loan Party to be true and correct as of the
                  Closing Date;

                           (ii)     such certificates of resolutions or other
                  action, incumbency certificates and/or other certificates of
                  Responsible Officers of each Loan Party as the Administrative
                  Agent may reasonably require evidencing the identity,
                  authority and capacity of each Responsible Officer thereof
                  authorized to act as a Responsible Officer in connection with
                  this Agreement and the other Loan Documents to which such Loan
                  Party is a party; and

                           (iii)    such documents and certifications as the
                  Administrative Agent may reasonably require to evidence that
                  each Loan Party is duly organized or formed, and is validly
                  existing, in good standing and qualified to engage in business
                  in its state of organization or formation, the state of its
                  principal place of business and each other jurisdiction where
                  its ownership, lease or operation of properties or the conduct
                  of its business requires such qualification, except to the
                  extent that failure to do so could not reasonably be expected
                  to have a Material Adverse Effect.

                  (g)      Perfection and Priority of Liens. Receipt by the
         Administrative Agent of the following:

                           (i)      searches of Uniform Commercial Code filings
                  in the jurisdiction of formation of each Loan Party, the
                  jurisdiction of the chief executive office of each Loan Party
                  and each state (at the office of the Secretary of State (or
                  equivalent)) identified on Schedule 6.20(b) attached hereto or
                  where a filing would need to be made in order to perfect the
                  Administrative Agent's security interest in the Collateral,
                  copies of the financing statements on file in such
                  jurisdictions and evidence that no Liens exist other than
                  Permitted Liens;

                           (ii)     all certificates evidencing any certificated
                  Capital Stock pledged to the Administrative Agent pursuant to
                  the Pledge Agreement, together with duly executed in blank,
                  undated stock powers attached thereto (unless, with respect to
                  the pledged Capital Stock of any Foreign Subsidiary, such
                  stock powers are deemed unnecessary by the Administrative
                  Agent in its reasonable discretion under the law of the
                  jurisdiction of incorporation of such Person);

                           (iii)    searches of ownership of, and Liens on,
                  intellectual property of each Loan Party in the appropriate
                  governmental offices; and

                           (iv)     duly executed notices of grant of security
                  interest in the form required by the Security Agreement as are
                  necessary, in the Administrative Agent's reasonable

<PAGE>

                  discretion, to perfect the Administrative Agent's security
                  interest in the intellectual property of the Loan Parties.

                  (h)      Subordinated Debt. The Administrative Agent shall
         have received copies, certified by an officer of the Borrower as true
         and complete, of (i) the 2000 Subordinated Indenture (including all
         exhibits and schedules thereto) as originally executed and delivered,
         together with any amendments or modifications to the 2000 Subordinated
         Indenture as of the Closing Date, the 2000 Subordinated Indenture and
         amendments or modifications to be reasonably acceptable to the
         Administrative Agent and (ii) the 2003 Subordinated Indenture
         (including all exhibits and schedules thereto) as originally executed
         and delivered, together with any amendments or modifications to such
         2003 Subordinated Indenture as of the Closing Date, such 2003
         Subordinated Indenture and amendments or modifications to be acceptable
         to the Administrative Agent.

                  (i)      Evidence of Insurance. Receipt by the Administrative
         Agent of copies of insurance policies or certificates of insurance of
         the Loan Parties evidencing liability and casualty insurance meeting
         the requirements set forth in the Loan Documents, including, but not
         limited to, naming the Administrative Agent as additional insured (in
         the case of liability insurance) or loss payee (in the case of hazard
         insurance) on behalf of the Lenders.

                  (j)      Closing Certificate. Receipt by the Administrative
         Agent of a certificate signed by a Responsible Officer of the Borrower
         certifying that the conditions specified in Sections 5.01(d) and (e)
         and Sections 5.02(a), (b) and (c) have been satisfied.

                  (k)      Senior Unsecured Debt Rating. Receipt by the
         Administrative Agent of evidence that the Borrower's senior secured
         non-credit enhanced debt is rated B+ or higher (with at least a stable
         outlook) by S&P and B1 or higher (with at least a stable outlook) from
         Moody's.

                  (l)      Fees. Receipt by the Administrative Agent and the
         Lenders of any fees required to be paid on or before the Closing Date.

                  (m)      Attorney Costs. Unless waived by the Administrative
         Agent, the Borrower shall have paid all Attorney Costs of the
         Administrative Agent to the extent invoiced prior to or on the Closing
         Date, plus such additional amounts of Attorney Costs as shall
         constitute its reasonable estimate of Attorney Costs incurred or to be
         incurred by it through the closing proceedings (provided that such
         estimate shall not thereafter preclude a final settling of accounts
         between the Borrower and the Administrative Agent).

                  (n)      Other. Receipt by the Administrative Agent and the
         Lenders of such other documents, instruments, agreements and
         information as reasonably requested by the Administrative Agent or any
         Lender, including, but not limited to, information regarding
         litigation, tax, accounting, labor, insurance, pension liabilities
         (actual or contingent), real estate leases, material contracts, debt
         agreements, property ownership, environmental matters, contingent
         liabilities and management of the Borrower and its Subsidiaries.

5.02     Conditions to all Credit Extensions.

         The obligation of each Lender or any Issuer to honor any Request for
Credit Extension is subject to the following conditions precedent:

                  (a)      The representations and warranties of the Borrower
         and each other Loan Party contained in Article VI or any other Loan
         Document, or which are contained in any document

<PAGE>

         furnished at any time under or in connection herewith or therewith,
         shall be true and correct on and as of the date of such Credit
         Extension, except to the extent that such representations and
         warranties specifically refer to an earlier date, in which case they
         shall be true and correct as of such earlier date, and except that for
         purposes of this Section 5.02, the representations and warranties
         contained in subsections (a) and (b) of Section 6.05 shall be deemed to
         refer to the most recent statements furnished pursuant to clauses (a)
         and (b), respectively, of Section 7.01.

                  (b)      No Default or Event of Default shall exist, or would
         result from such proposed Credit Extension.

                  (c)      There shall not have been commenced against the
         Borrower or any Subsidiary an involuntary case under any applicable
         Debtor Relief Law, now or hereafter in effect, or any case, proceeding
         or other action for the appointment of a receiver, liquidator,
         assignee, custodian, trustee, sequestrator (or similar official) of
         such Person or for any substantial part of its Property or for the
         winding up or liquidation of its affairs, and such involuntary case or
         other case, proceeding or other action shall remain undismissed.

                  (d)      The Administrative Agent and, if applicable, the L/C
         Issuer, the Credit-Linked L/C Issuer or the Swing Line Lender shall
         have received a Request for Credit Extension in accordance with the
         requirements hereof.

         Each Request for Credit Extension submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in
Sections 5.02(a), (b) and (c) have been satisfied on and as of the date of the
applicable Credit Extension.

5.03     Conditions to Term Loans.

         In addition to the conditions identified in Section 5.02, the
obligation of the Credit-Linked Lenders to make any Term Loans with proceeds
from the Credit-Linked Deposit Account is subject to the Administrative Agent's
receipt in accordance with the provisions of Section 2.06(a) hereof an
originally executed Loan Notice.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         The Loan Parties represent and warrant to the Administrative Agent and
the Lenders that:

6.01     Existence, Qualification and Power.

         Each Loan Party (a) is a corporation, partnership or limited liability
company duly organized or formed, validly existing and in good standing under
the Laws of the jurisdiction of its incorporation or organization, (b) has all
requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) own its assets and carry on its
business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and is licensed and
in good standing under the Laws of each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in clause (b)(i) or
(c), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

<PAGE>

6.02     Authorization; No Contravention.

         The execution, delivery and performance by each Loan Party of each Loan
Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not (a) contravene
the terms of any of such Person's Organization Documents; (b) in any material
respect, conflict with or result in any breach or contravention of, or the
creation of any Lien under (i) any material Contractual Obligation to which such
Person is a party or (ii) any order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which such Person or its
property is subject; or (c) violate any Law (including, without limitation,
Regulation U or Regulation X issued by the FRB).

6.03     Governmental Authorization; Other Consents.

         No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority or any other Person in
respect to any material Contractual Obligation is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document other than
(i) those that have already been obtained and are in full force and effect and
(ii) filings to perfect the Liens created by the Collateral Documents.

6.04     Binding Effect.

         This Agreement and each other Loan Document has been duly executed and
delivered by each Loan Party that is party thereto. This Agreement and each
other Loan Document constitutes a legal, valid and binding obligation of each
Loan Party that is party thereto, enforceable against each such Loan Party in
accordance with its terms except as enforceability may be limited by applicable
Debtor Relief Laws and by general equitable principles (whether enforcement is
sought by proceedings in equity or at law).

6.05     Financial Statements; No Material Adverse Effect.

         (a)      The Audited Financial Statements (i) were prepared in
accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; (ii) fairly present the financial
condition of the Borrower and its Subsidiaries as of the date thereof and their
results of operations for the period covered thereby in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (iii) show all material indebtedness and other
liabilities, direct or contingent, of the Borrower and its Subsidiaries as of
the date thereof, including liabilities for taxes, commitments and Indebtedness
(to the extent required to be shown in accordance with GAAP).

         (b)      The Interim Financial Statements (i) were prepared in
accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; (ii) fairly present the financial
condition of the Borrower and its Subsidiaries as of the date thereof and their
results of operations for the period covered thereby, subject, in the case of
clauses (i) and (ii), to the absence of footnotes and to normal year-end audit
adjustments; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof, including liabilities for taxes, material commitments and Indebtedness
(to the extent required to be shown in accordance with GAAP).

         (c)      From the date of the Audited Financial Statements to and
including the Closing Date, there has been no Disposition by the Borrower or any
Subsidiary, or any Involuntary Disposition, of any material part of the business
or Property of the Borrower and its Subsidiaries, taken as a whole, and no
purchase or

<PAGE>

other acquisition by any of them of any business or Property (including any
Capital Stock of any other Person) material in relation to the consolidated
financial condition of the Borrower and its Subsidiaries, taken as a whole, in
each case, which is not reflected in the foregoing financial statements or in
the notes thereto or has not otherwise been disclosed in writing to the Lenders
on or prior to the Closing Date.

         (d)      The financial statements delivered pursuant to Section 7.01(a)
and (b), if any, have been prepared in accordance with GAAP (except as may
otherwise be permitted under Section 7.01(a) and (b)) and present fairly (on the
basis disclosed in the footnotes to such financial statements) the consolidated
and, in the case of annual financial statements delivered pursuant to Section
7.01(a), consolidating, financial condition, results of operations and cash
flows of the Borrower and its Subsidiaries as of such date and for such periods.

         (e)      Since the date of the Audited Financial Statements, there has
been no event or circumstance that has had or could reasonably be expected to
have a Material Adverse Effect.

6.06     Litigation.

         There are no actions, suits, proceedings, claims or disputes pending
or, to the knowledge of the Responsible Officers of the Loan Parties after due
and diligent investigation, threatened or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, by or against the Borrower or
any of its Subsidiaries or against any of their Properties or revenues that (a)
purport to affect or pertain to this Agreement or any other Loan Document, or
any of the transactions contemplated hereby or (b) if determined adversely,
could reasonably be expected to have a Material Adverse Effect.

6.07     No Default.

         (a)      Neither the Borrower nor any Subsidiary is in default under or
with respect to any Contractual Obligation that could reasonably be expected to
have a Material Adverse Effect.

         (b)      No Default has occurred and is continuing.

6.08     Ownership of Property; Liens.

         Each of the Borrower and its Subsidiaries has good record and
marketable title in fee simple to, or valid leasehold interests in, all real
property necessary or used in the ordinary conduct of its business, except for
such defects in title as could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. The Property of the Borrower and
its Subsidiaries is subject to no Liens, other than Permitted Liens.

6.09     Environmental Compliance.

         Except as could not reasonably be expected to have a Material Adverse
Effect:

                  (a)      Each of the Facilities and all operations at the
         Facilities are in compliance with all applicable Environmental Laws,
         and there is no violation of any Environmental Law with respect to the
         Facilities or the Businesses, and there are no conditions relating to
         the Facilities or the Businesses that could give rise to liability
         under any applicable Environmental Laws.

                  (b)      None of the Facilities contains, or has previously
         contained, any Hazardous Materials at, on or under the Facilities in
         amounts or concentrations that constitute or constituted a violation
         of, or could give rise to liability under, Environmental Laws.

<PAGE>

                  (c)      Neither the Borrower nor any Subsidiary has received
         any written or verbal notice of, or inquiry from any Governmental
         Authority regarding, any violation, alleged violation, non-compliance,
         liability or potential liability regarding environmental matters or
         compliance with Environmental Laws with regard to any of the Facilities
         or the Businesses, nor does any Responsible Officer of any Loan Party
         have knowledge or reason to believe that any such notice will be
         received or is being threatened.

                  (d)      Hazardous Materials have not been transported or
         disposed of from the Facilities, or generated, treated, stored or
         disposed of at, on or under any of the Facilities or any other
         location, in each case by or on behalf the Borrower or any Subsidiary
         in violation of, or in a manner that would be reasonably likely to give
         rise to liability under, any applicable Environmental Law.

                  (e) No judicial proceeding or governmental or administrative
         action is pending or, to the knowledge of the Responsible Officers of
         the Loan Parties, threatened, under any Environmental Law to which the
         Borrower or any Subsidiary is or will be named as a party, nor are
         there any consent decrees or other decrees, consent orders,
         administrative orders or other orders, or other administrative or
         judicial requirements outstanding under any Environmental Law with
         respect to the Borrower, any Subsidiary, the Facilities or the
         Businesses.

                  (f) There has been no release or, threat of release of
         Hazardous Materials at or from the Facilities, or arising from or
         related to the operations (including, without limitation, disposal) of
         the Borrower or any Subsidiary in connection with the Facilities or
         otherwise in connection with the Businesses, in violation of or in
         amounts or in a manner that could give rise to liability under
         Environmental Laws.

6.10     Insurance.

         The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where the Borrower or the applicable Subsidiary
operates. The insurance coverage of the Loan Parties as in effect on the Closing
Date is outlined as to carrier, policy number, expiration date, type, amount and
deductibles on Schedule 6.10.

6.11     Taxes.

         The Borrower and its Subsidiaries have filed all federal, material
state and other material tax returns and reports required to be filed, and have
paid all material federal, material state and other material taxes, assessments,
fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings diligently conducted
and for which adequate reserves have been provided in accordance with GAAP.
There is no proposed tax assessment against the Borrower or any Subsidiary that
would, if made, have a Material Adverse Effect.

6.12     ERISA Compliance.

         (a)      Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Internal Revenue Code and other federal or
state Laws. Each Plan that is intended to qualify under Section 401(a) of the
Internal Revenue Code has received a favorable determination letter from the IRS
or an application for such a letter is currently being processed by the IRS with
respect thereto and, to the best knowledge of the Loan Parties, nothing has
occurred which would prevent, or cause the loss of,

<PAGE>

such qualification. Each Loan Party and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 412 of the Internal
Revenue Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Internal Revenue Code has
been made with respect to any Plan.

         (b)      There are no pending or, to the best knowledge of the Loan
Parties, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could be reasonably be expected to have
a Material Adverse Effect. There has been no prohibited transaction or violation
of the fiduciary responsibility rules with respect to any Plan that has resulted
or could reasonably be expected to result in a Material Adverse Effect.

         (c)      Except as could not be reasonably expected to have a Material
Adverse Effect, (i) no ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any Unfunded Pension Liability; and (iii) no
Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA).

         (d)      (i) No Loan Party nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (ii) no Loan Party nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

6.13     Subsidiaries.

         Set forth on Schedule 6.13 is a complete and accurate list as of the
Closing Date of each Subsidiary, together with (i) jurisdiction of formation,
(ii) number of shares of each class of Capital Stock outstanding, (iii) number
and percentage of outstanding shares of each class owned (directly or
indirectly) by the Borrower or any Subsidiary and (iv) number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Capital Stock of each Subsidiary is validly issued, fully paid and
non-assessable.

6.14     Margin Regulations; Investment Company Act; Public Utility Holding
         Company Act.

         (a)      The Borrower is not engaged and will not engage, principally
or as one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock.
Following the application of the proceeds of each Borrowing or drawing under
each Letter of Credit, not more than 25% of the value of the assets (either of
the Borrower only or of the Borrower and its Subsidiaries on a consolidated
basis) subject to the provisions of Section 8.01 or Section 8.05 or subject to
any restriction contained in any agreement or instrument between the Borrower
and any Lender or any Affiliate of any Lender relating to Indebtedness and
within the scope of Section 9.01(e) will be margin stock.

         (b)      None of the Borrower, any Person Controlling the Borrower, or
any Subsidiary (i) is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company," within the meaning of the Public Utility
Holding Company Act of 1935, or (ii) is or is required to be registered as an
"investment company" under the Investment Company Act of 1940.

<PAGE>

6.15     Disclosure.

         No report, financial statement, certificate or other information
furnished (whether in writing or orally) by or on behalf of any Loan Party to
the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered hereunder
(as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to projected financial
information, the Loan Parties represent only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time.

6.16     Compliance with Laws.

         Each of the Borrower and each Subsidiary is in compliance with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its Properties, except in such instances in which (a)
such requirement of Law or order, writ, injunction or decree is being contested
in good faith by appropriate proceedings diligently conducted or (b) the failure
to comply therewith could not reasonably be expected to have a Material Adverse
Effect.

6.17     Intellectual Property; Licenses, Etc.

         The Borrower and its Subsidiaries own, or possess the legal right to
use, all of the trademarks, service marks, trade names, copyrights, patents,
patent rights, franchises, licenses and other intellectual property rights
(collectively, "IP Rights") that are reasonably necessary for the operation of
their respective businesses. Set forth on Schedule 6.17 is a list of all IP
Rights registered or pending registration with the United States Copyright
Office or the United States Patent and Trademark Office and owned by each Loan
Party as of the Closing Date. Except for such claims and infringements that
could not reasonably be expected to have a Material Adverse Effect, no claim has
been asserted and is pending by any Person challenging or questioning the use of
any IP Rights or the validity or effectiveness of any IP Rights, nor does any
Loan Party know of any such claim, and, to the knowledge of the Responsible
Officers of the Loan Parties, the use of any IP Rights by the Borrower or any
Subsidiary or the granting of a right or a license in respect of any IP Rights
from the Borrower or any Subsidiary does not infringe on the rights of any
Person. As of the Closing Date, none of the IP Rights owned by any of the Loan
Parties is subject to any licensing agreement or similar arrangement except as
set forth on Schedule 6.17.

6.18     Solvency.

         The Loan Parties are Solvent on a consolidated basis.

6.19     Perfection of Security Interests in the Collateral.

         The Collateral Documents create valid security interests in, and Liens
on, the Collateral purported to be covered thereby, which security interests and
Liens will, upon filing of all requisite financing statements and Mortgages, be
perfected security interests and Liens, prior to all other Liens other than
Permitted Liens.

6.20     Business Locations.

         Set forth on Schedule 6.20(a) is a list of all real property located in
the United States that is owned or leased by the Loan Parties as of the Closing
Date. Set forth on Schedule 6.20(b) is a list of all states where any tangible
personal property of any Loan Party is located as of the Closing Date. Set forth
on Schedule 6.20(c) is the chief executive office and tax payer identification
number of each Loan Party as of

<PAGE>

the Closing Date. The exact legal name and state of organization of each Loan
Party is as set forth on the signature pages hereto.

6.21     Brokers' Fees.

         Except pursuant to the Fee Letter, neither the Borrower nor any
Subsidiary has any obligation to any Person in respect of any finder's,
broker's, investment banking or other similar fee in connection with any of the
transactions contemplated under the Loan Documents.

6.22     Labor Matters.

         There are no labor strikes, lock-outs, slow downs, work stoppages or
similar events pending or, to the knowledge of the Responsible Officers of the
Loan Parties, threatened against the Borrower or any of its Subsidiaries that
could reasonably be expected to have a Material Adverse Effect and neither the
Borrower nor any Subsidiary has suffered any strikes, walkouts, work stoppages
or other material labor difficulty within the last five years.

6.23     Subordination.

         The subordination provisions contained in the 2000 Subordinated
Documents are enforceable against the Borrower, the Guarantors and the holders
of the 2000 Subordinated Documents, and all Obligations hereunder and under the
other Loan Documents are within the definitions of "Senior Debt" and "Designated
Senior Debt" included in such subordination provisions. The subordination
provisions contained in the 2003 Convertible Subordinated Debentures Documents
are enforceable against the Borrower, the Guarantors and the holders of the 2003
Convertible Subordinated Debentures, and all Obligations hereunder and under the
other Loan Documents are within the definitions of "Senior Indebtedness" and
"Designated Senior Indebtedness" included in such subordination provisions.

6.24     Tax Shelter Regulations.

         The Borrower does not intend to treat the Loans, Letters of Credit
and/or the Credit-Linked Letters of Credit and related transactions as being a
"reportable transaction" (within the meaning of Treasury Regulation Section
1.6011-4). In the event the Borrower determines to take any action inconsistent
with such intention, it will promptly notify the Administrative Agent thereof.
If the Borrower so notifies the Administrative Agent, the Loan Parties
acknowledge that one or more of the Lenders may treat its Loans, the Letters of
Credit and/or Credit-Linked Letters of Credit as part of a transaction that is
subject to Treasury Regulation Section 301.6112-1, and such Lender or Lenders,
as applicable, will maintain the lists and other records required by such
Treasury Regulation.

                                   ARTICLE VII

                              AFFIRMATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, any Letter of
Credit or Credit-Linked Letter of Credit shall remain outstanding or any Lender
shall have any Credit-Linked Deposit, the Loan Parties shall and shall cause
each Subsidiary to:

<PAGE>

7.01     Financial Statements.

         Deliver to the Administrative Agent (who will make available to the
Lenders), in form and detail satisfactory to the Administrative Agent and the
Required Lenders:

                  (a)      as soon as available, but in any event within 120
         days after the end of each fiscal year of the Borrower, a consolidated
         balance sheet of the Borrower and its Subsidiaries as at the end of
         such fiscal year, and the related consolidated statements of income or
         operations, shareholders' equity and cash flows for such fiscal year,
         setting forth in each case in comparative form the figures for the
         previous fiscal year, all in reasonable detail and prepared in
         accordance with GAAP, audited and accompanied by a report and opinion
         of an independent certified public accountant of nationally recognized
         standing reasonably acceptable to the Required Lenders, which report
         and opinion shall be prepared in accordance with generally accepted
         auditing standards and shall not be subject to any "going concern" or
         like qualification or exception or any qualification or exception as to
         the scope of such audit; and

                  (b)      as soon as available, but in any event within fifty
         days after the end of each of the first three fiscal quarters of each
         fiscal year of the Borrower, a consolidated balance sheet of the
         Borrower and its Subsidiaries as at the end of such fiscal quarter, and
         the related consolidated statements of income or operations and cash
         flows for such fiscal quarter and for the portion of the Borrower's
         fiscal year then ended, setting forth in each case in comparative form
         the figures for the corresponding fiscal quarter of the previous fiscal
         year and the corresponding portion of the previous fiscal year, all in
         reasonable detail and certified by a Responsible Officer of the
         Borrower as fairly presenting the financial condition, results of
         operations and cash flows of the Borrower and its Subsidiaries in
         accordance with GAAP, subject only to normal year-end audit adjustments
         and the absence of footnotes.

         As to any information contained in materials furnished pursuant to
         Section 7.02(d), the Borrower shall not be separately required to
         furnish such information under clause (a) or (b) above, but the
         foregoing shall not be in derogation of the obligation of the Borrower
         to furnish the information and materials described in subsections (a)
         and (b) above at the times specified therein.

7.02     Certificates; Other Information.

         Deliver to the Administrative Agent (who will make available to the
Lenders), in form and detail satisfactory to the Administrative Agent and the
Required Lenders:

                  (a)      concurrently with the delivery of the financial
         statements referred to in Sections 7.01(a) and (b), a duly completed
         Compliance Certificate signed by a Responsible Officer of the Borrower;

                  (b)      concurrently with the delivery of the financial
         statements referred to in Sections 7.01(a) and (b), any budget of the
         Borrower and its Subsidiaries which has been approved by the board of
         directors of the Borrower;

                  (c)      concurrently with the delivery of the financial
         statements referred to in Sections 7.01(a), a certificate of a
         Responsible Officer of the Borrower containing information regarding
         the amount of all Dispositions, Involuntary Dispositions, Debt
         Issuances, Equity Issuances and Acquisitions, in any one instance
         exceeding $1,000,000, that occurred during the period covered by such
         financial statements.

<PAGE>

                  (d)      promptly after any request by the Administrative
         Agent or any Lender, copies of any detailed audit reports, management
         letters or recommendations submitted to the board of directors (or the
         audit committee of the board of directors) of the Borrower by
         independent accountants in connection with the accounts or books of the
         Borrower or any Subsidiary, or any audit of any of them;

                  (e)      promptly after the same are available, (i) copies of
         each annual report, proxy or financial statement or other report or
         communication sent to the stockholders of the Borrower, and copies of
         all annual, regular, periodic and special reports and registration
         statements which the Borrower may file or be required to file with the
         SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 or
         to a holder of any Indebtedness owed by the Borrower or any Subsidiary
         in its capacity as such a holder and not otherwise required to be
         delivered to the Administrative Agent pursuant hereto and (ii) upon the
         request of the Administrative Agent, all reports and written
         information to and from the United States Environmental Protection
         Agency, or any state or local agency responsible for environmental
         matters, the United States Occupational Health and Safety
         Administration, or any state or local agency responsible for health and
         safety matters, or any successor agencies or authorities concerning
         environmental, health or safety matters;

                  (f)      promptly, such additional information regarding the
         business, financial or corporate affairs of the Borrower or any
         Subsidiary, or compliance with the terms of the Loan Documents, as the
         Administrative Agent or any Lender may from time to time reasonably
         request; and

                  (g)      concurrently with the delivery of the financial
         statements referred to in Section 7.01(a), (i) a certificate of a
         Responsible Officer of the Borrower listing (A) all registration
         numbers for all patents, trademarks, service marks, trade names and
         copyrights awarded to any Loan Party since the last day of the
         immediately preceding fiscal period and (B) all patent applications,
         trademark applications, service mark applications, trade names and
         copyrights awarded to any Loan Party since the last day of the
         immediately preceding fiscal period and the status of such application,
         and (ii) attaching the insurance binder or other evidence of insurance
         for any insurance coverage of the Borrower or any Subsidiary that was
         renewed, replaced or modified during the period covered by such
         financial statements and

                  (h)      promptly after the Borrower has notified the
         Administrative Agent of any intention by the Borrower to treat the
         Loans, Letters of Credit and/or Credit-Linked Letters of Credit and
         related transactions as being a "reportable transaction" (within the
         meaning of Treasury Regulation Section 1.6011-4), a duly completed copy
         of IRS Form 8886 or any successor form.

         Documents required to be delivered pursuant to Section 7.01(a) or (b)
or Section 7.02(e) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower's
website on the Internet at the website address listed on Schedule 11.02; or (ii)
on which such documents are posted on the Borrower's behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each Lender
and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that: (i)
the Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify (which
may be by facsimile or electronic mail) the

<PAGE>

Administrative Agent and each Lender of the posting of any such documents and
provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained
herein, in every instance the Borrower shall be required to provide paper copies
of the Compliance Certificates required by Section 7.02(a) to the Administrative
Agent and each of the Lenders. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by the Borrower with any such request
for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

7.03     Notices.

         (a)      Promptly notify the Administrative Agent and each Lender of
the occurrence of any Default.

         (b)      Promptly notify the Administrative Agent and each Lender of
any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii)
any dispute, litigation, investigation, proceeding or suspension between the
Borrower or any Subsidiary and any Governmental Authority; or (iii) the
commencement of, or any material development in, any litigation or proceeding
affecting the Borrower or any Subsidiary, including pursuant to any applicable
Environmental Laws.

         (c)      Promptly notify the Administrative Agent and each Lender of
the occurrence of any ERISA Event.

         (d)      Promptly notify the Administrative Agent and each Lender of
any material change in accounting policies or financial reporting practices by
the Borrower or any Subsidiary.

         Each notice pursuant to this Section 7.03(a) through (d) shall be
accompanied by a statement of a Responsible Officer of the Borrower setting
forth details of the occurrence referred to therein and stating what action the
Borrower has taken and proposes to take with respect thereto. Each notice
pursuant to Section 7.03(a) shall describe with particularity any and all
provisions of this Agreement and any other Loan Document that have been breached
by any Loan Party.

7.04     Payment of Obligations.

         Pay and discharge as the same shall become due and payable, all its
material obligations and liabilities, including (a) all material tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance
with GAAP are being maintained by the Borrower or such Subsidiary; (b) all
material lawful claims which, if unpaid, would by law become a Lien upon its
Property; and (c) all material Indebtedness, as and when due and payable, but
subject to any subordination provisions contained in any instrument or agreement
evidencing such Indebtedness.

7.05     Preservation of Existence, Etc.

         (a)      (i) Preserve, renew and maintain in full force and effect its
legal existence under the Laws of the jurisdiction of its organization except in
a transaction permitted by Section 8.04 or 8.05 and (ii) preserve, renew and
maintain in full force and effect its good standing under the Laws of the
jurisdiction

<PAGE>

of its organization except in a transaction permitted by Section 8.04 or 8.05 or
except to the extent that the failure to do so could not reasonably be expected
to have a Material Adverse Effect.

         (b)      Take all reasonable action to maintain all rights, privileges,
permits, licenses and franchises necessary or desirable in the normal conduct of
its business, except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

         (c)      Preserve or renew all of its material registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

7.06     Maintenance of Properties.

         (a)      Maintain, preserve and protect all of its material Properties
and equipment necessary in the operation of its business in good working order
and condition, ordinary wear and tear excepted.

         (b)      Make all necessary repairs thereto and renewals and
replacements thereof, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

         (c)      Use the standard of care typical in the industry in the
operation and maintenance of its facilities.

7.07     Maintenance of Insurance.

         Maintain in full force and effect insurance (including worker's
compensation insurance, liability insurance, casualty insurance and business
interruption insurance) with financially sound and reputable insurance companies
not Affiliates of the Borrower, in such amounts, with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Borrower or the
applicable Subsidiary operates. The Administrative Agent shall be named as loss
payee or mortgagee, as its interest may appear, and/or additional insured with
respect to any such insurance providing coverage in respect of any Collateral,
and each provider of any such insurance shall agree, by endorsement upon the
policy or policies issued by it or by independent instruments furnished to the
Administrative Agent, that it will give the Administrative Agent thirty (30)
days prior written notice before any such policy or policies shall be altered or
canceled.

7.08     Compliance with Laws.

         Comply with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or Property, except
in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted; or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

7.09     Books and Records.

         (a)      Maintain, in all material respects, proper books of record and
account, in which full, true and correct entries in conformity with GAAP
consistently applied shall be made of all financial transactions and matters
involving the assets and business of the Borrower or such Subsidiary, as the
case may be.

<PAGE>

         (b)      Maintain such books of record and account in material
conformity with all applicable requirements of any Governmental Authority having
regulatory jurisdiction over the Borrower or such Subsidiary, as the case may
be.

7.10     Inspection Rights.

         Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its Properties,
to examine its corporate, financial and operating records, and make copies
thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all
at the expense of the Administrative Agent or such Lender, as the case may be,
and at such reasonable times during normal business hours and as often as may be
reasonably desired, upon reasonable advance notice to the Borrower; provided,
however, that when an Event of Default exists the Administrative Agent or any
Lender (or any of their respective representatives or independent contractors)
may do any of the foregoing at the expense of the Borrower at any time during
normal business hours and without advance notice.

7.11     Use of Proceeds.

         Use the proceeds of the Credit Extensions to finance working capital,
capital expenditures and other lawful corporate purposes, provided that in no
event shall the proceeds of the Credit Extensions be used in contravention of
any Law or of any Loan Document.

7.12     Additional Subsidiaries.

         Within forty-five (45) days after the acquisition or formation of any
Subsidiary:

                  (a)      notify the Administrative Agent thereof in writing,
         together with (i) jurisdiction of formation, (ii) number of shares of
         each class of Capital Stock outstanding, (iii) number and percentage of
         outstanding shares of each class owned (directly or indirectly) by the
         Borrower or any Subsidiary and (iv) number and effect, if exercised, of
         all outstanding options, warrants, rights of conversion or purchase and
         all other similar rights with respect thereto; and

                  (b)      if such Subsidiary is a Domestic Subsidiary, cause
         such Person to (i) become a Guarantor by executing and delivering to
         the Administrative Agent a Joinder Agreement or such other documents as
         the Administrative Agent shall reasonably deem appropriate for such
         purpose, and (ii) deliver to the Administrative Agent (x) documents of
         the types referred to in Sections 5.01(f) and (g) and Section 7.15(a)
         and (b) and (y) favorable opinions of counsel to such Person (which
         shall cover, among other things, the legality, validity, binding effect
         and enforceability of the documentation referred to in clause (a)) such
         that the Administrative Agent shall at all times have received one
         satisfactory legal opinion for those Loan Parties (I) that own at least
         95% of all assets of the Borrower and its Subsidiaries on a
         consolidated basis and/or (II) that account for at least 95% of
         revenues of the Borrower and its Subsidiaries on a consolidated basis
         as of the four fiscal quarter period most recently ended, all in form,
         content and scope reasonably satisfactory to the Administrative Agent.

7.13     ERISA Compliance.

         Do, and cause each of its ERISA Affiliates to do, each of the
following: (a) maintain each Plan in compliance in all material respects with
the applicable provisions of ERISA, the Internal Revenue Code and other federal
or state law; (b) cause each Plan that is qualified under Section 401(a) of the
Internal

<PAGE>

Revenue Code to maintain such qualification; and (c) make all required
contributions to any Plan subject to Section 412 of the Internal Revenue Code.

7.14     Pledged Assets.

         Each Loan Party will (i) cause all of its owned and leased real and
personal Property other than Excluded Property to be subject at all times to
first priority, perfected and, in the case of real Property (whether leased or
owned), title insured Liens in favor of the Administrative Agent to secure the
Obligations pursuant to the terms and conditions of the Collateral Documents or,
with respect to any such Property acquired subsequent to the Closing Date, such
other additional security documents as the Administrative Agent shall reasonably
request, subject in any case to Permitted Liens and (ii) deliver such other
documentation as the Administrative Agent may reasonably request in connection
with the foregoing, including, without limitation, appropriate UCC-1 financing
statements, real estate title insurance policies, surveys, certified resolutions
and other organizational and authorizing documents of such Person, favorable
opinions of counsel to such Person (which shall cover, among other things, the
legality, validity, binding effect and enforceability of the documentation
referred to above and the perfection of the Administrative Agent's Liens
thereunder) such that the Administrative Agent shall at all times have received
one satisfactory legal opinion for those Loan Parties (x) that own at least 95%
of all assets of the Borrower and its Subsidiaries on a consolidated basis
and/or (y) that account for at least 95% of revenues of the Borrower and its
Subsidiaries on a consolidated basis as of the four fiscal quarter period most
recently ended and other items of the types required to be delivered pursuant to
Section 5.01(g) and Section 7.15(a) and (b), all in form, content and scope
reasonably satisfactory to the Administrative Agent. Without limiting the
generality of the above, the Loan Parties will cause (a) 100% of the issued and
outstanding Capital Stock of each Domestic Subsidiary and (b) 65% (or such
greater percentage that, due to a change in an applicable Law after the date
hereof, (1) could not reasonably be expected to cause the undistributed earnings
of such Foreign Subsidiary as determined for United States federal income tax
purposes to be treated as a deemed dividend to such Foreign Subsidiary's United
States parent and (2) could not reasonably be expected to cause any material
adverse tax consequences) of the issued and outstanding Capital Stock entitled
to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of
the issued and outstanding Capital Stock not entitled to vote (within the
meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary
directly owned by the Borrower or any Domestic Subsidiary to be subject at all
times to a first priority, perfected Lien in favor of the Administrative Agent
pursuant to the terms and conditions of the Collateral Documents or such other
security documents as the Administrative Agent shall reasonably request.

7.15     Post-Closing Deliverables.

         (a)      Real Property. On or before January 16, 2004, the
Administrative Agent shall have received the following, in form and substance
reasonably satisfactory to the Administrative Agent:

                  (i)      fully executed and notarized Mortgages encumbering
         the fee interest and/or leasehold interest of any Loan Party in each of
         the real properties designated as a Mortgaged Property on Schedule
         6.20(a);

                  (ii)     ALTA mortgagee title insurance policies issued by a
         title insurance company reasonably acceptable to the Administrative
         Agent with respect to each Mortgaged Property, assuring the
         Administrative Agent that each of the Mortgages creates a valid and
         enforceable first priority mortgage lien on the applicable Mortgaged
         Property, free and clear of all defects and encumbrances except
         Permitted Liens, which title insurance policies shall otherwise be in
         form and substance reasonably satisfactory to the Administrative Agent
         and shall include such endorsements as are reasonably requested by the
         Administrative Agent;

<PAGE>

                  (iii)    evidence as to (A) whether any Mortgaged Property is
         in an area designated by the Federal Emergency Management Agency as
         having special flood or mud slide hazards (a "Flood Hazard Property")
         and (B) if any material Mortgaged Property is a Flood Hazard Property,
         (I) whether the community in which such Mortgaged Property is located
         is participating in the National Flood Insurance Program, (II) the
         applicable Loan Party's written acknowledgment of receipt of written
         notification from the Administrative Agent (x) as to the fact that such
         Mortgaged Property is a Flood Hazard Property and (y) as to whether the
         community in which each such Flood Hazard Property is located is
         participating in the National Flood Insurance Program and (III) copies
         of insurance policies or certificates of insurance of the Borrower and
         its Subsidiaries evidencing flood insurance satisfactory to the
         Administrative Agent and naming the Administrative Agent as sole loss
         payee on behalf of the Lenders; and

                  (iv)     (A) with respect to each Mortgaged Property having a
         fair market value in excess of $1,000,000, a legal opinion of local
         counsel reasonably satisfactory to the Administrative Agent and (B)
         with respect to each Mortgage legal opinions of general counsel and
         outside legal counsel reasonably satisfactory to the Administrative
         Agent.

         (b)      Stock of Foreign Subsidiaries. Within sixty (60) days of the
Closing Date, the applicable Loan Parties shall (i) pledge to the Administrative
Agent the Capital Stock of each Foreign Subsidiary existing on the Closing Date
required to be pledged to the Administrative Agent pursuant to Section 7.14,
together with stock certificates and undated stock powers executed in blank and
(ii) with respect to the Capital Stock pledged to the Administrative Agent
pursuant to subclause (b)(i) above, deliver to the Administrative Agent opinions
of counsel reasonably satisfactory to the Administrative Agent regarding, among
other things, the attachment and perfection of the Administrative Agent's
security interest in such Capital Stock.

                                  ARTICLE VIII

                               NEGATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, any Letter of
Credit or Credit-Linked Letter of Credit shall remain outstanding or any Lender
shall have any Credit-Linked Deposit, no Loan Party shall, nor shall it permit
any Subsidiary to, directly or indirectly:

8.01     Liens.

         Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, other
than the following:

                  (a)      Liens pursuant to any Loan Document;

                  (b)      Liens existing on the date hereof and listed on
         Schedule 8.01 and any renewals or extensions thereof, provided that the
         Property covered thereby is not increased and any renewal or extension
         of the obligations secured or benefited thereby is permitted by Section
         8.03(b);

                  (c)      Liens (other than Liens imposed under ERISA) for
         taxes, assessments or governmental charges or levies not yet due or
         which are being contested in good faith and by appropriate proceedings
         diligently conducted, if adequate reserves with respect thereto are
         maintained on the books of the applicable Person in accordance with
         GAAP;

<PAGE>

                  (d)      statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and suppliers and other Liens
         imposed by law or pursuant to customary reservations or retentions of
         title arising in the ordinary course of business, provided that such
         Liens secure only amounts not yet due and payable or, if due and
         payable, are unfiled and no other action has been taken to enforce the
         same or are being contested in good faith by appropriate proceedings
         for which adequate reserves determined in accordance with GAAP have
         been established;

                  (e)      pledges or deposits in the ordinary course of
         business in connection with any insurance and other social security
         legislation, other than any Lien imposed by ERISA;

                  (f)      deposits to secure the performance of bids, trade
         contracts and leases (other than Indebtedness), statutory obligations,
         surety bonds (other than bonds related to judgments or litigation),
         performance bonds and other obligations of a like nature incurred in
         the ordinary course of business;

                  (g)      easements, rights-of-way, restrictions and other
         similar encumbrances affecting real property which, in the aggregate,
         are not substantial in amount, and which 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 applicable
         Person;

                  (h)      Liens securing judgments for the payment of money (or
         appeal or other surety bonds relating to such judgments) not in excess
         of the Threshold Amount (except to the extent covered by independent
         third-party insurance as to which the insurer has acknowledged in
         writing its obligation to cover), unless any such judgment remains
         undischarged for a period of more than thirty (30) consecutive days
         during which execution is not effectively stayed;

                  (i)      Liens securing Indebtedness permitted under Section
         8.03(f); provided that (i) such Liens do not at any time encumber any
         Property other than the Property financed by such Indebtedness, (ii)
         the Indebtedness secured thereby does not exceed the cost or fair
         market value, whichever is lower, of the Property being acquired on the
         date of acquisition and (iii) such Liens attach to such Property
         concurrently with or within 120 days after the acquisition thereof;

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

                  (k)      any interest of title of a lessor under, and Liens
         arising from UCC financing statements (or equivalent filings,
         registrations or agreements in foreign jurisdictions) relating to,
         leases or short term rentals permitted by this Agreement;

                  (l)      Liens deemed to exist in connection with Investments
         in repurchase agreements permitted under Section 8.02;

                  (m)      normal and customary rights of setoff upon deposits
         of cash in favor of banks or other depository institutions;

                  (n)      Liens of a collection bank arising under Section
         4-210 of the Uniform Commercial Code on items in the course of
         collection;

                  (o)      Liens securing Indebtedness permitted under Section
         8.03(h); provided that such Liens shall be limited to specific Property
         and shall not be a blanket Lien; and

<PAGE>

                  (p)      Liens of sellers of goods to the Borrower and any of
         its Subsidiaries arising under Article 2 of the Uniform Commercial Code
         or similar provisions of applicable law in the ordinary course of
         business, covering only the goods sold and securing only the unpaid
         purchase price for such goods and related expenses.

8.02     Investments.

         Make any Investments, except:

                  (a)      Investments held by the Borrower or such Subsidiary
         in the form of cash or Cash Equivalents;

                  (b)      Investments existing as of the Closing Date and set
         forth in Schedule 8.02;

                  (c)      Investments in any Person that is a Loan Party prior
         to giving effect to such Investment;

                  (d)      Investments consisting of extensions of credit in the
         nature of accounts receivable or notes receivable arising from the
         grant of trade credit in the ordinary course of business, and
         Investments received in satisfaction or partial satisfaction thereof
         from, or of delinquent obligations of, or other disputes with,
         financially troubled account debtors to the extent reasonably necessary
         in order to prevent or limit loss;

                  (e)      Guarantees permitted by Section 8.03;

                  (f)      Permitted Acquisitions;

                  (g)      to the extent permitted by, and in compliance with,
         applicable law, loans to employees of the Borrower or any of its
         Subsidiaries, provided that all such loans shall not exceed $2,000,000
         in the aggregate at any one time;

                  (h)      Investments in Lightwave L.L.C., an Alabama limited
         liability company (or any of its successors or assigns), provided that
         all such Investments (whether by cash or contribution of assets, but
         excluding the reinvestment of its retained earnings) after December 31,
         1999 may not exceed $5,000,000 in the aggregate;

                  (i)      deposits made in the ordinary course of business
         consistent with past practices to secure the performance of leases;

                  (j)      Investments in Foreign Subsidiaries in an amount not
         to exceed $25,000,000 in the aggregate at any time outstanding; and

                  (k)      any other Investments in an amount not to exceed
         $10,000,000 in the aggregate at any time outstanding.

8.03     Indebtedness.

         Create, incur, assume or suffer to exist any Indebtedness, except:

                  (a)      Indebtedness under the Loan Documents;

<PAGE>

                  (b)      Indebtedness of the Borrower and its Subsidiaries set
         forth in Schedule 8.03 (and renewals, refinancings and extensions
         thereof on terms and conditions not materially less favorable to the
         applicable debtor(s));

                  (c)      intercompany Indebtedness permitted under Section
         8.02;

                  (d)      obligations (contingent or otherwise) of the Borrower
         or any Subsidiary existing or arising under any Swap Contract, provided
         that (i) such obligations are (or were) entered into by such Person in
         the ordinary course of business for the purpose of directly mitigating
         risks associated with liabilities, commitments, investments, assets, or
         Property held or reasonably anticipated by such Person, or changes in
         the value of securities issued by such Person, and not for purposes of
         speculation or taking a "market view;" and (ii) such Swap Contract does
         not contain any provision exonerating the non-defaulting party from its
         obligation to make payments on outstanding transactions to the
         defaulting party;

                  (e)      obligations of the Borrower under surety bonds
         provided in the ordinary course of business;

                  (f)      purchase money Indebtedness (including obligations in
         respect of Capital Leases or Synthetic Leases) hereafter incurred by
         the Borrower or any of its Subsidiaries to finance the purchase of
         fixed assets, and renewals, refinancings and extensions thereof,
         provided that (i) the total of all such Indebtedness for all such
         Persons taken together shall not exceed an aggregate principal amount
         of $25,000,000 at any one time outstanding; (ii) such Indebtedness when
         incurred shall not exceed the purchase price of the asset(s) financed;
         and (iii) no such Indebtedness shall be refinanced for a principal
         amount in excess of the principal balance outstanding thereon at the
         time of such refinancing;

                  (g)      other unsecured Indebtedness in an aggregate
         principal amount not to exceed $10,000,000 at any one time outstanding;

                  (h)      secured Indebtedness in an aggregate principal amount
         not to exceed $5,000,000 at any one time outstanding;

                  (i)      unsecured Indebtedness to a seller incurred in
         connection with a Permitted Acquisition, provided that (i) such
         Indebtedness is expressly subordinated in right of payment to the prior
         payment of the Obligations under this Agreement and the other Loan
         Documents on terms and conditions reasonably satisfactory to the
         Administrative Agent, (ii) such Indebtedness contains covenants no more
         restrictive than the covenants contained in this Agreement and the
         other Loan Documents and contains standstill provisions reasonably
         acceptable to the Administrative Agent and (iii) no payments may be
         made on such Indebtedness if a Default or Event of Default shall have
         occurred and be continuing or would occur as a result of any such
         payment;

                  (j)      unsecured Indebtedness of the Borrower under the 2000
         Subordinated Documents in an aggregate principal amount of up to
         $172,500,000;

                  (k)      unsecured Indebtedness of the Borrower under the 2003
         Convertible Subordinated Debentures in an aggregate principal amount of
         up to $270,000,000;

<PAGE>

                  (l)      Guarantees with respect to Indebtedness permitted
         under clauses (a) through (i) of this Section 8.03; and

                  (m)      Guarantees (which Guarantees shall be similarly
         subordinated) with respect to Indebtedness permitted under clauses (j)
         and (k) of this Section 8.03.

8.04     Fundamental Changes.

         Merge, dissolve, liquidate, consolidate with or into another Person, or
Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person; provided that, notwithstanding the foregoing provisions
of this Section 8.04 but subject to the terms of Sections 7.12 and 7.14, (a) the
Borrower may merge or consolidate with any of its Subsidiaries provided that the
Borrower shall be the continuing or surviving corporation, (b) any Loan Party
other than the Borrower may merge or consolidate with any other Loan Party other
than the Borrower, (c) any Foreign Subsidiary may be merged or consolidated with
or into any Loan Party provided that such Loan Party shall be the continuing or
surviving corporation, (d) any Foreign Subsidiary may be merged or consolidated
with or into any other Foreign Subsidiary and (e) any Subsidiary of the Borrower
may merge with any Person that is not a Loan Party in connection with a
Permitted Acquisition provided that, if such Permitted Acquisition involves the
Borrower, the Borrower shall be the continuing or surviving corporation.

8.05     Dispositions.

         Make any Disposition unless (a) the consideration paid in connection
therewith shall be cash or Cash Equivalents paid contemporaneously with
consummation of the transaction and shall be in an amount not less than the fair
market value of the Property disposed of, (b) if such transaction is a Sale and
Leaseback Transaction, such transaction is not prohibited by the terms of
Section 8.15, (c) such transaction does not involve the sale or other
disposition of a minority equity interest in any Subsidiary, (d) such
transaction does not involve a sale or other disposition of receivables other
than receivables owned by or attributable to other Property concurrently being
disposed of in a transaction otherwise permitted under this Section 8.05, and
(e) the aggregate net book value of all of the assets sold or otherwise disposed
of by the Borrower and its Subsidiaries in all such transactions in any fiscal
year of the Borrower shall not exceed $10,000,000.

         Upon a disposition of assets permitted by this Agreement, the
Administrative Agent shall promptly deliver to the Borrower, upon the Borrower's
request and at the Borrower's expense, such documentation as is reasonably
necessary to evidence the Administrative Agent's release of security interest in
such assets.

8.06     Restricted Payments.

         Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, except that:

                  (a)      each Subsidiary may make Restricted Payments
         (directly or indirectly) to any Loan Party;

                  (b)      the Borrower and each Subsidiary may declare and make
         dividend payments or other distributions payable solely in the Capital
         Stock of such Person; and

                  (c)      subsequent to December 31, 2004, the Borrower may
         make dividends and purchase, redeem, acquire or retire shares of its
         Capital Stock of any class or any warrants or

<PAGE>

         options to purchase any such shares of its Capital Stock in an
         aggregate amount not to exceed in any fiscal year an amount equal to
         twenty five percent (25%) of the sum of (i) Consolidated Net Income for
         the immediately prior fiscal year plus (ii) the amount of Non-Cash
         Charges for the immediately prior fiscal year (to the extent such
         Non-Cash Charges reduced Consolidated Net Income for such fiscal year);
         provided that no Default or Event of Default exists immediately prior
         to and after giving effect to any such purchase, redemption,
         acquisition or retirement.

8.07     Change in Nature of Business.

         Engage in any material line of business substantially different from
those lines of business conducted by the Borrower and its Subsidiaries on the
Closing Date or any business substantially related or incidental thereto (or any
reasonable extensions or expansions thereof).

8.08     Transactions with Affiliates and Insiders.

         Except as set forth on Schedule 8.08, enter into or permit to exist any
transaction or series of transactions with any officer, director or Affiliate of
such Person other than (a) advances of working capital to any Loan Party, (b)
transfers of cash and assets to any Loan Party, (c) intercompany transactions
expressly permitted by Section 8.02, Section 8.03, Section 8.04, Section 8.05 or
Section 8.06, (d) normal and reasonable compensation and reimbursement of
expenses of officers and directors and (e) except as otherwise specifically
limited in this Agreement, other transactions which are entered into in the
ordinary course of such Person's business on terms and conditions substantially
as favorable to such Person as would be obtainable by it in a comparable
arms-length transaction with a Person other than an officer, director or
Affiliate.

8.09     Burdensome Agreements.

         (a)      Enter into, or permit to exist, any Contractual Obligation
that encumbers or restricts on the ability of any such Person to (i) pay
dividends or make any other distributions to any Loan Party on its Capital Stock
or with respect to any other interest or participation in, or measured by, its
profits, (ii) pay any Indebtedness or other obligation owed to any Loan Party,
(iii) make loans or advances to any Loan Party, (iv) sell, lease or transfer any
of its Property to any Loan Party (other than customary consent requirements in
Contractual Obligations entered into in the ordinary course of business), (v)
pledge its Property pursuant to the Loan Documents or any renewals,
refinancings, exchanges, refundings or extension thereof or (vi) act as a Loan
Party pursuant to the Loan Documents or any renewals, refinancings, exchanges,
refundings or extension thereof, except (in respect of any of the matters
referred to in clauses (i)-(v) above) for (1) this Agreement and the other Loan
Documents, (2) the 2000 Subordinated Documents, (3) the 2003 Convertible
Subordinated Debenture Documents, (4) any document or instrument governing
Indebtedness incurred pursuant to Section 8.03(f), provided that any such
restriction contained therein relates only to the asset or assets constructed or
acquired in connection therewith, (5) any Permitted Lien or any document or
instrument governing any Permitted Lien, provided that any such restriction
contained therein relates only to the asset or assets subject to such Permitted
Lien or (6) customary restrictions and conditions contained in any agreement
relating to the sale of any Property permitted under Section 8.05 or the
definition of "Disposition" pending the consummation of such sale.

         (b)      Enter into, or permit to exist, any Contractual Obligation
that prohibits or otherwise restricts the existence of any Lien upon any of its
Property in favor of the Administrative Agent (for the benefit of the Lenders)
for the purpose of securing the Obligations, whether now owned or hereafter
acquired, or requiring the grant of any security for any obligation if such
Property is given as security for the Obligations, except (i) any document or
instrument governing Indebtedness incurred pursuant to Section 8.03(f), provided
that any such restriction contained therein relates only to the asset or assets
constructed

<PAGE>

or acquired in connection therewith, (ii) in connection with any Permitted Lien
or any document or instrument governing any Permitted Lien, provided that any
such restriction contained therein relates only to the asset or assets subject
to such Permitted Lien and (iii) pursuant to customary restrictions and
conditions contained in any agreement relating to the sale of any Property
permitted under Section 8.05 or the definition of "Disposition", pending the
consummation of such sale.

8.10     Use of Proceeds.

         Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or
carry margin stock (within the meaning of Regulation U of the FRB) or to extend
credit to others for the purpose of purchasing or carrying margin stock or to
refund indebtedness originally incurred for such purpose.

8.11     Financial Covenants.

         (a)      Consolidated Net Worth. Permit Consolidated Net Worth at any
time to be less than the sum of (i) $570 million plus (ii) for each fiscal
quarter of the Borrower, commencing with the fiscal quarter ending December 31,
2003, an amount equal to 50% of Consolidated Net Income (to the extent positive)
for such fiscal quarter plus (iii) without duplication, 100% of all Equity
Issuances after the Closing Date minus (iv) the Permitted Charges which are
applicable to such period minus (v) without duplication, all Non-Cash Charges
which are applicable to such period.

         (b)      Consolidated Leverage Ratio. Permit the Consolidated Leverage
Ratio as of the end of any fiscal quarter of the Borrower to be greater than (i)
for any fiscal quarter ending during the period from the Closing Date to and
including June 30, 2004, 5.0:1.0, (ii) for any fiscal quarter ending during the
period from July 1, 2004 to and including December 31, 2004, 4.5:1.0 and (iii)
for any fiscal quarter ending after December 31, 2004, 3.5:1.0.

         (c)      Consolidated Senior Leverage Ratio. Permit the Consolidated
Senior Leverage Ratio as of the end of any fiscal quarter of the Borrower to be
greater than 2.0:1.0.

         (d)      Consolidated Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to
be less than (i) for any fiscal quarter ending during the period from the
Closing Date to and including June 30, 2004, 1.5 to 1.0, (ii) for any fiscal
quarter ending during the period from July 1, 2004 to and including September
30, 2004, 1.75:1.0, (iii) for any fiscal quarter ending during the period from
October 1, 2004 to and including December 31, 2004, 2.0:1.0 and (iv) for any
fiscal quarter after December 31, 2004, 2.25:1.0.

         (e)      Consolidated Asset Coverage Ratio. Permit the Consolidated
Asset Coverage Ratio as of the end of any fiscal quarter of the Borrower to be
less than 2.5:1.0.

8.12     Prepayment of Other Indebtedness, Etc.

         (a)      Amend or modify any of the terms of any Indebtedness
(including without limitation the 2000 Subordinated Documents and the 2003
Convertible Subordinated Debenture Documents) of the Borrower or any Subsidiary
(other than Indebtedness arising under the Loan Documents) if such amendment or
modification would add or change any terms in a manner materially adverse to the
Lenders, the Borrower or any Subsidiary, including but not limited to shortening
the final maturity or average life to maturity, requiring any payment to be made
sooner than originally scheduled or increasing the interest rate applicable
thereto.

<PAGE>

         (b)      Make (or give any notice with respect thereto) any voluntary
or optional payment, prepayment, redemption or acquisition for value of
(including without limitation, by way of depositing money or securities with the
trustee with respect thereto before due for the purpose of paying when due) or
any voluntary or optional refund, refinance or exchange of any Indebtedness
(including without limitation the 2000 Subordinated Documents and the 2003
Convertible Subordinated Debenture Documents) of the Borrower or any Subsidiary
(other than Indebtedness arising under the Loan Documents).

         (c)      Permit any Indebtedness of the Borrower or any Subsidiary
(other than the Indebtedness arising under the Loan Documents) to be designated
or identified as (i) "Designated Senior Debt" under and as defined in the 2000
Subordinated Indenture or (ii) "Designated Senior Indebtedness" under and as
defined in the 2003 Subordinated Indenture.

8.13     Organization Documents; Fiscal Year; Legal Name, State of Formation and
         Form of Entity.

         (a)      Amend, modify or change its Organization Documents in a manner
materially adverse to the Lenders.

         (b)      Change its fiscal year.

         (c)      Without providing ten (10) days prior written notice to the
Administrative Agent, change its name, state of formation or form of
organization.

8.14     Ownership of Subsidiaries.

         Notwithstanding any other provisions of this Agreement to the contrary,
(i) permit any Person (other than the Borrower or any Wholly Owned Subsidiary of
the Borrower) to own any Capital Stock of any Subsidiary of the Borrower, except
to qualify directors where required by applicable law or to satisfy other
requirements of applicable law with respect to the ownership of Capital Stock of
Foreign Subsidiaries, (ii) permit any Subsidiary of the Borrower to issue or
have outstanding any shares of preferred Capital Stock (other than (a) the 485
shares of preferred Capital Stock issued by Allteck Line Contractors, Inc. to
the Borrower and (b) the 3,499 shares of preferred Capital Stock issued by
Quanta Services of Canada Ltd. to the Borrower) or (iii) create, incur, assume
or suffer to exist any Lien on any Capital Stock of any Subsidiary of the
Borrower, except for Permitted Liens.

8.15     Sale Leasebacks.

         Enter into any Sale and Leaseback Transaction other than the sale and
leaseback of trucks and equipment for immaterial amounts in the ordinary course
of business.

8.16     Capital Expenditures.

         (a)      The Borrower and its Subsidiaries will not make Consolidated
Capital Expenditures during any fiscal year in excess of an amount equal to 50%
of Consolidated EBITDA for the twelve month period ending on the last day of the
immediately preceding fiscal year.

         (b)      In addition to the limits under Section 8.16(a), if the
Borrower or any of its Subsidiaries executes an eligible contract, then the
Borrower or such Subsidiary may make Consolidated Capital Expenditures in
respect of such contract in an amount equal to the lesser of (i) the actual
amount required by such contract, and (ii) $30,000,000, provided that, (A) in
respect of each such contract, Consolidated Capital Expenditures not made within
12 months after the date of such contract shall be applied against the limits
under Section 8.16(a) and (B) the amount of Consolidated Capital Expenditures
under this Section 8.16(b) for all such contracts may not, in the aggregate,
exceed $30,000,000 in any fiscal year.

<PAGE>

Upon execution of each eligible contract, the Borrower or such Subsidiary shall
promptly deliver a copy of such contract to the Administrative Agent, together
with a summary of the Consolidated Capital Expenditures required by such
contract in form and detail acceptable to the Administrative Agent. As used in
this Section 8.16(b), "eligible contract" means, a utility outsourcing contract
with quantifiable revenues to the Borrower or such Subsidiary of at least
$30,000,000 during any 12 consecutive month period prior to 18 months after
execution of such contract.

                                   ARTICLE IX

                         EVENTS OF DEFAULT AND REMEDIES

9.01     Events of Default.

         Any of the following shall constitute an Event of Default:

                  (a)      Non-Payment. The Borrower or any other Loan Party
         fails to pay (i) when and as required to be paid herein, any amount of
         principal of any Loan, any L/C Obligation or any Credit-Linked L/C
         Obligation, or (ii) within three (3) days after the same becomes due,
         any interest on any Loan, on any L/C Obligation, or on any
         Credit-Linked L/C Obligation, the shortfall between the rate actually
         earned on the Credit-Linked Deposit and the Benchmark Rate as required
         hereunder or any commitment fee or other fee due hereunder, or (iii)
         within five (5) days after the same becomes due, any other amount
         payable hereunder or under any other Loan Document; or

                  (b)      Specific Covenants. The Borrower fails to perform or
         observe any term, covenant or agreement contained in any of Section
         7.05(a)(i), 7.10 or 7.11 or Article VIII (other than Sections 8.01 and
         8.03); or

                  (c)      Information Covenants. The Borrower fails to perform
         or observe any term, covenant or agreement contained in any of Section
         7.01 or 7.02(a) and such failure continues for five (5) Business Days;
         or

                  (d)      Other Defaults. Any Loan Party fails to perform or
         observe any other covenant or agreement (not specified in subsection
         (a), (b) or (c) above) contained in any Loan Document on its part to be
         performed or observed and such failure continues for thirty (30) days
         after the earlier of (i) a Responsible Officer of any Loan Party
         becoming aware of such failure and (ii) notice thereof to the Borrower
         from the Administrative Agent, the Required Revolving Lenders or the
         Required Credit-Linked Lenders; or

                  (e)      Representations and Warranties. Any representation,
         warranty, certification or statement of fact made or deemed made by or
         on behalf of the Borrower or any other Loan Party herein, in any other
         Loan Document, or in any document delivered in connection herewith or
         therewith shall be incorrect or misleading in any material respect when
         made or deemed made; or

                  (f)      Cross-Default. (i) The Borrower or any Subsidiary (A)
         fails to make any payment when due (whether by scheduled maturity,
         required prepayment, acceleration, demand, or otherwise) in respect of
         any Indebtedness or Guarantee (other than Indebtedness hereunder and
         Indebtedness under Swap Contracts) having an aggregate principal amount
         (including undrawn committed or available amounts and including amounts
         owing to all creditors under any combined or syndicated credit
         arrangement) of more than the Threshold Amount, or (B) fails to observe
         or perform any other agreement or condition relating to any such
         Indebtedness or

<PAGE>

         Guarantee or contained in any instrument or agreement evidencing,
         securing or relating thereto, or any other event occurs, the effect of
         which default or other event is to cause, or to permit the holder or
         holders of such Indebtedness or the beneficiary or beneficiaries of
         such Guarantee (or a trustee or agent on behalf of such holder or
         holders or beneficiary or beneficiaries) to cause, with the giving of
         notice if required, such Indebtedness to be demanded or to become due
         or to be repurchased, prepaid, defeased or redeemed (automatically or
         otherwise), or an offer to repurchase, prepay, defease or redeem such
         Indebtedness to be made, prior to its stated maturity, or such
         Guarantee to become payable or cash collateral in respect thereof to be
         demanded; or (ii) there occurs under any Swap Contract an Early
         Termination Date (as defined in such Swap Contract) resulting from (A)
         any event of default under such Swap Contract as to which the Borrower
         or any Subsidiary is the Defaulting Party (as defined in such Swap
         Contract) or (B) any Termination Event (as so defined) under such Swap
         Contract as to which the Borrower or any Subsidiary is an Affected
         Party (as so defined) and, in either event, the Swap Termination Value
         owed by the Borrower or such Subsidiary as a result thereof is greater
         than the Threshold Amount; or

                  (g)      Insolvency Proceedings, Etc. Any Loan Party or any of
         its Subsidiaries institutes or consents to the institution of any
         proceeding under any Debtor Relief Law, or makes an assignment for the
         benefit of creditors; or applies for or consents to the appointment of
         any receiver, trustee, custodian, conservator, liquidator,
         rehabilitator or similar officer for it or for all or any material part
         of its Property; or any receiver, trustee, custodian, conservator,
         liquidator, rehabilitator or similar officer is appointed without the
         application or consent of such Person and the appointment continues
         undischarged or unstayed for sixty calendar days; or any proceeding
         under any Debtor Relief Law relating to any such Person or to all or
         any material part of its Property is instituted without the consent of
         such Person and continues undismissed or unstayed for sixty calendar
         days, or an order for relief is entered in any such proceeding; or

                  (h)      Inability to Pay Debts; Attachment. (i) The Borrower
         or any Subsidiary becomes unable or admits in writing its inability or
         fails generally to pay its debts as they become due, or (ii) any writ
         or warrant of attachment or execution or similar process is issued or
         levied against all or any material part of the Property of any such
         Person and is not released, vacated or fully bonded within thirty days
         after its issue or levy; or

                  (i)      Judgments. There is entered against the Borrower or
         any Subsidiary (i) one or more final judgments or orders for the
         payment of money in an aggregate amount exceeding the Threshold Amount
         (to the extent not covered by independent third-party insurance as to
         which the insurer does not dispute coverage), and any such judgments or
         orders shall not have been paid, discharged or bonded pending appeal
         (or the Borrower has not obtained an indemnity against on terms and
         conditions satisfactory to the Lenders in their reasonable discretion)
         within thirty (30) days from the entry thereof, or (ii) any one or more
         non-monetary final judgments that have, or could reasonably be expected
         to have, individually or in the aggregate, a Material Adverse Effect
         and, in either case, (A) enforcement proceedings are commenced by any
         creditor upon such judgment or order, or (B) there is a period of ten
         consecutive days during which a stay of enforcement of such judgment,
         by reason of a pending appeal or otherwise, is not in effect; or

                  (j)      ERISA. (i) An ERISA Event occurs with respect to a
         Pension Plan or Multiemployer Plan which has resulted or could
         reasonably be expected to result in liability of the Borrower under
         Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC
         in an aggregate amount in excess of the Threshold Amount, or (ii) the
         Borrower or any ERISA Affiliate fails to pay when due, after the
         expiration of any applicable grace period, any

<PAGE>

         installment payment with respect to its withdrawal liability under
         Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount
         in excess of the Threshold Amount; or

                  (k)      Invalidity of Loan Documents. Any Loan Document, at
         any time after its execution and delivery and for any reason other than
         as expressly permitted hereunder or thereunder or satisfaction in full
         of all the Obligations, ceases to be in full force and effect; or any
         Loan Party or any other Person contests in any manner the validity or
         enforceability of any Loan Document; or any Loan Party denies that it
         has any or further liability or obligation under any Loan Document, or
         purports to revoke, terminate or rescind any Loan Document; or

                  (l)      Change of Control. There occurs any Change of
         Control; or

                  (m)      2000 Subordinated Documents. (i) There shall occur an
         "Event of Default" (or any comparable term) under, and as defined in,
         the 2000 Subordinated Documents, (ii) any of the Obligations for any
         reason shall cease to be "Senior Debt" (or any comparable term) under,
         and as defined in, the 2000 Subordinated Documents, (iii) any
         Indebtedness other than the Obligations shall constitute "Designated
         Senior Debt" (or any comparable term) under, and as defined in, the
         2000 Subordinated Documents or (iv) the subordination provisions of the
         2000 Subordinated Documents shall, in whole or in part, terminate,
         cease to be effective or cease to be legally valid, binding and
         enforceable against any holder of the debt evidenced by the 2000
         Subordinated Documents; or

                  (n)      2003 Convertible Subordinated Debentures. (i) There
         shall occur an "Event of Default" (or any comparable term) under, and
         as defined in, the 2003 Convertible Subordinated Debentures Documents,
         (ii) any of the Obligations for any reason shall cease to be "Senior
         Debt" (or any comparable term) under, and as defined in, the 2003
         Convertible Subordinated Debentures Documents, (iii) any Indebtedness
         other than the Obligations shall constitute "Designated Senior Debt"
         (or any comparable term) under, and as defined in, the 2003 Convertible
         Subordinated Debentures Documents or (iv) the subordination provisions
         of the 2003 Convertible Subordinated Debentures Documents shall, in
         whole or in part, terminate, cease to be effective or cease to be
         legally valid, binding and enforceable against any holder of the 2003
         Convertible Subordinated Debentures.

9.02     Remedies Upon Event of Default.

         (a)      If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the
Required Revolving Lenders, take any or all of the following actions:

                  (i)      declare the commitment of each Lender with a
         Revolving Commitment to make Revolving Loans and any obligation of the
         L/C Issuer to make L/C Credit Extensions to be terminated, whereupon
         such commitments and obligation shall be terminated; and

                  (ii)     require that the Borrower Cash Collateralize the L/C
         Obligations (in an amount equal to the then applicable Outstanding
         Amount thereof).

         (b)      If an Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the
Required Credit-Linked Lenders, take any or all of the following actions:

<PAGE>

                  (i)      declare the commitment of each Credit-Linked Lender
         to make Term Loans and any obligation of the Credit-Linked L/C Issuer
         to make Credit-Linked Credit Extensions to be terminated, whereupon
         such commitments and obligation shall be terminated; and

                  (ii)     require that the Borrower Cash Collateralize the
         Credit-Linked L/C Obligations (in an amount equal to the then
         applicable Outstanding Amount thereof);

         (c)      If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the
Required Lenders, take any and all of the following actions:

                  (i)      declare the unpaid principal amount of all
         outstanding Loans, all interest accrued and unpaid thereon, and all
         other amounts owing or payable hereunder or under any other Loan
         Document to be immediately due and payable, without presentment,
         demand, protest or other notice of any kind, all of which are hereby
         expressly waived by the Borrower; and

                  (ii)     exercise on behalf of itself and the Lenders all
         rights and remedies available to it and the Lenders under the Loan
         Documents or applicable law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans and any obligation of
the L/C Issuer to make L/C Credit Extensions and any obligation of the
Credit-Linked L/C Issuer to make Credit-Linked Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans
and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrower to Cash Collateralize the L/C
Obligations and Credit-Linked L/C Obligations as aforesaid shall automatically
become effective, in each case without further act of the Administrative Agent
or any Lender.

         Furthermore, if any Event of Default has occurred and is continuing,
the Administrative Agent shall, at the request of the Required Credit-Linked
Lenders, withdraw from the Credit-Linked Deposit Account and distribute to the
Credit-Linked Lenders on a pro rata basis an amount equal to the excess of the
Aggregate Credit-Linked Commitments over the Outstanding Amount of the
Credit-Linked Obligations.

9.03     Application of Funds.

         After the exercise of remedies provided for in Section 9.02 (or after
the Loans have automatically become immediately due and payable and the L/C
Obligations and Credit-Linked L/C Obligations have automatically been required
to be Cash Collateralized as set forth in the proviso to Section 9.02), any
amounts received on account of the Obligations shall be applied by the
Administrative Agent in the following order:

         First, to payment of that portion of the Obligations constituting fees,
         indemnities, expenses and other amounts (including Attorney Costs and
         amounts payable under Article III) payable to the Administrative Agent
         in its capacity as such;

         Second, to payment of that portion of the Obligations constituting
         fees, indemnities and other amounts (other than principal and interest)
         payable to the Lenders (including Attorney Costs and amounts payable
         under Article III), ratably among them in proportion to the amounts
         described in this clause Second payable to them;

<PAGE>

         Third, to payment of that portion of the Obligations constituting
         accrued and unpaid interest on the Loans and L/C Borrowings and fees,
         premiums and scheduled periodic payments, and any interest accrued
         thereon, due under any Swap Contract between any Loan Party and any
         Lender, or any Affiliate of a Lender, to the extent such Swap Contract
         is permitted by Section 8.03(d), ratably among the Lenders (and, in the
         case of such Swap Contracts, Affiliates of Lenders) in proportion to
         the respective amounts described in this clause Third held by them;

         Fourth, to payment of that portion of the Obligations constituting
         unpaid principal of the Loans, L/C Borrowings and Credit-Linked L/C
         Borrowings and breakage, termination or other payments, and any
         interest accrued thereon, due under any Swap Contract between any Loan
         Party and any Lender, or any Affiliate of a Lender, to the extent such
         Swap Contract is permitted by Section 8.03(d), and to Cash
         Collateralize that portion of L/C Obligations comprised of the
         aggregate undrawn amount of Letters of Credit and to Cash Collateralize
         that portion of the Credit-Linked Obligations comprised of the
         aggregate undrawn amount of Credit-Linked Letters of Credit, ratably
         among the Lenders (and, in the case of such Swap Contracts, Affiliates
         of Lenders) in proportion to the respective amounts described in this
         clause Fourth held by them; and

         Last, the balance, if any, after all of the Obligations have been
         indefeasibly paid in full, to the Borrower or as otherwise required by
         Law.

         Subject to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above
shall be applied to satisfy drawings under such Letters of Credit, as
applicable, as they occur. Subject to Section 2.05(c), amounts used to Cash
Collateralize the aggregate undrawn amount of Credit-Linked Letters of Credit
pursuant to clause Fourth above shall be applied to satisfy drawings under such
Credit-Linked Letters of Credit, as applicable, as they occur. If any amount
remains on deposit as Cash Collateral for any Letter of Credit after such Letter
of Credit has either been fully drawn or expired, then (i) if any other
Obligations (other than Letters of Credit that have been Cash Collateralized)
are outstanding, such remaining amount shall be applied to such other
Obligations, if any, in the order set forth above or (ii) if all of the
Obligations (other than the Letters of Credit that have been Cash
Collateralized) have been indefeasibly paid in full, such remaining amount shall
be paid to the Borrower or as otherwise required by law. If any amount remains
on deposit as Cash Collateral for any Credit-Linked Letter of Credit after such
Credit-Linked Letter of Credit has either been fully drawn or expired, then (i)
if any other Obligations (other than Credit-Linked Letters of Credit that have
been Cash Collateralized) are outstanding, such remaining amount shall be
applied to such other Obligations, if any, in the order set forth above or (ii)
if all of the Obligations (other than the Credit-Linked Letters of Credit that
have been Cash Collateralized) have been indefeasibly paid in full, such
remaining amount shall be paid to the Borrower or as otherwise required by law.

                                    ARTICLE X

                              ADMINISTRATIVE AGENT

10.01    Appointment and Authorization of Administrative Agent.

         (a)      Each Lender hereby irrevocably appoints, designates and
authorizes the Administrative Agent to take such action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of
this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those

<PAGE>

expressly set forth herein, nor shall the Administrative Agent have or be deemed
to have any fiduciary relationship with any Lender or participant, 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. Without limiting the
generality of the foregoing sentence, the use of the term "agent" herein and in
the other Loan Documents with reference to the Administrative Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties.

         (b)      The L/C Issuer shall act on behalf of the Lenders with respect
to any Letters of Credit issued by it and the documents associated therewith,
and the L/C Issuer shall have all of the benefits and immunities (i) provided to
the Administrative Agent in this Article X with respect to any acts taken or
omissions suffered by the L/C Issuer in connection with Letters of Credit issued
by it or proposed to be issued by it and the applications and agreements for
letters of credit pertaining to such Letters of Credit as fully as if the term
"Administrative Agent" as used in this Article X and in the definition of
"Agent-Related Person" included the L/C Issuer with respect to such acts or
omissions, and (ii) as additionally provided herein with respect to the L/C
Issuer.

         (c)      The Credit-Linked L/C Issuer shall act on behalf of the
Credit-Linked Lenders with respect to any Credit-Linked Letters of Credit issued
by it and the documents associated therewith, and the Credit-Linked L/C Issuer
shall have all of the benefits and immunities (i) provided to the Administrative
Agent in this Article X with respect to any acts taken or omissions suffered by
the Credit-Linked L/C Issuer in connection with Credit-Linked Letters of Credit
issued by it or proposed to be issued by it and the applications and agreements
for letters of credit pertaining to such Credit-Linked Letters of Credit as
fully as if the term "Administrative Agent" as used in this Article X and in the
definition of "Agent-Related Person" included the Credit-Linked L/C Issuer with
respect to such acts or omissions, and (ii) as additionally provided herein with
respect to the Credit-Linked L/C Issuer.

         (d)      Each Credit-Linked Lender hereby consents to and approves the
terms of the Money Market Account Agreement. By execution hereof, the
Credit-Linked Lenders authorize and direct the Administrative Agent to enter
into the Money Market Account Agreement on behalf of the Credit-Linked Lenders.

10.02    Delegation of Duties.

         The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

10.03    Liability of Administrative Agent.

         No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or
any other Loan Document or the transactions contemplated hereby (except for its
own gross negligence or willful misconduct in connection with its duties
expressly set forth herein), or (b) be responsible in any manner to any Lender
or participant for any recital, statement, representation or warranty made by
any Loan Party or any officer thereof, contained herein or in any other Loan
Document, or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Loan Document, or the validity,
effectiveness, genuineness, enforceability or

<PAGE>

sufficiency of this Agreement or any other Loan Document, or for any failure of
any Loan Party or any other party to any Loan Document to perform its
obligations hereunder or thereunder. No Agent-Related Person shall be under any
obligation to any Lender or participant 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 or any Affiliate thereof.

10.04    Reliance by Administrative Agent.

         (a)      The Administrative Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail message,
statement 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 statements of counsel
to any Loan Party), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under any Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement or any other Loan Document in
accordance with a request or consent of the Required Lenders (or such greater
number of Lenders as may be expressly required hereby in any instance) and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders.

         (b)      For purposes of determining compliance with the conditions
specified in Section 5.01, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

10.05    Notice of Default.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Borrower referring
to this Agreement, describing such Default and stating that such notice is a
"notice of default." The Administrative Agent will notify the Lenders of its
receipt of any such notice. The Administrative Agent shall take such action with
respect to such Default as may be directed by the Required Lenders in accordance
with Article IX; provided, however, that unless and until the Administrative
Agent has received any such direction, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable or in the best interest of
the Lenders.

10.06    Credit Decision; Disclosure of Information by Administrative Agent.

         Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of any Loan Party or any Affiliate thereof, shall be
deemed to constitute any representation or warranty by any Agent-Related Person
to any Lender as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession.

<PAGE>

Each Lender represents to the Administrative Agent that it has, independently
and without reliance upon any Agent-Related Person and based on such documents
and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, Property, financial and
other condition and creditworthiness of the Loan Parties and their respective
Subsidiaries, and all applicable bank or other regulatory Laws relating to the
transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower hereunder. Each Lender also
represents that it will, independently and without reliance upon any
Agent-Related Person 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 investigations as it deems necessary
to inform itself as to the business, prospects, operations, Property, financial
and other condition and creditworthiness of the Borrower and the other Loan
Parties. Except for notices, reports and other documents expressly required to
be furnished to the Lenders by the Administrative Agent herein, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects,
operations, Property, financial and other condition or creditworthiness of any
of the Loan Parties or any of their respective Affiliates which may come into
the possession of any Agent-Related Person.

10.07    Indemnification of Administrative Agent.

Whether or not the transactions contemplated hereby are consummated, the Lenders
shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Loan Party and without limiting the obligation
of any Loan Party to do so), pro rata, and hold harmless each Agent-Related
Person from and against any and all Indemnified Liabilities incurred by it;
provided, however, that no Lender shall be liable for the payment to any
Agent-Related Person of any portion of such Indemnified Liabilities to the
extent determined in a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from such Agent-Related Person's own gross
negligence or willful misconduct; provided, however, that no action taken in
accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this Section.
Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that the Administrative
Agent is not reimbursed for such expenses by or on behalf of the Borrower. The
undertaking in this Section shall survive termination of the Commitments, the
payment of all other Obligations and the resignation of the Administrative
Agent.

10.08    Administrative Agent in its Individual Capacity.

         Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Loan Parties and their respective Affiliates
as though Bank of America were not the Administrative Agent or the L/C Issuer
hereunder and without notice to or consent of the Lenders. The Lenders
acknowledge that, pursuant to such activities, Bank of America or its Affiliates
may receive information regarding any Loan Party or its Affiliates (including
information that may be subject to confidentiality obligations in favor of such
Loan Party or such Affiliate) and acknowledge that the Administrative Agent
shall be under no obligation to provide such information to them. With respect
to its Loans, Bank of America shall have the same rights and powers under this
Agreement as any other Lender and may exercise such rights and powers as though
it

<PAGE>

were not the Administrative Agent, the L/C Issuer or the Credit-Linked L/C
Issuer, and the terms "Lender" and "Lenders" include Bank of America in its
individual capacity.

10.09    Successor Administrative Agent.

         The Administrative Agent may resign as Administrative Agent upon thirty
days' notice to the Lenders; provided that any such resignation by Bank of
America shall also constitute its resignation as L/C Issuer, Credit-Linked L/C
Issuer and Swing Line Lender. If the Administrative Agent resigns under this
Agreement, the Required Lenders shall appoint from among the Lenders a successor
administrative agent for the Lenders, which appointment of such successor
administrative agent shall require the consent of the Borrower at all times
other than during the existence of an Event of Default (which consent of the
Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the resignation
of the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Borrower, a successor administrative agent
from among the Lenders. Upon the acceptance of its appointment as successor
administrative agent hereunder, the Person acting as such successor
administrative agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent, L/C Issuer, Credit-Linked L/C Issuer and Swing
Line Lender and the respective terms "Administrative Agent", "L/C Issuer",
"Credit-Linked L/C Issuer" and "Swing Line Lender" shall mean such successor
administrative agent, Letter of Credit issuer, Credit-Linked Letter of Credit
issuer and swing line lender, and the retiring Administrative Agent's
appointment, powers and duties in such capacities shall be terminated without
any other further act or deed on its behalf. After any retiring Administrative
Agent's resignation hereunder as Administrative Agent, the provisions of this
Article X and Sections 11.04 and 11.05 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. If no successor administrative agent has accepted
appointment as Administrative Agent by the date thirty 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 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.

10.10    Administrative Agent May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan, L/C Obligation or
Credit-Linked L/C Obligation shall then be due and payable as herein expressed
or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

                  (a)      to file and prove a claim for the whole amount of the
         principal and interest owing and unpaid in respect of the Loans, L/C
         Obligations, Credit-Linked L/C Obligations and all other Obligations
         that are owing and unpaid and to file such other documents as may be
         necessary or advisable in order to have the claims of the Lenders and
         the Administrative Agent (including any claim for the reasonable
         compensation, expenses, disbursements and advances of the Lenders and
         the Administrative Agent and their respective agents and counsel and
         all other amounts due the Lenders and the Administrative Agent under
         Sections 2.03(i) and (j), 2.11 and 11.04) allowed in such judicial
         proceeding; and

                  (b)      to collect and receive any monies or other Property
         payable or deliverable on any such claims and to distribute the same;

<PAGE>

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.11 and 11.04.

         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

10.11    Collateral and Guaranty Matters.

         The Lenders irrevocably authorize the Administrative Agent, at its
option and in its discretion,

                  (a)      to release any Lien on any Collateral granted to or
         held by the Administrative Agent under any Loan Document (i) upon
         termination of the Aggregate Revolving Commitments and payment in full
         of all Obligations (other than contingent indemnification obligations)
         and the expiration or termination of all Letters of Credit and
         Credit-Linked Letters of Credit, (ii) that is transferred or to be
         transferred as part of or in connection with any Disposition permitted
         hereunder or under any other Loan Document or any Involuntary
         Disposition, or (iii) as approved in accordance with Section 11.01;

                  (b)      to subordinate any Lien on any Property granted to or
         held by the Administrative Agent under any Loan Document to the holder
         of any Lien on such Property that is permitted by Section 8.01(i); and

                  (c)      to release any Guarantor from its obligations under
         the Guaranty if such Person ceases to be a Subsidiary as a result of a
         transaction permitted hereunder.

         Upon request by the Administrative Agent at any time, the Required
         Lenders will confirm in writing the Administrative Agent's authority to
         release or subordinate its interest in particular types or items of
         Property, or to release any Guarantor from its obligations under the
         Guaranty, pursuant to this Section 10.11.

10.12    Other Agents; Arrangers and Managers.

         None of the Lenders or other Persons identified on the facing page or
signature pages of this Agreement as a "syndication agent," "documentation
agent," "co-agent," "book manager," "lead manager," "arranger," "lead arranger"
or "co-arranger" shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

11.01    Amendments, Etc.

         No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Borrower or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or consent shall:

                  (a)      extend or increase the Commitment of any Lender (or
         reinstate any Commitment terminated pursuant to Section 9.02) without
         the written consent of such Lender (it being understood and agreed that
         a waiver of any condition precedent set forth in Section 5.02 or of any
         Default or Event of Default or a mandatory reduction in Commitments is
         not considered an extension or increase in Commitments of any Lender);

                  (b)      postpone any date fixed by this Agreement or any
         other Loan Document for any payment of principal (excluding mandatory
         prepayments), interest, fees or other amounts due to the Lenders (or
         any of them) hereunder or under any other Loan Document without the
         written consent of each Lender directly affected thereby;

                  (c)      reduce the principal of, or the rate of interest
         specified herein on, any Loan, L/C Borrowing or Credit-Linked L/C
         Borrowing, or any fees or other amounts payable hereunder or under any
         other Loan Document without the written consent of each Lender directly
         affected thereby; provided, however, that only the consent of the
         Required Lenders shall be necessary to amend the definition of "Default
         Rate" or to waive any obligation of the Borrower to pay interest at the
         Default Rate;

                  (d)      change Section 2.13 or Section 9.03 in a manner that
         would alter the pro rata sharing of payments required thereby without
         the written consent of each Lender directly affected thereby;

                  (e)      change any provision of this Section or the
         definition of "Required Lenders" or any other provision hereof
         specifying the number or percentage of Lenders required to amend, waive
         or otherwise modify any rights hereunder or make any determination or
         grant any consent hereunder without the written consent of each Lender
         directly affected thereby;

                  (f)      except in connection with a Disposition permitted
         under Section 8.05, release all or substantially all of the Collateral
         without the written consent of each Lender directly affected thereby;

                  (g)      release the Borrower or, except in connection with a
         merger or consolidation permitted under Section 8.04 or a Disposition
         permitted under Section 8.05, all or substantially all of the
         Guarantors, from its or their obligations under the Loan Documents
         without the written consent of each Lender directly affected thereby;
         or

                  (h)      without the consent of Lenders (other than Defaulting
         Lenders) holding in the aggregate at least a majority of the Revolving
         Commitments (or if the Revolving Commitments have

<PAGE>

         been terminated, the outstanding Revolving Loans (and participations in
         any Swing Line Loans and L/C Obligations)), (i) waive any Default or
         Event of Default for purposes of Section 5.02 for purposes of any
         Revolving Loan borrowing or L/C Credit Extension and (ii) amend,
         change, waive, discharge or terminate Section 2.01(a), 2.02, 2.03,
         2.05(b)(i) or 2.06 or any term, covenant or agreement contained in
         Article VIII or Article IX;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any Letter
of Credit Application relating to any Letter of Credit issued or to be issued by
it; (ii) no amendment, waiver or consent shall, unless in writing and signed by
the Credit-Linked L/C Issuer in addition to the Lenders required above, affect
the rights or duties of the Credit-Linked L/C Issuer under this Agreement or any
Credit-Linked Letter of Credit Application relating to any Credit-Linked Letter
of Credit issued or to be issued by it; (iii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the
Lenders required above, affect the rights or duties of the Swing Line Lender
under this Agreement; (iv) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; and (v) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender.

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans, and each Lender acknowledges that the provisions of Section 1126(c) of
the United States Bankruptcy Code supersedes the unanimous consent provisions
set forth herein and (y) the Required Lenders shall determine whether or not to
allow a Loan Party to use cash collateral in the context of a bankruptcy or
insolvency proceeding and such determination shall be binding on all of the
Lenders.

11.02    Notices and Other Communications; Facsimile Copies.

         (a)      General. Unless otherwise expressly provided herein, all
notices and other communications provided for hereunder shall be in writing
(including by facsimile transmission). All such written notices shall be mailed,
faxed or delivered to the applicable address, facsimile number or (subject to
subsection (c) below) electronic mail address, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

                  (i)      if to the Borrower, the Administrative Agent, the L/C
         Issuer, the Credit-Linked L/C Issuer or the Swing Line Lender, to the
         address, facsimile number, electronic mail address or telephone number
         specified for such Person on Schedule 11.02 or to such other address,
         facsimile number, electronic mail address or telephone number as shall
         be designated by such party in a notice to the other parties; and

                  (ii)     if to any other Lender, to the address, facsimile
         number, electronic mail address or telephone number specified in its
         Administrative Questionnaire (which Administrative Questionnaires shall
         be provided to the Borrower by the Administrative Agent upon request by
         the Borrower) or to such other address, facsimile number, electronic
         mail address or telephone number as shall be designated by such party
         in a notice to the Borrower, the Administrative Agent, the L/C Issuer,
         the Credit-Linked L/C Issuer and the Swing Line Lender.

<PAGE>

         All such notices and other communications shall be deemed to be given
or made upon the earlier to occur of (i) actual receipt by the relevant party
hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on
behalf of the relevant party hereto; (B) if delivered by mail, four Business
Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,
when sent and receipt has been confirmed by telephone; and (D) if delivered by
electronic mail (which form of delivery is subject to the provisions of
subsection (c) below), when delivered; provided, however, that notices and other
communications to the Administrative Agent, the L/C Issuer, the Credit-Linked
L/C Issuer and the Swing Line Lender pursuant to Article II shall not be
effective until actually received by such Person. In no event shall a voicemail
message be effective as a notice, communication or confirmation hereunder.

         (b)      Effectiveness of Facsimile Documents and Signatures. Loan
Documents may be transmitted and/or signed by facsimile. The effectiveness of
any such documents and signatures shall, subject to applicable Law, have the
same force and effect as manually signed originals and shall be binding on all
Loan Parties, the Administrative Agent and the Lenders. The Administrative Agent
may also require that any such documents and signatures be confirmed by a
manually signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile document
or signature.

         (c)      Limited Use of Electronic Mail. Electronic mail and internet
and intranet websites may be used only to distribute routine communications,
such as financial statements and other information as provided in Section 7.02,
and to distribute Loan Documents for execution by the parties thereto, and may
not be used for any other purpose.

         (d)      Reliance by Administrative Agent and Lenders. The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Loan Notices and Swing Line Loan Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were
not made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as reasonably understood by the recipient, varied from any confirmation
thereof. The Borrower shall indemnify each Agent-Related Person and each Lender
from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by or on behalf of the Borrower.
All telephonic notices to and other communications with the Administrative Agent
may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording.

11.03    No Waiver; Cumulative Remedies.

         No failure by any Lender or the Administrative Agent to exercise, and
no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder 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.

11.04    Attorney Costs, Expenses and Taxes.

         The Borrower agrees (a) to pay or reimburse the Administrative Agent
for all reasonable costs and expenses incurred in connection with the
development, preparation, negotiation and execution of this Agreement and the
other Loan Documents and any amendment, waiver, consent or other modification of
the provisions hereof and thereof (whether or not the transactions contemplated
hereby or thereby are consummated), and the consummation and administration of
the transactions contemplated hereby and thereby, including all Attorney Costs
and costs and expenses in connection with the use of Intralinks, Inc.

<PAGE>

or other similar information transmission systems in connection with this
Agreement, and (b) to pay or reimburse the Administrative Agent and each Lender
for all reasonable costs and expenses incurred in connection with the
enforcement, attempted enforcement, or preservation of any rights or remedies
under this Agreement or the other Loan Documents (including all such costs and
expenses incurred during any "workout" or restructuring in respect of the
Obligations and during any legal proceeding, including any proceeding under any
Debtor Relief Law), including all Attorney Costs. The foregoing costs and
expenses shall include all search, filing, recording, title insurance and
appraisal charges and fees and taxes related thereto, and other out-of-pocket
expenses incurred by the Administrative Agent and the cost of independent public
accountants and other outside experts retained by the Administrative Agent or
any Lender. All amounts due under this Section 11.04 shall be payable within
twenty (20) days after demand therefor. The agreements in this Section shall
survive the termination of the Aggregate Revolving Commitments and repayment of
all other Obligations.

11.05    Indemnification by the Borrower.

         Whether or not the transactions contemplated hereby are consummated,
the Borrower agrees to indemnify and hold harmless each Agent-Related Person,
each Lender and their respective Affiliates, directors, officers, employees,
counsel, trustees, investment advisors, agents and attorneys-in-fact
(collectively the "Indemnitees") from and against any and all liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, reasonable costs, expenses and disbursements (including Attorney Costs)
of any kind or nature whatsoever which may at any time be imposed on, incurred
by or asserted against any such Indemnitee in any way relating to or arising out
of or in connection with (a) the execution, delivery, enforcement, performance
or administration of any Loan Document or any other agreement, letter or
instrument delivered in connection with the transactions contemplated thereby or
the consummation of the transactions contemplated thereby, (b) any Commitment,
Loan, Letter of Credit or Credit-Linked Letter of Credit or the use or proposed
use of the proceeds therefrom (including any refusal by the L/C Issuer to honor
a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter
of Credit and any refusal by the Credit-Linked L/C Issuer to honor a demand for
payment under a Credit-Linked Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Credit-Linked Letter of Credit), (c) any actual or alleged presence or release
of Hazardous Materials on or from any property currently or formerly owned or
operated by the Borrower, any Subsidiary or any other Loan Party, or any
Environmental Liability related in any way to the Borrower, any Subsidiary or
any other Loan Party, or (d) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory (including any investigation of, preparation
for, or defense of any pending or threatened claim, investigation, litigation or
proceeding) and regardless of whether any Indemnitee is a party thereto (all the
foregoing, collectively, the "Indemnified Liabilities"); provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses or disbursements (x) are determined by a court
of competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or (y) arise
out of a dispute solely between two or more Indemnitees not caused by or
involving in any way the Borrower or any Subsidiary. No Indemnitee shall be
liable for any damages arising from the use by others of any information or
other materials obtained through IntraLinks or other similar information
transmission systems in connection with this Agreement, nor shall any Indemnitee
have any liability for any indirect or consequential damages relating to this
Agreement or any other Loan Document or arising out of its activities in
connection herewith or therewith (whether before or after the Closing Date). All
amounts due under this Section 11.05 shall be payable within twenty (20) days
after demand therefor. The agreements in this Section shall survive the
resignation of the Administrative Agent, the replacement of

<PAGE>

any Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all the other Obligations.

11.06    Payments Set Aside.

         To the extent that any payment by or on behalf of any Loan Party is
made to the Administrative Agent or any Lender, or the Administrative Agent or
any Lender exercises its right of set-off, and such payment or the proceeds of
such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

11.07    Successors and Assigns.

         (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, except that the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in accordance
with the provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of this
Section or (iii) by way of pledge or assignment of a security interest subject
to the restrictions of subsection (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Indemnitees) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

         (b)      Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans (including for
purposes of this subsection (b), participations in L/C Obligations,
Credit-Linked L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that (i) except in the case of an assignment of the entire remaining
amount of the assigning Lender's Commitment and the Loans at the time owing to
it or in the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund (as defined in subsection (g) of this Section) with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) 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 or, if "Trade Date" is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000 in the case of an assignment of Revolving Loans and $1,000,000 in the
case of an assignment of Term Loans or any Credit-Linked Commitment unless each
of the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed); (ii) each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender's rights and
obligations under this Agreement with respect to the Loans and Commitments
assigned, except that this clause (ii) shall not (x) apply to rights in respect
of Swing Line Loans or (y) prohibit any Lender from assigning all or a portion
of its rights and obligations among separate tranches on a pro rata basis;

<PAGE>

(iii) any assignment of a Revolving Commitment must be approved by the
Administrative Agent, the L/C Issuer and the Swing Line Lender unless the Person
that is the proposed assignee is itself a Lender (whether or not the proposed
assignee would otherwise qualify as an Eligible Assignee); and (iv) 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; provided that (a) no such fee shall be payable in the case of an
assignment to another Lender, an Affiliate of a Lender or an Approved Fund with
respect to a Lender, and (b) in the case of contemporaneous assignments by a
Lender to more than one Approved Fund managed by the same investment adviser
(which Approved Funds are not then Lenders hereunder), only a single such $3,500
fee shall be payable for all such contemporaneous assignments. Subject to
acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement 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 3.01, 3.04, 3.05, 11.04 and 11.05
with respect to facts and circumstances occurring prior to the effective date of
such assignment). Upon request, the Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection 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
subsection (d) of this Section.

         (c)      The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent's Office 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 Commitments of,
and principal amounts of the Loans, L/C Obligations and Credit-Linked 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 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 and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

         (d)      Any Lender may at any time, without the consent of, or notice
to, the Borrower or the Administrative Agent, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower's Affiliates
or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's
rights and/or obligations under this Agreement (including all or a portion of
its Commitment and/or the Loans (including such Lender's participations in L/C
Obligations, Credit-Linked L/C Obligations and/or Swing Line Loans) owing to
it); provided that (i) such Lender's obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the Borrower,
the Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other modification
described in clauses (a) through (g) of the first proviso to Section 11.01 that
directly affects such Participant. Subject to subsection (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01, 3.04

<PAGE>

and 3.05 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to subsection (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 11.09 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.15 as though it were a Lender.

         (e)      A Participant shall not be entitled to receive any greater
payment under Section 3.01, 3.04 or 3.05 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with
Section 11.15 as though it were a Lender.

         (f)      Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including
under its Notes, if any) to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank and any
pledge of obligations owed, or securities issued, by such Lender as collateral
security for such obligations or securities, or to any trustee for, or any other
representative of, such holders; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto.

         (g)      As used herein, the following terms have the following
meanings:

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; (c) an Approved Fund; and (d) any other Person (other than a
         natural person) approved by (i) the Administrative Agent, the L/C
         Issuer and the Swing Line Lender, and (ii) unless an Event of Default
         has occurred and is continuing, the Borrower (each such approval not to
         be unreasonably withheld or delayed); provided that notwithstanding the
         foregoing, "Eligible Assignee" shall not include the Borrower or any of
         the Borrower's Affiliates or Subsidiaries.

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Approved Fund" means any Fund 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.

         (h)      Notwithstanding anything to the contrary contained herein, if
at any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon thirty (30) days' notice to
the Borrower and the Lenders, resign as L/C Issuer and/or Credit-Linked L/C
Issuer and/or (ii) upon thirty (30) days' notice to the Borrower, resign as
Swing Line Lender. In the event of any such resignation as L/C Issuer,
Credit-Linked L/C Issuer or Swing Line Lender, the Borrower shall be entitled to
appoint from among the Lenders a successor L/C Issuer, Credit-Linked L/C Issuer
or Swing Line Lender hereunder; provided, however, that no failure by the
Borrower to appoint any such successor shall affect the resignation of Bank of
America as L/C Issuer, Credit-Linked L/C Issuer or Swing Line Lender, as the
case may be. If Bank of America resigns as L/C Issuer, it shall retain all the
rights and obligations of the L/C Issuer hereunder with respect to all Letters
of Credit outstanding as of the effective date of its resignation as L/C Issuer
and all L/C Obligations with respect thereto (including the right to require the
Lenders to make Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). If Bank of America resigns as
Credit-Linked L/C

<PAGE>

Issuer, it shall retain all the rights and obligations of the Credit-Linked L/C
Issuer hereunder with respect to all Credit-Linked Letters of Credit outstanding
as of the effective date of its resignation as Credit-Linked L/C Issuer and all
Credit-Linked L/C Obligations with respect thereto (including the right to
require the Credit-Linked Lenders to fund risk participations in Credit-Linked
Unreimbursed Amounts pursuant to Section 2.06(b)). If Bank of America resigns as
Swing Line Lender, it shall retain all the rights of the Swing Line Lender
provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right to
require the Lenders to make Base Rate Loans or fund risk participations in
outstanding Swing Line Loans pursuant to Section 2.04(c).

         (i)      The Credit-Linked Deposit Account funded by any Credit-Linked
Lender pursuant to Section 2.01(b) shall not be released in connection with any
assignment of its Credit-Linked Commitment but shall instead be purchased by the
relevant assignee and continue to be held for application in accordance with the
terms of Section 2.05 in respect of the Credit-Linked Commitment assigned to
such assignee.

11.08    Confidentiality.

         Each of the Administrative Agent, the L/C Issuer, the Credit-Linked L/C
Issuer, the Swing Line Lender and the Lenders agrees to (and to cause its and
its Affiliates' directors, officers and employees to) maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates' directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential and that the Administrative Agent, any Issuer or any
Lender, as applicable, shall be responsible for any violation of this Section
11.08 by such Persons); (b) to the extent required by any regulatory authority
having jurisdiction over such Person; (c) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process; (d) to any
other party to this Agreement; (e) to the extent reasonably required in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder;
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect contractual
counterparty or prospective counterparty (or such contractual counterparty's or
prospective counterparty's professional advisor) to any credit derivative
transaction relating to obligations of the Loan Parties; (g) with the prior
written consent of the Borrower; (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to the Administrative Agent or any Lender on a nonconfidential
basis from a source other than the Borrower; or (i) to the National Association
of Insurance Commissioners or any other similar organization or any nationally
recognized rating agency that requires access to information about a Lender's or
its Affiliates' investment portfolio in connection with ratings issued with
respect to such Lender or its Affiliates (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential). In
addition, the Administrative Agent and the Lenders may disclose the existence of
this Agreement and information about this Agreement to market data collectors,
similar service providers to the lending industry, and service providers to the
Administrative Agent and the Lenders in connection with the administration and
management of this Agreement, the other Loan Documents, the Commitments, and the
Credit Extensions. For the purposes of this Section, "Information" means all
information received from or on behalf of any Loan Party or any of its
Subsidiaries relating to any Loan Party or any of its Subsidiaries or its
business, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by any Loan Party. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person

<PAGE>

has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.
Notwithstanding anything herein to the contrary, "Information" shall not
include, and the Administrative Agent and each Lender may disclose without
limitation of any kind, any information with respect to the "tax treatment" and
"tax structure" (in each case, within the meaning of Treasury Regulation Section
1.6011-4) of the transactions contemplated hereby and all materials of any kind
(including opinions or other tax analyses) that are provided to the
Administrative Agent or such Lender relating to such tax treatment and tax
structure; provided that with respect to any document or similar item that in
either case contains information concerning the tax treatment or tax structure
of the transaction as well as other information, this sentence shall only apply
to such portions of the document or similar item that relate to the tax
treatment or tax structure of the Loans, Letters of Credit, Credit-Linked
Letters of Credit and transactions contemplated hereby.

11.09    Set-off.

         In addition to any rights and remedies of the Lenders provided by law,
upon the occurrence and during the continuance of any Event of Default, each
Lender and any Affiliate of any Lender is authorized at any time and from time
to time, without prior notice to the Borrower or any other Loan Party, any such
notice being waived by the Borrower (on its own behalf and on behalf of each
Loan Party) to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender to or for
the credit or the account of the respective Loan Parties against any and all
Obligations owing to such Lender hereunder or under any other Loan Document, now
or hereafter existing, irrespective of whether or not the Administrative Agent
or such Lender shall have made demand under this Agreement or any other Loan
Document and although such Obligations may be contingent or unmatured or
denominated in a currency different from that of the applicable deposit or
indebtedness. Each Lender agrees promptly to notify the Borrower and the
Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

11.10    Interest Rate Limitation.

         Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall
not exceed the maximum rate of non-usurious interest permitted by applicable Law
(the "Maximum Rate"). If the Administrative Agent or any Lender shall receive
interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Loans or, if it exceeds such unpaid
principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable
Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b) exclude voluntary prepayments and the effects
thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal
parts the total amount of interest throughout the contemplated term of the
Obligations hereunder.

11.11    Counterparts.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

11.12    Integration.

         This Agreement, together with the other Loan Documents, comprises the
complete and integrated agreement of the parties on the subject matter hereof
and thereof and supersedes all prior agreements,

<PAGE>

written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion of
supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

11.13    Survival of Representations and Warranties.

         All representations and warranties made hereunder and in any other Loan
Document or other document delivered pursuant hereto or thereto or in connection
herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit or Credit-Linked Letter of
Credit shall remain outstanding.

11.14    Severability.

         If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

11.15    Tax Forms.

                  (a)      (i) Each Lender that is not a "United States person"
         within the meaning of Section 7701(a)(30) of the Internal Revenue Code
         (a "Foreign Lender") shall deliver to the Administrative Agent, prior
         to receipt of any payment subject to withholding under the Internal
         Revenue Code (or upon accepting an assignment of an interest herein),
         two duly signed completed copies of either IRS Form W-8BEN or any
         successor thereto (relating to such Foreign Lender and entitling it to
         an exemption from, or reduction of, withholding tax on all payments to
         be made to such Foreign Lender by the Borrower pursuant to this
         Agreement) or IRS Form W-8ECI or any successor thereto (relating to all
         payments to be made to such Foreign Lender by the Borrower pursuant to
         this Agreement) or such other evidence satisfactory to the Borrower and
         the Administrative Agent that such Foreign Lender is entitled to an
         exemption from, or reduction of, U.S. withholding tax, including any
         exemption pursuant to Section 871(h) or Section 881(c) of the Internal
         Revenue Code. Thereafter and from time to time, each such Foreign
         Lender shall (A) promptly submit to the Administrative Agent such
         additional duly completed and signed copies of one of such forms (or
         such successor forms as shall be adopted from time to time by the
         relevant United States taxing authorities) as may then be available
         under then current United States laws and regulations to avoid, or such
         evidence as is satisfactory to the Borrower and the Administrative
         Agent of any available exemption from or reduction of, United States
         withholding taxes in respect of all payments to be made to such Foreign
         Lender by the Borrower pursuant to this Agreement, (B) promptly notify
         the Administrative Agent of any change in circumstances which would
         modify or render invalid any claimed exemption or reduction, and (C)
         take such steps as shall not be materially disadvantageous to it, in
         the reasonable judgment of such Lender,

<PAGE>

         and as may be reasonably necessary (including the re-designation of its
         Lending Office) to avoid any requirement of applicable Laws that the
         Borrower make any deduction or withholding for taxes from amounts
         payable to such Foreign Lender.

                  (ii)     Each Foreign Lender, to the extent it does not act or
         ceases to act for its own account with respect to any portion of any
         sums paid or payable to such Lender under any of the Loan Documents
         (for example, in the case of a typical participation by such Lender),
         shall deliver to the Administrative Agent on the date when such Foreign
         Lender ceases to act for its own account with respect to any portion of
         any such sums paid or payable, and at such other times as may be
         necessary in the determination of the Administrative Agent (in the
         reasonable exercise of its discretion), (A) two duly signed completed
         copies of the forms or statements required to be provided by such
         Lender as set forth above, to establish the portion of any such sums
         paid or payable with respect to which such Lender acts for its own
         account that is not subject to U.S. withholding tax, and (B) two duly
         signed completed copies of IRS Form W-8IMY (or any successor thereto),
         together with any information such Lender chooses to transmit with such
         form, and any other certificate or statement of exemption required
         under the Internal Revenue Code, to establish that such Lender is not
         acting for its own account with respect to a portion of any such sums
         payable to such Lender.

                  (iii)    The Borrower shall not be required to pay any
         additional amount to any Foreign Lender under Section 3.01 or any
         indemnity payments under Section 3.01(c) (A) with respect to any Taxes
         required to be deducted or withheld on the basis of the information,
         certificates or statements of exemption such Lender transmits with an
         IRS Form W-8IMY pursuant to this Section 11.15(a) or (B) if such Lender
         shall have failed to satisfy the foregoing provisions of this Section
         11.15(a); provided that if such Lender shall have satisfied the
         requirement of this Section 11.15(a) on the date such Lender became a
         Lender or ceased to act for its own account with respect to any payment
         under any of the Loan Documents, nothing in this Section 11.15(a) shall
         relieve the Borrower of its obligation to pay any amounts pursuant to
         Section 3.01 in the event that, as a result of any change in any
         applicable law, treaty or governmental rule, regulation or order, or
         any change in the interpretation, administration or application
         thereof, such Lender is no longer properly entitled to deliver forms,
         certificates or other evidence at a subsequent date establishing the
         fact that such Lender or other Person for the account of which such
         Lender receives any sums payable under any of the Loan Documents is not
         subject to withholding or is subject to withholding at a reduced rate.

                  (iv)     The Administrative Agent may, without reduction,
         withhold any Taxes required to be deducted and withheld from any
         payment under any of the Loan Documents with respect to which the
         Borrower is not required to pay additional amounts under this Section
         11.15(a).

                  (b)      Upon the request of the Administrative Agent, each
         Lender that is a "United States person" within the meaning of Section
         7701(a)(30) of the Internal Revenue Code shall deliver to the
         Administrative Agent two duly signed completed copies of IRS Form W-9.
         If such Lender fails to deliver such forms, then the Administrative
         Agent may withhold from any interest payment to such Lender an amount
         equivalent to the applicable back-up withholding tax imposed by the
         Internal Revenue Code, without reduction.

                  (c)      If any Governmental Authority asserts that the
         Administrative Agent did not properly withhold or backup withhold, as
         the case may be, any tax or other amount from payments made to or for
         the account of any Lender, such Lender shall indemnify the
         Administrative Agent therefor, including all penalties and interest,
         any taxes imposed by any jurisdiction on the amounts payable to the
         Administrative Agent under this Section, and costs and

<PAGE>

         expenses (including Attorney Costs) of the Administrative Agent. The
         obligation of the Lenders under this Section shall survive the
         termination of the Aggregate Revolving Commitments, repayment of all
         other Obligations hereunder and the resignation of the Administrative
         Agent.

11.16    Replacement of Lenders.

                  Under any circumstances set forth herein providing that the
         Borrower shall have the right to replace a Lender as a party to this
         Agreement, the Borrower may, upon notice to such Lender and the
         Administrative Agent, replace such Lender by causing such Lender to
         assign its Commitment and outstanding Loans (with the assignment fee to
         be paid by the Borrower in such instance) pursuant to Section 11.07(b)
         to one or more other Lenders or Eligible Assignees procured by the
         Borrower; provided, however, that if the Borrower elects to exercise
         such right with respect to any Lender pursuant to Section 3.06(b), it
         shall be obligated to replace all Lenders that have made similar
         requests for compensation pursuant to Section 3.01 or 3.04. The
         Borrower shall (x) pay in full all principal, interest, fees and other
         amounts owing to such Lender through the date of replacement (including
         any amounts payable pursuant to Section 3.05), (y) provide appropriate
         assurances and indemnities (which may include letters of credit) to the
         L/C Issuer, the Credit-Linked L/C Issuer and the Swing Line Lender as
         each may reasonably require with respect to any continuing obligation
         to fund participation interests in any L/C Obligations, Credit-Linked
         L/C Obligations or any Swing Line Loans then outstanding, and (z)
         release such Lender from its obligations under the Loan Documents. Any
         Lender being replaced shall execute and deliver an Assignment and
         Assumption with respect to such Lender's Commitment and outstanding
         Loans and participations in L/C Obligations, Credit-Linked L/C
         Obligations and Swing Line Loans.

11.17    Governing Law.

         (a)      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, the LAWS OF THE STATE OF NEW YORK applicable to agreements made
and to be performed entirely within such State; PROVIDED THAT THE PARTIES HERETO
SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

         (b)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY
HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH PARTY HERETO IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH PARTY HERETO WAIVES PERSONAL
SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY
OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

11.18    Waiver of Right to Trial by Jury.

         EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR

<PAGE>

INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

11.19    Designated Senior Indebtedness.

         The Indebtedness evidenced by this Agreement is hereby specifically
designated as "Designated Senior Indebtedness" for purposes of the 2000
Subordinated Indenture and the other 2000 Convertible Subordinated Debentures
Documents, and the Indebtedness evidenced by this Agreement is hereby
specifically designated as "Designated Senior Indebtedness" for purposes of the
2003 Subordinated Indenture and the other 2003 Convertible Subordinated
Debentures Documents.

11.20    USA Patriot Act Notice.

         Each Lender and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the "Act"), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Act.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

BORROWER:                               QUANTA SERVICES, INC.,
                                        a Delaware corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

GUARANTORS:                             ARBY CONSTRUCTION, INC.
                                        AUSTIN TRENCHER, INC.
                                        CCLC, INC.
                                        CONTI COMMUNICATIONS, INC.
                                        CROCE ELECTRIC COMPANY, INC.
                                        DILLARD SMITH CONSTRUCTION COMPANY
                                        DRIFTWOOD ELECTRICAL CONTRACTORS, INC.
                                        GLOBAL ENERCOM MANAGEMENT, INC.
                                        GOLDEN STATE UTILITY CO.
                                        H.L. CHAPMAN PIPELINE CONSTRUCTION, INC.
                                        HAINES CONSTRUCTION COMPANY
                                        MANUEL BROS., INC.
                                        MEARS GROUP, INC.
                                        NETWORK ELECTRIC COMPANY
                                        NORTH PACIFIC CONSTRUCTION CO., INC.
                                        NORTH SKY COMMUNICATIONS, INC.
                                        PARKSIDE SITE & UTILITY COMPANY
                                                CORPORATION
                                        PARKSIDE UTILITY CONSTRUCTION CORP.
                                        PWR FINANCIAL COMPANY
                                        QPC, INC.
                                        QSI, INC.
                                        QUANTA HOLDINGS, INC.
                                        QUANTA GOVERNMENT SERVICES, INC.
                                        QUANTA LI ACQUISITION, INC.
                                        QUANTA LIV ACQUISITION, INC.
                                        QUANTA LVII ACQUISITION, INC.
                                        QUANTA LVIII ACQUISITION, INC.
                                        QUANTA LIX ACQUISITION, INC.
                                        QUANTA LX ACQUISITION, INC.
                                        QUANTA LXI ACQUISITION, INC.
                                        QUANTA LXII ACQUISITION, INC.
                                        QUANTA LXIII ACQUISITION, INC.
                                        QUANTA LXIV ACQUISITION, INC.
                                        QUANTA LXV ACQUISITION, INC.,
                                        each a Delaware corporation

                                        By:  /s/ Dana A. Gordon
                                             -----------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        QUANTA LXVI ACQUISITION, INC.
                                        QUANTA LXVII ACQUISITION, INC.
                                        QUANTA LXVIII ACQUISITION, INC.
                                        QUANTA LXIX ACQUISITION, INC.
                                        QUANTA LXX ACQUISITION, INC.
                                        QUANTA LXXI ACQUISITION, INC.
                                        QUANTA LXXII ACQUISITION, INC.
                                        QUANTA LXXIII ACQUISITION, INC.
                                        QUANTA UTILITY INSTALLATION CO., INC.
                                        R.A. WAFFENSMITH & CO., INC.
                                        SOUTHEAST PIPELINE CONSTRUCTION, INC.
                                        SOUTHWESTERN COMMUNICATIONS, INC.
                                        SPALJ CONSTRUCTION COMPANY
                                        SUMTER UTILITIES, INC.
                                        TOM ALLEN CONSTRUCTION COMPANY
                                        TTGP, INC.
                                        TTLP, INC.
                                        TXLP, INC.
                                        UNDERGROUND CONSTRUCTION CO., INC.
                                        VCI TELCOM, INC.
                                        W.C. COMMUNICATIONS, INC.,
                                        each a Delaware corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        ADVANCED TECHNOLOGIES AND
                                                INSTALLATION CORPORATION,
                                        ALLTECK LINE CONTRACTORS (USA), INC.
                                        MUSTANG LINE CONTRACTORS, INC.
                                        POTELCO, INC.,
                                        each a Washington corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        BRADFORD BROTHERS, INC.
                                        TTM, INC.,
                                        each a North Carolina corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        COMMUNICATION MANPOWER, INC.
                                        P.D.G. ELECTRIC COMPANY
                                        TRAWICK CONSTRUCTION
                                        COMPANY, INC., each a
                                        Florida corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        CROWN FIBER COMMUNICATIONS, INC.,
                                        a Virginia corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        ENVIRONMENTAL PROFESSIONAL ASSOCIATES,
                                                 LIMITED
                                        W.H.O.M. CORPORATION
                                        each a California corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        FIVE POINTS CONSTRUCTION CO.
                                        MEJIA PERSONNEL SERVICES, INC.
                                        TRANS TECH ACQUISITION, INC.
                                        SOUTHWEST TRENCHING COMPANY, INC.
                                        each a Texas corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name: Dana A. Gordon
                                        Title: Vice President

                                        INTERMOUNTAIN ELECTRIC, INC.,
                                        a Colorado corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        IRBY CONSTRUCTION COMPANY,
                                        a Mississippi corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        OLD LESCO CORPORATION, INC.
                                        a South Carolina corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        METRO UNDERGROUND SERVICES, INC.
                                        PROFESSIONAL TELECONCEPTS, INC. (IL)
                                        each an Illinois corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        PAR ELECTRICAL CONTRACTORS, INC.,
                                        a Missouri corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        PROFESSIONAL TELECONCEPTS, INC. (NY),
                                        A New York corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name: Dana A. Gordon
                                        Title: Vice President

                                        THE RYAN COMPANY, INC.,
                                        a Massachusetts corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        UTILCO, INC.,
                                        a Georgia corporation

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        QDE, LLC
                                        QUANTA DELAWARE, INC.
                                        QUANTA ASSET MANAGEMENT LLC
                                        each a Delaware limited liability
                                          company

                                        By: /s/ Linda Bubacz
                                            ------------------------------------
                                        Name:  Linda Bubacz
                                        Title: President

                                        TOTAL QUALITY MANAGEMENT LLC,
                                        a Delaware limited liability company
                                        COAST TO COAST, LLC,
                                        a California limited liability company

                                        By: Environmental Professional
                                            Associates, Limited, Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        NORTHERN LINE LAYERS, LLC,
                                        a Delaware limited liability company

                                        By: PAR Electrical Contractors, Inc.,
                                            Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        DOT 05, LLC
                                        TJADER, L.L.C.
                                        OKAY CONSTRUCTION COMPANY, LLC
                                        each a Delaware limited liability
                                           company

                                        By:  Spalj Construction Company,
                                             Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        LAKE NORMAN PIPELINE, LLC,
                                        a North Carolina limited liability
                                           company

                                        By: Bradford Brothers, Inc.,
                                            Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        MEARS/CPG, LLC
                                        MEARS ENGINEERING, LLC
                                        MEARS/HDD, LLC
                                        MEARS SERVICES, LLC
                                        each a Michigan limited liability
                                           company

                                        By: Mears Group, Inc., The Sole Member
                                            of each of the foregoing limited
                                            liability companies

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        S.K.S. PIPELINERS, LLC,
                                        a Delaware limited liability company

                                        By: Arby Construction, Inc., Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        TNS-VA, LLC,
                                        a Delaware limited liability company

                                        By: Professional Teleconcepts, Inc. (NY)
                                            Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        LINECO LEASING, LLC,
                                        a Washington limited liability company

                                        By: Mustang Line Contractors, Inc.,
                                            Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        AIRLAN TELECOM SERVICES, L.P.
                                        NORTH HOUSTON POLE LINE, L.P.
                                        LINDSEY ELECTRIC, L.P.
                                        DIGCO UTILITY CONSTRUCTION, L.P.
                                        each a Texas limited partnerships

                                        By: Mejia Personnel Services, Inc.,
                                            Its General Partner

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        QUANTA SERVICES MANAGEMENT
                                                PARTNERSHIP, L.P.
                                        QUANTA ASSOCIATES, L.P.
                                        each a Texas limited partnerships

                                        By: QSI, Inc., Its General Partnership

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

                                        TRANS TECH ELECTRIC, L.P.,
                                        a Texas limited partnership

                                        By: TTGP, Inc., Its General Partner

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        PWR NETWORK, LLC,
                                        a Delaware limited liability company

                                        By: PWR Financial Company,
                                            Its Sole Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        QUANTA RECEIVABLES, L.P.
                                        a Delaware limited partnership

                                        By: PWR Financial Company,
                                            Its General Partner

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

                                        Q RESOURCES, LLC
                                        a Delaware limited liability company

                                        By: Quanta Holdings, Inc., Its Member

                                        By: /s/ Dana A. Gordon
                                            ------------------------------------
                                        Name:  Dana A. Gordon
                                        Title: Vice President

<PAGE>

ADMINISTRATIVE
AGENT:                                  BANK OF AMERICA, N.A.,
                                        as Administrative Agent

                                        By: /s/ Suzanne M. Paul
                                            ------------------------------------
                                        Name: Suzanne M. Paul
                                        Title: Vice President

LENDERS:                                BANK OF AMERICA, N.A.,
                                        as a Lender, L/C Issuer,
                                        Credit-Linked L/C Issuer
                                        and Awing Line Lender

                                        By: /s/ Gary L. Mingle
                                            ------------------------------------
                                        Name   Gary L. Mingle
                                        Title: Senior Vice President

                                        JPMORGAN CHASE,
                                        as Lender

                                        By: /s/ Robert Mendoza
                                            ------------------------------------
                                        Name:  Robert Mendoza
                                        Title: Vice President

                                        KZH PONDVIEW, LLC
                                        as Lender

                                        By: /s/ Dorian Herrera
                                            ------------------------------------
                                        Name:  Dorian Herrera
                                        Title: Authorized Agent

                                        KZH WATERSIDE, LLC,
                                        as Lender

                                        By: /s/ Dorian Herrera
                                            ------------------------------------
                                        Name:  Dorian Herrera
                                        Title: Authorized Agent

                                        KZH SOLEIL, LLC,
                                        as Lender

                                        By: /s/ Dorian Herrera
                                            ------------------------------------
                                        Name:  Dorian Herrera
                                        Title: Authorized Agent
<PAGE>

                                Schedule 1.01(a)

                                  DISPOSITIONS

Any sale, transfer or other disposition of any of the following:

1. Accounts receivable from any of the following account debtors and/or any of
their respective affiliates, successors or assigns:

-        WorldCom, Inc.

-        Enron Corporation

-        Adelphia Communications

-        Resource Technology Corp.

2. The turbines held in Borrower's inventory as of the Closing Date.

3. One or more Linemaster(C) Robotic arms.

4. Any interest in underground passageways and all rights and appurtenances
appertaining thereto located generally in the City of San Francisco or any
interest therein.

5. Any interest in telecommunication lines and all rights and appurtenances
appertaining thereto, consisting of fiber optic cable, conduit, pipes, vaults,
structures, and associated facilities located on a line in the Utah Department
of Transportation right of way generally along Bangerter Highway.

6. Any interest in ducts acquired in connection with the performance of work by
Northern Line Layers, Inc. for Metromedia Fiber Networks.

7. Any interest in underground passageways and all rights and appurtenances
appertaining thereto located generally (i) between the border dividing the
States of Minnesota and Wisconsin and the Cities of St. Paul and Minneapolis and
(ii) in the Cities of St. Paul and Minneapolis, or any interest therein.

<PAGE>

                               Schedule 1.01(b)(1)

                    EXISTING CREDIT-LINKED LETTERS OF CREDIT

<TABLE>
<CAPTION>
                                             Issuance       Expiry         L/C
Beneficiary                   Amount           Date          Date         Number
-----------                   ------           ----          ----         ------
<S>                      <C>                 <C>           <C>           <C>
Lumermans Mutual         $62,000,000.00      10/02/00      09/30/04      3029892
Merrill Lynch            $ 3,100,000.00      12/21/01      12/20/03      3044974
Bank of Nova Scotia      $ 4,050,000.00      04/23/02      04/11/04      3048269
Old Republic Ins. Co.    $24,400,000.00      02/26/03      02/28/04      3054499
                         --------------
Total                    $93,550,000.00
</TABLE>

<PAGE>

                               Schedule 1.01(b)(2)

                           EXISTING LETTERS OF CREDIT

<TABLE>
<CAPTION>
                                            Issuance       Expiry         L/C
Beneficiary                   Amount          Date          Date         Number
-----------                   ------          ----          ----         ------
<S>                      <C>                <C>           <C>            <C>
Liberty Mutual           $  500,529.00      12/13/99      01/02/04       3021358
City of Chicago          $  100,000.00      12/07/99      12/31/03       3021153
Travelers Insurance      $  649,000.00      12/13/99      01/02/04       3021320
Travelers Insurance      $1,063,000.00      07/12/00      07/31/04       3027468
Liberty Mutual           $  637,819.00      03/29/01      03/28/04       3036041
Travelers Insurance      $   60,000.00      06/06/01      06/06/04       3038333
City of Chicago          $  100,000.00      10/11/01      12/31/04       3041208
                         -------------
Total                    $3,110,348.00
</TABLE>

<PAGE>

                                Schedule 1.01(c)

                                PERMITTED CHARGES

All charges and expenses associated with (i) the Soule, Howell and Greenhalgh
arbitrations, (ii) the In re RTC bankruptcy matter, (iii) the Greenblatt
litigation and (iv) the IPWR litigation.

<PAGE>

                                  Schedule 2.01

                         COMMITMENTS AND PRO RATA SHARES

<TABLE>
<CAPTION>
                                           Pro Rata Share of                            Pro Rata Share of
                           Revolving          Revolving            Credit-Linked          Credit-Linked
       Lender             Commitment         Commitment              Deposit                 Deposit
       ------             ----------         ----------              -------                 -------
<S>                      <C>              <C>                      <C>                  <C>
Bank of America, N.A.    $25,000,000         71.428571428%         $145,500,000          97.000000000%
JPMorgan Chase           $10,000,000         28.571428571%
KZH Waterside LLC                                                  $  1,000,000           0.666666667%
KZH Pondview LLC                                                   $  1,000,000           0.666666667%
KZH Soleil LLC                                                     $  2,500,000           1.666666666%
                         -----------         -----------           ------------          ------------
Total                    $35,000,000                 100%          $150,000,000                   100%
                         -----------         -----------           ------------          ------------
</TABLE>

<PAGE>

                                  Schedule 6.10

                                    INSURANCE

                                 (see attached)

<PAGE>

<TABLE>
<CAPTION>
POLICY PERIOD           COVERAGE                          LIMITS                       DEDUCTIBLES
-------------           --------                          ------                       -----------
<S>            <C>                         <C>                                     <C>
03/01/03 -     WORKERS' COMPENSATION       Statutory except Monopolistic               $2,000,000
08/01/05

                                           States (OH,WA,WV,ND,WY)
               EMPLOYER'S LIABILITY        $1,000,000 per accident/$1,000,000
                                           policy limit Bodily Injury by Disease

                                           $ 750,000 each occurrence * $250,000
3/01/03 -      COMMERCIAL GENERAL          self-insured retention                      $1,000,000
08/01/05       LIABILITY
                                           $ 750,000 each occurrence * $250,000
                Personal and Advertising   self-insured retention
                Injury
                                           $ 750,000 each occurrence * $250,000
                Fire Damage Liability      self-insured retention
                                           $ 750,000 each occurrence * $250,000
                Products/Completed         self-insured retention
                Operations

                General Aggregate          $1,750,000 aggregate
                                           $20,000,000 policy aggregate
                Employee Benefits          $1,000,000 each employee & aggregate
                Liability

03/01/03 -     AUTO LIABILITY
08/01/05
                Bodily Injury & Property   $1,000,000 each accident CSL                $1,000,000
                Damage

03/01/03-      VOLUNTARY FOREIGN WORKERS'  Statutory State of Hire for U.S.                nil
08/01/05       COMP.                       Citizens
                                           Statutory Province of Hire for
                                           Canadians Statutory Country of
                                           Origin for Other Ex-Pats No WC
                                           coverage for local nationals
               REPATRIATION LIMIT          $500,000 Policy Limit                           nil
               EMPLOYER'S LIABILITY        $1,000,000 each accident for all                nil
                                           employees

03/01/03-      FOREIGN GENERAL LIABILITY   $1,000,000 each occurrence and                  nil
08/01/05       AND EXCESS AUTO LIABILITY   aggregate
                                           $1,000,000 each accident                    $ 25,000
                                                                                   or Xs of local policy

08/01/03 - 04  FIRST LAYER UMBRELLA        $35,000,000 each occurrence/aggregate           N/A
               LIABILITY
Claims Made     Excess of Employer's,
Policy          General,
                Auto, and Aircraft
                Liability Limits

08/01/03 - 04  SECOND LAYER UMBRELLA       $25,000,000 each occurrence/aggregate           N/A
               LIABILITY
                $25MM Excess of $35MM

08/01/03 - 04  THIRD LAYER UMBRELLA        $20,000,000 each occurrence/aggregate           N/A
               LIABILITY
                $20MM excess of $60MM

08/01/03 - 04  FOURTH LAYER UMBRELLA       $20,000,000 each occurrence/aggregate           N/A
               LIABILITY
                $20MM excess of $80MM

03/10/03 - 04  AIRCRAFT HULL AND
               LIABILITY
                Hull Physical Damage       Various values per schedule                $100/$1,000
                Liability for              $5MM combined single limit                      nil
                Owned/Scheduled
                Liability for Non-Owned    $10MM combined single limit                     nil
8/1/03-04       Excess liability for       $5MM excess of $5MM combined single
                Owned/Scheduled            limit
</TABLE>

<TABLE>
<CAPTION>
POLICY PERIOD           COVERAGE                     INSURER                     POLICY NUMBER
-------------           --------                     -------                     -------------
<S>            <C>                         <C>                            <C>
03/01/03 -     WORKERS' COMPENSATION                 Old Republic                 MWC108554 00
08/01/05
                                                                          (All states except state fund
                                                     Old Republic                    states)
               EMPLOYER'S LIABILITY



3/01/03 -      COMMERCIAL GENERAL                    Old Republic                MWZX 55734
08/01/05       LIABILITY

                Personal and Advertising
                Injury

                Fire Damage Liability

                Products/Completed
                Operations

                General Aggregate

                Employee Benefits
                Liability

03/01/03 -     AUTO LIABILITY                        Old Republic                MWTB 18597
08/01/05
                Bodily Injury & Property
                Damage

03/01/03-      VOLUNTARY FOREIGN WORKERS'  CE American Insurance Company             TBD
08/01/05       COMP.
                                                     (ACE)



               REPATRIATION LIMIT
               EMPLOYER'S LIABILITY


03/01/03-      FOREIGN GENERAL LIABILITY   CE American Insurance Company             TBD
08/01/05       AND EXCESS AUTO LIABILITY
                                                     (ACE)


08/01/03 - 04  FIRST LAYER UMBRELLA                  AEGIS                       X2059A1A02
               LIABILITY
Claims Made     Excess of Employer's,
Policy          General,
                Auto, and Aircraft
                Liability Limits

08/01/03 - 04  SECOND LAYER UMBRELLA               Steadfast Ins.               EIG930552101
               LIABILITY
                $25MM Excess of $35MM

08/01/03 - 04  THIRD LAYER UMBRELLA
               LIABILITY
                $20MM excess of $60MM              Royal Ins. Co.                P2HA021956

08/01/03 - 04  FOURTH LAYER UMBRELLA               Liberty Ins.              LQ1-B710181261-013
               LIABILITY
                $20MM excess of $80MM

03/10/03 - 04  AIRCRAFT HULL AND             Intercargo Ins. Co. and/or          NAC 3008292
               LIABILITY
                Hull Physical Damage              XL Specialty Ins. Co.
                Liability for
                Owned/Scheduled
                Liability for Non-Owned
8/1/03-04       Excess liability for        Clarendon National Ins. Co.              TBD
                Owned/Scheduled
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
POLICY PERIOD           COVERAGE                     LIMITS                      DEDUCTIBLES
-------------           --------                     ------                      -----------
<S>            <C>                          <C>                         <C>
08/01/03-04    PROPERTY
               CONTRACTOR'S EQUIPMENT       Stated Value per schedules  *10% of values damages subject to a
                                            to $25MM                    $50,000 minimum on all items except
                Newly Acquired Equipment    Included                    cranes, booms & jibs which is subject to
                Unscheduled Items Sublimit  Included                    to $100,000 minimum, all not to excess
                                                                        $250,000 per occurrence
                Rented Sublimit             $1.5MM per Item
                Flood                       $10MM Aggregate
               RIGGER'S LIABILITY (UTILCO   $250,000
               ONLY)
               INSTALLATION RISK            $25MM per project                      $50,000 Per Occur.
                                                                                        except:
               Transit                      $1.5MM                               Flood in Zone A - $250,000
               Temporary Storage            $5MM                          Earthquake in CA 5% with $250,000 min.
               Earthquake                   $10MM/$20MM aggr.excluding                Named Storm
                                            CA and zone 1 areas of      FL. and Puerto Rico: 5% with $500,000 min.
                                            ALand NV
               Earthquake - State of                                         All Others: 2.5% with $100,000 min.
               California and Zone 1
               areas of Alaska and Nevada   $10MM aggregate
               Flood                        $10MM Per Project/$20MM
                                            Aggregate
               Coastal Named Windstorm      $10MM Per Project/$20MM
                                            Aggregate
               Debris Removal               $1.5MM
               BUILDINGS & CONTENTS INCL.   $25MM blanket                            $10,000 except:
               EDP,
               Earthquake Sublimit          $10MM Aggregate              Flood - $25,000 with $250,000 In Zone A
               Windstorm                    $10MM Aggregate                Earthquake - $25,000 except 5% with
                                                                                $250,000 min.in CA
               Flood                        $10MM Aggregate             Named Storm - 2.5% with $100,000 minimum
                Newly Acquired Properties   $5MM                            on areas 25 miles from the coast
                Unnamed Locations           $500,000                    Except 5% with $500,000 minimum in Florida
                                                                                     and Puerto Rico
                Valuable Papers             $1MM
                Accounts Receivable         $1MM
               BUSINESS INTERRUPTION        $1MM
               EXTRA EXPENSE                $500,000
08/01/01 - 04  COMMERCIAL CRIME             $5MM aggregate                                $50,000
               Including Employee Theft,
               Premises,
               Transit, Depositors
               Forgery, Computer
               Theft & Funds Transfer
               Fraud, Third
               Parties, and Sub-limits
               for:
                Money Orders/Counterfeit    $1MM
                Currency
                Investigative Costs         $50,000
                Credit Card Forgery         $25,000
08/01/01 - 04  FIDUCIARY LIABILITY          $10MM each loss                               $25,000
               Including all                $10MM each policy period
               Employer-Sponsored
               Benefit Plans and their
               Trustees
02/01/03-      PROFESSIONAL LIABILITY       $10MM aggregate                              $100,000
02/01/04       (E&O)
02/01/03-      EXCESS PROFESSIONAL          $10MM excess of $10MM
02/01/04       LIABILITY
12/1/03-05     CONTRACTOR'S POLLUTION       $20MM aggregate                              $100,000
               LIABILITY

10/31/03-04    DIRECTORS' AND OFFICERS'     $35MM aggregate for the
               LIABILITY                    policy period
                Securities Claims                                                       $1,000,000
                Non-securities claims                                                   $1,000,000
10/31/03-04    EXCESS DIRECTORS' &          $5M aggregate excess of
               OFFICERS' LIABILITY          $35MM
</TABLE>

<TABLE>
<CAPTION>
POLICY PERIOD           COVERAGE                     INSURER        POLICY NUMBER
-------------           --------                     -------        -------------
<S>            <C>                          <C>                     <C>
08/01/03-04    PROPERTY                         Zurich American     MCP 3548287-01
               CONTRACTOR'S EQUIPMENT

                Newly Acquired Equipment
                Unscheduled Items Sublimi

                Rented Sublimit
                Flood
               RIGGER'S LIABILITY (UTILCO
               ONLY)
               INSTALLATION RISK

               Transit
               Temporary Storage
               Earthquake


               Earthquake - State of
               California and Zone 1
               areas of Alaska and Nevada
               Flood

               Coastal Named Windstorm

               Debris Removal
               BUILDINGS & CONTENTS INCL.
               EDP,
               Earthquake Sublimit
               Windstorm

               Flood
                Newly Acquired Properties
                Unnamed Locations

                Valuable Papers
                Accounts Receivable
               BUSINESS INTERRUPTION
               EXTRA EXPENSE
08/01/01 - 04  COMMERCIAL CRIME             Federal Ins.Co.(Chubb)    8158 55 11
               Including Employee Theft,
               Premises,
               Transit, Depositors
               Forgery, Computer
               Theft & Funds Transfer
               Fraud, Third
               Parties, and Sub-limits
               for:
                Money Orders/Counterfeit
                Currency
                Investigative Costs
                Credit Card Forgery
08/01/01 - 04  FIDUCIARY LIABILITY          Federal Ins.Co.(Chubb)    8158 55 11
               Including all
               Employer-Sponsored
               Benefit Plans and their
               Trustees
02/01/03-      PROFESSIONAL LIABILITY       Lexington Ins.Co.(AIG)    2173670
02/01/04       (E&O)
02/01/03-      EXCESS PROFESSIONAL          Greenwich Ins. Co.      XEC 000838602
02/01/04       LIABILITY
12/1/03-05     CONTRACTOR'S POLLUTION        Amer. International     CPO 6192192
               LIABILITY                      Spec.Lines Ins.Co.
                                                 (AISLIC) (AIG)
10/31/03-04    DIRECTORS' AND OFFICERS'               AEGIS           D2059A1A03
               LIABILITY
                Securities Claims
                Non-securities claims
10/31/03-04    EXCESS DIRECTORS' &           Steadfast Insurance    EOG9305521-01
               OFFICERS' LIABILITY
</TABLE>
<PAGE>

                                  Schedule 6.13

                                  SUBSIDIARIES


<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                        <C>                         <C>               <C>            <C>      <C>
Advanced Technologies and Installation        Quanta Services, Inc.       Washington         N/A          1,000     100%
Corporation

Airlan Telecom Services, L.P.                        QDE LLC                Texas            N/A           N/A       98%

Airlan Telecom Services, L.P.               Mejia Personnel Services,       Texas            N/A           N/A        2%
                                                      Inc.

Allteck Line Contractors (USA), Inc.          Quanta Services, Inc.       Washington         N/A            100     100%

Allteck Line Contractors, Inc.*               Quanta Services, Inc.    British Columbia      N/A          C-100     100%
                                                                                                          P-485

Arby Construction, Inc.                       Quanta Services, Inc.        Delaware          N/A          1,000     100%

Austin Trencher, Inc.                         Quanta Services, Inc.        Delaware          N/A          1,000     100%

Bradford Brothers, Incorporated               Quanta Services, Inc.     North Carolina       N/A          1,165     100%

CCLC, Inc.                                 Conti Communications, Inc.      Delaware          N/A          1,000     100%

Coast to Coast, LLC                        Environmental Professional     California         N/A           N/A      100%
                                               Associates, Limited
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                        <C>                           <C>             <C>          <C>        <C>
Communication Manpower, Inc.               Trawick Construction, Inc.      Florida           N/A          1,000     100%

Conti Communications, Inc.                    Quanta Services, Inc.        Delaware          N/A          1,000     100%

Croce Electric Company, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

Crown Fiber Communications, Inc.              Quanta Services, Inc.        Virginia          N/A          1,000     100%

Digco Utility Construction, L.P.                     QDE LLC                Texas            N/A           N/A     99.9%

Digco Utility Construction, L.P.            Mejia Personnel Services,       Texas            N/A           N/A      0.1%
                                                      Inc.

Dillard Smith Construction Company            Quanta Services, Inc.        Delaware          N/A          1,000     100%

Dot 05, LLC                                Spalj Construction Company      Delaware          N/A           N/A      100%

Driftwood Electrical Contractors, Inc.        Quanta Services, Inc.        Delaware          N/A          1,000     100%

Environmental Professional Associates,        Quanta Services, Inc.       California         N/A      1,000,000     100%
Limited

Five Points Construction Co.                Underground Construction        Texas            N/A          4,093     100%
                                                    Co., Inc.

Global Enercom Management, Inc.               Quanta Services, Inc.        Delaware          N/A          1,000     100%

Golden State Utility Co.                      Quanta Services, Inc.        Delaware          N/A          1,000     100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                         <C>                         <C>              <C>            <C>      <C>
H. L. Chapman Pipeline Construction, Inc.     Quanta Services, Inc.        Delaware          N/A          1,000     100%

Haines Construction Company                   Quanta Services, Inc.        Delaware          N/A          1,000     100%

Intermountain Electric, Inc.                  Quanta Services, Inc.        Colorado          N/A          1,000     100%

Irby Construction Company                     Quanta Services, Inc.      Mississippi         N/A          1,000     100%

Lake Norman Pipeline, LLC                    Bradford Brothers, Inc.    North Carolina       N/A           N/A      100%

Lindsey Electric, L.P.                      North Houston Pole Line,        Texas            N/A           N/A     99.9%
                                                      L.P.

Lindsey Electric, L.P.                      Mejia Personnel Services,       Texas            N/A           N/A      0.1%
                                                      Inc.

Lineco Leasing, LLC                         Mustang Line Contractors,     Washington         N/A           N/A      100%
                                                      Inc.

Manuel Bros., Inc.                            Quanta Services, Inc.        Delaware          N/A          1,000     100%

Mears Canada Corp.*                             Mears Group, Inc.        Nova Scotia         N/A              1     100%

Mears Engineering, LLC                          Mears Group, Inc.          Michigan          N/A           N/A      100%

Mears Group, Inc.                             Quanta Services, Inc.        Delaware          N/A          1,000     100%

Mears HDD, LLC                                  Mears Group, Inc.          Michigan          N/A           N/A      100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                        <C>                           <C>             <C>            <C>      <C>
Mears Services, LLC                             Mears Group, Inc.          Michigan          N/A           N/A      100%

Mears/CPG, LLC                                  Mears Group, Inc.          Michigan          N/A           N/A      100%

Mearsmex S. de R.L. de C.V.*                    Mears Group, Inc.           Mexico           N/A           N/A       90%

Mearsmex S. de R.L. de C.V.*                     Mears/HDD, LLC             Mexico           N/A           N/A       10%

Mejia Personnel Services, Inc.                Quanta Services, Inc.         Texas            N/A          1,000     100%

Metro Underground Services, Inc.              Quanta Services, Inc.        Illinois          N/A          1,000     100%

Mustang Line Contractors, Inc.                Quanta Services, Inc.       Washington         N/A            500     100%

Network Electric Company                      Quanta Services, Inc.        Delaware          N/A          1,000     100%

North Houston Pole Line, L.P.                        QDE LLC                Texas            N/A           N/A     99.9%

North Houston Pole Line, L.P.               Mejia Personnel Services,       Texas            N/A           N/A      0.1%
                                                      Inc.

North Pacific Construction Co., Inc.,         Quanta Services, Inc.        Delaware          N/A          1,000     100%

North Sky Communications, Inc.                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Northern Line Layers, LLC                        PAR Electrical            Delaware          N/A           N/A      100%
                                                Contractors, Inc.

Okay Construction Company, LLC             Spalj Construction Company      Delaware          N/A           N/A      100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                          <C>                        <C>              <C>            <C>      <C>
Old Lesco Corporation, Inc.                  Sumter Utilities, Inc.     South Carolina       N/A         10,000     100%

P.D.G. Electric Co.                           Quanta Services, Inc.        Florida           N/A          1,000     100%

PAR Electrical Contractors, Inc.              Quanta Services, Inc.        Missouri          N/A            200     100%

Par Internacional, S. de R.L. de C.V.*        Quanta Services, Inc          Mexico           N/A           N/A       50%

Par Internacional, S. de R.L. de C.V.*           Par Electrical             Mexico           N/A           N/A       50%
                                                Contractors, Inc.

Parkside Site and Utility Company             Quanta Services, Inc.        Delaware          N/A          1,000     100%
Corporation

Parkside Utility Construction Corp.           Quanta Services, Inc.        Delaware          N/A          1,000     100%

Potelco, Inc.                                 Quanta Services, Inc.       Washington         N/A              2     100%

Professional Teleconcepts, Inc.               Quanta Services, Inc.        Illinois          N/A            100     100%

Professional Teleconcepts, Inc.               Quanta Services, Inc.        New York          N/A            100     100%

PWR Financial Company                         Quanta Services, Inc.        Delaware          N/A           1000     100%

PWR Network, LLC                              PWR Financial Company        Delaware          N/A           N/A      100%

Q Resources, LLC                              Quanta Holdings, Inc.        Delaware          N/A           N/A      100%

QDE LLC                                       PWR Financial Company        Delaware          N/A           N/A      100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                         <C>                          <C>             <C>            <C>      <C>
QPC, Inc.                                     Quanta Services, Inc.        Delaware          N/A          1,000     100%

QSI, Inc.                                     Quanta Holdings, Inc.        Delaware          N/A          1,000     100%

Quanta Asset Management LLC                         QSI, Inc.              Delaware          N/A           N/A      100%

Quanta Associates, L.P.                     Quanta Asset Management,        Texas            N/A           N/A     99.9%
                                                       LLC

Quanta Associates, L.P.                             QSI, Inc.               Texas            N/A           N/A      0.1%

Quanta Delaware, Inc.                         Quanta Holdings, Inc.        Delaware          N/A          1,000     100%

Quanta Government Services, Inc.              Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta Holdings, Inc.                         Quanta Services, Inc.        Delaware          N/A          8,000     100%

Quanta LI Acquisition, Inc.                   Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LIV Acquisition, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LIX Acquisition, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LVII Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LVIII Acquisition, Inc.                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LX Acquisition, Inc.                   Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXI Acquisition, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                           <C>                        <C>             <C>            <C>      <C>
Quanta LXII Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXIII Acquisition, Inc.                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXIV Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXIX Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXV Acquisition, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXVI Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXVII Acquisition, Inc.                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXVIII Acquisition, Inc.               Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXX Acquisition, Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXXI Acquisition, Inc.                 Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXXII Acquisition, Inc.                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta LXXIII Acquisition, Inc.               Quanta Services, Inc.        Delaware          N/A          1,000     100%

Quanta Receivables, L.P.                             QDE LLC               Delaware          N/A           N/A       99%

Quanta Receivables, L.P.                        PWR Network, LLC           Delaware          N/A           N/A        1%

Quanta Services Management
Partnership, L.P.                            Quanta Delaware, Inc.         Texas             N/A           N/A       99%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                          <C>                       <C>               <C>            <C>      <C>
Quanta Services Management
Partnership, L.P.                                  QSI, Inc.               Texas             N/A           N/A        1%

Quanta Services of Canada Ltd.*               Quanta Services, Inc.    British Columbia      N/A           C-10     100%
                                                                                                        P-3,499

Quanta Utility Installation Company, Inc.     Quanta Services, Inc.        Delaware          N/A          1,000     100%

R.A. Waffensmith & Co., Inc.                  Quanta Services, Inc.        Delaware          N/A          1,000     100%

S.K.S. Pipeliners, LLC                       Arby Construction, Inc.       Delaware          N/A           N/A      100%

Servicios Par Electric, S.                    Quanta Services, Inc.         Mexico           N/A           N/A       50%
de R.L. de C.V.*

Servicios Par Electric, S.                       Par Electrical             Mexico           N/A           N/A       50%
de R.L. de C.V.*
                                                Contractors, Inc.

Southeast Pipeline Construction, Inc.         Quanta Services, Inc.        Delaware          N/A          1,000     100%

Southwest Trenching, Inc.                     Quanta Services, Inc.         Texas            N/A          1,000     100%

Southwestern Communications, Inc.             Quanta Services, Inc.        Delaware          N/A          1,000     100%

Spalj Construction Company                    Quanta Services, Inc.        Delaware          N/A          1,000     100%

Sumter Utilities, Inc.                        Quanta Services, Inc.        Delaware          N/A          1,000     100%

The Ryan Company, Inc.                        Quanta Services, Inc.     Massachusetts        N/A          1,000     100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                        <C>                           <C>             <C>            <C>      <C>
Tjader, LLC                                Spalj Construction Company      Delaware          N/A           N/A      100%

TNS-VA, LLC                                Professional Teleconcepts,      Delaware          N/A           N/A      100%
                                                      Inc.

Tom Allen Construction Company                Quanta Services, Inc.        Delaware          N/A          1,000     100%

Total Quality Management Services, LLC     Environmental Professional      Delaware          N/A           N/A      100%
                                               Associates, Limited

Trans Tech Acquisition, Inc.                  Quanta Services, Inc.         Texas            N/A          1,000     100%

Trans Tech Electric, L.P.                          TTGP, Inc.               Texas            N/A           N/A        1%

Trans Tech Electric, L.P.                          TTLP, Inc.               Texas            N/A           N/A       99%

Trawick Construction Co., Inc.                Quanta Services, Inc.        Florida           N/A          1,000     100%

TTGP, Inc.                                    Quanta Services, Inc.        Delaware          N/A          1,000     100%

TTLP, Inc.                                    Quanta Services, Inc.        Delaware          N/A          1,000     100%

TTM, Inc.                                     Quanta Services, Inc.     North Carolina       N/A          1,000     100%

TXLP, Inc.                                    Quanta Services, Inc.        Delaware          N/A          1,000     100%
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                         OUTSTANDING
                                                                                          OPTIONS,
                                                                                          WARRANTS,
                                                                           ISSUER'S       RIGHTS OF                % OF
                                                                         JURISDICTION    CONVERSION     NO. OF   OWNERSHIP
                   ISSUER                             OWNER              OF FORMATION    OR PURCHASE    SHARES   INTEREST
                   ------                             -----              ------------    -----------    ------   --------
<S>                                           <C>                        <C>             <C>            <C>      <C>
Underground Construction Co., Inc.            Quanta Services, Inc.        Delaware          N/A          1,000     100%

Utilco, Inc.                                  Quanta Services, Inc.        Georgia           N/A          1,000     100%

VCI Telcom, Inc.                              Quanta Services, Inc.        Delaware          N/A          1,000     100%

W. C. Communications, Inc.                    Quanta Services, Inc.        Delaware          N/A          1,000     100%

W.H.O.M. Corporation                          Quanta Services, Inc.       California         N/A          1,000     100%
</TABLE>

<PAGE>

                                  Schedule 6.17

                                    IP RIGHTS

QUANTA SERVICES, INC. - U.S. TRADEMARKS

<TABLE>
<CAPTION>
      MARK                   REG. NO.  REG. DATE   CLASS                      GOODS/SERVICES
      ----                   --------  ---------   -----                      --------------
<S>                         <C>        <C>         <C>     <C>
     QUANTA                 2,386,136  09/12/2000   37     Electrical contracting and maintenance services,
                                                           namely installation, repair and maintenance of
                                                           electric power transmission and distribution
                                                           lines, telecommunication and cable television
                                                           lines, highway lighting and erection of electric
                                                           substations, cellular telephone and microwave
                                                                               towers.

     QUANTA                 2,482,754  08/28/2001   42     Engineering and design services for others in the
                                                           field of electrical, video, security, fire, voice
                                                                           and data systems.

QUANTA SERVICES             2,410,600  12/05/2000   37     Electrical contracting and maintenance services,
                                                           namely installation, repair and maintenance of
                                                           electric power transmission and distribution
                                                           lines, telecommunication and cable television
                                                           lines, highway lighting and traffic control
                                                           systems, construction and erection of electric
                                                           substations, cellular telephone and microwave
                                                                              towers.

QUANTA SERVICES             2,410,599  12/05/2000   42     Engineering and design services for others in the
                                                           field of electrical, natural gas, video, security,
                                                                     fire, voice and data systems.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      MARK                   REG. NO.  REG. DATE   CLASS                      GOODS/SERVICES
      ----                   --------  ---------   -----                      --------------
<S>                         <C>        <C>         <C>     <C>
Lightning Bolts in Fist     2,312,485  01/25/2000   37     Electrical contracting and maintenance services,
Design                                                     namely installation, repair and maintenance of
                                                           electric power transmission and distribution
                                                           lines, telecommunication and cable television
                                                           lines, highway lighting and erection of electric
                                                           substations, cellular telephone and microwave
                                                           towers.

Lightning Bolts in Fist     2,322,343  02/22/2000   42     Engineering and design services for others in the
Design                                                     field of electrical, video, security, fire, voice
                                                           and data systems.

PAR ELECTRICAL CONTRACTORS  1,987,917  07/23/1996   37     Engineering contracting services in the field of
and Lightning Bolts and                                    power transmission and distribution.
Fist Design
</TABLE>

SUBSIDIARIES - U.S. PATENTS

<TABLE>
<CAPTION>
                      PATENT                OWNER             U.S. PATENT NO.
                      ------                -----             ---------------
<S>                                  <C>                      <C>
POWERTRAIN FOR TRENCHING MACHINE     Austin Trencher, Inc.      5,664,347

UNDERGROUND CABLE ANODE              Mears/CPG, Inc.            5,743,675
INSTALLMENT SYSTEM
</TABLE>

<PAGE>

SUBSIDIARIES - U.S. TRADEMARKS

<TABLE>
<CAPTION>
                MARK                             OWNER                       REG. NO.           REG. DATE
                ----                             -----                       --------           ---------
<S>                                  <C>                                    <C>                 <C>
LE LINE EQUIPMENT SALES CO., INC.    Old Lesco Corporation, Inc.            2,696,981           03/18/03
ELECTRICAL DISTRIBUTORS and Design   (currently held of record
                                     in its former name, Line
                                     Equipment Sales Co., Inc.)

UC and Design                        Underground Construction               1,248,630           08/16/83
                                     Co., Inc.
</TABLE>

PATENT APPLICATIONS

<TABLE>
<CAPTION>
             PATENT                         APPLICANT                  OWNER                 APP. NO.           FILING DATE
             ------                         ---------                  -----                 --------           -----------
<S>                                  <C>                       <C>                          <C>                 <C>
Energized reconductor handling       Quanta Services, Inc.     Quanta Services, Inc.        60/498,707          08/29/2003
method and apparatus.
</TABLE>

<PAGE>

                                Schedule 6.20(a)

                           LOCATIONS OF REAL PROPERTY

<TABLE>
<CAPTION>
      LOAN PARTY/OWNER/LESSEE                                     ADDRESS                                       LEASED OR OWNED
      -----------------------                                     -------                                       ---------------
<S>                                          <C>                                                                <C>
Quanta Services, Inc.                        1360 Post Oak Blvd. Ste, 2100, Houston, TX 77056                       Leased
Airlan Telecom Installation, L.P.            431 W. Beford - Euless Rd., Hurst, TX 76053                            Leased
Arby Construction                            3N525 Powis Rd., Chicago, IL 60185                                     Leased
Arby Construction                            11712 Stateville Rd., Charlotte, NC 28078                              Leased
Arby Construction                            2708 Lefferson Rd., Youngstown, OH 45044                               Leased
Arby Construction                            1821 Old Bermuda 100, Chester, VA 23836                                Leased
Arby Construction                            N5473 County Rd. U, DePere, WI 54115                                   Leased
Arby Construction                            Donges Bay & Hwy 45, Germantown, WI 53022                              Leased
Arby Construction                            3196/3188 Manitowoc Road, Green Bay, WI 54311                          Leased
Arby Construction                            1215 Hickory Farm Lane, Green Bay, WI - no zip                         Leased
Arby Construction                            Cormier Avenue, Green Bay, WI 54304                                    Leased
Arby Construction                            1901 Badger, Kaukauna, WI 54130                                        Leased
Arby Construction                            19705-25 W. Lincoln Avenue, New Berlin, WI 53146                       Leased
Arby Construction                            Hwy 11, Union Grove, WI 53182                                          Leased
Advanced Technologies and Installation       20 N. Aviador, Camarillo, CA 93010                                     Leased
Corporation
Advanced Technologies and Installation       4935 Southfront Rd. Ste. F, Livermore, CA 94550                        Leased
Corporation
Advanced Technologies and Installation       10830 Guilford Road, Ste #303, Annapolis, MD 20701                     Leased
Corporation
Advanced Technologies and Installation       1340 Ninth Street, Units B&C, 9, Upland, CA 91786                      Leased
Corporation
Advanced Technologies and Installation       2454 Merrit Drive, Garland, TX 75041                                   Leased
Corporation
Advanced Technologies and Installation       655 N. Glenville, Ste. 155, Richardson, TX 75081                       Leased
Corporation
Advanced Technologies and Installation       4813 Pacific Hwy East, Fife, WA 98424                                  Leased
Corporation
Advanced Technologies and Installation       4813 Pacific Hwy East, Fife, WA 98424                                  Subleased
Corporation
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
Conti Communications, Inc.                   1581 Lester Road, Suite B5, Conyers, GA 30012                          Leased
Conti Communications, Inc                    5 Johnson Drive, Raritan, NJ 08869                                     Leased
Croce Electric Company, Inc.                 2 Betty Street, Everett, MA 02149                                      Leased
Croce Electric Company, Inc.                 Robin Street, Everett, MA 02149                                        Leased
Croce Electric Company, Inc.                 1703 Plainfield Pike, Johnston, RI 02919                               Leased
Croce Electric Company, Inc.                 640 Ten Rod Road, Kingston, RI 02881                                   Leased
Croce Electric Company, Inc.                 421 Lincoln Avenue, Warwick, RI 02888                                  Leased
Crown Fiber Communications, Inc.             2520 Midpark Drive, Montgomery, AL 36109                               Leased
Crown Fiber Communications, Inc.             188 Chandalar Place, Pelham, AL 35124                                  Leased
Crown Fiber Communications, Inc.             1410 General Arts Rd., Conyers, GA 30012                               Leased
Crown Fiber Communications, Inc.             3070 Five Forks Trickum Rd., Lilburn, GA 30047                         Leased
Crown Fiber Communications, Inc.             5861 Columbus Rd., Macon, GA 31206                                     Leased
Crown Fiber Communications, Inc.             800 Satellite Blvd., Suwanee, GA 30024                                 Leased
Crown Fiber Communications, Inc.             1101 Swan Street, Terre Haute, IN 47807                                Leased
Crown Fiber Communications, Inc.             4976 West Pine Street, Mt. Airy, NC 27030                              Leased
Crown Fiber Communications, Inc.             704 Buffalo Shoals Rd., Statesville, NC 28677                          Leased
Crown Fiber Communications, Inc.             24 Cokesbury Rd., Lebanon, NJ 08833                                    Leased
Crown Fiber Communications, Inc.             399 Eberts Lane, York, PA 17403                                        Leased
Crown Fiber Communications, Inc.             681 Kershaw Street, Aiken, SC 29801                                    Leased
Crown Fiber Communications, Inc.             1315 West Avenue, Belton, TX 76513                                     Leased
Crown Fiber Communications, Inc.             11609 Shannon Drive, Fredericksburg, VA 22408                          Leased
Crown Fiber Communications, Inc.             4901 Waller Rd., Richmond, VA 23230                                    Leased
Crown Fiber Communications, Inc.             RR #1 Box 414 A, Clarksburg, WV 26408                                  Leased
Dillard Smith Construction Co.               2055 Christian Street, Clanton, AL 35045                               Leased
Dillard Smith Construction Co.               548/560 Lake Mirror Rd., College Park, GA 30349                        Leased
Dillard Smith Construction Co.               13233 State Route 80, Ashland, KY 41102                                Leased
Dillard Smith Construction Co.               4801 East Independence Blvd. #807, Charlotte, NC 28212                 Leased
Dillard Smith Construction Co.               4421 Malone Rd., Memphis, TN 38118                                     Leased
Dillard Smith Construction Co.               1020 West Hwy 11E., New Market, TN 37820                               Leased
Driftwood Electrical Contractors, Inc.       4585 US Hwy 27 North, Lancaster, KY 40444                              Leased
Driftwood Electrical Contractors, Inc.       3900 Crosby Drive, Lexington, KY 40515                                 Leased
Driftwood Electrical Contractors, Inc.       201 Hwy 80 West, London, KY 40741                                      Leased
Driftwood Electrical Contractors, Inc.       358 Fifth Avenue South, Baxter, TN 38544                               Leased
Environmental Professional Associates,       1593 Jamacha Rd., El Cajon, CA 92019                                   Leased
Limited
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
Environmental Professional Associates        1257 Hassett Avenue, Yuba City, CA 95991                               Leased
Environmental Professional Associates        1441/1445 Garden Hwy., Yuba City, CA 95991                             Leased
Environmental Professional Associates        501 Silverado Trail, Napa, CA 94558                                    Leased
Global Enercom Management, Inc.              1500 S. Dairy Ashford, Ste. 240, Houston, TX 77077                     Leased
Global Enercom Management, Inc.              2500 Wilcrest Ste. 100, Houston, TX 77042                              Leased
Golden State Utility Co.                     2851 Bedford Land #156, Chino Hills, CA 91709                          Leased
Golden State Utility Co.                     3100 Chino Hills Parkway #134, Chino Hills, CA 91709                   Leased
Golden State Utility Co.                     Diamond Bar, CA - no physical address                                  Leased
Golden State Utility Co.                     14567 Arrow Hwy., Fontana, CA 92335                                    Leased
Golden State Utility Co.                     8766 Fruitridge Road, Sacramento, CA 95826                             Owned
Golden State Utility Co.                     266 Industrial Road, San Carlos, CA 94070                              Leased
Golden State Utility Co.                     390 Martin Avenue, Santa Clara, CA 95950                               Leased
Golden State Utility Co.                     10602 E. Mt. View, Selma, CA 93662                                     Leased
Golden State Utility Co.                     2007 W. Tuolumne Avenue, Turlock, CA 95380                             Leased
Golden State Utility Co.                     1209 Commerce Avenue, Woodland, CA 95776                               Leased
H.L. Chapman Pipeline Construction, Inc.     7555 FM 970, Florence, TX 76527                                        Leased
H.L. Chapman Pipeline Construction, Inc.     9250 FM 2243, Leander, TX 78641                                        Leased
Intermountain Electric, Inc.                 701 W. Mississippi Avenue, Denver, CO 80223                            Leased
Intermountain Electric, Inc.                 602 S. Lipan Street, Denver, CO 80223                                  Leased
Intermountain Electric, Inc.                 610 S. Lipan Street, Denver, CO 80223                                  Leased
Irby Construction Company                    104 Tierra Court, Dauphin Island, AL - no zip                          Leased
Irby Construction Company                    1279 Seminola Blvd., Casselberry, FL 32707                             Leased
Irby Construction Company                    228 S. Massachussetts, Lakeland, FL 33801                              Leased
Irby Construction Company                    Ballground GA - no physical address                                    Leased
Irby Construction Company                    11010 Florida Blvd., Walker, LA 70785                                  Leased
Irby Construction Company                    505/511 Beasley Street, Jackson, MS 39201                              Leased
Irby Construction Company                    727 S. State Street, Jackson, MS 39201                                 Leased
Irby Construction Company                    770 E. Silas Brown Street, Jackson, MS 39201                           Leased
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
Irby Construction Company                    809 S. President Street, Jackson, MS 39201                             Leased
Irby Construction Company                    815 S. State Street, Jackson, MS 39201                                 Leased
Irby Construction Company                    815/817 S. Congress, Jackson, MS 39201                                 Leased
Irby Construction Company                    823 S. State Street, Jackson, MS 39201                                 Leased
Irby Construction Company                    839 S. State Street, Jackson, MS 39201                                 Leased
Irby Construction Company                    900 S. West Street, Jackson, MS 39201                                  Leased
Irby Construction Company                    901 S. West Street, Jackson, MS 39201                                  Leased
Irby Construction Company                    530 Old Hwy 49 South, Richland, MS 39218                               Leased
Irby Construction Company                    901/903 S. President, Jackson, MS 39201                                Leased
Irby Construction Company                    51 S. Buel Street, Eureka, NV 89316                                    Leased
Irby Construction Company                    5127 Port Entry, San Antonio, TX 78222                                 Leased
Manuel Bros. Inc.                            908 Taylorville Rd. #104, Grass Valley, CA 95949                       Leased
Manuel Bros. Inc.                            480 Roseville Rd., Roseville, CA 95678                                 Leased
Manuel Bros. Inc.                            3610 Bassett Street, Santa Clara, CA 95054                             Leased
Manuel Bros. Inc.                            710 N. George Washington Blvd., Yuba City, CA 95993                    Leased
Mears Group, Inc.                            8525 East Pinnacle Peak, Ste. #135, Scotsdale, AZ 85255                Leased
Mears Group, Inc.                            31-B Beta Ct., San Ramon, CA 94583                                     Leased
Mears Group, Inc.                            2322A 5th Street, Nisku, Alberta, Canada T9E8J1                        Leased
Mears Group, Inc.                            901 Ridgeway Avenue, Aurora, IL 60506                                  Leased
Mears Group, Inc.                            6218 Miller Drive, Edwardsville, IL 62025                              Leased
Mears Group, Inc.                            3775 Tosovsky Lane, Edwardsville, IL 62025                             Leased
Mears Group, Inc.                            14808 W. 114th Terrace, Lenexa, KS 66215                               Leased
Mears Group, Inc.                            14809 W. 114th Terrace, Lenexa, KS 66215                               Subleased
Mears Group, Inc.                            4500 N. Mission, Rosebush, MI 48878                                    Leased
Mears Group, Inc.                            10850 Traverse Hwy., Traverse City, MI 49684                           Leased
Mears Group, Inc.                            521 N. Belt, #505, Houston, TX - no zip                                Leased
Mears Group, Inc.                            1855 Cullen, Suite 304/313, Pearland, TX 77581                         Leased
Mustang Line Contractors, Inc.               10220 N. Nevada, Ste.260, Spokane, WA 99218                            Leased
Mustang Line Contractors, Inc.               1907 McKenzie, Usk, WA 99180                                           Leased
Network Electric Company                     5425 Louie Lane, Reno, NV 89511                                        Leased
North Houston Pole Line, L.P.                200 Ida Road, Broussard, LA 70518                                      Leased
North Houston Pole Line, L.P.                481 Fortson Yard B, Shreveport, LA 71107                               Leased
North Houston Pole Line, L.P.                3502 S. Highway 6, Elk City, OK 73644                                  Leased
North Houston Pole Line, L.P.                4616 Oil Patch, Woodward, OK 73801                                     Leased
North Houston Pole Line, L.P.                1743 South Main, Giddings, TX 78942                                    Leased
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
North Houston Pole Line, L.P.                7202 Irvington Blvd., Houston, TX 77022                                Leased
North Houston Pole Line, L.P.                15410 Henry Street, Houston, TX 77060                                  Leased
North Houston Pole Line, L.P.                1608 Margaret Street, Houston, TX 77093                                Leased
North Houston Pole Line, L.P.                Margaret/Hardy Street, Houston, TX 77093                               Leased
North Houston Pole Line, L.P.                Margaret/Skinner Road, Houston, TX 77093                               Leased
North Houston Pole Line, L.P.                1210/1224 Normandy Street, Houston, TX 77015                           Leased
North Houston Pole Line, L.P.                Gregg County Property, Kilgore, TX - no physical add.                  Leased
North Houston Pole Line, L.P.                3603 West Hwy 180, Mineral Wells, TX 76067                             Leased
North Sky Communications, Inc.               1661 San Marino Drive, Martinez, CA 94954                              Leased
North Sky Communications, Inc.               4225 Rose Biggi Way, Beaverton, OR 97005                               Leased
North Sky Communications, Inc.               3567 Hwy 101, Gearhart, OR 97138                                       Leased
North Sky Communications, Inc.               10710/10748 NE Simpson St., Portland, OR 97220                         Leased
North Sky Communications, Inc.               1411 Salem Ind. Dr. NE, Salem, OR 97303                                Leased
North Sky Communications, Inc.               10540 SW Tualatin Sherwood, Tualatin, OR 97062                         Leased
North Sky Communications, Inc.               Bainbrdige Island, WA - no physical address                            Leased
PAR Electrical Contractors, Inc.             5740 West Buckeye, Phoenix, AZ 85043                                   Leased
PAR Electrical Contractors, Inc.             2410 Vineyard, Escondido, CA 92029                                     Leased
PAR Electrical Contractors, Inc.             10771 Almond Avenue, Fontana, CA 92337                                 Leased
PAR Electrical Contractors, Inc.             5776 Stoneridge Mall, Pleasanton, CA 94588                             Leased
PAR Electrical Contractors, Inc.             41593 Winchester Road, Temelula, CA - no zip                           Leased
PAR Electrical Contractors, Inc.             1921 W. 11th St., Upland, CA 91786                                     Leased
PAR Electrical Contractors, Inc.             1416 Midway Road, Vacaville, CA 95688                                  Leased
PAR Electrical Contractors, Inc.             725 Tower Road, Aurora, CO 80015                                       Owned
PAR Electrical Contractors, Inc.             27 Iverness Drive East, Englewood, CO 80011                            Leased
PAR Electrical Contractors, Inc.             50 Fabrication Drive, Pueblo West, CO 81007                            Leased
PAR Electrical Contractors, Inc.             12 Northgate Drive, Windsor Locks, CT 06096                            Leased
PAR Electrical Contractors, Inc.             6432 Joliett Road, Countryside, IL 60525                               Leased
PAR Electrical Contractors, Inc.             Lot 1, Green St, Wrentham, MA - no zip                                 Leased
PAR Electrical Contractors, Inc.             Route 4, Berwick, ME 03901                                             Leased
PAR Electrical Contractors, Inc.             1 Route 236, Kittery, ME 03904                                         Leased
PAR Electrical Contractors, Inc.             Platte County, MO - no physical address                                Leased
PAR Electrical Contractors, Inc.             Barton County, MO - no physical address                                Owned
PAR Electrical Contractors, Inc.             6780 Trade Center Ave., Bottrell Subdivision, Billings, MO 59101       Leased
PAR Electrical Contractors, Inc.             4770 Belleview Ste. 300, Gladstone, MO 64116                           Leased
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
PAR Electrical Contractors, Inc.             6840 NW 136th Street, Kansas City, MO 64164                            Leased
PAR Electrical Contractors, Inc.             241 South East 10th Ave., Kansas City, MO 64116                        Owned
PAR Electrical Contractors, Inc.             1440 Iron Street, N. Kansas City, MO 64116                             Owned
PAR Electrical Contractors, Inc.             1801 Iron Street, N. Kansas City, MO 64116                             Owned
PAR Electrical Contractors, Inc.             N. Kansas City, MO 64116                                               Owned
PAR Electrical Contractors, Inc.             3401 Tullison Rd., Riverside, MO 64150                                 Leased
PAR Electrical Contractors, Inc.             Clark County, Las Vegas, NV - no physical address                      Leased
PAR Electrical Contractors, Inc.             3940 E. Craig Rd. Ste. 101, Las Vegas, NV 89030                        Leased
PAR Electrical Contractors, Inc.             5005 Carey Ave., Las Vegas, NV 89115                                   Leased
PAR Electrical Contractors, Inc.             4415 Andrews St., Las Vegas, NV 89030                                  Leased
PAR Electrical Contractors, Inc.             1465 W. 4th St., Reno, NV 89503                                        Leased
PAR Electrical Contractors, Inc.             2332 RT 9 N, AuSable Forks, NY 12912                                   Leased
PAR Electrical Contractors, Inc.             29 Alder Street, Jay, NY 12941                                         Leased
PAR Electrical Contractors, Inc.             9 School Street, Jay, NY 12941                                         Leased
PAR Electrical Contractors, Inc.             4480 Bradley Road, Cleveland, OH 44109                                 Leased
PAR Electrical Contractors, Inc.             9925 E. Admiral PL., Tulsa, OK 74116                                   Leased
PAR Electrical Contractors, Inc.             9925 E. Admiral PL., Tulsa, OK 74116                                   Subleased
PAR Electrical Contractors, Inc.             2300 S. 3600 W., Salt Lake City, UT 84119                              Leased
Parkside Utility Construction Corp.          123 King Phillip Street, Johnston, RI 02919                            Leased
P.D.G. Electric Co.                          4419/4421 12th St. Ct. E, Brandenton, FL 34203                         Leased
P.D.G. Electric Co.                          2725 17th Street East, Palmetto, FL 34221                              Leased
Potelco, Inc.                                4940 Still Creek Avenue, Burnaby, BC V5C 4E4                           Leased
Potelco, Inc.                                9718 197 B Street, Langley, BC V1M 3G3                                 Leased
Potelco, Inc.                                1661 San Marino Drive, Martinez, CA 94954                              Leased
Potelco, Inc.                                508/512 S. Airport Blvd, S. San Francisco, CA 94080                    Leased
Potelco, Inc.                                2161 Oakland Rd., San Jose, CA 95131                                   Leased
Potelco, Inc.                                4225 Rose Biggi Way, Beaverton, OR 97005                               Leased
Potelco, Inc.                                3567 Hwy 101, Gearhart, OR 97138                                       Leased
Potelco, Inc.                                10748 NE Simpston Street, Portland, OR  97220                          Leased
Potelco, Inc.                                1411 Salem Ind. Drive NE, Salem, OR 97303                              Leased
Potelco, Inc.                                Bainbridge Island, WA - no physical address                            Leased
Potelco, Inc.                                13521 E. Trent Avenue, Spokane, WA 99208                               Leased
Potelco, Inc.                                14103 8th Street East, Sumner, WA 98390                                Leased
Professional Teleconcepts Group              5132 State Hwy 12, Norwich, NY 13815                                   Leased
Professional Teleconcepts Group              22590 Cedar Green Rd., Dulles, VA 20166                                Leased
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
The Ryan Company, Inc.                       8245 Ronson Road, Ste. A, San Diego, CA 92111                          Leased
The Ryan Company, Inc.                       60/62 Reservoir Park Drive, Rockland, MA 02370                         Leased
The Ryan Company, Inc.                       25 Constitution Dr, Taunton, MA 02780                                  Leased
The Ryan Company, Inc.                       703 -1/2 West Apache Street, Farmington, NM 87401                      Leased
Southeast Pipeline Construction Inc.         245 N. Main, Jasper, GA 30143                                          Leased
Southeast Pipeline Construction Inc.         2270 Hwy 17, Richmond Hill, GA 31324                                   Leased
Spalj Construction Company                   24 Cook St, Billerica, MA 01821                                        Leased
Spalj Construction Company                   22360 County Rd. 12, Deerwood, MN 56444                                Leased
Spalj Construction Company                   208 North La Grand Ave., Princeton, MN 55371                           Leased
Spalj Construction Company                   2021 160th Ave., Princeton, MN 55371                                   Leased
Spalj Construction Company                   541 Industrial Blvd., New Richmond, WI 54017                           Leased
Sumter Utilities, Inc.                       550 Balmoral Circle N, Jacksonville, FL 32218                          Leased
Trans Tech Electric L.P.                     1726 W. Cypress, Tampa, FL 33606                                       Leased
Trans Tech Electric L.P.                     4601 Cleveland Ave., South Bend, IN 46628                              Leased
Trans Tech Electric L.P.                     318 N. Dixon Drive, Cary, NC 27513                                     Leased
Trawick Construction Co.                     Rt. 5 Hwy. 55 South, Andalusia, AL 36420                               Leased
Trawick Construction Co.                     8167 Hwy 231 South, Newton, AL 36360                                   Leased
Trawick Construction Co.                     1555 S. Blvd., Chipley, FL 32428                                       Leased
Trawick Construction Co.                     100 Hwy 196, Glennville, GA 30427                                      Leased
Trawick Construction Co.                     1874 Sylvester Hwy., Moultrie, GA 31768                                Leased
TTM, Inc.                                    6708 Benjamin Rd., Ste 300, Tampa, FL 33634                            Leased
TTM, Inc.                                    1800 Phoenix Blvd., Ste. 208, Atlanta, GA 30349                        Leased
TTM, Inc.                                    6135 Lakeview Rd., Ste. 500, Charlotte, NC 28269                       Leased
TTM, Inc.                                    120 Space Park Drive, Nashville, TN 37211                              Leased
Underground Construction Co. Inc.            1221 Airport Blvd., Santa Rosa, CA 95403                               Leased
Utilico, Inc.                                905 TyTy Omega Road, Tifton, GA 31794                                  Leased
R.A. Waffensmith & Co., Inc.                 3922 E. University Dr. Ste. E-7, Phoenix, AZ 85034                     Leased
R.A. Waffensmith & Co., Inc.                 8201 East Pacific Place, Units 501/502, Denver, CO 80231               Leased
R.A. Waffensmith & Co., Inc.                 15427 E. Fremont Drive, Englewood, CO 80112                            Leased
R.A. Waffensmith & Co., Inc.                 2809-C Broadbent Parkway NE, Albuquerque, NM 87107                     Leased
R.A. Waffensmith & Co., Inc.                 8201 S.  State St. Bldg. 3, Unit A&B, Midvale, UT 84047                Leased
R.A. Waffensmith & Co., Inc.                 8201 S.  State St. Bldg. 3, Unit A&B, Midvale, UT 84047                Subleased
W.C. Communications, Inc.                    712 & 714 South Date Avenue, Alhambra, CA 91803                        Leased
W.C. Communications, Inc.                    4032 California Street, Carmichael, CA 95608                           Leased
W.C. Communications, Inc.                    140 Meyers Street, Chico, CA 95928                                     Leased
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>                                                                    <C>
W.C. Communications, Inc.                    571 N. Palm Avenue, Hemet, CA 92543                                    Leased
W.C. Communications, Inc.                    38223 6th Street, Los Angeles, CA 93550                                Leased
W.C. Communications, Inc.                    24988 Felipe Road, Mission Vlejo, CA 92692                             Leased
W.C. Communications, Inc.                    5429 Satsuma Avenue N, Hollywood, CA 91601                             Leased
W.C. Communications, Inc.                    9815 Antelope North Road, Roseville, CA 95747                          Leased
W.C. Communications, Inc.                    900 W. Los Angeles Avenue, Simi Valley, CA 93065                       Leased
W.C. Communications, Inc.                    10901 Sherman Way, Sun Valley, CA 91352                                Leased
W.C. Communications, Inc.                    1921 W. 11th Street, Upland, CA  91786                                 Leased
W.C. Communications, Inc.                    2085 W. 11th Street, Upland, CA 91786                                  Leased
</TABLE>

<PAGE>

                                Schedule 6.20(b)

                     LOCATIONS OF TANGIBLE PERSONAL PROPERTY

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Washington DC
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

<PAGE>

                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
           Loan Party              Jurisdiction of Incorporation         Chief Executive Office           TAX ID    Organization ID
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                            <C>                                   <C>         <C>
Advanced Technologies and
Installation Corporation                    Washington            655 Glennville                        91-1528002  601 330 655
                                                                  Richardson, TX 75081
-----------------------------------------------------------------------------------------------------------------------------------
Airlan Telecom Services, L.P.               Texas                 431 West Bedford-Euless Road, Ste. F  75-2899094  137554-10
                                                                  Hurst, TX 76053
-----------------------------------------------------------------------------------------------------------------------------------
Allteck Line Contractors (USA),
Inc.                                        Washington            4940 Still Creek Avenue               98-0198185  601 955 593
                                                                  Burnaby, British Columbia
                                                                  Canada V5C 4E4
-----------------------------------------------------------------------------------------------------------------------------------
Arby Construction Company, Inc.             Delaware              19705 W. Lincoln Avenue               76-0605516  3051554
                                                                  New Berlin, WI 53146
-----------------------------------------------------------------------------------------------------------------------------------
Austin Trencher, Inc.                       Delaware              9250 FM 2243                          76-0598342  3011775
                                                                  Leander, TX 78641
-----------------------------------------------------------------------------------------------------------------------------------
Bradford Brothers, Incorporated             North Carolina        11712 Statesville Road                56-0867769  14630
                                                                  Huntersville, NC 28078
-----------------------------------------------------------------------------------------------------------------------------------
CCLC, Inc.                                  Delaware              5 Johnson Drive, Ste. 4               74-2947665  3177733
                                                                  Raritan, NJ 08869
-----------------------------------------------------------------------------------------------------------------------------------
Coast to Coast, LLC                         California            1441 Garden Highway                   68-0386826  101996198021
                                                                  Yuba City, CA 95991
-----------------------------------------------------------------------------------------------------------------------------------
Communication Manpower, Inc.                Florida               1555 South Blvd.                      59-3371172  P96000016106
                                                                  Chipley, FL 32428
-----------------------------------------------------------------------------------------------------------------------------------
Conti Communications, Inc.                  Delaware              5 Johnson Drive, Ste. 4               76-0605511  3051549
                                                                  Raritan, NJ 08869
-----------------------------------------------------------------------------------------------------------------------------------
Croce Electric Company, Inc.                Delaware              2 Betty Street                        76-0605518  3051556
                                                                  Everett, MA 02149
-----------------------------------------------------------------------------------------------------------------------------------
Crown Fiber Communications, Inc.            Virginia              800 Satellite Blvd.                   54-1612812  0386581-3
                                                                  Suwanee, GA 30024
-----------------------------------------------------------------------------------------------------------------------------------
Digco Utility Construction, L.P.            Delaware              1608 Margaret Street                  76-0612176  3074649
                                                                  Houston, TX 77093
-----------------------------------------------------------------------------------------------------------------------------------
Dillard Smith Construction
Company                                     Delaware              4001 Industry Dr.                     76-0589264  2958382
                                                                  Chattanooga, TN 37416
-----------------------------------------------------------------------------------------------------------------------------------
Dot 05, LLC                                 Delaware              22360 County Road 12                  N/A         3398043
                                                                  Deerwood, MN 56444
-----------------------------------------------------------------------------------------------------------------------------------
Driftwood Electrical Contractors,
Inc.                                        Delaware              2004 Stanford road                    76-0589278  2958408
                                                                  Lancaster, KY 40444
-----------------------------------------------------------------------------------------------------------------------------------
Environmental Professional
Associates, Limited                         California            1441 Garden Highway                   68-0248659  1686969
                                                                  Yuba City, CA 95991
-----------------------------------------------------------------------------------------------------------------------------------
Five Points Construction Co.                Texas                 5145 Industrial Way                   94-2738636  554558-00
                                                                  Benicia, CA 94510
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       1


                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
           Loan Party              Jurisdiction of Incorporation         Chief Executive Office           TAX ID    Organization ID
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                            <C>                                   <C>         <C>
Global Enercom Management, Inc.             Delaware              2500 Wilcrest Dr., Ste. 100           76-0598339  3011772
                                                                  Houston, TX 77042
-----------------------------------------------------------------------------------------------------------------------------------
Golden State Utility Co.                    Delaware              2007 West Tuolomne Rd.                76-0567490  2880189
                                                                  Turlock, CA 95380
-----------------------------------------------------------------------------------------------------------------------------------
H.L. Chapman Pipeline
Construction, Inc.                          Delaware              9250 FM 2243                          76-0598341  3011774
                                                                  Leander, TX 78641
-----------------------------------------------------------------------------------------------------------------------------------
Haines Construction Company                 Delaware              200 Ida Road                          76-0605500  3051569
                                                                  Broussard, LA 70518
-----------------------------------------------------------------------------------------------------------------------------------
Intermountain Electric, Inc.                Colorado              602 South Lipan Street                84-0906573  19871509304
                                                                  Denver, CO 80223
-----------------------------------------------------------------------------------------------------------------------------------
Irby Construction Company                   Mississippi           817 S. State Street                   64-0902002  1015306
                                                                  Jackson, MS 39201
-----------------------------------------------------------------------------------------------------------------------------------
Lake Norman Pipeline, LLC                   North Carolina        11712 Statesville Road                N/A         C-0459956
                                                                  Huntersville, NC 28078
-----------------------------------------------------------------------------------------------------------------------------------
Lindsey Electric, L.P.                      Texas                 1608 Margaret Street                  02-0557008  800040851
                                                                  Houston, TX 77093
-----------------------------------------------------------------------------------------------------------------------------------
Lineco Leasing, LLC                         Washington            10220 N. Nevada, Ste. 260             91-1798246  601 782 819
                                                                  Spokane, WA 99218
-----------------------------------------------------------------------------------------------------------------------------------
Manuel Bros., Inc.                          Delaware              908 Taylorville Road, Ste. 104        76-0577087  2923002
                                                                  Grass Valley, CA 95949
-----------------------------------------------------------------------------------------------------------------------------------
Mears Engineering, LLC                      Michigan              4500 N. Mission Road                  N/A         B38842
                                                                  Rosebush, MI 48878
-----------------------------------------------------------------------------------------------------------------------------------
Mears Group, Inc.                           Delaware              4500 N. Mission Road                  76-0612167  3074660
                                                                  Rosebush, MI 48878
-----------------------------------------------------------------------------------------------------------------------------------
Mears Services, LLC                         Michigan              4500 N. Mission Road                  N/A         B40-214
                                                                  Rosebush, MI 48878
-----------------------------------------------------------------------------------------------------------------------------------
Mears/CPG, LLC                              Michigan              4500 N. Mission Road                  N/A         B 40-215
                                                                  Rosebush, MI 48878
-----------------------------------------------------------------------------------------------------------------------------------
Mears/HDD, LLC                              Michigan              4500 N. Mission Road                  N/A         B40366
                                                                  Rosebush, MI 48878
-----------------------------------------------------------------------------------------------------------------------------------
Mejia Personnel Services, Inc.              Texas                 431 West Bedford-Euless Road, Ste. F  75-2575734  1339640
                                                                  Hurst, TX 76053
-----------------------------------------------------------------------------------------------------------------------------------
Metro Underground Services, Inc.            Illinois              901 Ridgeway Avenue                   36-4125701  5915-971-2
                                                                  Aurora, IL 60506
-----------------------------------------------------------------------------------------------------------------------------------
Mustang Line Contractors, Inc.              Washington            10220 N. Nevada, Ste. 260             91-1755825  601 760 127
                                                                  Spokane, WA 99218
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2

<PAGE>

                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
Loan Party                                Jurisdiction of Incorporation  Chief Executive Office          TAX ID      Organization ID
----------                                -----------------------------  ----------------------          ------      ---------------
<S>                                       <C>                            <C>                             <C>         <C>
Network Electric Company                  Delaware                       5425 Louis Lane                 76-0598345  3011791
                                                                         Reno, NV 89511
North Houston Pole Line, L.P.             Texas                          1608 Margaret Street            74-1675857  28182800
                                                                         Houston, TX 77093
North Pacific Construction Co., Inc.      Delaware                       2007 West Tuolomne Rd.          76-0577088  2917475
                                                                         Turlock, CA 95380
North Sky Communications, Inc.            Delaware                       120 N.E. 136th Avenue           76-0605490  3051560
                                                                         Vancouver, WA 98684
Northern Line Layers, LLC                 Delaware                       4770 North Belleview Avenue,    76-0589263  2958377
                                                                         Ste. 300 Kansas City, MO 64116
Okay Construction Company, LLC            Delaware                       208 Rum River Drive             76-0612169  3074659
                                                                         Princeton, MN 55371
Old Lesco Corporation, Inc.               South Carolina                 1890 Milford Street             57-0507185  20301301-8
                                                                         Charleston, SC 29405
P.D.G. Electric Co.                       Florida                        4421 12th Street Court East     59-1709471  512916
                                                                         Bradenton, FL 34203
PAR Electrical Contractors, Inc.          Missouri                       4770 North Belleview Avenue,    44-0591890  83692
                                                                         Ste. 300 Kansas City, MO 64116
Parkside Site and Utility Company         Delaware                       123 King Phillip Street         76-0612181  3074661
Corporation                                                              Johnston, RI 02919
Parkside Utility Construction Corp.       Delaware                       123 King Phillip Street         76-0612160  3074662
                                                                         Johnston, RI 02919
Potelco, Inc.                             Washington                     14103 8th Street East           91-0784248  278 047 572
                                                                         Sumner, WA 98390
Professional Teleconcepts, Inc.           Illinois                       Route 12 South                  36-3785874  5655-232-4
                                                                         Norwich, NY 13815
Professional Teleconcepts, Inc.           New York                       Route 12 South                  16-1246233  72042
                                                                         Norwich, NY 13815
PWR Financial Company                     Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0700118  3473374
                                                                         Houston, TX 77056
PWR Network, LLC                          Delaware                       1360 Post Oak Blvd., Ste. 2100  N/A         3474134
                                                                         Houston, TX 77056
Q Resources, LLC                          Delaware                       1360 Post Oak Blvd., Ste. 2100  N/A         3473371
                                                                         Houston, TX 77056
QDE, LLC                                  Delaware                       300 Delaware Avenue, Suite 900  N/A         3471430
                                                                         Wilmington, Delaware 19801
</TABLE>

                                        3
<PAGE>

                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
Loan Party                                Jurisdiction of Incorporation  Chief Executive Office          TAX ID      Organization ID
----------                                -----------------------------  ----------------------          ------      ---------------
<S>                                       <C>                            <C>                             <C>         <C>
QPC, Inc.                                 Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0612164  3074663
                                                                         Houston, TX 77056
QSI, Inc.                                 Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0574731  2911792
                                                                         Houston, TX 77056
Quanta Asset Management LLC               Delaware                       300 Delaware Avenue, Suite 900  N/A         3471361
                                                                         Wilmington, Delaware 19801
Quanta Associates, L.P.                   Texas                          1360 Post Oak Blvd., Ste. 2100  73-1628097  800040556
                                                                         Houston, TX 77056
Quanta Delaware, Inc.                     Delaware                       300 Delaware Avenue, Suite 900  51-6508285  2914990
                                                                         Wilmington, Delaware 19801
Quanta Government Services, Inc.          Delaware                       1360 Post Oak Blvd., Ste. 2100  73-1684943  3051571
                                                                         Houston, TX 77056
Quanta Holdings, Inc.                     Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0700191  3475346
                                                                         Houston, TX 77056
Quanta LI Acquisition, Inc.               Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0612166  3074669
                                                                         Houston, TX 77056
Quanta LIV Acquisition, Inc.              Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0612162  3074670
                                                                         Houston, TX 77056
Quanta LIX Acquisition, Inc.              Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644273  3233259
                                                                         Houston, TX 77056
Quanta LVII Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0612165  3074664
                                                                         Houston, TX 77056
Quanta LVIII Acquisition, Inc.            Delaware                       1360 Post Oak Blvd., Ste. 2100  N/A         3074672
                                                                         Houston, TX 77056
Quanta LX Acquisition, Inc.               Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644271  3233298
                                                                         Houston, TX 77056
Quanta LXI Acquisition, Inc.              Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644272  3233297
                                                                         Houston, TX 77056
Quanta LXII Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644265  3233302
                                                                         Houston, TX 77056
Quanta LXIII Acquisition, Inc.            Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644260  3233305
                                                                         Houston, TX 77056
Quanta LXIV Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644258  3233306
                                                                         Houston, TX 77056
Quanta LXIX Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644257  3233334
                                                                         Houston, TX 77056
</TABLE>

                                       4
<PAGE>

                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
Loan Party                                Jurisdiction of Incorporation  Chief Executive Office          TAX ID      Organization ID
----------                                -----------------------------  ----------------------          ------      ---------------
<S>                                       <C>                            <C>                             <C>         <C>
Quanta LXV Acquisition, Inc.              Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644263  3233310
                                                                         Houston, TX 77056
Quanta LXVI Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644270  3233317
                                                                         Houston, TX 77056
Quanta LXVII Acquisition, Inc.            Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644266  3233326
                                                                         Houston, TX 77056
Quanta LXVIII Acquisition, Inc.           Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644255  3233335
                                                                         Houston, TX 77056
Quanta LXX Acquisition, Inc.              Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644269  3233337
                                                                         Houston, TX 77056
Quanta LXXI Acquisition, Inc.             Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644259  3233344
                                                                         Houston, TX 77056
Quanta LXXII Acquisition, Inc.            Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644264  3233341
                                                                         Houston, TX 77056
Quanta LXXIII Acquisition, Inc.           Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644261  3233347
                                                                         Houston, TX 77056
Quanta Receivables, L.P.                  Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0700119  3474142
                                                                         Houston, TX 77056
Quanta Services, Inc.                     Delaware                       1360 Post Oak Blvd., Ste. 2100  74-2851603  2786882
                                                                         Houston, TX 77056
Quanta Services Management Partnership,   Texas                          1360 Post Oak Blvd., Ste. 2100  76-0574732  110116-10
L.P.                                                                     Houston, TX 77056
Quanta Utility Installation Company, Inc  Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0592449  2987930
                                                                         Houston, TX 77056
R.A. Waffensmith & Co., Inc.              Delaware                       2042 N. Kelty Rd.               76-0589266  2958387
                                                                         Franktown, CO 80116
S.K.S. Pipeliners, LLC                    Delaware                       19705 W. Lincoln Avenue         76-0605517  3051555
                                                                         New Berlin, WI 53146
Southeast Pipeline Construction, Inc.     Delaware                       245 N. Main Street              76-0612175  3074650
                                                                         Jasper, GA 30143
Southwest Trenching, Inc.                 Texas                          1608 Margaret Street            76-0106600  706733
                                                                         Houston, TX 77093
Southwestern Communications, Inc.         Delaware                       15427 E. Fremont Drive          76-0612171  3074653
                                                                         Englewood, CO 80112
Spalj Construction Company                Delaware                       22360 County Road 12            76-0567489  2880741
                                                                         Deerwood, MN 56444
</TABLE>

                                       5
<PAGE>

                                Schedule 6.20(c)

                    LOCATION OF CHIEF EXECUTIVE OFFICE, ETC.

<TABLE>
<CAPTION>
Loan Party                                Jurisdiction of Incorporation  Chief Executive Office          TAX ID      Organization ID
----------                                -----------------------------  ----------------------          ------      ---------------
<S>                                       <C>                            <C>                             <C>         <C>
Sumter Utilities, Inc.                    Delaware                       1151 North Pike West            76-0577089  2921852
                                                                         Sumter, SC 29153
The Ryan Company, Inc.                    Massachusetts                  25 Constitution Drive           04-2387367  704294
                                                                         Taunton, MA 02780
Tjader, LLC                               Delaware                       541 Industrial Blvd.            76-0654709  3255806
                                                                         New Richmond, WI 54017
TNS-VA, LLC                               Delaware                       Route 12 South                  N/A         3420551
                                                                         Norwich, NY 13815
Tom Allen Construction Company            Delaware                       3775 Tosovsky Lane              76-0589277  2958406
                                                                         Edwardsville, IL 62025
Total Quality Management Services, LLC    Delaware                       1441 Garden Highway             48-1278515  3562559
                                                                         Yuba City, CA 95991
Trans Tech Acquisition, Inc.              Texas                          1360 Post Oak Blvd., Ste. 2100  74-2983032  1606979
                                                                         Houston, TX 77056
Trans Tech Electric, L.P.                 Texas                          4601 Cleveland Rd.              35-1553093  146606-10
                                                                         South Bend, IN 46628
Trawick Construction Co.                  Florida                        1555 South Blvd.                59-0907078  240496
                                                                         Chipley, FL 32428
TTGP, Inc.                                Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644267  3233374
                                                                         Houston, TX 77056
TTLP, Inc.                                Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0644262  3233400
                                                                         Houston, TX 77056
TTM, Inc.                                 North Carolina                 6135 Lakeview Road, Ste. 500    56-1356956  C-0400614
                                                                         Charlotte, NC 28269
TXLP, Inc,                                Delaware                       1360 Post Oak Blvd., Ste. 2100  76-0605507  3051548
                                                                         Houston, TX 77056
Underground Construction Co., Inc.        Delaware                       5145 Industrial Way             76-0575471  2915129
                                                                         Benicia, CA 94510
Utilco, Inc.                              Georgia                        905 Omega-Ty Ty Road            58-1435985  J104501
                                                                         Tifton, GA 31794
VCI Telcom, Inc.                          Delaware                       1921 West Eleventh Street       76-0589274  2958392
                                                                         Upland, CA 91786
W.C. Communications, Inc.                 Delaware                       1921 West Eleventh Street       76-0598348  3011796
                                                                         Upland, CA 91786
W.H.O.M. Corporation                      California                     1441 Garden Highway             77-0219510  1426029
                                                                         Yuba City, CA 95991
</TABLE>

                                       6
<PAGE>

                                  Schedule 8.01

                       LIENS EXISTING ON THE CLOSING DATE

         1. Liens to secure obligations of the Borrower under surety bonds
         provided in the ordinary course of business; and

         2. All of the following:

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING        FILING INFORMATION
      -------                -------------            ------------         --------------        ------------------
<S>                        <C>                     <C>                     <C>              <C>
PAR Electrical             Alcan Aluminum          Missouri Secretary of      Original      #20020113972J filed 10/15/02
Contractors, Inc.          Corporation             State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #99-250408 filed 12/20/99
                           Services, LLC           State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #99-250409 filed 12/20/99
                           Services, LLC           State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #99-250550 filed 12/20/99
                           Services, LLC           State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #00-479356 filed 4/19/00
                           Services, LLC           State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #00-479357 filed 4/19/00
                           Services, LLC           State

Quanta Services, Inc.      Altec Capital           Texas Secretary of         Original      #02-0021801387 filed 3/7/02
                           Services, LLC           State

Crown Fiber                Altec Capital           Coffee Co., GA             Original      #034-2001-000359 filed 2/16/01
Communications, Inc.       Services, LLC

PAR Electrical             Associates              Illinois Secretary of      Original      #4252584 filed 8/17/00
Contractors, Inc.          Commercial              State
                           Corporation

PAR Electrical             Associates              Missouri Secretary of      Original      #4077122 filed 8/14/00
Contractors, Inc.          Commercial              State
                           Corporation

Dillard Smith              Associates First        Delaware Secretary         Original      #20574701 filed 2/11/02
Construction Company       Capital Corporation     of State

Dillard Smith              Associates First        Tennessee Secretary        Original      #302-005150 filed 2/5/02
Construction Company       Capital Corporation     of State

Dillard Smith              Associates First        Tennessee Secretary        Original      #302-015479 filed 3/26/02
Construction Company       Capital Corporation     of State

Mears HDD, LLC             Bank One Michigan       Michigan Secretary of      Original      #D613308 filed 1/27/00
                                                   State

Mears/CPG, Inc.            Bank One, Michigan      Michigan Secretary of      Original      #D613309 filed 1/27/00
                                                   State

PAR Electrical             BCL Capital             Nevada Secretary of        Original      #0108999 filed 6/19/01
Contractors, Inc.                                  State

Coast to Coast, LLC        Bee Tee Engine Sales,   California Secretary       Original      #009560104 filed 3/29/00
                           Inc.                    of State

Sumter Utilities, Inc.     Blanchard Machinery     South Carolina             Original      #1501324 filed 10/4/02
                           Company                 Secretary of State

Sumter Utilities, Inc.     Blanchard Machinery     South Carolina             Original      #1408088 filed 5/16/03
                           Company                 Secretary of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING        FILING INFORMATION
      -------                -------------            ------------         --------------        ------------------
<S>                        <C>                     <C>                     <C>              <C>
Sumter Utilities, Inc.     Blanchard Machinery     South Carolina          Original         #0910232 filed 4/7/03
                           Company                 Secretary of State

Sumter Utilities, Inc.     Blanchard Machinery     South Carolina          Original         #1205188 filed 1/22/02
                           Company                 Secretary of State

Sumter Utilities, Inc.     Blanchard Machinery     South Carolina          Original         #110616C filed 3/9/01
                           Company                 Secretary of State

Sumter Utilities, Inc.     Blanchard Machinery     South Carolina          Original         #1408179 filed 5/16/03
                           Company                 Secretary of State

Bradford Brothers, Inc.    Briggs Construction     North Carolina          Original         #20030025813F filed 3/17/03
                           Equipment, Inc.         Secretary of State      ************     *******************
                                                                           Amendment        #20030088548K filed 9/2/03

Bradford Brothers,         Briggs Construction     North Carolina          Original         #20030023411H filed 3/10/03
Incorporated               Equipment, Inc.         Secretary of State

Trawick Construction       Canon Financial         Florida Secretary of    Original         #200100101846  0 filed 5/9/01
Company Inc.               Services, Inc.          State

PAR Electrical             Canyon State Oil        Arizona Secretary of    Original         #20011186461-4 filed 8/21/01
Contractors, Inc.          Company                 State

Bradford Brothers, Inc.    Carter Machinery Co.,   North Carolina          Original         #20030077097G filed 7/31/03
                           Inc.                    Secretary of State

Bradford Brothers, Inc.    Carter Machinery        North Carolina          Original         #20010524852C filed 9/21/01
                           Company, Inc.           Secretary of State

Bradford Brothers, Inc.    Carter Machinery        North Carolina          Original         #20020038512C filed 4/2/02
                           Company, Inc.           Secretary of State

Bradford Brothers,         Carter Machinery        North Carolina          Original         #20010508233E filed 8/6/01
Incorporated               Company, Inc.           Secretary of State

Bradford Brothers,         Carter Machinery        North Carolina          Original         #20010508065G filed 8/6/01
Incorporated               Company, Inc.           Secretary of State

Bradford Brothers, Inc.    Carter Machinery        North Carolina          Original         #20020085382C filed 8/5/02
                           Equipment, Inc.         Secretary of State

Bradford Brothers, Inc.    Carter Machinery, Inc.  North Carolina          Original         #200200974999L filed 9/9/02
                                                   Secretary of State

Golden State Utility Co.   Case Corporation        California Secretary    Original         #200115160788 filed 5/31/01
                                                   of State

Quanta Services, Inc.      Case Credit             Texas Secretary of      Original         #02-0021793064 filed 3/7/02
                           Corporation             State

Quanta Services, Inc.      Case Credit             Texas Secretary of      Original         #02-0028228286 filed 4/29/02
                           Corporation             State

Quanta Services, Inc.      Case Credit             Texas Secretary of      Original         #02-0034501823 filed 6/20/02
                           Corporation             State

Quanta Services, Inc.      Case Credit             Texas Secretary of      Original         #04-0044924047 filed 10/15/03
                           Corporation             State

Bradford Brothers, Inc.    Case Credit             North Carolina          Original         #20030085019K filed 8/22/03
                           Corporation             Secretary of State

Bradford Brothers, Inc.    Case Credit             North Carolina          Original         #20030085020A filed 8/22/03
                           Corporation             Secretary of State

Golden State Utility Co.   Case Credit             California Secretary    Original         #200115260347 filed 5/31/01
                           Corporation             of State

Potelco, Inc.              Case Credit             Washington Secretary    Original         #20010080073 filed 1/8/2001
                           Corporation             of State

Potelco, Inc.              Case Credit             Washington Secretary    Original         #20010080074 filed 1/8/2001
                           Corporation             of State

Potelco, Inc.              Case Credit             Washington Secretary    Original         #20010080075 filed 1/8/01
                           Corporation             of State

Potelco, Inc.              Case Credit             Washington Secretary    Original         #20010080078 filed 1/8/01
                           Corporation             of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING        FILING INFORMATION
      -------                -------------            ------------         --------------        ------------------
<S>                        <C>                     <C>                     <C>              <C>
Potelco, Inc.              Case Credit             Washington Secretary       Original      #20011990085 filed 7/18/01
                           Corporation             of State

Trawick Construction       Case Credit             Florida Secretary of       Original      #200304881315 filed 9/5/03
Company, Inc.              Corporation             State

Dillard Smith              Caterpillar Financial   Tennessee Secretary        Original      #993-020411 filed 4/19/99
Construction Company       Services                of State

Haines Construction        Caterpillar Financial   Delaware Secretary of      Original      #10910302 filed 8/31/01
Company                    Services Corporation    State

Irby Construction Co       Caterpillar Financial   Mississippi Secretary      Original      #20030001397G filed 1/3/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #20030004640M filed 1/7/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #20030004799F  filed 1/7/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #20030001414G filed 1/3/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #20030001417K filed 1/3/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #20030001665E filed 1/3/03
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01581338 filed 12/28/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01579042 filed 12/19/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01579433 filed 12/19/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01579435 filed 12/19/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01579434 filed 12/19/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Mississippi Secretary      Original      #01579432 filed 12/19/01
                           Services Corporation    of State

Irby Construction Company  Caterpillar Financial   Hinds County,              Original      #398368 filed 12/19/01
                           Services Corporation    Mississippi

Irby Construction Company  Caterpillar Financial   Hinds County,              Original      #398404 filed 12/20/01
                           Services Corporation    Mississippi

Irby Construction Company  Caterpillar Financial   Hinds County,              Original      #398405 filed 12/20/01
                           Services Corporation    Mississippi

Irby Construction Company  Caterpillar Financial   Hinds County,              Original      #398406 filed 12/20/01
                           Services Corporation    Mississippi

Irby Construction Company  Caterpillar Financial   Hinds County,              Original      #398658 filed 12/28/01
                           Services Corporation    Mississippi

Underground Construction   Caterpillar Financial   California Secretary       Original      #9918160445 filed 6/25/99
Co., Inc.                  Services Corporation    of State

Underground Construction   Caterpillar Financial   California Secretary       Original      #0029761451 filed 10/12/00
Co., Inc.                  Services Corporation    of State

Quanta Services, Inc.      CBL Capital             Delaware Secretary of      Original      #31379869 filed 5/6/03
                           Corporation             State

Irby Construction Company  CBL Capital             Mississippi Secretary      Original      #01561840 filed 10/4/01
                           Corporation             of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING        FILING INFORMATION
      -------                -------------            ------------         --------------        ------------------
<S>                        <C>                     <C>                     <C>              <C>
Mustang Contractors, Inc.  CBL Capital             Washington Secretary    Original         #200313202676 filed 5/7/03
                           Corporation             of State

P.D.G. Electric Company    CBL Capital             Florida Secretary of    Original         #200303898281 filed 5/6/03
                           Corporation             State

Potelco, Inc.              CBL Capital             Washington Secretary    Original         #200313202669 filed 5/7/03
                           Corporation             of State

Dillard Smith              CCA Financial, LLC      Delaware Secretary of   Original         #32903626 filed 11/5/03
Construction Company                               State

Dillard Smith              Cecil I. Walker         North Carolina          Original         #20000021026 filed 2/28/00
Construction Company       Machinery Co.           Secretary of State

Dillard Smith              Cecil I. Walker         North Carolina          Original         #20000021025 filed 2/28/00
Construction Company       Machinery Co.           Secretary of State

Dillard Smith              Cecil I. Walker         North Carolina          Original         #20000021024 filed 2/28/00
Construction Company       Machinery Co.           Secretary of State

Dillard Smith              Cecil I. Walker         North Carolina          Original         #20000021023 filed 2/28/00
Construction Company       Machinery Co.           Secretary of State

Dillard Smith              Cecil I. Walker         Mecklenburg County,     Original         #200001772 filed 2/29/00
Construction Company       Machinery Co.           North Carolina

Dillard Smith              Cecil I. Walker         Mecklenburg County,     Original         #200001773 filed 2/29/00
Construction Company       Machinery Company       North Carolina

Bradford Brothers, Inc.    Charlotte Tractor       North Carolina          Original         #20030084776J filed 8/21/03
d/b/a Edwards Pipeline     Company                 Secretary of State
Company

Bradford Brothers, Inc.    Charlotte Tractor       North Carolina          Original         #20030084777K filed 8/21/03
d/b/a Edwards Pipeline     Company                 Secretary of State
Company

R.A. Waffensmith & Co.,    Clarity Credit          Colorado Secretary of   Original         #20012019935 M filed 3/14/01
Inc.                       Corporation             State

Trawick Construction Co.   Coastal Machinery Co    Florida Secretary of    Original         #990000268432 filed 11/29/99
Inc.                                               State

PAR Electrical             Colorado Machinery      Colorado Secretary of   Original         #2003F074233 filed 7/9/03
Contractors, Inc.                                  State

PAR Electrical             Construction            Nevada Secretary of     Original         #0102750 filed 2/26/01
Contractors, Inc.          Machinery, Inc.         State

Golden State Utility Co.   Continental Resources   California Secretary    Original         #199910260248 filed 4/2/99
                           Inc.                    of State

Golden State Utility Co.   Continental Resources   California Secretary    Original         #200003160553 filed 1/25/00
                           Inc.                    of State

The Ryan Company, Inc.     David C. Varisco        Plymouth County         Civil Trial-     Case 01 204624 filed 7/12/02
                                                   Superior Court,         Misc. Contract
                                                   Massachusetts

Golden State Utility Co.   Danielson               California Secretary    Original         #199907460676 filed 3/5/99
                           Construction, Inc.      of State

P.D.G. Electric Company    Deere Credit Inc.       Florida Secretary of    Original         #20020110832X filed 5/10/02
                                                   State

P.D.G. Electric Company    Deere Credit Inc.       Florida Secretary of    Original         #200200997511 filed 4/29/02
                                                   State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING            FILING INFORMATION
      -------                -------------            ------------         --------------            ------------------
<S>                        <C>                     <C>                     <C>                   <C>
P.D.G. Electric Company    Deere Credit, Inc.      Florida Secretary of    Original              #200304059399 filed 5/27/03
                                                   State

P.D.G. Electric Company    Deere Credit, Inc.      Florida Secretary of    Original              #200201141777 filed 5/15/02
                                                   State

P.D.G. Electric Company    Deere Credit, Inc.      Florida Secretary of    Original              #20020110832X filed 5/10/02
                                                   State

P.D.G. Electric Company    Deere Credit, Inc.      Florida Secretary of    Original              #200200997511 filed 4/29/02
                                                   State

P.D.G. Electric Company    Deere Credit, Inc.      Florida Secretary of    Original              #200201141777 filed 5/15/02
                                                   State

R.A. Waffensmith & Co.,    Deere Credit, Inc.      Colorado Secretary of   Original              #20002051097 C filed 6/5/00
Inc.                                               State

Croce Electric Company,    Eastern Bank            Massachusetts           Original              #98567217 filed 7/28/98
Inc.                                               Secretary of State      ***********           *****************
                                                                           continuation          #200321326870 filed 6/9/03

Manuel Bros., Inc.         Empire Equipment Co.    California Secretary    Original              #9906360115 filed 2/22/99
                           L.P.                    of State

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #91-040865 filed 3/6/91
Construction, Inc.         Credit                  State                   ***********           ***************
                                                                           continuation          #96-607331 filed 1/18/96
                                                                           **********            ***************
                                                                           partial release       #96-630825 filed 3/11/96
                                                                           **********            *****************
                                                                           partial release       #97-603526 filed 1/9/97
                                                                           ***********           ******************
                                                                           partial release       #97-720533 filed 10/2/97
                                                                           ************          ******************
                                                                           partial release       00-882398 filed 11/22/00
                                                                           ***********           *****************
                                                                           amendment/            #01-618611 filed 2/20/01
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #90-014793 filed 1/22/90
Construction, Inc.         Credit Inc.             State                   ***********           ****************
                                                                           continuation          #94-741823 filed 11/28/94
                                                                           **********            ******************
                                                                           amendment/            #99-760713 filed 11/1/99
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #90-201028 filed 9/19/90
Construction, Inc.         Credit Inc.             State                   **********            *****************
                                                                           partial release       #90-749892 filed 12/19/90
                                                                           ************          ******************
                                                                           amendment             91-057117 filed 4/11/91
                                                                           ************          ******************
                                                                           continuation          #95-680038 filed 7/3/95
                                                                           ************          ******************
                                                                           continuation          #00-825272 filed 6/26/00

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #90-260928 filed 12/17/90
Construction, Inc.         Credit Inc.             State                   ***********           ****************
                                                                           continuation          #95-705959 filed 9/6/95
                                                                           ************          ****************
                                                                           amendment/            #00-879442 filed 11/13/00
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #91-097076 filed 5/20/91
                           Credit Inc.             State                   **********            *****************
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING            FILING INFORMATION
      -------                -------------            ------------         --------------            ------------------
<S>                        <C>                     <C>                     <C>                   <C>
Construction, Inc.                                                         continuation          #96-640689 filed 4/1/96
                                                                           **********            *****************
                                                                           amendment/            #01-633771 filed 3/20/01
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #91-151410 filed 8/2/91
Construction, Inc.         Credit Inc.             State                   **********            ***************
                                                                           continuation          #96-665890 filed 5/28/96
                                                                           **********            ****************
                                                                           continuation          #01-676388 filed 6/28/01

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #92-048966 filed 3/12/92
Construction, Inc.         Credit Inc.             State                   ***********           **************
                                                                           partial release       #92-697348 filed 7/20/92
                                                                           ***********           **************
                                                                           continuation          #96-746185 filed 12/11/96
                                                                           **********            *************
                                                                           amendment/            #02-00192088 filed 2/13/02
                                                                           continuation
                                                                           **********            *************
                                                                           not specified         #02-00192131 filed 2/13/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #92-111933 filed 6/4/92
Construction, Inc.         Credit Inc.             State                   **********            ***************
                                                                           continuation          #97-629405 filed 3/7/97
                                                                           **********            ****************
                                                                           continuation          #02-00302313 filed 5/16/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #92-218473 filed 11/5/92
Construction, Inc.         Credit Inc.             State                   **********            ******************
                                                                           amendment             #93-616359 filed 2/4/93
                                                                           **********            ******************
                                                                           amendment             #93-750976 filed 11/29/93
                                                                           **********            ******************
                                                                           amendment             #94-738630 filed 11/1/94
                                                                           **********            ******************
                                                                           amendment             #95-642755 filed 4/6/95
                                                                           **********            ******************
                                                                           amendment             #96-603215 filed 1/8/96
                                                                           **********            ******************
                                                                           continuation          #97-703017 filed 8/22/97
                                                                           **********            *****************
                                                                           continuation          #03-00055390 filed 10/21/03

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #93-023618 filed  2/4/93
Construction, Inc.         Credit Inc.             State                   ***********           ***************
                                                                           continuation          #97-749975 filed 12/12/97
                                                                           **********            ****************
                                                                           amendment/            #03-0015606 filed 2/3/03
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #93-119077 filed 6/17/93
Construction, Inc.         Credit Inc.             State                   ***********           *****************
                                                                           amendment             #93-753700 filed 12/6/93
                                                                           **********            *******************
                                                                           partial release       #97-603527 filed 6/9/97
                                                                           **********            *******************
                                                                           continuation          #98-647866 filed 4/13/98
                                                                           ************          ******************
                                                                           amendment/            #03-00300801 filed 6/5/03
                                                                           continuation
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING            FILING INFORMATION
      -------                -------------            ------------         --------------            ------------------
<S>                        <C>                     <C>                     <C>                   <C>
H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #94-057315 filed 3/28/94
Construction, Inc.         Credit Inc.             State                   **********            *************
                                                                           continuation          #99-615790 filed 2/4/99

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #94-064058 filed 4/4/94
Construction, Inc.         Credit Inc.             State                   **********            **************
                                                                           continuation          #99-621359 filed 2/16/99

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #94-183260 filed 9/19/94
Construction, Inc.         Credit Inc.             State                   ***********           ******************
                                                                           Partial release       #96-630824 filed 3/11/96
                                                                           ***********           ****************
                                                                           partial release       #97-603528 filed 1/9/97
                                                                           ************          ***************
                                                                           partial release       #97-720535 filed 10/2/97
                                                                           ***********           ***************
                                                                           continuation          #99-709787 filed 6/28/99
                                                                           ***********           **************
                                                                           release               #00-882400 filed 11/22/00

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #95-068112 filed 4/6/95
Construction, Inc.         Credit Inc.             State                   ***********           ****************
                                                                           amendment/            #00-781120 filed 3/15/00
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #96-004227 filed 1/5/96
Construction, Inc.         Credit Inc.             State                   *********             **************
                                                                           partial release       #96-630823 filed 3/11/96
                                                                           **********            ****************
                                                                           partial release       #97-603530 filed 1/9/97
                                                                           ***********           ****************
                                                                           partial release       #97-720537 filed 10/2/97
                                                                           ***********           ****************
                                                                           amendment/            #00-876658 filed 11/6/00
                                                                           continuation
                                                                           *********             ***************
                                                                           release               #00-882385 filed 11/22/00

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #96-004228 filed 1/5/96
Construction, Inc.         Credit Inc.             State                   **********            ****************
                                                                           amendment             #96-616650 filed 2/8/96
                                                                           **********            ****************
                                                                           partial release       #96-630822 filed 3/11/96
                                                                           ***********           ****************
                                                                           partial release       #97-603531 filed 1/9/97
                                                                           ***********           ***************
                                                                           partial release       #97-720534 filed 10/2/97
                                                                           ***********           ***************
                                                                           amendment/            #00-876657 filed 11/6/00
                                                                           continuation          ****************
                                                                           **********            #00-882386 filed 11/22/00
                                                                           partial release

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #96-004565 filed 1/8/96
Construction, Inc.         Credit Inc.             State                   *********             ****************
                                                                           amendment/            #00-879466 filed 11/13/00
                                                                           continuation

H.L. Chapman               Financial Federal       Texas Secretary of      Original              #96-067668 filed
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING            FILING INFORMATION
      -------                -------------            ------------         --------------            ------------------
<S>                        <C>                     <C>                     <C>                   <C>
Pipeline                   Credit Inc.             State                   ***********           4/8/96 ****************
Construction, Inc.                                                         partial release       #97-603532 filed 1/9/97
                                                                           ***********           ***************
                                                                           amendment             #97-612662 filed 1/30/97
                                                                           ***********           ***************
                                                                           partial release       #97-638368 filed 3/26/97
                                                                           ***********           ***************
                                                                           amendment             #97-685713 filed 7/14/97
                                                                           **********            ***************
                                                                           partial release       #97-720538 filed 10/2/97
                                                                           **********            ***************
                                                                           partial release       #00-882394 filed 11/22/00
                                                                           ***********           ***************
                                                                           continuation          #01-631145 filed 3/20/01

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #96-138508 filed 1/15/96
Construction, Inc.         Credit Inc.             State                   **********            ***************
                                                                           partial release       #97-603533 filed 1/9/97
                                                                           ***********           *****************
                                                                           partial release       #97-720530 filed 10/2/97
                                                                           ***********           *****************
                                                                           partial release       #00-882387 filed 11/22/00
                                                                           **********            ****************
                                                                           continuation          #01-664474 filed 6/1/01

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #96-190254 filed 9/25/96
Construction, Inc.         Credit Inc.             State                   ************          ****************
                                                                           partial release       #97-603525 filed 1/9/97
                                                                           ************          ****************
                                                                           partial release       #97-720531 filed 10/2/97
                                                                           ************          ***************
                                                                           partial release       #00-882388 filed 11/22/00
                                                                           ***********           *****************
                                                                           continuation          #01-685940 filed 7/30/01
                                                                           **********            ******************
                                                                           not specified         #02-00169098 filed 1/24/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #97-014641 filed 1/27/97
Construction, Inc.         Credit Inc.             State                   **********            ******************
                                                                           partial release       #97-720532 filed 10/2/97
                                                                           ************          *******************
                                                                           partial release       #00-882399 filed 11/22/00
                                                                           ***********           ****************
                                                                           continuation          #02-00150210 filed 1/9/02
                                                                           **********            ****************
                                                                           not specified         #02-00169100

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #97-014642 filed 1/27/97
Construction, Inc.         Credit Inc.             State                   ***********           *****************
                                                                           partial release       #97-720528 filed 10/2/97
                                                                           ************          ******************
                                                                           partial release       #00-882389 filed 11/22/00
                                                                           ***********           *****************
                                                                           continuation          #02-00150213 filed 1/9/02
                                                                           ***********           *****************
                                                                           not specified         #02-00169099 filed 1/24/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #97-147864 filed 7/14/97
Construction, Inc.         Credit Inc.             State                   ***********           ******************
                                                                           partial release       #97-720529 filed 10/2/97
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
      COMPANY                SECURED PARTY            JURISDICTION         TYPE OF FILING            FILING INFORMATION
      -------                -------------            ------------         --------------            ------------------
<S>                        <C>                     <C>                     <C>                   <C>
                                                                           ************          ******************
                                                                           partial release       #00-882390 filed 11/22/00
                                                                           ***********           ******************
                                                                           continuation          #02-00304839 filed 5/17/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #97-197334 filed 9/22/97
Construction, Inc.         Credit Inc.             State                   ***********           ****************
                                                                           partial release       #00-882395 filed 11/22/00
                                                                           ************          ****************
                                                                           continuation          #02-00415048 filed 8/22/02

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #98-012311 filed 1/20/98
Construction, Inc.         Credit Inc.             State                   ***********           *******************
                                                                           partial release       #00-882392 filed 11/22/00
                                                                           ***********           *******************
                                                                           continuation          #03-00127374 filed 1/3/03

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #98-118420 filed 6/9/98
Construction, Inc.         Credit Inc.             State                   ***********           *******************
                                                                           partial release       #00-882393 filed 11/22/00
                                                                           ***********           *****************
                                                                           amendment/            #03-00288448 filed 5/23/03
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #98-177666 filed 9/1/98
Construction, Inc.         Credit Inc.             State                   ***********           ****************
                                                                           partial release       #00-882391 filed 11/22/00
                                                                           ***********           ******************
                                                                           amendment/            #03-00393607 filed 8/25/03
                                                                           continuation

H.L. Chapman Pipeline      Financial Federal       Texas Secretary of      Original              #99-079072 filed 4/20/99
Construction, Inc.         Credit Inc.             State                   ***********           *******************
                                                                           partial release       #00-882397 filed 11/22/00

Mears /CPG Inc             FirstBank               Michigan Secretary of   Original              #D330575 filed 1/26/98
                                                   State                   ************          *******************
                                                                           Continuation          #2002031404-9 filed 12/4/02 -
                                                                                                 continuation

Mears/HDD, LLC             FirstBank               Michigan Secretary of   Original              #D211493 filed 3/21/97
                                                   State                   ************          *******************
                                                                           Continuation          #D870862 filed 2/5/02 - continuing
                                                                                                 #D211493 filed 3/21/97

Mears/HDD, LLC             FirstBank               Michigan Secretary of   Original              #D494923 filed 3/25/99
                                                   State

Mears/HDD, LLC             FirstBank               Michigan Secretary of   Original              #D507420 filed 4/22/99
                                                   State

R.A. Waffensmith & Co.,    Fleet Business          Colorado Secretary of   Original              #20022092857 M filed 9/3/02
Inc.                       Credit, LLC             State

Dillard Smith              Fleet Capital           Delaware Secretary of   Original              #21637374 filed 6/3/02
Construction Company       Corporation             State

Potelco, Inc.              GE Capital              Washington Secretary    Original              #200231157249 filed 11/6/02
                                                   of State

Potelco, Inc.              GE Capital              Washington Secretary    Original              #200319704389 filed 7/15/03
                                                   of State

Quanta Services, Inc.      Gelco Corporation dba   Delaware Secretary of   Original              #11055958 filed 8/29/01
                           GE Capital Fleet        State
                           Services

Quanta Services, Inc.      Gelco Corporation       Delaware Secretary      Original              #11297659 filed 10/3/01
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
                           dba GE Capital Fleet    of State
                           Services

Quanta Services, Inc.      Gelco Corporation dba   Delaware Secretary of   Original         #11417786 filed 10/17/01
                           GE Capital Fleet        State
                           Services

Environmental              Gelco Corporation dba   California Secretary    Original         #0221760133 filed 8/1/02
Professional Associates    GE Capital Fleet        of State
Limited                    Services

PAR Electrical             Gelco Corporation dba   Missouri Secretary of   Original         #20018019481B filed 8/28/01
Contractors, Inc.          GE Capital Fleet        State
                           Services

PAR Electrical             Gelco Corporation dba   Missouri Secretary of   Original         #20018032601B filed 9/14/01
Contractors, Inc.          GE Capital Fleet        State
                           Services

PAR Electrical             Gelco Corporation dba   Missouri Secretary of   Original         #20018048045G filed 10/17/01
Contractors, Inc.          GE Capital Fleet        State
                           Services

Dillard Smith              General Electric        Delaware Secretary of   In Lieu -        #20351779 filed 1/16/02
Construction Company       Capital Corporation     State                   original filed
                                                                           in TN

Dillard Smith              General Electric        Tennessee Secretary     Original         #948576 filed 1/13/92
Construction Company       Capital Corporation     of State                ***********      *******************
                                                                           continuation     #962-028009 filed 7/16/96

Dillard Smith              General Electric        Tennessee Secretary     Original         #940339253 filed 8/8/94
Construction Company       Capital Corporation     of State                ************     *****************
                                                                           continuation     #992-011995 filed 3/4/99

Dillard Smith              General Electric        Tennessee Secretary     Original         #940352051 filed 9/16/94
Construction Company       Capital Corporation     of State                ************     *****************
                                                                           continuation     #993-015913 filed 3/25/99

Dillard Smith              General Electric        Tennessee Secretary     Original         #950404170 filed 3/2/95
Construction Company       Capital Corporation     of State                ************     ****************
                                                                           Continuation     #992-054619 filed 11/23/99

Dillard Smith              General Electric        Tennessee Secretary     Original         #950412960 filed 3/27/95
Construction Company       Capital Corporation     of State                ***********      ******************
                                                                           continuation     #992-054620 filed 11/23/99

Dillard Smith              General Electric        Tennessee Secretary     Original         #950426691 filed 5/3/95
Construction Company       Capital Corporation     of State                ************     ******************
                                                                           continuation     #993-067328 filed 12/28/99

Dillard Smith              General Electric        Tennessee Secretary     Original         #950472918 filed 9/20/95
Construction Company       Capital Corporation     of State                ************     *******************
                                                                           continuation     #300-027117 filed 5/4/00

PAR Electrical             General Electric        Colorado Secretary of   Original         #962025742 C filed 4/5/96
Contractors, Inc.          Capital Corporation     State                   **********       ******************
                                                                           continuation     #962077815 C filed 10/16/96

PAR Electrical             General Electric        Colorado Secretary of   Original         #962035594 C filed 5/8/96
Contractors, Inc.          Capital Corporation     State                   ************     ****************
                                                                           continuation     #962077814 C filed 10/16/96

PAR Electrical             General Electric        Colorado Secretary of   Original         #962038759 C filed 5/20/96
Contractors, Inc.          Capital Corporation     State                   ***********      ***************
                                                                           continuation     #962077816 filed 10/16/96

PAR Electrical             General Electric        Colorado Secretary of   Original         #962041284 C filed 5/29/96
Contractors, Inc.          Capital Corporation     State                   ***********      ***************
                                                                           continuation     #962077817 C filed 10/16/96

PAR Electrical             General Electric        Colorado Secretary      Original         #962045340 C filed 6/12/96
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Contractors, Inc.          Capital Corporation     of State                ***********      ***************
                                                                           continuation     #962077818 C filed 10/16/96

PAR Electrical             General Electric        Colorado Secretary of   Original         #962049900 C filed 7/1/96
Contractors, Inc.          Capital Corporation     State                   ***********      *************
                                                                           continuation     #962077819 C filed 10/16/96

PAR Electrical             General Electric        Missouri Secretary of   Original         #2661332 filed 5/7/96
Contractors, Inc.          Capital Corporation     State

PAR Electrical             General Electric        Missouri Secretary of   Original         #2665609 filed 5/20/96
Contractors, Inc.          Capital Corporation     State

PAR Electrical             General Electric        Clay Co., Missouri      Original         #H162660 filed 5/7/96
Contractors, Inc.          Capital Corporation                             ***********      ******************
                                                                           Amendment        #A-H162660 filed 7/24/96
                                                                           ***********      *******************
                                                                           Continuation     #C-H162660 filed 2/26/01

PAR Electrical             General Electric        Clay Co., Missouri      Original         #H162741 filed 5/20/96
Contractors, Inc.          Capital Corporation                             **********       ******************
                                                                           Continuation     #C-H162741 filed 2/26/01

Quanta Services            General Electric        Texas Secretary of      Original         #02-0015485611 filed 1/14/02
Management Partnership,    Capital Corporation     State
L.P.

Quanta Management          General Electric        Texas Secretary of      Original         #02-0015489251 filed 1/14/02
Services Partnership,      Capital Corporation     State                   ************     ******************
L.P.                                                                       Amendment        #03-00164595 filed 2/6/03

Quanta Services            General Electric        Texas Secretary of      Original         #02-0021106123 filed -3/4/02
Management Partnership,    Capital Corporation     State
L.P.

Quanta Services            General Electric        Texas Secretary of      Original         #02-0029005836 filed 5/7/02
Management Partnership,    Capital Corporation     State
L.P.

Quanta Services            General Electric        Texas Secretary of      Original         #02-0029006857 filed 5/7/02
Management Partnership,    Capital Corporation     State
L.P.

Quanta Services            General Electric        Texas Secretary of      Original         #02-0033105145 filed 6/11/02
Management Partnership,    Capital Corporation     State                   ************     *******************
L.P.                                                                       Amendment        #03-00165874 filed 2/7/03

Quanta Services            General Electric        Texas Secretary of      Original         #02-0033105367filed 6/11/02
Management Partnership,    Capital Corporation     State                   ***********      ******************
L.P.                                                                       Amendment        #03-00283607 filed 5/20/03

Quanta Services            General Electric        Texas Secretary of      Original         #02-0034805971 filed 6/25/02
Management Partnership,    Capital Corporation     State
L.P.

Quanta Services            General Electric        Texas Secretary of      Original         #03-0000354358 filed 9/5/02
Management Partnership,    Capital Corporation     State
L.P.

PAR Electrical             Hawthorne Machinery     California Secretary    Original         #0009660608 filed 3/31/00
Contractors, Inc.          Co.                     of State

H.L. Chapman Pipeline      Holt Texas Ltd., dba    Delaware Secretary of   Original         #11791818 filed 11/21/01
Construction, Inc.         Holt Company of Texas   State

Irby Construction Company  IBM Credit Corporation  Hinds County,           Original         #372718 filed 11/16/98
                                                   Mississippi

Potelco, Inc.              IOS Capital, LLC        Washington Secretary    Original         #200325363938 filed 9/9/03
                                                   of State

Mears Services, LLC        Irwin Union Bank        Michigan Secretary      Original         #D691550 filed 9/6/00
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
                           and Trust Company       of State

Mears/ CPG, LLC            Irwin Union Bank and    Michigan Secretary of   Original         #D674193 filed 7/13/00
                           Trust Company           State

Bradford Brothers, Inc.    J.W. Burress, Inc.      North Carolina          Original         #20010503538I filed 7/24/01
                                                   Secretary of State

Bradford Brothers, Inc.    J.W. Burress, Inc.      North Carolina          Original         #20010506576H filed 7/9/01
                                                   Secretary of State

Northern Line Layers,      JCB Finance LLC         Delaware Secretary of   Original         #22029555 filed 8/1/02
LLC                                                State

Quanta Services, Inc.      Key Equipment           Delaware Secretary of   Original         #20112304 filed 12/10/01
                           Finance, a Division     State
                           of Key Corporate
                           Capital

PAR Electrical             Kirby-Smith Machinery   Oklahoma Co., OK        Original         #0009820 filed 2/20/01
Contractors, Inc.          Inc.

H.L. Chapman Pipeline      Komatsu Financial L.P.  Delaware Secretary of   In Lieu-         #20861348 filed 3/13/02
Construction, Inc.                                 State                   original filed
                                                                           in TX

H.L. Chapman Pipeline      Komatsu Financial LP    Texas Secretary of      Original         #01-003074 filed 1/5/01
Construction, Inc.                                 State

Sumter Utilities, Inc.     Kubota Credit           South Carolina          Original         #1044516 filed 5/29/03
                           Corporation U.S.A.      Secretary of State

Sumter Utilities, Inc.     Kubota Credit           South Carolina          Original         #1010530 filed 4/30/03
                           Corporation U.S.A.      Secretary of State

Sumter Utilities, Inc.     Kubota Credit           South Carolina          Original         #1010438 filed 4/30/03
                           Corporation U.S.A.      Secretary of State

Sumter Utilities, Inc.     Kubota Credit           South Carolina          Original         #1010290 filed 4/30/03
                           Corporation U.S.A.      Secretary of State

The Ryan Company, Inc.     LaChance Financial      Massachusetts           Original         #00739745 filed 8/25/00
                           Services, Inc.          Secretary of State

                           Assigned to:

                           GE Capital Colonial
                           Pacific

Mustang Line               Les Schwab Tire         Washington Secretary    Original         #200214971572 filed 5/28/02
Contractors, Inc.          Center of Boise, Inc.   of State

Intermountain Electric     Liebert North America   Colorado Secretary of   Original         #20012112389 filed 12/5/01
                           Corporation             State

Arby Construction, Inc.    Miller-Bradford &       Wisconsin Department    Original         #01947279 filed 4/18/00
                           Risberg, Inc.           of Financial
                                                   Institutions

Arby Construction, Inc.    Miller-Bradford &       Wisconsin Department    Original         #010006840725 filed 10/22/01
                           Riseberg, Inc.          of Financial
                                                   Institutions

R.A. Waffensmith & Co.,    Minnwest Capital        Colorado Secretary of   Original         #20022085210 M filed 8/9/02
Inc.                       Corporation             State

Quanta Services, Inc.      Mirex                   Texas Secretary of      Original         #02-0032952528 filed 6/7/02
                                                   State

Sumter Utilities, Inc.     Navistar Financial      South Carolina          Original         #105127A filed 10/23/01
                           Corp.                   Secretary of State

Spalj Construction         New Holland Credit      Minnesota Secretary     Original         #2227706 filed 5/15/00
Company                    Company                 of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Spalj Construction         New Holland Credit      Minnesota Secretary     Original         #2236567 filed 6/15/00
Company                    Company                 of State

Manuel Bros., Inc.         Nikon Inc.,             California Secretary    Original         #0023560499 filed 8/21/00
                           Instrument Group        of State

Golden State Utility Co.   Nixon-Egli Equipment    California Secretary    Original         #200004860682 filed 2/14/00
                           Company of Southern     of State
                           California, Inc.

Spalj Construction         NMHG Financial          Minnesota Secretary     Original         #2271895 filed 11/2/00
Company                    Services, Inc.          of State

The Ryan Company, Inc.     Peterson Tractor Co.    Massachusetts           Original         #200208423380 filed 1/18/02
                                                   Secretary of State

PAR Electrical             Portable Tool           Missouri Secretary of   Original         #3079400 filed 9/27/99
Contractors, Inc.                                  State

PAR Electrical             Portable Tool Sales &   Clay Co., Missouri      Original         #H170564 filed 9/24/99
Contractors, Inc.          Service, Inc.                                   **********       ******************
                                                                           Amendment        #A-H170564 filed 11/29/99
                           Assigned to

                           Associates Commercial
                           Corporation

PAR Electrical             Portable Tool Sales     Illinois Secretary of   Original         #4099025 filed 9/24/99
Contractors, Inc.          and Service, Inc.       State

PAR Electrical             Portable Tool Sales     Missouri Secretary of   Original         #3092172 filed 11/8/99
Contractors, Inc.          and Service, Inc.       State

PAR Electrical             Rasmussen Equipment     Colorado Secretary of   Original         #20012002964 filed 1/11/01
Contractors, Inc.          Co.                     State

PAR Electrical             Redburn Tire Co.        Nevada Secretary of     Original         #0009471 filed 6/20/00
Contractors, Inc.                                  State

Dillard Smith              Ringhaver Equipment     Florida Secretary of    Original         #200100114112 filed 5/23/01
Construction Company       Company                 State

Dillard Smith              Ringhaver Equipment     Florida Secretary of    Original         #200100125788 filed 6/8/01
Construction Company       Company                 State

PAR Electrical             River City Petroleum,   Nevada Secretary of     Original         #2001012642-8 filed 12/5/01
Contractors, Inc.          Inc.                    State

Mears/CPG Inc.             Roland Machinery        Michigan Secretary of   Original         #D479404 filed 2/17/99
                           Company                 State

Mears/CPG, Inc.            Roland Machinery        Michigan Secretary of   Original         #D527988 filed 6/8/99
                           Company                 State

Mears/CPG, Inc.            Roland Machinery        Michigan Secretary of   Original         #D627375 filed 3/6/00
                           Company                 State

Mears/CPG, LLC             Roland Machinery        Michigan Secretary of   Original         #D627376 filed 3/6/00
                           Company                 State

Mears/CPG, LLC             Roland Machinery        Michigan Secretary of   Original         #D658629 filed 5/26/00
                           Company                 State

Dillard Smith              Rudd Equipment Co.      Mecklenburg County,     Original         #199906939 filed 7/19/99
Construction Company                               North Carolina

Dillard Smith              Rudd Equipment Company  North Carolina          Original         #19990052830 filed 6/1/99
Construction Company                               Secretary of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Dillard Smith              Rudd Equipment Company  Mecklenburg County,     Original         #199906627 filed 7/8/99
Construction Company                               North Carolina

Trans Tech Electric, L.P.  Rudd Equipment Company  Texas Secretary of      Original         #03-0034559392 filed 7/15/03
                                                   State

H.L. Chapman Pipeline      Safeco Credit           Delaware Secretary of   In Lieu          #30271703 filed 1/14/03
Construction, Inc.         Company, Inc.           State

H.L. Chapman Pipeline      SAFECO Credit           Texas Secretary of      Original         #99-065291 filed 4/2/99
Construction, Inc.         Company, Inc.           State

H.L. Chapman Pipeline      SAFECO Credit           Texas Secretary of      Original         #99-067291 filed 4/5/99
Construction, Inc.         Company, Inc.           State

Irby Construction          Scott Construction      Mississippi Secretary   Original         #01351753 filed 7/9/99
Company                    Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01287274 filed 1/21/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01287279 filed 1/21/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01353785 filed 8/13/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01351751 filed 7/9/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01351754 filed 7/9/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01342472 filed 7/9/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01342473 filed 7/9/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01342471 filed 7/9/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Co       Scott Construction      Mississippi Secretary   Original         #01287276 filed 1/21/99
                           Equipment Co of LA,     of State
                           LLC/Powerline Division
                           Assigned to:
                           Contractors Finance Co

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372088 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372087 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372089 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372092 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372090 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #372091 filed 10/19/98
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #374788 filed 1/21/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #374789 filed 1/21/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #374790 filed 1/21/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #378760 filed 7/9/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #378761 filed 7/9/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Scott Truck & Tractor   Hinds County,           Original         #379880 filed 8/18/99
                           Co. of LA, Inc.         Mississippi
                           Powerline & Utility
                           Division

Irby Construction Company  Southeastern Crane      Florida Secretary of    Original         #990000213563 filed 9/17/99
                           Inc.                    State

PAR Electrical             Steelcase Financial     Missouri Secretary of   Original         #20018069813E filed 12/28/01
Contractors, Inc.          Services, Inc.          State

Crown Fiber                Textron Financial       Barrow Co., GA          Original         #007-99-003034 filed 3/22/99
Communications, Inc.       Corporation

P.D.G. Electric Company    The CIT                 Florida Secretary of    Original         #980000255345 filed 11/16/98
                           Group/Equipment         State
                           Financing, Inc.

PAR Electrical             The CIT                 California Secretary    Original         #0127060381 filed 9/26/01
Contractors, Inc.          Group/Equipment         of State
                           Financing, Inc.

PAR Electrical             The CIT                 Missouri Secretary of   Original         #4010681 filed 1/31/00
Contractors, Inc.          Group/Equipment         State
                           Financing, Inc.

Trawick Construction       Thompson Tractor Co.,   Florida Secretary of    Original         #990000025443 filed 2/4/99
Company, Incorporated      Inc.                    State

Trawick Construction       Thompson Tractor Co.,   Florida Secretary of    Original         #98-0000264433 filed 11/30/98
Company, Incorporated      Inc.                    State

The Ryan Company, Inc.     Tom Gowney Equipment,   Massachusetts           Original         #200213672140 filed 7/29/02
                           Inc.                    Secretary of State

H.L. Chapman Pipeline      Trencor, Inc.           Texas Secretary of      Original         #00-436961 filed 2/22/00
Construction, Inc.                                 State

Croce Electric Company,    Trinity Capital         Massachusetts           Original         #01768453 filed 1/4/01
Inc.                       Corporation             Secretary of State

The Ryan Company,          Tyler Equipment         Massachusetts           Original         #200103470830 filed 6/25/01
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Inc.                       Corporation             Secretary of State

Spalj Construction         U.S. Bancorp            Delaware Secretary of   Original         #11664346 filed 11/13/01
Company                                            State

Dillard Smith              U.S. Bancorp            Delaware Secretary of   Original         #32506783 filed 9/26/03
Construction Company       Equipment Finance,      State
                           Inc.

Coast to Coast & Howard    U.S. Small Business     California Secretary    Original         #94089846 filed 5/9/94
O Brown & Mary Kathleen    Administration          of State                ************     *******************
Brown                                                                      Continuation     #99111C0068 filed 4/19/99 -
                                                                                            continuation of #94089846 filed
                                                                                            5/9/94

PAR Electrical             Union Distributing of   Arizona Secretary of    Original         #20021210191-2 filed 3/26/02
Contractors, Inc.          Tucson                  State

PAR Electrical             Union Distributing of   Arizona Secretary of    Original         #20031263520-4 filed 5/28/03
Contractors, Inc.          Tucson                  State

Intermountain Electric     Universal Tractor Co    Colorado Secretary of   Original         #20002067174 filed 7/25/00
Inc.                                               State

Intermountain Electric     Universal Tractor Co.   Colorado Secretary of   Original         #20002067173 filed 7/25/00
                                                   State

PAR Electrical             US Bancorp              Missouri Secretary of   Original         #20030008109E filed 1/24/03
Contractors, Inc.                                  State

Potelco, Inc.              US Bancorp              Washington Secretary    Original         #200226830942 filed 9/24/02
                                                   of State

R.A. Waffensmith & Co.,    US Bancorp              Colorado Secretary of   Original         #20032053445 M filed 5/19/03
Inc.                                               State

H.L. Chapman Pipeline      Vermeer Equipment of    Texas Secretary of      Original         #00-576707 filed 8/31/00
Construction, Inc.         Texas, Inc.             State

Trawick Construction       Vermeer Sales &         Florida Secretary of    Original         #200000141496 filed 6/19/00
Company                    Service, Inc.           State

Trawick Construction       Vermeer Sales &         Florida Secretary of    Original         #200000141496 filed 6/19/00
Co., Inc.                  Service, Inc.           State

Trawick Construction       Vermeer Sales &         Florida Secretary of    Original         #200000127141 filed 6/1/00
Company                    Service, Inc.           State

Trawick Construction       Vermeer Sales &         Florida Secretary of    Original         #990000177313 filed 8/4/99
Co., Inc.                  Service, Inc.           State

H.L. Chapman Pipeline      Waukesha-Pearce         Texas Secretary of      Original         #99-028902 filed 2/10/99
Construction, Inc.         Industries, Inc.        State

                           Assigned to:                                    **********       *****************
                                                                           assignment       #99-664542 filed 3/16/99
                           Komatsu Financial
                           Limited

Dillard Smith              Wayne Supply Company    Tennessee Secretary     Original         #101-019882 filed 3/13/01
Construction Company                               of State

Dillard Smith              Wayne Supply Company    Tennessee Secretary     Original         #200-43087 filed 12/1/00
Construction Company                               of State

Dillard Smith              Wayne Supply Company    Tennessee Secretary     Original         #201-046652 filed 1/4/01
Construction Company                               of State

Potelco, Inc.              Wells Fargo Bank        Washington Secretary    Original         #200223849091 filed 8/26/02
                           Northwest, N.A.         of State
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
Potelco, Inc.              Western Power &         Washington Secretary    Original         #20000310097 filed 1/31/00
                           Equipment Corp.         of State

                           Assignee:
                           Case Credit
                           Corporation

Dillard Smith              Whayne Supply Company   Delaware Secretary of   Original         #11479216 filed 10/22/01
Construction Company                               State

Dillard Smith              Whayne Supply Company   Delaware Secretary of   Original         #11751051 filed 11/19/01
Construction Company                               State

Dillard Smith              Whayne Supply Company   Kentucky Secretary of   Original         #1606150 filed 12/23/00
Construction Company                               State

Dillard Smith              Whayne Supply Company   Kentucky Secretary of   Original         #1606772 filed 2/22/02
Construction Company                               State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #983-609385 filed 10/9/98
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #983-610133 filed 10/21/98
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #992-000714 filed 1/6/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #992-001783 filed 1/15/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #992-023809 filed 5/24/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #992-023810 filed 5/24/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #992-029789 filed 6/28/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #993-020628 filed 4/20/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #993-027729 filed 5/18/99
Construction Company                               of State

Dillard Smith              Whayne Supply Company   Tennessee Secretary     Original         #993-027730 filed 5/18/99
Construction Company                               of State
Potelco, Inc.              Wiliams Scotsman, Inc.  Washington Secretary    Original         #200307621674 filed 3/13/03
                                                   of State

Potelco, Inc.              William Scotsman        California Secretary    Original         #0228960952 filed 10/15/02
                           Mobile Offices          of State

                           Assigned to:                                    **********       *****************
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
       COMPANY                 SECURED PARTY           JURISDICTION        TYPE OF FILING       FILING INFORMATION
       -------                 -------------           ------------        --------------       ------------------
<S>                        <C>                     <C>                     <C>              <C>
                                                                           assignment       #03218C0300 filed 7/31/03
                           Tatonka Capital
                           Corporation

The Ryan Company, Inc.     William Scotsman        Massachusetts           Original         #200208218580 filed 1/10/02
                           Mobile Offices          Secretary of State

Mears/CPG Inc.             Wolverine Tractor &     Michigan Secretary of   Original         #D489334 filed 3/11/99
                           Equipment  Co.          State

Mears/CPG Inc.             Wolverine Tractor &     Michigan Secretary of   Original         #D489332 filed 3/11/99
                           Equipment Co.           State

Mears/CPG Inc.             Wolverine Tractor &     Michigan Secretary of   Original         #D489333 filed 3/11/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D489831 filed 3/12/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D489832 filed 3/12/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D489833 filed 3/12/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D490063 filed 3/12/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D490064 filed 3/12/99
                           Equipment Co.           State

Mears/CPG, Inc.            Wolverine Tractor &     Michigan Secretary of   Original         #D490065 filed 3/12/99
                           Equipment Co.           State

Quanta Services, Inc.      Yokohama Tire           Texas Secretary of      Original         #00-579046 filed 9/5/00
                           Corporation             State
</TABLE>
<PAGE>

                                  Schedule 8.02

                    INVESTMENTS EXISTING ON THE CLOSING DATE

All Investments existing on the Closing Date in:

         -        Pivotel, LLC, a Delaware limited liability company (or any of
                  its successors or assigns);

         -        MLM Services, L.L.C., an Oklahoma limited liability company
                  (or any of its successors or assigns); and

         -        Foreign Subsidiaries existing on or prior to the Closing Date,
                  including, without limitation, Investments in Allteck Line
                  Contractors, Inc., a British Columbia corporation (or any of
                  its successors or assigns) (including, without limitation,
                  pursuant to that certain letter of credit no. 3048269 for the
                  benefit of Bank of Nova Scotia in the amount of $4,050,000),
                  Mears Canada Corp., a Nova Scotia corporation (or any of its
                  successors or assigns) and Mearsmex S. de R.L. de C.V., a
                  sociedad de responsabilidad limitada de capital variable
                  organized under the laws of Mexico (or any of its successors
                  or assigns).

<PAGE>

                                  Schedule 8.03

                    INDEBTEDNESS EXISTING ON THE CLOSING DATE

<TABLE>
<CAPTION>
                                                                                                              AMOUNT
                                                                                                          OUTSTANDING AS
                                                                                     MATURITY             OF OCTOBER 31,
CREDITOR NAME                                    DEBTOR                                DATE                    2003
------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                           <C>                  <C>
Bank of Nova Scotia                    Potelco, Inc.                                 Revolver             $2,137,173.66
Bill Jones                             North Houston Pole Line Corp.                 Dec-03                    7,500.00
Bill Jones                             North Houston Pole Line Corp.                 Dec-03                    2,333.34
Case                                   North Houston Pole Line Corp.                 Nov-06                  120,945.73
Case                                   North Houston Pole Line Corp.                 Feb-04                   52,836.76
Case                                   North Houston Pole Line Corp.                 Jun-04                   34,857.25
Case                                   North Houston Pole Line Corp.                 Nov-04                   33,716.00
Case                                   North Houston Pole Line Corp.                 Apr-04                   14,080.03
Case Credit                            Potelco, Inc.                                 Jun-04                   87,462.27
Case Credit                            Potelco, Inc.                                 Dec-03                    9,782.70
Case Credit                            Potelco, Inc.                                 Dec-03                    9,198.76
Case Credit                            Potelco, Inc.                                 Dec-03                    9,198.76
Case Credit                            Potelco, Inc.                                 Dec-03                    7,188.80
Case Credit                            Potelco, Inc.                                 Feb-04                   12,405.10
Case Credit                            Potelco, Inc.                                 Apr-04                    7,507.61
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit                            Potelco, Inc.                                 Apr-04                    5,729.95
Case Credit Corp.                      Golden State Utility Co.                      May-06                   34,314.50
Case Credit Corp.                      Golden State Utility Co.                      May-06                   30,921.14
Case Credit Corporation                Trawick Construction Co.                      Aug-04                   38,100.86
Cat Financial                          North Houston Pole Line Corp.                 Apr-06                 205,226.231
Caterpillar                            Underground Construction Co., Inc.            Oct-05                  159,711.18
Caterpillar                            Underground Construction Co., Inc.            May-04                   17,317.47
Caterpillar                            Sumter Utilities, Inc.                        Jan-04                    4,090.61
Caterpillar                            Sumter Utilities, Inc.                        Jan-04                    2,863.48
Caterpillar Finance                    IRBY Construction Co.                         Dec-03                   38,722.75
CitiCapital                            North Houston Pole Line Corp.                 Feb-04                   24,204.18
Citicapital                            Dillard Smith Construction Co.                Mar-05                   19,680.32
Citicapital                            Dillard Smith Construction Co.                Jan-05                   17,865.00
FirstBank                              Mears Group, Inc.                             Mar-04                   57,186.53
</TABLE>

-----------------
(1) Amount oustanding as of November 2003

<PAGE>

<TABLE>
<S>                                    <C>                                           <C>                     <C>
FirstBank                              Mears Group, Inc.                             Apr-04                   16,281.96
Ford Motor                             Sumter Utilities, Inc.                        Dec-03                      464.96
Ford Motor Credit                      The Ryan Co., Inc.                            Aug-05                   13,435.98
Ford Motor Credit Company              Environmental Professional Assocs.            Jun-04                    4,120.09
GE Capital                             Sumter Utilities, Inc.                        Dec-04                   34,971.77
GE Capital                             Sumter Utilities, Inc.                        Oct-04                   26,139.37
GE Capital                             Sumter Utilities, Inc.                        Jan-05                   12,878.47
GE Capital                             Sumter Utilities, Inc.                        Jan-04                   11,563.59
GE Capital                             Sumter Utilities, Inc.                        Dec-03                    7,587.86
GE Capital                             Sumter Utilities, Inc.                        Dec-03                    6,094.99
GE Capital                             Arby Construction, Inc.                       Dec-04                    2,918.16
GMAC                                   Haines Construction Co.                       Jan-05                   13,709.76
HSBC                                   Sumter Utilities, Inc.                        Jul-04                   24,654.98
Information Leasing                    Mears Group, Inc.                             Mar-04                   54,450.74
Irwin Union                            Mears Group, Inc.                             Jun-05                  541,842.73
Irwin Union                            Mears Group, Inc.                             Aug-04                  232,116.67
Irwin Union                            Mears Group, Inc.                             Apr-05                   79,015.76
John Deere                             Utilco, Inc.                                  Mar-05                   18,963.08
Komatsu Financial                      Chapman Construction Group                    Jan-05                   72,931.40
Kubota                                 Sumter Utilities, Inc.                        Apr-03                  243,297.30
Kubota                                 Sumter Utilities, Inc.                        Apr-03                   22,014.17
Lineco                                 Mustang Line Contractors, Inc.                Oct-04                  146,157.40
Lineco                                 Mustang Line Contractors, Inc.                Sep-04                  107,245.61
Lineco                                 Mustang Line Contractors, Inc.                Nov-03                   14,153.21
Navistar                               Sumter Utilities, Inc.                        May-06                  142,428.75
Navistar                               Sumter Utilities, Inc.                        Jun-06                  141,760.15
Navistar                               Sumter Utilities, Inc.                        Nov-05                  127,474.24
Navistar                               Sumter Utilities, Inc.                        Aug-06                  103,335.88
Navistar                               Sumter Utilities, Inc.                        Dec-05                   91,721.97
Navistar                               Sumter Utilities, Inc.                        Nov-06                   86,147.74
Navistar                               Sumter Utilities, Inc.                        Feb-06                   71,130.72
Navistar                               Sumter Utilities, Inc.                        Jan-06                   59,974.97
Navistar                               Sumter Utilities, Inc.                        Nov-05                   48,519.43
Navistar                               Sumter Utilities, Inc.                        Sep-06                   40,753.94
Navistar                               Sumter Utilities, Inc.                        Oct-06                   38,932.24
Navistar                               Sumter Utilities, Inc.                        Jun-06                   36,768.01
Navistar                               Sumter Utilities, Inc.                        May-06                   35,775.79
Navistar                               Sumter Utilities, Inc.                        Sep-06                   31,209.00
Navistar                               Sumter Utilities, Inc.                        Jun-06                   29,325.60
Navistar                               Sumter Utilities, Inc.                        Jul-04                   19,701.78
New Holland Credit                     Spalj Construction Co.                        May-05                    8,904.45
New Holland Credit                     Spalj Construction Co.                        Apr-05                    8,485.10
Steelcase Financial                    Par Electrical Contractors, Inc.              Feb-05                   60,236.12
United Leasing Associates              Arby Construction, Inc.                       Dec-04                    3,108.65
United Leasing Associates              Arby Construction, Inc.                       Dec-04                    2,470.68
United Leasing Associates              Arby Construction, Inc.                       Dec-04                    1,259.68
</TABLE>

<PAGE>

<TABLE>
<S>                                    <C>                                           <C>                  <C>
United Leasing Associates              Arby Construction, Inc.                       Dec-04                    1,097.03
US Bancorp                             Par Electrical Contractors, Inc.              Jul-04                  115,281.50
US Bancorp                             Par Electrical Contractors, Inc.              Dec-03                   27,141.51
Wm Dillard Smith                       Dillard Smith Construction Co.                Apr-07                  189,059.40
WS Leasing                             Potelco, Inc.                                 Apr-04                    3,586.08
                                                                                                          -------------

                               Total:                                                                     $6,469,101.09
</TABLE>

<PAGE>

                                  Schedule 8.08
                    TRANSACTIONS WITH AFFILIATES AND INSIDERS

-        In February 2000, Borrower submitted a written notice to Gary A. Tucci,
a member of Borrower's board of directors and an officer of Potelco, Inc., a
Loan Party ("Potelco"), seeking indemnification from him for certain accounts
receivable losses sustained by Borrower in connection with its acquisition of
Potelco. The total amount outstanding as a result of this indemnification claim
as of the Closing Date is $144,104. As of the Closing Date, Borrower is
negotiating the settlement of this claim with Mr. Tucci.

-        From time to time, Borrower or a Subsidiary may enter into agreements
to the extent permitted by this Agreement (other than this Section 8.08) with
and/or take a minority ownership position in companies owned or controlled by
family members of officers of such Person for purposes of obtaining benefits
available in connection with governmental programs, organizations or incentives
(including, by way of illustration and without limitation, such programs or
incentives relating to small businesses or transactions with women- or
minority-owned businesses).

-        From time to time and as part of the arms-length negotiation of the
acquisition of Subsidiaries, Borrower or its Subsidiaries may have entered into
transactions with certain officers of its Subsidiaries (including, by way of
illustration and without limitation, leases or rental agreements with such
officers) that, when taken outside the context of the acquisition as a whole,
may not be viewed as being substantially as favorable to Borrower as would be
obtainable by it in an arms-length transaction with a different third-party.

<PAGE>

                                 Schedule 11.02
                          CERTAIN ADDRESSES FOR NOTICE

1.       Address for all Loan Parties:
         Quanta Services, Inc.
         1360 Post Oak Blvd., Suite 2100
         Houston, Texas 77056
         Attention: Chief Financial Officer
         Telephone: (713) 629-7600
         Facsimile: (713) 629-7676
         With a copy to:
         Quanta Services, Inc.
         1360 Post Oak Blvd., Suite 2100
         Houston, Texas 77056
         Attention: General Counsel
         Telephone: (713) 629-7600
         Facsimile: (713) 629-7676
         With a copy to:
         Quanta Services, Inc.
         1360 Post Oak Blvd., Suite 2100
         Houston, Texas 77056
         Attention: Treasurer
         Telephone: (713) 629-7600
         Facsimile: (713) 629-7676

2.       Address for Administrative Agent:
         For payments and Requests for Credit Extensions:
         Bank of America, N.A.
         Bank of America Plaza
         901 Main St.
         Dallas, TX 75202
         Mail Code: TX1-492-14-14
         Attention: Monica Barnes
         Telephone: (214) 209-9289
         Facsimile: (214) 290-9442
         Electronic Mail: monica.t.barnes@bankofamerica.com
         For all other Notices as Agent:
         Bank of America, N.A.
         Agency Management
         231 South LaSalle Street
         Chicago, Illinois  60604
         Mail Code: IL1-231-08-30
         Attention: Rosanne Parsill
         Telephone: (312) 923-1639
         Facsimile: (877) 206-8429
         Electronic Mail: rosanne.parsill@bankofamerica.com
         For all other Notices as Lender:

3.       Address for L/C Issuer and Credit L/C Issuer:
         Bank of America, N.A.
         Trade Operations - Los Angeles
         333 S. Beaudry Avenue, 23rd Floor
         Los Angeles, CA 90017-1466

<PAGE>

         Mail Code: CA9-703-19-23
         Attention: Sandra Leon
         Telephone: (213) 345-5231
         Facsimile: (213) 345-0265
         Email: sandra.leon@bankofamerica.com

4.       Address for Swing Line Lender:
         Bank of America, N.A.
         Bank of America Plaza
         901 Main St.
         Dallas, TX 75202
         Mail Code: TX1-492-14-14
         Attention: Monica Barnes
         Telephone: (214) 209-9289
         Facsimile: (214) 290-9442
         Electronic Mail: monica.t.barnes@bankofamerica.com

<PAGE>

                                    Exhibit A

                    FORM OF LETTER OF CREDIT TRANSFER NOTICE

Date:  __________, 200__

To:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of December ___, 2003
         among Quanta Services, Inc., a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent, L/C Issuer,
         Credit-Linked L/C Issuer Swing Line Lender. Capitalized terms used but
         not otherwise defined herein have the meanings provided in the Credit
         Agreement.

Ladies and Gentlemen:

The undersigned hereby requests:

1. Transfer of Letter of Credit no. _________ issued pursuant to Section 2.03 to
a Credit-Linked Letter of Credit issued pursuant to Section 2.05.

2. On _______________, 200__ (which is a Business Day).

3. In the amount of _____________________.

With respect to such transfer of Letter of Credit no. __________ to a
Credit-Linked Letter of Credit, the Borrower hereby represents and warrants that
(i) such request complies with the requirements of Section 2.05(a)(vi) of the
Credit Agreement and (ii) each of the conditions set forth in Section 5.02 of
the Credit Agreement have been satisfied on and as of the date of such transfer
of Letters of Credit.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                    Exhibit B

                               FORM OF LOAN NOTICE

Date:  __________, 200__

To:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of December ___, 2003
         among Quanta Services, Inc., a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent, L/C Issuer,
         Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
         but not otherwise defined herein have the meanings provided in the
         Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby requests (select one):

[ ]  A Borrowing of Revolving Loans

[ ]  A Borrowing of Term Loans

[ ]  A conversion or continuation of Revolving Loans or Term Loans

1.       On _______________, 200__ (which is a Business Day).

2.       In the amount of $__________.

3.       Comprised of __________ (Type of Loan requested).

4.       For Eurodollar Rate Loans: with an Interest Period of _________ months.

With respect to any borrowing or any conversion or continuation requested
herein, the Borrower hereby represents and warrants that (i) in the case of a
borrowing of Revolving Loans, such request complies with the requirements of the
proviso to the first sentence of Section 2.01(a) of the Credit Agreement, (ii)
in the case of a borrowing of Term Loans, such request complies with the
requirements of the proviso of the first sentence of Section 2.06(a)(i) of the
Credit Agreement and (iii) in the case of a borrowing or any conversion or
continuation, each of the conditions set forth in Section 5.02 of the Credit
Agreement have been satisfied on and as of the date of such borrowing or such
conversion or continuation.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                    Exhibit C

                    FORM OF REQUEST FOR CREDIT-LINKED DEPOSIT

Date:  __________, 200__

To:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of December ___, 2003
         among Quanta Services, Inc., a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent, L/C Issuer,
         Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
         but not otherwise defined herein have the meanings provided in the
         Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby notifies the Administrative Agent that it will repay on
_______, 200_ (which is a Business Day) Term Loans in the outstanding principal
amount of $________ by paying Dollars to the Administrative Agent for deposit in
the Credit-Linked Deposit Account.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                    Exhibit D

                         FORM OF SWING LINE LOAN NOTICE

Date: __________, 200__

To:      Bank of America, N.A., as Swing Line Lender

Cc:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of December ___, 2003
         among Quanta Services, Inc., a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent, L/C Issuer,
         Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
         but not otherwise defined herein have the meanings provided in the
         Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby requests a Swing Line Loan:

1.       On __________ , 200__ (a Business Day).

2.       In the amount of $__________.

With respect to such Borrowing of Swing Line Loans, the Borrower hereby
represents and warrants that (i) such request complies with the requirements of
the proviso to the first sentence of Section 2.04(a) of the Credit Agreement and
(ii) each of the conditions set forth in Section 5.02 of the Credit Agreement
have been satisfied on and as of the date of such Borrowing of Swing Line Loans.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                   Exhibit E-1

                             FORM OF REVOLVING NOTE

                                                               December __, 2003

FOR VALUE RECEIVED, the undersigned (the "Borrower"), hereby promises to pay to
_____________________ or registered assigns (the "Lender"), in accordance with
the provisions of the Credit Agreement (as hereinafter defined), the principal
amount of each Revolving Loan from time to time made by the Lender to the
Borrower under that certain Credit Agreement (as amended, modified, supplemented
and extended from time to time, the "Credit Agreement") dated as of December __,
2003 among the Borrower, the Guarantors identified therein, the Lenders
identified therein and Bank of America, N.A., as Administrative Agent, L/C
Issuer, Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
but not otherwise defined herein have the meanings provided in the Credit
Agreement.

The Borrower promises to pay interest on the unpaid principal amount of each
Revolving Loan from the date of such Revolving Loan until such principal amount
is paid in full, at such interest rates and at such times as provided in the
Credit Agreement. All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent's Office. If any amount is not paid
in full when due hereunder, such unpaid amount shall bear interest, to be paid
upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in
the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. Upon the occurrence and continuation of
one or more of the Events of Default specified in the Credit Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable all as provided in the Credit Agreement.
Revolving Loans made by the Lender shall be evidenced by one or more loan
accounts or records maintained by the Lender in the ordinary course of business.
The Lender may also attach schedules to this Note and endorse thereon the date,
amount and maturity of its Revolving Loans and payments with respect thereto.

The Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                   Exhibit E-2

                             FORM OF SWING LINE NOTE

                                                               December __, 2003

FOR VALUE RECEIVED, the undersigned (the "Borrower"), hereby promises to pay to
BANK OF AMERICA, N.A. or registered assigns (the "Swing Line Lender"), in
accordance with the provisions of the Credit Agreement (as hereinafter defined),
the principal amount of each Swing Line Loan from time to time made by the Swing
Line Lender to the Borrower under that certain Credit Agreement (as amended,
modified, supplemented and extended from time to time, the "Credit Agreement")
dated as of December __, 2003 among the Borrower, the Guarantors identified
therein, the Lenders identified therein and Bank of America, N.A., as
Administrative Agent, L/C Issuer, Credit-Linked L/C Issuer and Swing Line
Lender. Capitalized terms used but not otherwise defined herein have the
meanings provided in the Credit Agreement.

The Borrower promises to pay interest on the unpaid principal amount of each
Swing Line Loan from the date of such Swing Line Loan until such principal
amount is paid in full, at such interest rates and at such times as provided in
the Credit Agreement. All payments of principal and interest shall be made to
the Administrative Agent for the account of the Swing Line Lender in Dollars in
immediately available funds at the Administrative Agent's Office. If any amount
is not paid in full when due hereunder, such unpaid amount shall bear interest,
to be paid upon demand, from the due date thereof until the date of actual
payment (and before as well as after judgment) computed at the per annum rate
set forth in the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. Upon the occurrence and continuation of
one or more of the Events of Default specified in the Credit Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable all as provided in the Credit Agreement. Swing
Line Loans made by the Swing Line Lender shall be evidenced by one or more loan
accounts or records maintained by the Lender in the ordinary course of business.
The Swing Line Lender may also attach schedules to this Note and endorse thereon
the date, amount and maturity of its Swing Line Loans and payments with respect
thereto.

The Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                   Exhibit E-3

                           FORM OF CREDIT-LINKED NOTE

                                                               December __, 2003

FOR VALUE RECEIVED, the undersigned (the "Borrower"), hereby promises to pay to
_______________ or registered assigns (the "Lender"), in accordance with the
provisions of the Credit Agreement (as hereinafter defined), the principal
amount of each Term Loan from time to time made by the Lender to the Borrower
under that certain Credit Agreement (as amended, modified, supplemented and
extended from time to time, the "Credit Agreement") dated as of December __,
2003 among the Borrower, the Guarantors identified therein, the Lenders
identified therein and Bank of America, N.A., as Administrative Agent, L/C
Issuer, Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
but not otherwise defined herein have the meanings provided in the Credit
Agreement.

The Borrower promises to pay interest on the unpaid principal amount of (a) each
Credit-Linked L/C Advance from the date of such Credit-Linked L/C Advance until
such principal amount is paid in full and (b) each Term Loan from the date of
such Term Loan until such principal amount is paid in full, at such interest
rates and at such times as provided in the Credit Agreement. All payments of
principal and interest shall be made to the Administrative Agent for the account
of the Lender in Dollars in immediately available funds at the Administrative
Agent's Office. If any amount is not paid in full when due hereunder, such
unpaid amount shall bear interest, to be paid upon demand, from the due date
thereof until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. Upon the occurrence and continuation of
one or more of the Events of Default specified in the Credit Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable all as provided in the Credit Agreement. Credit-
Linked L/C Advances and Term Loans made by the Lender shall be evidenced by one
or more loan accounts or records maintained by the Lender in the ordinary course
of business. The Lender may also attach schedules to this Note and endorse
thereon the date, amount and maturity of its Credit-Linked L/C Advances and Term
Loans and payments with respect thereto.

The Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                    Exhibit F

                         FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date: __________, 200__

To:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of December __, 2003
         among Quanta Services, Inc., a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent, L/C Issuer,
         Credit-Linked L/C Issuer and Swing Line Lender. Capitalized terms used
         but not otherwise defined herein have the meanings provided in the
         Credit Agreement.

Ladies and Gentlemen:

The undersigned Responsible Officer hereby certifies as of the date hereof that
[he/she] is the _______________ of the Borrower, and that, in [his/her] capacity
as such, [he/she] is authorized to execute and deliver this Certificate to the
Administrative Agent on the behalf of the Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements:]

[1.      Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 7.01(a) of the Credit Agreement for the fiscal
year of the Borrower ended as of the above date, together with the report and
opinion of an independent certified public accountant required by such section.]

[Use following paragraph 1 for fiscal quarter-end financial statements:]

[1.      Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 7.01(b) of the Credit Agreement for the fiscal quarter of
the Borrower ended as of the above date. Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence
of footnotes.]

2.       The undersigned has reviewed and is familiar with the terms of the
Credit Agreement and has made, or has caused to be made, a detailed review of
the transactions and condition (financial or otherwise) of the Borrower during
the accounting period covered by the attached financial statements.

3.       A review of the activities of the Borrower during such fiscal period
has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Borrower performed and
observed all its Obligations under the Loan Documents, and

[select one:]

[to the best knowledge of the undersigned during such fiscal period, the
Borrower performed and observed each covenant and condition of the Loan
Documents applicable to it.]

[or:]

<PAGE>

[the following covenants or conditions have not been performed or observed and
the following is a list of each such Default and its nature and status:]

4.       The representations and warranties of the Loan Parties contained in the
Credit Agreement or any other Loan Document, are true and correct on and as of
the date hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Compliance
Certificate, the representations and warranties contained in subsections (a) and
(b) of Section 6.05 of the Credit Agreement shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 7.01 of the Credit Agreement, including the statements in connection
with which this Compliance Certificate is delivered.

5.       The financial covenant analyses and information set forth on Schedule 2
hereto are true and accurate on and as of the date of this Certificate.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
__________, 200__.

                                                     QUANTA SERVICES, INC.,
                                                     a Delaware corporation

                                                     By: _______________________
                                                     Name:
                                                     Title:

<PAGE>

                                   SCHEDULE 2
                            TO COMPLIANCE CERTIFICATE

<TABLE>
<S>                                                                             <C>
1.       Consolidated Net Worth

         (c) Actual Consolidated Net Worth                                      $___________

         (d) Beginning Consolidated Net Worth                                   $570,000,000

         (e) 50% of Consolidated Net Income                                     $___________

         (f) Equity Issuances                                                   $___________

         (g) Permitted Charges                                                  $___________

         (h) Non-Cash Charges                                                   $___________

         (i) [(c) - (d) - (e)]                                                  $___________

         (j) Minimum Consolidated Net Worth
             [(a) + (b) + (f)]                                                  $___________

2.       Consolidated Leverage Ratio

         (a) Consolidated Funded Indebtedness $

         (b) unrestricted cash and Cash Equivalents in
             excess of $25 million                                              $___________

         (c) [(a) - (b)]                                                        $___________

         (d) Consolidated EBITDA                                                $___________

         (e) Consolidated Leverage Ratio
             [(c) / (d)]                                                        ________:1.0

3.       Consolidated Senior Leverage Ratio

         (a) Consolidated Funded Indebtedness
             (other than Subordinated Indebtedness)                             $___________

         (b) unrestricted cash and Cash Equivalents
             in excess of  $25 million                                          $___________

         (c) [(a) - (b)]                                                        $___________

         (d) Consolidated EBITDA                                                $___________

         (e) Consolidated Senior Leverage Ratio
             [(c) / (d)]                                                        ________:1.0
</TABLE>

<PAGE>

<TABLE>
<S>                                                                             <C>
4.       Consolidated Interest Coverage Ratio

         (a) Consolidated EBIT $

         (b) Consolidated Interest Expense                                      $___________

         (c) interest expense attributable to capital loan costs and fees
             paid in connection with issuance of letters of credit              $___________

         (d) [(b) + (c)] $

         (e) Consolidated Interest Coverage Ratio
             [(a) / (d)]                                                        ________:1.0

5.       Consolidated Asset Coverage Ratio

         (a) Consolidated Net Accounts                                          $___________

         (b) Consolidated Net PP&E                                              $___________

         (c) Consolidated Net Assets
             [(a) + (b)]                                                        $___________

         (d) Consolidated Funded Indebtedness (other than Subordinated
             Indebtedness)                                                      $___________

         (e) unrestricted cash and Cash Equivalents in excess of
             $25,000,000                                                        $___________

         (f) [(d) - (e)]                                                        $___________

         (g) Consolidated Asset Coverage Ratio
             [(c) / (f)]                                                        ________:1.0
</TABLE>

<PAGE>

                                    Exhibit G

                        FORM OF ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this "Assignment and Assumption") is dated as of
the Effective Date set forth below and is entered into by and between [Insert
name of Assignor] (the "Assignor") and [Insert name of Assignee] (the
"Assignee"). Capitalized terms used but not defined herein have the meanings
provided in the Credit Agreement identified below, receipt of a copy of which is
hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns
to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor's rights and
obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
(including, without limitation, Letters of Credit, Credit-Linked Letters of
Credit, Guarantees and Swing Line Loans included in such facilities) and (ii) to
the extent permitted to be assigned under applicable law, all claims, suits,
causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all other
claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the "Assigned Interest"). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

         1.       Assignor:             _________________________

         2.       Assignee:             _________________________ [and is an
                                        Affiliate/Approved Fund of [identify
                                        Lender]]

         3.       Borrower:             Quanta Services, Inc., a Delaware
                                        corporation

         4.       Administrative Agent: Bank of America, N.A., as the
                                        administrative agent under the Credit
                                        Agreement

         5.       Credit Agreement:     The Credit Agreement dated as of
                                        December __, 2003 by and among the
                                        Borrower, the Guarantors, the Lenders
                                        parties thereto, and Bank of America,
                                        N.A., as Administrative Agent, L/C
                                        Issuer, Credit-Linked L/C Issuer and
                                        Swing Line Lender

<PAGE>

         6.       Assigned Interest:

<TABLE>
<CAPTION>
                        Aggregate Amount of      Amount of
                         Commitment/Loans     Commitment/Loans   Percentage Assigned of
Facility Assigned(2)      for all Lenders        Assigned(3)      Commitment/Loans(4)
---------------------------------------------------------------------------------------
<S>                     <C>                   <C>                <C>
</TABLE>

         7.       Trade Date:           __________________(5)

         8.       Effective Date:       __________________(6)

The terms set forth in this Assignment and Assumption are hereby agreed to:

ASSIGNOR:                                    [NAME OF ASSIGNOR]

                                             By: ______________________________
                                             Name:
                                             Title:

ASSIGNEE:                                    [NAME OF ASSIGNEE]

                                             By: ______________________________
                                             Name:
                                             Title:

[Consented to and](7) Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By: ______________________________
Name:
Title:

[Consented to:](8)

QUANTA SERVICES, INC.

By: ______________________________
Name:

-------------
         (2) Fill in the appropriate terminology for the types of facilities
under the Credit Agreement that are being assigned under this Assignment (e.g.
"Revolving Commitment" and "Credit-Linked Loan Commitment")

         (3) Amount to be adjusted by the counterparties to take into account
any payments or prepayments made between the Trade Date and the Effective Date.


         (4) Set forth, to at least 9 decimals, as a percentage of the
Commitment/Loans of all Lenders thereunder.

         (5) To be completed if the Assignor and the Assignee intend that the
minimum assignment amount is to be determined as of the Trade Date.

         (6) To be inserted by Administrative Agent and shall be the effective
date of recordation of transfer in the register therefor.

         (7) To be added only if the consent of the Administrative Agent is
required by the terms of the Credit Agreement.

         (8) To be added only if the consent of the Borrower is required by the
terms of the Credit Agreement.

<PAGE>

Title:

[Consented to:] (9)

BANK OF AMERICA, N.A., as L/C Issuer, Credit-Linked
L/C Issuer and Swing Line Lender

By: ______________________________
Name:
Title:

----------------
         (9) To be added only if the consent of the Swing Line Lender, L/C
Issuer and Credit-Linked L/C Issuer is required by the terms of the Credit
Agreement.

<PAGE>

                      Annex 1 to Assignment and Assumption

                          STANDARD TERMS AND CONDITIONS

1.       Representations and Warranties.

1.1.     Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of the
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the
Borrower, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

1.2.     Assignee. The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to
receipt of such consents as may be required under the Credit Agreement), (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it has
received a copy of the Credit Agreement, together with copies of the most recent
financial statements delivered pursuant to Section 7.01 thereof, as applicable,
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender,
attached hereto is any documentation required to be delivered by it pursuant to
the terms of the Credit Agreement, duly completed and executed by the Assignee;
and (b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor 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 decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

2.       Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

3.       General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

<PAGE>

                                    Exhibit H

                            FORM OF JOINDER AGREEMENT

         THIS JOINDER AGREEMENT (the "Agreement") dated as of __________, 200__
is by and between __________, a __________ (the "New Subsidiary"), and Bank of
America, N.A., in its capacity as Administrative Agent under that certain Credit
Agreement (as amended, modified, supplemented and extended from time to time,
the "Credit Agreement") dated as of December __, 2003 among Quanta Services,
Inc., a Delaware corporation (the "Borrower"), the Guarantors identified
therein, the Lenders identified therein and Bank of America, N.A., as
Administrative Agent. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

         The Loan Parties are required by Section 7.12 of the Credit Agreement
to cause the New Subsidiary to become a "Guarantor" thereunder. Accordingly, the
New Subsidiary hereby agrees as follows with the Administrative Agent, for the
benefit of the Lenders:

         1.       The New Subsidiary hereby acknowledges, agrees and confirms
that, by its execution of this Agreement, the New Subsidiary will be deemed to
be a party to the Credit Agreement and a "Guarantor" for all purposes of the
Credit Agreement, and shall have all of the obligations of a Guarantor
thereunder as if it had executed the Credit Agreement. The New Subsidiary hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions applicable to the Guarantors contained in the Credit
Agreement. Without limiting the generality of the foregoing terms of this
paragraph 1, the New Subsidiary hereby jointly and severally together with the
other Guarantors, guarantees to each Lender and the Administrative Agent, as
provided in Article IV of the Credit Agreement, the prompt payment and
performance of the Obligations in full when due (whether at stated maturity, as
a mandatory prepayment, by acceleration or otherwise) strictly in accordance
with the terms thereof.

         2.       The New Subsidiary hereby acknowledges, agrees and confirms
that, by its execution of this Agreement, the New Subsidiary will be deemed to
be a party to the Security Agreement and a "Grantor" for all purposes of the
Security Agreement, and shall have all the obligations of a Grantor thereunder
as if it had executed the Security Agreement. The New Subsidiary hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Security Agreement. Without limiting
generality of the foregoing terms of this paragraph 2, the New Subsidiary hereby
grants to the Administrative Agent, for the benefit of the Lenders, a continuing
security interest in, and a right of set off against, any and all right, title
and interest of the New Subsidiary in and to the Collateral (as defined in the
Security Agreement) of the New Subsidiary to secure the prompt payment and
performance in full when due, whether by lapse of time, acceleration, mandatory
prepayment or otherwise, of the Secured Obligations (as defined in the Security
Agreement).

         3.       The New Subsidiary hereby acknowledges, agrees and confirms
that, by its execution of this Agreement, the New Subsidiary will be deemed to
be a party to the Pledge Agreement and a "Pledgor" for all purposes of the
Pledge Agreement, and shall have all the obligations of a Pledgor thereunder as
if it had executed the Pledge Agreement. The New Subsidiary hereby ratifies, as
of the date hereof, and agrees to be bound by, all of the terms, provisions and
conditions contained in the Pledge Agreement. Without limiting generality of the
foregoing terms of this paragraph 3, the New Subsidiary hereby grants, pledges
and assigns to the Administrative Agent, for the benefit of the Lenders, a
continuing security interest in, and a right of set off against, any and all
right, title and interest of the New Subsidiary in and to the Capital Stock
identified on Schedule 7 hereto and all other Pledge Collateral (as defined in
the Pledge Agreement) of the New Subsidiary to secure the prompt payment and
performance in

<PAGE>

full when due, whether by lapse of time, acceleration, mandatory prepayment or
otherwise, of the Secured Obligations (as defined in the Pledge Agreement).

         4.       The Subsidiary hereby represents and warrants to the
Administrative Agent that:

                  (a)      The New Subsidiary's exact legal name and state of
         formation are as set forth on the signature pages hereto.

                  (b)      The New Subsidiary's chief executive office is
         located at the location set forth on Schedule 1 hereto. The New
         Subsidiariy's taxpayer identification number and organization number
         are set forth on Schedule 1 hereto.

                  (c)      Other than as set forth on Schedule 2 hereto, the New
         Subsidiary has not changed its legal name, changed its state of
         formation, been party to a merger, consolidation or other change in
         structure or used any tradename in the five years preceding the date
         hereof.

                  (d)      Schedule 3 hereto includes all Copyrights, Copyright
         Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses
         owned by the New Subsidiary in its own name, or to which the New
         Subsidiary is a party, as of the date hereof. None of the Copyrights,
         Patents and Trademarks of the New Subsidiary set forth in Schedule 4
         hereto is the subject of any licensing or franchise agreement, except
         as set forth on Schedule 4 hereto.

                  (e)      Schedule 4 hereto includes all Commercial Tort Claims
         before any Governmental Authority by or in favor of the New Subsidiary.

                  (f)      Schedule 5 hereto lists all real property located in
         the United States that is owned or leased by the New Subsidiary as of
         the date hereof.

                  (g)      Schedule 6 hereto lists all locations in the United
         States of tangible personal property that is owned or leased by the New
         Subsidiary as of the date hereof.

                  (h)      Schedule 7 hereto includes all Subsidiaries of the
         New Subsidiary, including number of shares of outstanding Capital
         Stock, the certificate number(s) of the certificates evidencing such
         Capital Stock and the percentage of such Capital Stock owned by the New
         Subsidiary.

         5.       The address of the New Subsidiary for purposes of all notices
and other communications is the address designated for all Loan Parties on
Schedule 11.02 to the Credit Agreement or such other address as the New
Subsidiary may from time to time notify the Administrative Agent in writing.

         6.       The New Subsidiary hereby waives acceptance by the
Administrative Agent and the Lenders of the guaranty by the New Subsidiary under
Article IV of the Credit Agreement upon the execution of this Agreement by the
New Subsidiary.

         7.       This Agreement may be executed in multiple counterparts, each
of which shall constitute an original but all of which when taken together shall
constitute one contract.

         8.       THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

<PAGE>

         IN WITNESS WHEREOF, the New Subsidiary has caused this Joinder
Agreement to be duly executed by its authorized officer, and the Administrative
Agent, for the benefit of the Lenders, has caused the same to be accepted by its
authorized officer, as of the day and year first above written.

                                        [NEW SUBSIDIARY]

                                        By: ______________________________
                                        Name:
                                        Title:

Acknowledged and accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By: ______________________________
Name:
Title:

<PAGE>

                                   Schedule 1

                       Location of Chief Executive Office;
              Taxpayer Identification Number; Organizational Number

<PAGE>

                                   Schedule 2

                  Changes in Legal Name or State of Formation;
       Mergers, Consolidations and other Changes in Structure; Tradenames

<PAGE>

                                   Schedule 3

                                    IP Rights

<PAGE>

                                   Schedule 4

                             Commercial Tort Claims

<PAGE>

                                   Schedule 5

                             Real Property Locations

<PAGE>

                                   Schedule 6

                      Tangible Personal Property Locations

<PAGE>

                                   Schedule 7

                                  Pledged Stock

<PAGE>

                                    Exhibit I

                              BANK OF AMERICA, N.A.

                         MONEY MARKET ACCOUNT AGREEMENT

Account No. [___________]                                      December __, 2003

         1.       The amount deposited in this Bank of America, N.A. (the
                  "Bank"), Money Market Account (the "Account") by Bank of
                  America, N.A., as Administrative Agent under that certain
                  Credit Agreement dated as of November __, 2003 (the
                  "Administrative Agent"), on November __, 2003 (the "Initial
                  Deposit Date") is One Hundred Fifty Million Dollars
                  ($150,000,000.00). The Bank will designate the Account on its
                  official records as the "Bank of America, N.A. as
                  Administration Agent Quanta Services, Inc. Credit Linked
                  Deposit Account".

         2.       The Account shall bear interest during each Interest Period
                  (as defined below) at an interest rate per annum at a rate
                  equal to the LIBO Rate (as defined below) minus fifteen (15)
                  basis points until the Account balance is reduced to zero ($0)
                  (the "Closure Date"). The Bank will accrue interest on the
                  closing balance of the Account daily on the basis of a 360-day
                  year.

                  "Interest Period" means the period commencing on the Initial
                  Deposit Date or the end of the immediately preceding Interest
                  Period, as applicable, and ending on the date three months
                  thereafter; provided that:

                  (i)      any Interest Period that would otherwise end on a day
                  that is not a Business Day shall be extended to the next
                  succeeding Business Day unless such Business Day falls in
                  another calendar month, in which case such Interest Period
                  shall end on the next preceding Business Day;

                  (ii)     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
                  the calendar month at the end of such Interest Period; and

                  (iii)    notwithstanding clauses (i) and (ii) above, the final
                  Interest Period shall be the period commencing on the end of
                  the immediately preceding Interest Period and ending on the
                  Closure Date (the "Final Interest Period").

                  "LIBO Rate" means

                  (i)      for any Interest Period other than the Final Interest
                  Period:

                           (a)      the rate per annum equal to the rate
                           determined by the Bank to be the offered rate that
                           appears on the page of the Telerate screen (or any
                           successor thereto) that displays an average British
                           Bankers Association Interest Settlement

<PAGE>

                           Rate for deposits in Dollars (for delivery on the
                           first day of such Interest Period) with a term
                           equivalent to such Interest Period, determined as of
                           approximately 11:00 a.m. (London time) two Business
                           Days prior to the first day of such Interest Period,
                           or

                           (b)      if the rate referenced in the preceding
                           clause (a) does not appear on such page or service or
                           such page or service shall not be available, the rate
                           per annum equal to the rate determined by the Bank to
                           be the offered rate on such other page or other
                           service that displays an average British Bankers
                           Association Interest Settlement Rate for deposits in
                           Dollars (for delivery on the first day of such
                           Interest Period) with a term equivalent to such
                           Interest Period, determined as of approximately 11:00
                           a.m. (London time) two Business Days prior to the
                           first day of such Interest Period, or

                           (c)      if the rates referenced in the preceding
                           clauses (a) and (b) are not available, the rate per
                           annum determined by the Bank as the rate of interest
                           at which deposits in Dollars for delivery on the
                           first day of such Interest Period in same day funds
                           in the approximate amount of the Account, being made
                           or continued and with a term equivalent to such
                           Interest Period would be offered by the Bank's London
                           Branch to major banks in the London interbank
                           eurodollar market at their request at approximately
                           4:00 p.m. (London time) two Business Days prior to
                           the first day of such Interest Period, and

                  (ii)     for the Final Interest Period, the rate per annum
                  determined by the Bank as provided in clause (a), (b), or (c)
                  above, as applicable, based upon the assumption at the date of
                  determination that such Interest Period will end on the date
                  three months after the start thereof (taking into account the
                  conventions set forth in clauses (i) and (ii) in the
                  definition of "Interest Period" above).

                  "Business Day" means any day other than a Saturday, Sunday or
                  other day on which commercial banks in New York or Dallas are
                  authorized to close under applicable law or are in fact closed
                  and a day on which dealings in Dollar deposits are conducted
                  by and between banks in the London interbank eurodollar
                  market.

                  "Dollar", "Dollars" and "$" mean lawful money of the United
                  States of America.

         3.       The Bank agrees to pay interest quarterly in arrears on the
                  first Business Day following the end of each Interest Period
                  to the bank account designated in writing by the
                  Administrative Agent.

         4.       The Bank reserves the right to require the Administrative
                  Agent to give seven days' advance written notice of any
                  withdrawal or transfer from the Account.

         5.       The Administrative Agent may make up to six withdrawals or
                  transfers from the Account by telephone during each calendar
                  month. During each calendar month the Administrative Agent
                  also may make transfers from the Account to another account of
                  the Administrative Agent at the Bank or withdrawals (i.e.,
                  payments directly to the Administrative Agent) when such
                  transfers or withdrawals are made by written request of the
                  Administrative Agent mailed or delivered by messenger or made
                  in person to the Bank.

         6.       For each permitted withdrawal or transfer from the Account,
                  the Bank will pay to the Administrative Agent the amount
                  requested up to the amount of the balance of the

<PAGE>

                  Account. Any accrued interest on such amount from and
                  including the immediately preceding quarterly interest payment
                  date to but not including the relevant withdrawal or transfer
                  date will be paid by the Bank to the Administrative Agent on
                  the next quarterly interest payment date or the Closure Date,
                  as the case may be.

         7.       The Bank represents that (a) this Account creates a
                  debtor-creditor relationship between the Bank and the
                  Administrative Agent, (b) it treats the amount deposited in
                  the Account as a deposit liability on its balance sheet, (c)
                  the terms on which the Account is made available are
                  substantially similar to terms made available to other
                  institutional Bank customers for deposit accounts of the same
                  type, and (d) it classifies the Account as a "savings account"
                  under Regulation D of the Board of Governors of the Federal
                  Reserve System.

         8.       The Bank agrees not to close the Account until the Closure
                  Date.

         9.       All notices required hereunder shall be personally delivered
                  or sent by first class mail, postage prepaid, or by overnight
                  courier, to the addresses on the signature page attached
                  hereto, or sent by facsimile to the fax numbers listed on the
                  signature page, provided by telephone to the telephone numbers
                  listed on the signature page, or to such other addresses as
                  the Bank and the Administrative Agent may specify from time to
                  time in writing. Notices and other communications shall be
                  effective (i) if mailed, upon the earlier of receipt or five
                  (5) days after deposit in the U.S. mail, first class, postage
                  prepaid, (ii) if telecopied, when transmitted, (iii) if
                  telephoned, when the telephonic message is received "live" by
                  an authorized recipient at the telephone number, or (iv) if
                  hand-delivered, by courier or otherwise (including telegram,
                  lettergram or mailgram), when delivered. From time to time,
                  Administrative Agent will designate one or more authorized
                  signers on the Account by execution and delivery of signature
                  cards to the Bank.

<PAGE>

BANK OF AMERICA, N.A., as the Bank

By:      ______________________________
Name:
Title:

Attention:
Telecopier No.:
Telephone No.:

Accepted and Agreed:

BANK OF AMERICA, N.A., as Administrative Agent

By:      ______________________________________
Name:
Title:

Attention:
Telecopier No.:
Telephone No.:

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.54
<SEQUENCE>4
<FILENAME>h13605exv10w54.txt
<DESCRIPTION>SECURITY AGREEMENT DATED 12/19/2003
<TEXT>
<PAGE>

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Agreement") dated as of December 19,
2003 is by and among the parties identified as "Debtors" on the signature pages
attached hereto and such other parties as may become Debtors hereunder (each a
"Debtor" and collectively, the "Debtors"), and Bank of America, N.A., as
Administrative Agent, for the ratable benefit of the Lenders (the
"Administrative Agent").

                                    RECITALS:

         A.       Quanta Services, Inc., a Delaware corporation (the
"Borrower"), the Guarantors identified therein, the Lenders identified therein,
and the Administrative Agent have entered into that certain Credit Agreement
dated as of the date hereof (as amended, modified, supplemented or restated from
time to time, the "Credit Agreement").

         B.       This Agreement is required under the terms of the Credit
Agreement.

         NOW, THEREFORE, in consideration of the premises and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

SECTION 1. Definitions.

         (a)      Unless otherwise defined herein, capitalized terms have the
same meaning given them in the Credit Agreement.

         (b)      The following terms shall have the meanings assigned thereto
in the Uniform Commercial Code in effect in the State of New York on the date
hereof: Accession, Account, Chattel Paper, Commercial Tort Claim, Consumer
Goods, Deposit Account, Document, Equipment, Farm Products, Fixtures, General
Intangible, Goods, Instrument, Inventory, Investment Property, Letter-of-Credit
Right, Proceeds, Software, Standing Timber, Supporting Obligation and Tangible
Chattel Paper.

         (c)      As used herein, the following terms shall have the meaning set
forth below:

         "Cash Collateral" is defined in Section 2.1(i).

         "Collateral" is defined in the last paragraph of Section 2.1.

         "Collateral Proceeds" is defined in last paragraph of Section 2.1.

         "Collateral Termination Date" means the first date on which no Loan or
Credit Extension is outstanding under the Credit Agreement, the Commitments have
been permanently terminated, and no other Obligations are due and payable
thereunder or under any other Loan Document.

         "Copyright License" means any written agreement, naming any Debtor as
licensor, granting any right under any Copyright.

         "Copyrights" means (a) all registered United States copyrights in all
Works, now existing or hereafter created or acquired, all registrations and
recordings thereof, and all applications in connection

<PAGE>

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

         "Excluded Items" is defined in the last paragraph of Section 2.1.

         "Money Market Account" means the "Account" as defined in the Money
Market Account Agreement.

         "Patent License" means any agreement, whether written or oral,
providing for the grant by or to a Debtor of any right to manufacture, use or
sell any invention covered by a Patent.

         "Patents" means (a) all letters patent of the United States or any
other country and all reissues and extensions thereof, and (b) all applications
for letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof.

         "Secured Obligations" is defined in Section 2.2.

         "Trademark License" means any agreement, written or oral, providing for
the grant by or to a Debtor of any right to use any Trademark.

         "Trademarks" means (a) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade styles, service
marks, logos and other source or business identifiers, and the goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof, or otherwise and (b) all renewals
thereof.

         "UCC" means the Uniform Commercial Code.

         "Works" means any work that is subject to copyright protection pursuant
to Title 17 of the United States Code.

SECTION 2. Security Interest.

         2.1      Grant of Security Interest. Subject to the terms of this
Agreement and to secure the Secured Obligations, each the Debtors hereby
pledges, assigns grants, conveys and transfers to the Administrative Agent, for
the benefit of the holders of the Secured Obligations, a security interest in,
and a right to set off against, any and all of its right, title and interest in,
to and under the following, whether now owned, acquired or arising hereafter:

         (a)      all Equipment, Goods and Inventory, and (whether or not
                  included in such definitions) all tangible personal property,
                  now owned or hereafter acquired by such Debtor, including,
                  without limitation, (i) all research, storage or office
                  equipment, computer hardware and software, machinery,
                  chattels, tools, parts, machine tools, furniture, furnishings,
                  fixtures and supplies, of every nature, wherever located, and
                  (ii) all conditions, accessories and improvements to any
                  equipment and all substitutions therefor and all accessories,
                  parts and equipment which may be attached to or which are
                  necessary for the operation and use of any equipment, personal
                  property or fixtures, together with all accessions thereto;

         (b)      all Accounts, cash and currency, all Chattel Paper, those
                  Commercial Tort Claims identified on Schedule 2.1(b) attached
                  hereto, all Documents, all Instruments, all Investment
                  Property, all Letter of Credit Rights, all Supporting
                  Obligations and the Money Market Account;

                                       2
<PAGE>

         (c)      all rights of such Debtor under or arising out of present or
                  future leases or contracts relating to any equipment;

         (d)      all General Intangibles (including Deposit Accounts) and all
                  rights of such Debtor in, to and under all Patents, Patent
                  Licenses, Trademarks, Trademark Licenses, trade names,
                  Copyrights, Copyright Licenses, Software, techniques,
                  processes, formulas, know-how or other intellectual property,
                  and licenses thereof;

         (e)      all rights of such Debtor in, to and under all permits,
                  authorizations, approvals, registrations, licenses, approvals,
                  certificates of convenience or necessity, franchises,
                  immunities, easements, consents, grants, ordinances or other
                  rights granted by any governmental authority;

         (f)      all rights of such Debtor in and to all books, records,
                  writings, databases (electronic or otherwise), information and
                  other property relating to, used or useful in connection with,
                  or evidencing, embodying, incorporating or referring to, any
                  of the foregoing;

         (g)      all rights of such Debtor in, to or under (i) all sales
                  orders, sales contracts, purchase orders, purchase contracts,
                  operating agreements, management agreements, service
                  agreements, development agreements, consulting agreements and
                  leases, and (ii) all other contract rights, General
                  Intangibles and, to the extent they can lawfully be conveyed
                  or assigned, under express or implied warranties from
                  providers of goods or services;

         (h)      all rights of such Debtor in, to and under all products,
                  Accessions, rents, issues, profits, returns, income and
                  Proceeds of any and all Collateral and to the extent not
                  otherwise included, all rights of such Debtor in, to and under
                  all payments under insurance or any indemnity, warranty or
                  guaranty payable by reason of any loss or damage to any
                  Collateral or otherwise with respect to any of the Collateral;
                  and

         (i)      all rights of such Debtor in, to and under all moneys and
                  securities deposited with the Administrative Agent pursuant to
                  any term of this Agreement or any other Loan Document to be
                  held by the Administrative Agent hereunder or thereunder
                  (collectively "Cash Collateral").

All of the foregoing property, whether now owned or hereafter acquired, other
than the Excluded Items, is hereinafter collectively referred to as the
"Collateral"; Collateral described in clauses (h) and (i) may be referred to
herein as "Collateral Proceeds"). To have and to hold all and singular the
Collateral by the Administrative Agent for the benefit of the holders of the
Secured Obligations, in trust for the benefit and security of the Administrative
Agent for the benefit of the holders of the Secured Obligations and for the uses
and purposes, and subject to the terms and provisions, set forth in this
Agreement and in the Credit Agreement. Any term of this Agreement to the
contrary notwithstanding, the Collateral does not include any of the Excluded
Items. The term "Excluded Items" means and includes all properties or assets
described above, whether now owned or hereafter arising or acquired by such
Debtor, which by their terms or by reason of applicable law would become void or
voidable if a security interest therein were granted hereunder by such Debtor or
which cannot be granted, conveyed, mortgaged, transferred or assigned by this
Agreement or in which a security interest cannot effectively be granted
hereunder.

         2.2      Secured Obligations. The Collateral shall secure the following
obligations, indebtedness and liabilities, without duplication (all such
obligations, indebtedness and liabilities being hereinafter sometimes called the
"Secured Obligations"):

                                       3
<PAGE>

         (a)      all of the obligations of the Loan Parties to the Lenders
                  (including the L/C Issuer, the Credit-Linked L/C Issuer and
                  the Swing Line Lender) and the Administrative Agent under the
                  Credit Agreement and the other Loan Documents (including, but
                  not limited to, any interest accruing after the commencement
                  by or against any Loan Party of a proceeding under any Debtor
                  Relief Laws, regardless of whether such interest is an allowed
                  claim under such proceeding), whether now existing or
                  hereafter arising, due or to become due, direct or indirect,
                  absolute or contingent, howsoever evidenced, created, held or
                  acquired, whether primary, secondary, direct, contingent, or
                  joint and several, as such obligations may be amended,
                  modified, increased, extended, renewed or replaced from time
                  to time;

         (b)      all of the obligations owing by the Loan Parties under any
                  Swap Contract with any Lender or any Affiliate of a Lender,
                  whether now existing or hereafter arising;

         (c)      all indemnity obligations of the Loan Parties under the Credit
                  Agreement; and

         (d)      all costs and expenses incurred in connection with enforcement
                  and collection of the foregoing obligations, including
                  reasonable attorneys' fees.

SECTION 3. Representations and Warranties. Each Debtor represents and warrants
to the Administrative Agent for the benefit of the holders of the Secured
Obligations, that so long as any of the Secured Obligations remain outstanding
and until all of the commitments relating thereto have been terminated:

         3.1      Title. Each of the Debtors owns or, with respect to Collateral
acquired after the date hereof, the Debtors will own, legally and beneficially,
the Collateral free and clear of any Lien, security interest, pledge, claim, or
other encumbrance or any right or option on the part of any third person to
purchase or otherwise acquire the Collateral or any part thereof; except for the
security interest granted hereunder and Permitted Liens. Each of the Debtors has
the unrestricted right to pledge the Collateral as contemplated hereby. No
effective financing statement, mortgage, or other instrument similar in effect
covering all or any part of the Collateral is on file in any recording office,
except for (i) protective filings under true leases, (ii) filings filed in favor
of the Administrative Agent for the benefit of the holders of the Secured
Obligations relating to this Agreement, and (iii) filings, if any, with respect
to Permitted Liens.

         3.2      Organization and Authority. Neither the execution, delivery or
performance by the Debtors of this Agreement nor compliance by them with the
terms and provisions hereof, nor the consummation of the transactions
contemplated herein, will (i) contravene any applicable provision of any law,
statute, rule or regulation, or any order, writ, injunction or decree of any
court or governmental instrumentality; or (ii) conflict with or result in any
breach of any term, covenant condition or other provision of, or constitute a
default under, or (other than pursuant to the Collateral Documents) result in
the creation or imposition of (or the obligation to create or impose) any Lien
upon any of the property or assets of any Debtor under the terms of any
contractual obligation to which any Debtor is a party or by which it or any of
its properties or assets are bound or to which it may be subject.

         3.3      Location of any Debtors. As of the date hereof, (i) the
principal place of business and chief executive office of each of the Debtors,
and the place where each of the Debtors keeps its books and records, is located
at the address set forth opposite the name of such Debtor on Schedule 6.20(c) to
the Credit Agreement and (ii) other than as set forth in Schedule 3.3 attached
hereto and made a part hereof, no Debtor has been a party to a merger,
consolidation or other change in structure or used any tradename in the prior
five years.

         3.4      Perfected Security Interest. This Agreement has been duly
authorized, executed and delivered by each of the Debtors. This Agreement
creates in favor of the Administrative Agent, for the benefit of the holders of
Secured Obligations, a security interest in the Collateral which will be
perfected

                                       4
<PAGE>

upon the filing of financing statements under the UCC, subject only to Permitted
Liens, to the extent such security interests can be perfected by such filings
pursuant to the UCC.

         3.5      No Consents. No consent of, or notice to, any other Person and
no authorization, approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the grant by any
of the Debtors of the Liens granted hereby (excluding any notices required in
connection with Liens against any accounts or accounts receivable from any
governmental entity) or for the execution, delivery or performance of this
Agreement by any of the Debtors, other than the filing of financing statements
as provided in Section 3.4 above and except for such other consents, notices or
filings that have been obtained or made or that as of the date hereof are not
required to have been obtained or made and may be obtained or made, as the case
may be, when necessary.

SECTION 4. Covenants. Each Debtor covenants and agrees that so long as any of
the Secured Obligations remain outstanding and until all of the commitments
relating thereto have been terminated such Debtor shall:

         4.1      Encumbrances. Except as permitted by the Credit Agreement,
none of the Debtors shall create, permit, or suffer to exist, and each of the
Debtors shall defend the Collateral against, any Lien on the Collateral except
the pledge and security interest of the Administrative Agent hereunder except
for Permitted Liens, and shall defend the Debtors' rights in the Collateral and
the Administrative Agent's security interest in the Collateral against the
claims of all persons and entities (other than any person or entity claiming by,
through or under the Administrative Agent or any obligee of the Secured
Obligations).

         4.2      Sale of Collateral. None of the Debtors shall sell, assign, or
otherwise dispose of the Collateral or any part thereof except as permitted by
the Credit Agreement.

         4.3      Perfection of Security Interest. Each Debtor shall execute and
deliver to the Administrative Agent such agreements, assignments or instruments
(including affidavits, notices, reaffirmations and amendments and restatements
of existing documents, as the Administrative Agent may reasonably request) and
do all such other things as the Administrative Agent may reasonably deem
necessary (i) to assure to the Administrative Agent the effectiveness and
priority of its security interests hereunder, including (A) such instruments as
the Administrative Agent may from time to time reasonably request in order to
perfect and maintain the security interests granted hereunder in accordance with
the UCC, (B) with regard to Copyrights, a Notice of Grant of Security Interest
in Copyrights for filing with the United States Copyright Office in the form of
Schedule 4.3 attached hereto, (C) with regard to Patents, a Notice of Grant of
Security Interest in Patents for filing with the United States Patent and
Trademark Office in the form of Schedule 4.3 attached hereto and (D) with regard
to Trademarks registered with the United States Patent and Trademark Office and
all applications for Trademarks filed with the United States Patent and
Trademark Office, a Notice of Grant of Security Interest in Trademarks for
filing with the United States Patent and Trademark Office in the form of
Schedule 4.3 attached hereto, (ii) to consummate the transactions contemplated
hereby and (iii) to otherwise protect and assure the Administrative Agent of its
rights and interests hereunder. To that end, each Debtor authorizes the
Administrative Agent to file one or more financing statements (with collateral
descriptions broader, including without limitation "all assets" and/or "all
personal property" collateral descriptions, and/or less specific than the
description of the Collateral contained herein) disclosing the Administrative
Agent's security interest in any or all of the Collateral of such Debtor without
such Debtor's signature thereon, and further each Debtor also hereby irrevocably
makes, constitutes and appoints the Administrative Agent, its nominee or any
other Person whom the Administrative Agent may designate, as such Debtor's
attorney-in-fact with full power and for the limited purpose to sign in the name
of such Debtor any such financing statements (including renewal statements),
amendments and supplements, notices or any similar documents that in the
Administrative Agent's reasonable discretion would be necessary or appropriate
in order to perfect and maintain perfection of the security interests granted
hereunder, such power, being coupled with an interest, being and remaining
irrevocable so long as the Secured Obligations remain unpaid and until the
commitments relating thereto shall have been terminated. Each Debtor hereby
agrees that a

                                       5
<PAGE>

carbon, photographic or other reproduction of this Agreement or any such
financing statement is sufficient for filing as a financing statement by the
Administrative Agent without notice thereof to such Debtor wherever the
Administrative Agent may in its sole discretion desire to file the same. In the
event for any reason the law of any jurisdiction other than New York becomes or
is applicable to the Collateral of any Debtor or any part thereof, or to any of
the Secured Obligations, such Debtor agrees to execute and deliver all such
instruments and to do all such other things as the Administrative Agent
reasonably deems necessary to preserve, protect and enforce the security
interests of the Administrative Agent granted hereunder under the law of such
other jurisdiction (and, if a Debtor shall fail to do so promptly upon the
request of the Administrative Agent, then the Administrative Agent may execute
any and all such requested documents on behalf of such Debtor pursuant to the
power of attorney granted hereinabove). If any Collateral is in the possession
or control of a Debtor's agents and the Administrative Agent so requests, such
Debtor agrees to notify such agents in writing of the Administrative Agent's
security interest therein and, upon the Administrative Agent's request, instruct
them to hold all such Collateral for the account of the holders of the Secured
Obligations and subject to the Administrative Agent's instructions.

         4.4      Instruments/Tangible Chattel Paper/Documents. If any amount
payable under and constituting Collateral shall be or become evidenced by any
Instrument or Tangible Chattel Paper, or if any property constituting Collateral
shall be stored or shipped subject to a Document, (i) ensure that such
Instrument, Tangible Chattel Paper or Document is either in the possession of
such Debtor at all times or, if requested by the Administrative Agent, is
immediately delivered to the Administrative Agent, duly endorsed in a manner
satisfactory to the Administrative Agent and (ii) ensure that any Collateral
consisting of Tangible Chattel Paper is marked with a legend acceptable to the
Administrative Agent indicating the Administrative Agent's security interest in
such Tangible Chattel Paper.

         4.5      Control. Execute and deliver all agreements, assignments,
instruments or other documents as the Administrative Agent shall reasonably
request for the purpose of obtaining and maintaining control within the meaning
of the UCC with respect to any Collateral consisting of Deposit Accounts,
Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper.

         4.6      Notification. Each of the Debtors shall promptly after it has
knowledge thereof, notify the Administrative Agent of (i) any Lien upon or claim
made or threatened against the Collateral other than Permitted Liens, (ii) any
change in its principal place of business, its chief executive office or the
place where its books and records are maintained, (iii) any change in its name,
state of incorporation or organization, its type of entity or its taxpayer
identification number and (iv) a merger, consolidation or similar change in
structure.

         4.7      Commercial Tort Claims.

                  (a)      Promptly notify the Administrative Agent in writing
                  of the initiation of any Commercial Tort Claim before any
                  Governmental Authority by or in favor of such Debtor or any of
                  its Subsidiaries seeking damages in excess of $500,000.

                  (b)      Execute and deliver such statements, documents and
                  notices and do and cause to be done all such things as the
                  Administrative Agent may reasonably deem necessary,
                  appropriate or convenient, or as are required by law, to
                  create, perfect and maintain the Administrative Agent's
                  security interest in any Commercial Tort Claim.

         4.8      Books and Records. Each of the Debtors shall mark its books
and records to reflect the security interest of the Administrative Agent for the
benefit of the holders of the Secured Obligations under this Agreement.

         4.9      Receipt after Default. If any Collateral is received by any of
the Debtors during the continuance of an Event of Default, such Debtor shall pay
over to the Administrative Agent all such

                                       6
<PAGE>

Collateral on the day received, including the cash and checks endorsed by such
Debtor evidencing the Collateral. None of the Debtors shall commingle the
Collateral with any other finds, proceeds or monies of any of the Debtors, and
shall keep such proceeds separate and apart from any other funds, proceeds or
monies of any of the Debtors and shall hold the Collateral in trust for the
Administrative Agent until same shall be paid over to the Administrative Agent
as agreed to herein.

         4.10     Insurance. Each of the Debtors shall, at their own expense
(jointly and severally), maintain insurance with respect to the Collateral as
required by the Credit Agreement. All insurance proceeds with respect to any of
the Collateral shall be subject to the security interest of the Administrative
Agent hereunder.

SECTION 5. Rights of The Administrative Agent and Debtors.

         5.1      Power of Attorney. Each of the Debtors hereby irrevocably and
with the power of substitution constitutes and appoints the Administrative Agent
on behalf of the holders of the Secured Obligations and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead and in the name of such Debtor or in its own name, from time to time in
the Administrative Agent's discretion during the continuance of an Event of
Default and prior to the Collateral Termination Date, to take any and all action
and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives the Administrative Agent the power and
right on behalf of such Debtor and in its own name to do any of the following
after the occurrence and during the continuance of an Event of Default and to
the extent permitted by applicable laws, without notice to or the consent of the
Debtor:

         (a)      to demand, sue for, collect, or receive in the name of such
                  Debtor or in its own name, any money or property at any time
                  payable or receivable on account of or in exchange for any of
                  the Collateral and, in connection therewith, endorse checks,
                  notes, drafts, acceptances, money orders, or any other
                  instruments for the payment of money under the Collateral;

         (b)      to pay or discharge taxes, liens, security interests, or other
                  encumbrances (other than Permitted Liens) levied or placed on
                  or threatened against the Collateral;

         (c)      (i) to direct any parties liable for any payment under any of
                  the Collateral to make payment of any and all monies due and
                  to become due thereunder directly to the Administrative Agent
                  or as the Administrative Agent shall direct; (ii) to receive
                  payment of and receipt for any and all monies, claims, and
                  other amounts due and to become due at any time in respect of
                  or arising out of any Collateral; (iii) to sign and endorse
                  any drafts, assignments, proxies, stock powers, verifications,
                  notices, and other documents relating to the Collateral; (iv)
                  to commence and prosecute any suit; actions or proceedings at
                  law or in equity in any court of competent jurisdiction to
                  collect the Collateral or any part thereof and to enforce any
                  other right in respect of any Collateral; (v) to defend any
                  suit, action, or proceeding brought against the Debtor with
                  respect to any Collateral; (vi) to settle, compromise, or
                  adjust any suit, action, or proceeding described in clause (v)
                  above and, in connection therewith, to give such discharges or
                  releases as the Administrative Agent may deem appropriate;
                  (vii) to exchange any of the Collateral for other property
                  upon any merger, consolidation, reorganization,
                  recapitalization, or other readjustment of the issuer thereof
                  and, in connection therewith, deposit any of the Collateral
                  with any committee, depositary, transfer agent, registrar, or
                  other designated agency upon such terms as the Administrative
                  Agent may determine; (viii) to add or release any guarantor,
                  endorser, surety, or other party to any of the Collateral or
                  the Secured Obligations; (ix) to sell, transfer, pledge, make
                  any agreement with respect to or otherwise deal with any of
                  the Collateral as fully and completely as

                                       7
<PAGE>

                  though the Administrative Agent were the absolute owner
                  thereof for all purposes, and to do, at the Administrative
                  Agent's option and the Debtors' expense (jointly and
                  severally), at any time, or from time to time, all acts and
                  things which the Administrative Agent deems necessary to
                  protect, preserve, or realize upon the Collateral and the
                  Administrative Agent's security interest; (x) to execute and
                  deliver all assignments, conveyances, statements, financing
                  statements, renewal financing statements, security and pledge
                  agreements, affidavits, notices and other agreements,
                  instruments and documents that the Administrative Agent may
                  reasonably deem appropriate in order to perfect and maintain
                  the security interests and liens granted in this Agreement and
                  in order to fully consummate all of the transactions
                  contemplated herein; and (xi) to vote for a shareholder
                  resolution, or to sign an instrument in writing, sanctioning
                  the transfer of any or all of the Collateral into the name of
                  the Administrative Agent or one or more of the holders of the
                  Secured Obligations or into the name of any transferee to whom
                  the Collateral or any part thereof may be sold pursuant to
                  Section 6.2 hereof.

This power of attorney is a power coupled with an interest and shall be
irrevocable. The Administrative Agent shall be under no duty to exercise or
withhold the exercise of any of the rights, powers, privileges, and options
expressly or implicitly granted to the Administrative Agent in this Agreement,
and shall not be liable for any failure to do so or any delay in doing so. The
Administrative Agent shall not be liable for any act or omission or for any
error of judgment or any mistake of fact or law in its individual capacity or in
its capacity as attorney-in-fact except acts or omissions constituting or
resulting from its willful misconduct or gross negligence. This power of
attorney is conferred on the Administrative Agent solely to protect, preserve,
and realize upon its security interest in the Collateral.

         5.2      Performance by The Administrative Agent of the Debtors'
Secured Obligations. On failure of any Debtor to perform any of the covenants
and agreements contained herein, the Administrative Agent may, at its sole
option and in its sole discretion, upon notice to the Debtors, perform the same
and in so doing may expend such sums as the Administrative Agent may reasonably
deem advisable in the performance thereof, including, without limitation, the
payment of any insurance premiums, the payment of any taxes, a payment to obtain
a release of a Lien or potential Lien, expenditures made in defending against
any adverse claim and all other expenditures that the Administrative Agent may
reasonably make for the protection of the security hereof or that it may be
compelled to make by operation of law. All such sums and amounts so expended
shall be repayable by the Debtors on a joint and several basis (subject to
Section 7.16 hereof) promptly upon timely notice thereof and demand therefor,
shall constitute additional Secured Obligations and shall bear interest from the
date said amounts are expended at the Default Rate. No such performance of any
covenant or agreement by the Administrative Agent on behalf of any Debtor, and
no such advance or expenditure therefor, shall relieve the Debtors of any
default under the terms of this Security Agreement, the other Loan Documents or
any other documents relating to the Secured Obligations. The Administrative
Agent may make any payment hereby authorized in accordance with any bill,
statement or estimate procured from the appropriate public office or holder of
the claim to be discharged without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax assessment, sale,
forfeiture, tax lien, title or claim except to the extent such payment is being
contested in good faith by a Debtor in appropriate proceedings and against which
adequate reserves are being maintained in accordance with GAAP.

         5.3      The Administrative Agent's Duty of Care. Other than the
exercise of reasonable care in the physical custody of the Collateral while held
by the Administrative Agent hereunder, the Administrative Agent shall have no
responsibility for or obligation or duty with respect to all or any part of the
Collateral or any matter or proceeding arising out of or relating thereto,
including, without limitation, any obligation or duty to collect any sums due in
respect thereof or to protect or preserve any rights against prior parties or
any other rights pertaining thereto, it being understood and agreed that the
Debtors shall be responsible for preservation of all rights in the Collateral.
Without limiting the

                                       8
<PAGE>

generality of the foregoing, the Administrative Agent shall be conclusively
deemed to have exercised reasonable care in the custody of the Collateral if the
Administrative Agent takes such action, for purposes of preserving rights in the
Collateral, as any of the Debtors may reasonably request in writing, but no
failure or omission or delay by the Administrative Agent in complying with any
such request by such Debtor, and no refusal by the Administrative Agent to
comply with any such request by such Debtor, shall of itself be deemed to be a
failure to exercise reasonable care.

         5.4      Rights of Debtors; Debtors Remain Liable.

         (a)      Any term of this Agreement to the contrary notwithstanding,
until written notice shall be given to any of the Debtors that the
Administrative Agent is exercising its rights under this Section 5, such Debtor
shall have the right, subject to the prohibitions contained in the Credit
Agreement to possess, retain, enjoy and use the Collateral, to give consents,
waivers or notifications with respect to the Collateral, to exercise its rights,
powers and privileges under the Collateral, to agree to any modification of any
of the terms of the Collateral, to dispose of any of the Collateral (it being
agreed that the Lien of this Agreement shall attach to the proceeds thereof),
and otherwise to act with respect to the Collateral in the ordinary course of
business, in each case other than with respect to any Cash Collateral held by
the Administrative Agent.

         (b)      Anything herein to the contrary notwithstanding, (i) each of
the Debtors shall remain liable under the contracts and agreements included in
the Collateral to the extent set forth therein (and subject to any defenses
thereto), to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (ii) the exercise by the
Administrative Agent of any of the rights hereunder shall not release any of the
Debtors from any of its duties or obligations under the contracts and agreements
included in the Collateral, and (iii) the Administrative Agent shall not have
any obligation or liability under the contracts and agreements included in the
Collateral solely by reason of this Agreement, nor shall the Administrative
Agent be obligated to perform any of the obligations or duties of the Debtors
thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder, in each case, solely by reason of this Agreement.

SECTION 6. Events of Default and Remedies.

         6.1      Events of Default. The Debtors shall be in default under this
Agreement upon the occurrence of and during the continuation of any of the
events or conditions defined as Events of Default in the Credit Agreement (an
"Event of Default").

         6.2      Rights and Remedies. Prior to the Collateral Termination Date,
upon the occurrence of an Event of Default and so long as the same shall be
continuing, the Administrative Agent shall have the following rights and
remedies to the extent not prohibited by applicable laws:

         (a)      In addition to all other rights and remedies granted to the
                  Administrative Agent in this Agreement and in any other
                  instrument or agreement securing, evidencing, or relating to
                  the Secured Obligations, the Administrative Agent shall have
                  all of the rights and remedies of a secured party under the
                  UCC of the jurisdiction applicable to the affected Collateral.
                  Without limiting the generality of the foregoing, the
                  Administrative Agent may (i) without demand or notice to the
                  Debtors, collect, receive, or take possession of the
                  Collateral or any part thereof, (ii) sell or otherwise dispose
                  of the Collateral, or any part thereof, in one or more parcels
                  at public or private sale or sales, at the Administrative
                  Agent's offices or elsewhere, for cash, on credit, or for
                  future delivery without assumption of any credit risk, and/or
                  (iii) bid and become a purchaser at any such sale free of any
                  right or equity of redemption in any of the Debtors, which
                  right or equity is hereby expressly waived and released by all
                  of the Debtors. Upon the request of the Administrative Agent,
                  any of the Debtors shall assemble the Collateral and make it

                                       9
<PAGE>

                  available to the Administrative Agent at any place designated
                  by the Administrative Agent that is reasonably convenient to
                  such Debtor and the Administrative Agent. Each of the Debtors
                  agrees that the Administrative Agent shall not be obligated to
                  give more than ten (10) days' prior written notice of the time
                  and place of any public sale or of the time after which any
                  private sale may take place and that such notice shall
                  constitute reasonable notice of such matters. Each of the
                  Debtors shall be liable, jointly and severally, for all
                  reasonable expenses of retaking, holding, preparing for sale,
                  or the like, and all reasonable attorneys' fees and other
                  reasonable expenses incurred by the Administrative Agent in
                  connection with the collection of the Secured Obligations and
                  the enforcement of the Administrative Agent's rights under
                  this Agreement, in each case during the continuance of an
                  Event of Default, all of which expenses and fees shall
                  constitute additional Secured Obligations secured by this
                  Agreement. The Administrative Agent may apply the Collateral
                  against the Secured Obligations then due and payable in such
                  order and manner as it shall elect in its sole discretion.
                  Each of the Debtors shall remain liable for any deficiency
                  (subject to Section 7.16 hereof) together with interest
                  thereon at the Default Rate if the proceeds of any sale or
                  disposition of the Collateral are insufficient to pay the
                  Secured Obligations. Each of the Debtors waives all rights of
                  marshaling in respect of the Collateral.

         (b)      The Administrative Agent may cause any or all of the
                  Collateral held by it to be transferred into the name of the
                  Administrative Agent or the name or names of the
                  Administrative Agent's nominee or nominees (in each case as
                  pledgee hereunder).

         6.3      Access. In addition to the rights and remedies hereunder, upon
the occurrence of an Event of Default and during the continuation thereof, the
Administrative Agent shall have the right to enter and remain upon the various
premises of the Debtors without cost or charge to the Administrative Agent, and
use the same, together with materials, supplies, books and records of the
Debtors for the purpose of collecting and liquidating the Collateral, or for
preparing for sale and conducting the sale of the Collateral, whether by
foreclosure, auction or otherwise. In addition, the Administrative Agent may
remove Collateral, or any part thereof, from such premises and/or any records
with respect thereto, in order to effectively collect or liquidate such
Collateral.

         6.4      Nonexclusive Nature of Remedies. Failure by the Administrative
Agent or the holders of the Secured Obligations to exercise any right, remedy or
option under this Agreement, any other Loan Document, any other documents
relating to the Secured Obligations, or as provided by law, or any delay by the
Administrative Agent or the holders of the Secured Obligations in exercising the
same, shall not operate as a waiver of any such right, remedy or option. No
waiver hereunder shall be effective unless it is in writing, signed by the party
against whom such waiver is sought to be enforced and then only to the extent
specifically stated, which in the case of the Administrative Agent or the
holders of the Secured Obligations shall only be granted as provided herein. To
the extent permitted by law, neither the Administrative Agent, the holders of
the Secured Obligations, nor any party acting as attorney for the Administrative
Agent or the holders of the Secured Obligations, shall be liable hereunder for
any acts or omissions or for any error of judgment or mistake of fact or law
other than their gross negligence or willful misconduct hereunder. The rights
and remedies of the Administrative Agent and the holders of the Secured
Obligations under this Agreement shall be cumulative and not exclusive of any
other right or remedy that the Administrative Agent or the holders of the
Secured Obligations may have.

         6.5      Retention of Collateral. To the extent permitted under
applicable law, in addition to the rights and remedies hereunder, upon the
occurrence of an Event of Default, the Administrative Agent may, after providing
the notices required by Sections 9-620 and 9-621 of the UCC or otherwise
complying with the requirements of applicable law of the relevant jurisdiction,
accept or retain all or any portion of the Collateral in satisfaction of the
Secured Obligations. Unless and until the Administrative Agent shall have
provided

                                       10
<PAGE>

such notices, however, the Administrative Agent shall not be deemed to have
accepted or retained any Collateral in satisfaction of any Secured Obligations
for any reason.

         6.6      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the
Administrative Agent or any of the holders of the Secured Obligations in cash or
its equivalent, will be applied in reduction of the Secured Obligations in the
order set forth in the Credit Agreement.

SECTION 7. Miscellaneous.

         7.1      No Waiver, Cumulative Remedies. No failure on the part of the
Administrative Agent on behalf of the holders of the Secured Obligations to
exercise and no delay in exercising, and no course of dealing with respect to,
any right, power, privilege or remedy under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power,
privilege or remedy under this Agreement preclude any other or further exercise
thereof or the exercise of any other right, power, privilege or remedy. To the
fullest extent permitted by applicable laws, the rights, powers, privilege and
remedies provided for in this Agreement are cumulative and not exclusive of any
rights and remedies provided by law. The Administrative Agent may exercise any
right, power, privilege or remedy under this Agreement or under applicable law
against any Debtor without enforcing any rights, powers, privileges or remedies
against any other Debtor under this Agreement or otherwise, each of the Debtors
expressly waiving any rights or requirements that the Administrative Agent or
any Lender first enforce any right, power, privilege or remedy against the
Borrower, any other Debtor or any other Collateral for the Secured Obligations.

         7.2      Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of each Debtor and the Administrative Agent and their
respective heirs, successors, and assigns, except that none of the Debtors may
assign any of its rights or obligations under this Agreement without the prior
written consent of the Required Lenders under the Credit Agreement except to the
extent permitted by the Credit Agreement. To the fullest extent permitted by
law, each Debtor hereby releases the Administrative Agent and each holder of the
Secured Obligations, and their respective successors and assigns, from any
liability for any act or omission relating to this Agreement or the Collateral,
except for any liability arising from the gross negligence or willful misconduct
of the Administrative Agent or such holder, or their respective officers,
employees or agents.

         7.3      Notices. All notices required or permitted to be given under
this Agreement shall be given as provided in Section 11.02 of the Credit
Agreement.

         7.4      Governing Law; Submission to Jurisdiction; Waiver of Jury
Trial; Arbitration.

         (a)      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE PARTIES HERETO
SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

         (b)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH DEBTOR AND
THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THOSE COURTS. EACH DEBTOR AND THE

                                       11
<PAGE>

ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, IRREVOCABLY WAIVES
ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH
DEBTOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH LENDER, WAIVES
PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE
BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

         7.5      Waiver of Right to Trial by Jury.

         EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN
CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         7.6      Headings. The headings, captions, and arrangements used in
this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

         7.7      Survival of Representations and Warranties. All
representations and warranties made in this Agreement or in any certificate
delivered pursuant hereto shall survive the execution and delivery of this
Agreement, and no investigation by the Administrative Agent or any Lender shall
affect the representations and warranties or the right of the Administrative
Agent or any Lender to rely upon them.

         7.8      Amendments and Waivers. This Agreement and the provisions
hereof may not be amended, waived, modified, changed, discharged or terminated
except as set forth in Section 11.01 of the Credit Agreement.

         7.9      Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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

         7.11     Construction. The Debtors and the Administrative Agent
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement with its
legal counsel and that this Agreement shall be construed as if jointly drafted
by the Debtors and the Administrative Agent.

                                       12
<PAGE>

         7.12     Secured Obligations Absolute. The obligations of the Debtors
under this Agreement shall be absolute and unconditional and shall not be
released, discharged, reduced, or in any way impaired by any circumstance
whatsoever, including, without limitation, any amendment, modification,
extension, or renewal of this Agreement, the Secured Obligations, or any
document or instrument evidencing, securing, or otherwise relating to the
Secured Obligations, or any release, subordination, or impairment of collateral,
or any waiver, consent, extension, indulgence, compromise, settlement, or other
action or inaction in respect of this Agreement, the Secured Obligations, or any
document or instrument evidencing, securing, or otherwise relating to the
Secured Obligations, or any exercise or failure to exercise any right remedy,
power, or privilege in respect of the Secured Obligations.

         7.13     Termination. On the Collateral Termination Date, the Liens
created hereby shall terminate, and the Administrative Agent, at the request and
expense of each Debtor, forthwith will execute and deliver to such Debtor a
proper instrument or instruments acknowledging the satisfaction and termination
of the Liens created hereby and will duly assign, transfer and deliver to such
Debtor (without recourse and without any representation or warranty), such of
the Collateral as may be in the possession of the Lender and as has not
theretofore been sold or otherwise applied pursuant to this Agreement or the
Credit Agreement. Upon such release and redelivery, this Agreement shall
terminate.

         7.14     ENTIRE AGREEMENT. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN
DOCUMENTS, EMBODIES THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.

         7.15     Other Security. To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Collateral
(including, without limitation, real and other personal property owned by a
Debtor), or by a guarantee, endorsement or property of any other Person in favor
of the Administrative Agent on behalf of the holders of the Secured Obligations,
then the Administrative Agent shall have the right to proceed against such other
property, guarantee or endorsement upon the occurrence and during the
continuance of any Event of Default, and the Administrative Agent shall have the
right, in its sole discretion, to determine which rights, security, liens,
security interests or remedies the Administrative Agent shall at any time
pursue, relinquish, subordinate, modify or take with respect thereto, without in
any way modifying or affecting any of them or the Secured Obligations or any of
the rights of the Administrative Agent or the holders of the Secured Obligations
under this Agreement, under any of the other Loan Documents or under any other
document relating to the Secured Obligations.

         7.16     Joint and Several Obligations of Debtors.

         (a)      Each of the Debtors is accepting joint and several liability
hereunder in consideration of the financial accommodation to be provided by the
holders of the Secured Obligations, for the mutual benefit, directly and
indirectly, of each of the Debtors and in consideration of the undertakings of
each of the Debtors to accept joint and several liability for the obligations of
each of them.

         (b)      Each of the Debtors jointly and severally hereby irrevocably
and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Debtors with respect to the payment
and performance of all of the Secured Obligations arising under this Agreement,
the other Loan Documents and any other documents relating to the Secured
Obligations, it being the intention of the parties hereto that all the Secured
Obligations shall be the joint and several obligations of each of the Debtors
without preferences or distinction among them.

         (c)      Notwithstanding any provision to the contrary contained
herein, in any other of the Loan Documents or in any other documents relating to
the Secured Obligations, the obligations of each Guarantor under the Credit
Agreement, the other Loan Documents and the documents relating to the Secured

                                       13
<PAGE>

Obligations shall be limited to an aggregate amount equal to the largest amount
that would not render such obligations subject to avoidance under Section 548 of
the United States Bankruptcy Code or any comparable provisions of any applicable
state law.

                   [Signatures on immediately following pages]

                                       14
<PAGE>

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first written above.

DEBTORS:                         QUANTA SERVICES, INC.,
                                 a Delaware corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 ARBY CONSTRUCTION, INC.
                                 AUSTIN TRENCHER, INC.
                                 CCLC, INC.
                                 CONTI COMMUNICATIONS, INC.
                                 CROCE ELECTRIC COMPANY, INC.
                                 DILLARD SMITH CONSTRUCTION COMPANY
                                 DRIFTWOOD ELECTRICAL CONTRACTORS, INC.
                                 GLOBAL ENERCOM MANAGEMENT, INC.
                                 GOLDEN STATE UTILITY CO.
                                 H.L. CHAPMAN PIPELINE CONSTRUCTION, INC.
                                 HAINES CONSTRUCTION COMPANY
                                 MANUEL BROS., INC.
                                 MEARS GROUP, INC.
                                 NETWORK ELECTRIC COMPANY
                                 NORTH PACIFIC CONSTRUCTION CO., INC.
                                 NORTH SKY COMMUNICATIONS, INC.
                                 PARKSIDE SITE & UTILITY COMPANY CORPORATION
                                 PARKSIDE UTILITY CONSTRUCTION CORP.
                                 PWR FINANCIAL COMPANY
                                 QPC, INC.
                                 QSI, INC.
                                 QUANTA HOLDINGS, INC.
                                 QUANTA GOVERNMENT SERVICES, INC.
                                 QUANTA LI ACQUISITION, INC.
                                 QUANTA LIV ACQUISITION, INC.
                                 QUANTA LVII ACQUISITION, INC.
                                 QUANTA LVIII ACQUISITION, INC.
                                 QUANTA LIX ACQUISITION, INC.
                                 QUANTA LX ACQUISITION, INC.
                                 QUANTA LXI ACQUISITION, INC.
                                 QUANTA LXII ACQUISITION, INC.
                                 QUANTA LXIII ACQUISITION, INC.
                                 QUANTA LXIV ACQUISITION, INC.
                                 QUANTA LXV ACQUISITION, INC.,
                                 each a Delaware corporation

                                 By:    /s/ Dana A. Gordon
                                        -------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       15
<PAGE>

                                 QUANTA LXVI ACQUISITION, INC.
                                 QUANTA LXVII ACQUISITION, INC.
                                 QUANTA LXVIII ACQUISITION, INC.
                                 QUANTA LXIX ACQUISITION, INC.
                                 QUANTA LXX ACQUISITION, INC.
                                 QUANTA LXXI ACQUISITION, INC.
                                 QUANTA LXXII ACQUISITION, INC.
                                 QUANTA LXXIII ACQUISITION, INC.
                                 QUANTA UTILITY INSTALLATION CO., INC.
                                 R.A. WAFFENSMITH & CO., INC.
                                 SOUTHEAST PIPELINE CONSTRUCTION, INC.
                                 SOUTHWESTERN COMMUNICATIONS, INC.
                                 SPALJ CONSTRUCTION COMPANY
                                 SUMTER UTILITIES, INC.
                                 TOM ALLEN CONSTRUCTION COMPANY
                                 TTGP, INC.
                                 TTLP, INC.
                                 TXLP, INC.
                                 UNDERGROUND CONSTRUCTION CO., INC.
                                 VCI TELCOM, INC.
                                 W.C. COMMUNICATIONS, INC.,
                                 each a Delaware corporation

                                 By:    /s/ Dana A. Gordon
                                        --------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 ADVANCED TECHNOLOGIES AND INSTALLATION
                                    CORPORATION,
                                 ALLTECK LINE CONTRACTORS (USA), INC.
                                 MUSTANG LINE CONTRACTORS, INC.
                                 POTELCO, INC.,
                                 each a Washington corporation

                                 By:    /s/ Dana A. Gordon
                                        --------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 BRADFORD BROTHERS, INC.
                                 TTM, INC.,
                                 each a North Carolina corporation

                                 By:    /s/ Dana A. Gordon
                                        -------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       16
<PAGE>

                                 COMMUNICATION MANPOWER, INC.
                                 P.D.G. ELECTRIC COMPANY
                                 TRAWICK CONSTRUCTION COMPANY, INC.,
                                 each a Florida corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 CROWN FIBER COMMUNICATIONS, INC.,
                                 a Virginia corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 ENVIRONMENTAL PROFESSIONAL ASSOCIATES,
                                          LIMITED
                                 W.H.O.M. CORPORATION
                                 each a California corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 FIVE POINTS CONSTRUCTION CO.
                                 MEJIA PERSONNEL SERVICES, INC.
                                 TRANS TECH ACQUISITION, INC.
                                 SOUTHWEST TRENCHING COMPANY, INC.
                                 each a Texas corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 INTERMOUNTAIN ELECTRIC, INC.,
                                 a Colorado corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       17
<PAGE>

                                 IRBY CONSTRUCTION COMPANY,
                                 a Mississippi corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 OLD LESCO CORPORATION, INC.
                                 a South Carolina corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 METRO UNDERGROUND SERVICES, INC.
                                 PROFESSIONAL TELECONCEPTS, INC. (IL)
                                 each an Illinois corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 PAR ELECTRICAL CONTRACTORS, INC.,
                                 a Missouri corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 PROFESSIONAL TELECONCEPTS, INC. (NY),
                                 A New York corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 THE RYAN COMPANY, INC.,
                                 a Massachusetts corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 UTILCO, INC.,
                                 a Georgia corporation

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       18
<PAGE>

                                 QDE, LLC
                                 QUANTA DELAWARE, INC.
                                 QUANTA ASSET MANAGEMENT LLC
                                 each a Delaware limited liability company

                                 By:    /s/ Linda Bubacz
                                        -----------------------------------
                                 Name:  Linda Bubacz
                                 Title: President

                                 TOTAL QUALITY MANAGEMENT LLC, a Delaware
                                 limited liability company
                                 COAST TO COAST, LLC,
                                 a California limited liability company

                                 By:    Environmental Professional Associates,
                                        Limited, Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 NORTHERN LINE LAYERS, LLC,
                                 a Delaware limited liability company

                                 By:    PAR Electrical Contractors, Inc.,
                                        Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 DOT 05, LLC
                                 TJADER, L.L.C.
                                 OKAY CONSTRUCTION COMPANY, LLC
                                 each a Delaware limited liability company

                                 By:    Spalj Construction Company,
                                        Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       19
<PAGE>

                                 LAKE NORMAN PIPELINE, LLC,
                                 a North Carolina limited liability company

                                 By:    Bradford Brothers, Inc.,
                                        Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 MEARS/CPG, LLC
                                 MEARS ENGINEERING, LLC
                                 MEARS/HDD, LLC
                                 MEARS SERVICES, LLC
                                 each a Michigan limited liability company

                                 By:    Mears Group, Inc., The Sole Member of
                                        each of the foregoing limited liability
                                        companies

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 S.K.S. PIPELINERS, LLC,
                                 a Delaware limited liability company

                                 By:    Arby Construction, Inc., Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 TNS-VA, LLC,
                                 a Delaware limited liability company

                                 By:    Professional Teleconcepts, Inc. (NY)
                                        Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       20
<PAGE>

                                 LINECO LEASING, LLC,
                                 a Washington limited liability company

                                 By:    Mustang Line Contractors, Inc.,
                                        Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 AIRLAN TELECOM SERVICES, L.P.
                                 NORTH HOUSTON POLE LINE, L.P.
                                 LINDSEY ELECTRIC, L.P.
                                 DIGCO UTILITY CONSTRUCTION, L.P.
                                 each a Texas limited partnerships

                                 By:    Mejia Personnel Services, Inc.,
                                        Its General Partner

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 QUANTA SERVICES MANAGEMENT PARTNERSHIP, L.P.
                                 QUANTA ASSOCIATES, L.P.
                                 each a Texas limited partnerships

                                 By:    QSI, Inc., Its General Partnership

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 TRANS TECH ELECTRIC, L.P.,
                                 a Texas limited partnership

                                 By:    TTGP, Inc., Its General Partner

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       21
<PAGE>

                                 PWR NETWORK, LLC,
                                 a Delaware limited liability company

                                 By:    PWR Financial Company, Its Sole Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 QUANTA RECEIVABLES, L.P.
                                 a Delaware limited partnership

                                 By: PWR Financial Company, Its General Partner

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                 Q RESOURCES, LLC
                                 a Delaware limited liability company

                                 By:    Quanta Holdings, Inc., Its Member

                                 By:    /s/ Dana A. Gordon
                                        ----------------------------------------
                                 Name:  Dana A. Gordon
                                 Title: Vice President

                                       22
<PAGE>

Accepted and agreed to as of the date first above written.

Bank of America, N.A., as Administrative Agent

By:    /s/ Suzanne M. Paul
       ---------------------------------------
Name:  Suzanne M. Paul
Title: Vice President

<PAGE>

                                 SCHEDULE 2.1(b)

                             Commercial Tort Claims

None.

<PAGE>

                                  SCHEDULE 3.3

                                  SCHEDULE 3.3

<TABLE>
<CAPTION>
              ENTITY                                FORMER NAME(S)           COMPANIES MERGED INTO OR ACQUIRED BY SUCH ENTITY
              ------                                --------------           ------------------------------------------------
<S>                                       <C>                                <C>
Advanced Technologies and                                                    Telecom Network Specialists, Inc.
   Installation Corporation                                                       JT Communications, Inc.
Airlan Telecom Services, L.P.             Airlan Telecom Services, LLC
Allteck Line Contractors (USA), Inc.
Allteck Line Contractors, Inc.
Arby Construction, Inc.                   Quanta XXXVII Acquisition, Inc.    Denny Anderson, Inc. f/k/a Fox Utility Service
Austin Trencher, Inc.                     Quanta XIV Acquisition, Inc.
Bradford Brothers, Inc.                                                      Edwards Pipeline Company, Inc.
                                                                                  Wade D. Taylor, Inc.
CCLC, Inc.
Coast to Coast, LLC
Communication Manpower, Inc.
Conti Communications, Inc.                Quanta XXXIV Acquisition, Inc.
Croce Electric Company, Inc.              Quanta XXXIX Acquisition, Inc.
Crown Fiber Communications, Inc.                                             Fiber Technology, Inc.
                                                                             Myers Cable, Inc.
                                                                             Quanta XXIV Acquisition, Inc.
                                                                             T.H Cable Construction, Inc.
                                                                             World CATV Communications, Inc.
                                                                             World Fiber, Inc.
                                                                                  Choice Optics Communications, Inc.
                                                                                  DeltaComm, Inc.
                                                                                  Marlboro Cablevision Constructors, Inc.
                                                                                  Sycamore Shoals Communications, Inc.
Digco Utility Construction, L.P.          Digco Utility Construction, Inc.   Ranger Field Services, Inc. f/k/a Ranger Directional,
                                          Quanta XLII Acquisition, Inc.           Inc.
                                                                                  Charlie Hill Road Boring, Inc.
                                                                                  Brown Engineering, LLC
Dillard Smith Construction Company        Quanta III Acquisition, Inc.
</TABLE>

                                                                      [BORROWER]
                                                              SECURITY AGREEMENT

<PAGE>

<TABLE>
<CAPTION>
              ENTITY                                FORMER NAME(S)           COMPANIES MERGED INTO OR ACQUIRED BY SUCH ENTITY
              ------                                --------------           ------------------------------------------------
<S>                                       <C>                                <C>
Dot 05, LLC
Driftwood Electrical Contractors, Inc.    Quanta X Acquisition, Inc.         Maddux Underground Communication, Inc.
                                                                             The 27 Digging Company, Inc.
Environmental Professional                                                   Computapole, Inc.
   Associates, Limited                                                       PROVCO
                                                                             Tip Top Arborists, Inc.
Five Points Construction Co.
Global Enercom Management., Inc.          GEM Engineering Co., Inc.
                                          Quanta XI Acquisition, Inc.
Golden State Utility Co.                  GSU Acquisition, Inc.              Wesley C. Sanders d/b/a W.C. Sanders Construction
                                                                             Company
H.L. Chapman Pipeline Construction, Inc.  Quanta XIII Acquisition, Inc.      DB Utilities, Inc.
                                                                             H.L. Chapman Leasing Co., Inc.
                                                                             Sullivan Welding, inc.
Haines Construction Company               Quanta XXIX Acquisition, Inc.      Brown Engineering and Testing, Inc.
Intermountain Electric, Inc.                                                 Grand Electric Company
                                                                             I.E. Holdings, Inc.
Irby Construction Company                                                    Utilities Construction & Technology Solutions, LLC
Lake Norman Pipeline, LLC                 Edwards Pipeline Company, LLC
Lindsey Electric, L.P.                    Lindsey Electric, Inc.
Old LESCO Corporation                     Line Equipment Sales Co., Inc.
Lineco Leasing, LLC
Manuel Bros., Inc.                        Smith Acquisition DE, Inc.         Renaissance Construction Co., Inc.
                                                                             Renaissance Construction of Nevada, Inc.
                                                                             Renaissance Construction of Utah, Inc.
                                                                             Western Directional , Inc.
Mears Canada Corp.
Mears Engineering, LLC
Mears Group, Inc.                         Quanta L Acquisition, Inc.         Conceco Engineering, Inc.
                                                                             High Potential Engineering, Inc
                                                                             High Potential Products, Inc.
                                                                             Specialty Drilling Technology, Inc.
Mears Services, LLC
Mears/CPG, LLC
Mears/HDD, LLC
Mearsmex S. de R. L. de C. V.
Mejia Personnel Services, Inc.                                               Quanta LV Acquisition, Inc.
</TABLE>

                                       2

<PAGE>

<TABLE>
<CAPTION>
              ENTITY                                FORMER NAME(S)           COMPANIES MERGED INTO OR ACQUIRED BY SUCH ENTITY
              ------                                --------------           ------------------------------------------------
<S>                                       <C>                                <C>
Metro Underground Services, Inc.          Subsite Services, Inc.
Mustang Line Contractors, Inc.
Network Electric Company                  Quanta XVII Acquisition, Inc.      Network Equipment, LLC
North Houston Pole Line, L.P.             North Houston Pole Line Corp.      Service Corporation of the Southwest
North Pacific Construction Co., Inc.      NPCC Acquisition, Inc.
North Sky Communications, Inc.            Quanta XXIII Acquisition, Inc.     Sky Antenna Systems Inc.
                                                                             North Pacific Utility Contractors, Inc.
Northern Line Layers, LLC                 Northern Line Layers, Inc.         Bonneville Construction Co.
                                          Quanta II Acquisition, Inc.        Great Western Enterprises, Inc.
                                                                             NetCom Management Group, Inc.
                                                                             TVS Systems, Inc.
Okay Construction Company, LLC            Okay Construction Co., Inc.
                                          Quanta XLVIII Acquisition, Inc.
P.D.G. Electric Company                                                      Quanta VIII Acquisition, Inc.
                                                                             Total Cable Communications, Inc.
PAR Electrical Contractors, Inc.                                             Allmat, Inc.
                                                                             Harker & Harker, Inc.
                                                                             M&M Line Construction, Inc.
                                                                             Martin's Equipment Rentals, Inc.
                                                                             Pinnacle Construction of Kansas, Inc.
                                                                             Riggin & Diggin Line Construction, Inc.
                                                                             Seaward Corporation
                                                                             Taylor Built, Inc.
                                                                             Union Power Construction Company
Par Internacional, S. de R.L. de C.V.
Parkside Site & Utility Company
  Corporation                             Quanta LII Acquisition, Inc.
Parkside Utility Construction Corp.       Quanta LIII Acquisition, Inc.      Utility Systems, Inc.
Potelco, Inc.                                                                Kingston Constructors, Inc.
                                                                             Kingston Contracting, Inc.
                                                                             Kuenzi Construction, Inc.
                                                                             NorAm Telecommunications, Inc.
                                                                             PowerLink Corporation
Professional Teleconcepts, Inc.
Professional Teleconcepts, Inc.
PWR Financial Company
PWR Network, LLC
Q Resources, LLC
</TABLE>

                                       3

<PAGE>

<TABLE>
<CAPTION>
              ENTITY                                FORMER NAME(S)           COMPANIES MERGED INTO OR ACQUIRED BY SUCH ENTITY
              ------                                --------------           ------------------------------------------------
<S>                                       <C>                                <C>
QDE LLC
QPC, Inc.                                 Quanta LVI Acquisition, Inc.
QSI, Inc.
Quanta Asset Management LLC
Quanta Associates, L.P.
Quanta Delaware, Inc.
Quanta Government Services, Inc.          Quanta XXXI Acquisition, Inc.
Quanta Holdings, Inc.
Quanta LI Acquisition, Inc.
Quanta LIV Acquisition, Inc.
Quanta LIX Acquisition, Inc.
Quanta LVII Acquisition, Inc.
Quanta LVIII Acquisition, Inc.
Quanta LX Acquisition, Inc.
Quanta LXI Acquisition, Inc.
Quanta LXII Acquisition, Inc.
Quanta LXIII Acquisition, Inc.
Quanta LXIV Acquisition, Inc.
Quanta LXIX Acquisition, Inc.
Quanta LXV Acquisition, Inc.
Quanta LXVI Acquisition, Inc.
Quanta LXVII Acquisition, Inc.
Quanta LXVIII Acquisition, Inc.
Quanta LXX Acquisition, Inc.
Quanta LXXI Acquisition, Inc.
Quanta LXXII Acquisition, Inc.
Quanta LXXIII Acquisition, Inc.
Quanta Receivables, L.P.
Quanta Services Management Partnership,
  L.P.
Quanta Services of Canada Ltd.
Quanta Utility Installation Company,
  Inc.
R.A. Waffensmith & Co., Inc.              Quanta V Acquisition, Inc.         Kodiak Underground Services
                                                                             MC Underground, LLC
                                                                             On Line Construction, Inc.
                                                                             T&S Trenching
                                                                             TSI, Inc.
S.K.S. Pipeliners, LLC                    S.K.S. Pipeliners, Inc.
</TABLE>

                                       4

<PAGE>

<TABLE>
<CAPTION>
              ENTITY                                FORMER NAME(S)           COMPANIES MERGED INTO OR ACQUIRED BY SUCH ENTITY
              ------                                --------------           ------------------------------------------------
<S>                                       <C>                                <C>
                                          Quanta XXXVIII Acquisition, Inc.
Servicios Par Electric, S. de R.L. de
  C.V.
Southeast Pipeline Construction, Inc.
Southwest Trenching Company, Inc.
Southwestern Communications, Inc.         Quanta XLVI Acquisition, Inc.
Spalj Construction Company                Spalj Acquisition, Inc.            Dot 05, LLC
                                                                             Edward Smith d/b/a Smith Contracting
                                                                             Spancon of Deerwood, Inc.
                                                                             Thorstad Brothers Tiling
                                                                             Tjader & Highstrom, Inc.
                                                                             Wilson Roadbores, Inc.
Sumter Utilities, Inc.                    Sumter Builders, Inc.              Utilities Construction Co., Inc.
                                          Sumter Acquisition, Inc.
The Ryan Company, Inc.                    Quanta I Acquisition, Inc.         Eastern Communications, Inc.
Tjader, L.L.C.
TNS-VA, LLC
Tom Allen Construction Company            Quanta IX Acquisition, Inc.
Total Quality Management Services, LLC
Trans Tech Acquisition, Inc.
Trans Tech Electric, L.P.                 Trans Tech Conversion Corporation
Trawick Construction Company, Inc.                                           Gulf Telephone Company
                                                                             J & P Splicing, Inc.
TTGP, Inc.                                Quanta LXXV Acquisition, Inc.
TTLP, Inc.                                Quanta LXXIV Acquisition, Inc.
TTM, Inc.                                                                    Quanta XII Acquisition, Inc.
TXLP, Inc.                                Quanta XXXIII Acquisition, Inc.
Underground Construction Co., Inc.        Underground Acquisition, Inc.      Hudson & Poncetta, Inc.
Utilco, Inc.                              Utilco Constructors, Inc.          Quanta XIX Acquisition, Inc.
VCI Telcom, Inc.                          Quanta VI Acquisition, Inc.        Valverde Communications, Inc.
W.C. Communications, Inc.                 Quanta XX Acquisition, Inc.        Network Communications Services, Inc.
                                                                             Pac West Construction, Inc.
W.H.O.M. Corporation
</TABLE>

                                       5

<PAGE>

                                  SCHEDULE 4.3

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                   COPYRIGHTS

United States Copyright Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 19, 2003 (as the same may be amended, modified, extended or restated
from time to time, the "Security Agreement") by and among the Debtors party
thereto (each a "Debtor" and collectively, the "Debtors") and Bank of America,
N.A., as Administrative Agent (the "Administrative Agent") for the holders of
the Secured Obligations referenced therein, the undersigned Debtor has granted a
continuing security interest in and continuing lien upon, the copyrights and
copyright applications shown on Schedule 1 attached hereto to the Administrative
Agent for the ratable benefit of the holders of the Secured Obligations.

         The undersigned Debtor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the copyrights and copyright applications set forth on
Schedule 1 attached hereto (i) may only be terminated in accordance with the
terms of the Security Agreement and (ii) is not to be construed as an assignment
of any copyright or copyright application.

                                                     Very truly yours,

                                                     ___________________________
                                                     [Debtor]

                                                     By:________________________
                                                     Name:
                                                     Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By: ________________________
Name:
Title:

<PAGE>

                                  SCHEDULE 4.3

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                     PATENTS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 19, 2003 (the "Security Agreement") by and among the Debtors party
thereto (each a "Debtor" and collectively, the "Debtors") and Bank of America,
N.A., as Administrative Agent (the "Administrative Agent") for the holders of
the Secured Obligations referenced therein, the undersigned Debtor has granted a
continuing security interest in and continuing lien upon, the patents and patent
applications set forth on Schedule 1 attached hereto to the Administrative Agent
for the ratable benefit of the holders of the Secured Obligations.

         The undersigned Debtor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the patents and patent applications set forth on Schedule 1
attached hereto (i) may only be terminated in accordance with the terms of the
Security Agreement and (ii) is not to be construed as an assignment of any
patent or patent application.

                                                     Very truly yours,

                                                     ___________________________
                                                     [Debtor]

                                                     By:________________________
                                                     Name:
                                                     Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By: ________________________
Name:
Title:

                                       2

<PAGE>

                                  SCHEDULE 4.3

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                   TRADEMARKS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 19, 2003 (the "Security Agreement") by and among the Debtors party
thereto (each a "Debtor" and collectively, the "Debtors") and Bank of America,
N.A., as Administrative Agent (the "Administrative Agent") for the holders of
the Secured Obligations referenced therein, the undersigned Debtor has granted a
continuing security interest in and continuing lien upon, the trademarks and
trademark applications set forth on Schedule 1 attached hereto to the
Administrative Agent for the ratable benefit of the holders of the Secured
Obligations.

         The undersigned Debtor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the trademarks and trademark applications set forth on
Schedule 1 attached hereto (i) may only be terminated in accordance with the
terms of the Security Agreement and (ii) is not to be construed as an assignment
of any trademark or trademark application.

                                                     Very truly yours,

                                                     ___________________________
                                                     [Debtor]

                                                     By:________________________
                                                     Name:
                                                     Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By: ________________________
Name:
Title:

                                       3

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.55
<SEQUENCE>5
<FILENAME>h13605exv10w55.txt
<DESCRIPTION>PLEDGE AGREEMENT DATED 12/19/2003
<TEXT>
<PAGE>

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (this "Agreement") dated as of December 19, 2003
is by and among the parties identified as "Pledgors" on the signature pages
attached hereto and such other parties as may become Pledgors hereunder (each a
"Pledgor" and collectively the "Pledgors") and Bank of America, N.A., as
Administrative Agent (in such capacity, the "Administrative Agent"), for the
ratable benefit of the Lenders.

                                    RECITALS:

         A.       Quanta Services, Inc., a Delaware corporation (the
"Borrower"), the Guarantors identified therein, the Lenders identified therein,
and the Administrative Agent have entered into that certain Credit Agreement
dated as of the date hereof (as amended, modified, supplemented or restated from
time to time, the "Credit Agreement").

         B.       This Agreement is required under the terms of the Credit
Agreement.

         NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

SECTION 1. DEFINITIONS. Unless otherwise defined herein, capitalized terms have
the same meaning assigned to such terms in the Credit Agreement. As used in this
Agreement:

         "Collateral" is defined in Section 2.1.

         "Collateral Proceeds" is defined in Section 2.1(f).

         "Collateral Termination Date" means the first date on which no Loan or
Credit Extension is outstanding under the Credit Agreement, the Commitments have
been permanently terminated, and no other Obligations are due and payable
thereunder or under any other Loan Document.

         "Event of Default" is defined in Section 6.1.

         "Pledged Shares" is defined in Section 2.1(a).

         "Secured Obligations" is defined in Section 2.2.

         "UCC" means the Uniform Commercial Code.

         "Voting Stock" is defined in Section 2.1.

SECTION 2. SECURITY INTEREST AND PLEDGE.

         2.1      Security Interest and Pledge. Subject to the terms of this
Agreement and to secure the Secured Obligations, each Pledgor hereby pledges,
assigns, grants, conveys and transfers to the Administrative Agent for the
ratable benefit of the holders of the Secured Obligations a continuing first
priority security interest in, and a right of set-off against, any and all of
such Pledgor's rights, title and interest in, to and under the following
property, whether now existing or owned, acquired or arising hereafter
(collectively, the "Collateral"):

<PAGE>

                  (a)      all of shares of Capital Stock in the Persons listed
                           on the attached Schedule 2.1(a) and any other
                           entities which hereafter become Subsidiaries of such
                           Pledgor or any of its Subsidiaries in which such
                           Pledgor has an ownership interest (collectively, the
                           "Companies"), and the certificates or instruments, if
                           any, representing such Capital Stock and all options
                           and other rights, contractual or otherwise, with
                           respect thereto (collectively, the "Pledged Shares");

                  (b)      any other shares of Capital Stock hereafter pledged
                           to the Administrative Agent pursuant to this
                           Agreement;

                  (c)      all "investment property" as such term is defined in
                           Section 9-102(a)(49) of the UCC with respect thereto;

                  (d)      any "security entitlement" as such term is defined in
                           Section 8-102(a)(l7) of the UCC with respect thereto;

                  (e)      all books and records relating to the foregoing; and

                  (f)      all Accessions and Proceeds (as each is defined in
                           the UCC) of the foregoing, including, without
                           limitation, all distributions (cash, stock, or
                           otherwise), dividends, stock dividends, securities,
                           cash, instruments, rights to subscribe, purchase, or
                           sell, and other property, rights, and interest that
                           such Pledgor is at any time entitled to receive or is
                           otherwise distributed in respect of, or in exchange
                           for, any or all of the Collateral, and without
                           affecting the obligations of such Pledgor under any
                           provision of the Credit Agreement, in the event of
                           any consolidation or merger in which such Pledgor is
                           not the surviving corporation, all shares of each
                           class or Capital Stock of the successor entity formed
                           by or resulting from such consolidation or merger
                           (all of the foregoing described in this clause (f),
                           the "Collateral Proceeds");

provided, that in no event shall the Administrative Agent's security interest
encumber capital stock or membership interests of any of the Companies which is
a "controlled foreign corporation" (within the meaning of the Internal Revenue
Code) representing more than sixty-five percent (65%) of the combined voting
power of all classes of stock or membership interests entitled to vote (the
"Voting Stock") of any such entity.

         Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time
hereafter deliver additional Capital Stock to the Administrative Agent as
collateral security for the Secured Obligations. Upon delivery to the
Administrative Agent, such additional Capital Stock shall be deemed to be part
of the Collateral of such Pledgor and shall be subject to the terms of this
Pledge Agreement whether or not Schedule 2.1(a) is amended to refer to such
additional Capital Stock.

         2.2      Secured Obligations. The Collateral shall secure (subject to
Section 7.14 hereof) the following obligations, indebtedness and liabilities,
without duplication (all such obligations, indebtedness and liabilities being
hereinafter sometimes called the "Secured Obligations"):

         (a)      all of the obligations of the Loan Parties to the Lenders
                  (including the L/C Issuer, the Credit-Linked L/C Issuer and
                  the Swing Line Lender) and the Administrative Agent under the
                  Credit Agreement and the other Loan Documents (including, but
                  not limited to, any interest accruing after the commencement
                  by or against any Loan Party of a proceeding under any

                                       2
<PAGE>

                  Debtor Relief Laws, regardless of whether such interest is an
                  allowed claim under such proceeding), whether now existing or
                  hereafter arising, due or to become due, direct or indirect,
                  absolute or contingent, howsoever evidenced, created, held or
                  acquired, whether primary, secondary, direct, contingent, or
                  joint and several, as such obligations may be amended,
                  modified, increased, extended, renewed or replaced from time
                  to time;

         (b)      all of the obligations owing by the Loan Parties under any
                  Swap Contract with any Lender or any Affiliate of a Lender,
                  whether now existing or hereafter arising;

         (c)      all indemnity obligations of the Loan Parties under the Credit
                  Agreement; and

         (d)      all costs and expenses incurred in connection with enforcement
                  and collection of the foregoing obligations, including
                  reasonable attorneys' fees.

         2.3      Delivery of the Collateral. Each Pledgor hereby agrees that:

         (a)      Delivery of Certificates. Each Pledgor shall deliver to the
                  Administrative Agent (i) simultaneously with or prior to the
                  execution and delivery of this Pledge Agreement, all
                  certificates representing the Pledged Shares of such Pledgor
                  and (ii) promptly upon the receipt thereof by or on behalf of
                  a Pledgor, all other certificates and instruments constituting
                  Collateral of a Pledgor. Prior to such delivery to the
                  Administrative Agent, all such certificates and instruments
                  constituting Collateral of a Pledgor shall be held in trust by
                  such Pledgor for the benefit of the Administrative Agent
                  pursuant hereto. All such certificates shall be delivered in
                  suitable form for transfer by delivery or shall be accompanied
                  by duly executed instruments of transfer or assignment in
                  blank, substantially in the form provided in Schedule 2.3(a)
                  attached hereto.

         (b)      Financing Statements. Each Pledgor authorizes the
                  Administrative Agent to file one or more financing statements
                  (with collateral descriptions broader, including without
                  limitation "all assets" and/or "all personal property"
                  collateral descriptions, and/or less specific than the
                  description of the Collateral contained herein) disclosing the
                  Administrative Agent's security interest in the Collateral.
                  Each Pledgor agrees to execute and deliver to the
                  Administrative Agent such financing statements and other
                  filings as may be reasonably requested by the Administrative
                  Agent in order to perfect and protect the security interest
                  created hereby in the Collateral of such Pledgor.

SECTION 3. REPRESENTATIONS AND WARRANTIES. Each Pledgor represents and warrants
to the Administrative Agent for the benefit of the holders of the Secured
Obligations, that so long as any of the Secured Obligations remain outstanding
and until all of the commitments relating thereto have been terminated:

         3.1      Title. Such Pledgor owns or, with respect to Collateral
acquired after the date hereof, such Pledgor will own, legally and beneficially,
the Collateral free and clear of any Lien, security interest, pledge, claim, or
other encumbrance or any right or option on the part of any third person to
purchase or otherwise acquire the Collateral or any part thereof, except for the
security interest granted hereunder and Permitted Liens. Such Pledgor has the
unrestricted right to pledge the Collateral as contemplated hereby, and there
exists no "adverse claim" within the meaning of Section 8-102 of the UCC with
respect to the Collateral.

         3.2      Organization and Authority. Neither the execution, delivery or
performance by such Pledgor of this Agreement nor compliance by it with the
terms and provisions hereof, nor the

                                       3
<PAGE>

consummation of the transactions contemplated herein, will (i) contravene any
applicable provision of any law, statute, rule or regulation, or any order,
writ, injunction or decree of any court or governmental instrumentality; or (ii)
conflict with or result in any breach of any term, covenant, condition or other
provision of, or constitute a default under, or (other than pursuant to the
Collateral Documents) result in the creation or imposition of (or the obligation
to create or impose) any Lien upon any of the property or assets of such Pledgor
under the terms of any contractual obligation to which such Pledgor is a party
or by which it or any of its properties or assets are bound or to which it may
be subject.

         3.3      First Priority Perfected Security Interest. This Agreement has
been duly authorized, executed and delivered by such Pledgor. This Agreement
creates a valid security interest in favor of the Administrative Agent for the
benefit of the Lenders in the Collateral. The taking of possession by the
Administrative Agent of the certificates representing the Pledged Shares and all
other certificates and instruments constituting Collateral will perfect and
establish the first priority of the Administrative Agent's security interest in
the Pledged Shares consisting of certificated securities and, when properly
perfected by filing or registration, in all other Collateral represented by such
Pledged Shares and instruments securing the Secured Obligations. Except as set
forth in this Section 3.3 and except as may be required by applicable foreign
laws affecting the pledge of Capital Stock of Foreign Subsidiaries, no action is
necessary to perfect or otherwise protect such security interest.

         3.4      Partnership and Membership Interests. Except as previously
disclosed to the Administrative Agent, none of the Pledged Shares consisting of
partnership or limited liability company interests (i) is dealt in or traded on
a securities exchange or in a securities market, (ii) by its terms expressly
provides that it is a security governed by Article 8 of the UCC, (iii) is an
investment company security, (iv) is held in a securities account or (v)
constitutes a Security or a Financial Asset (as each is defined in the UCC).

         3.5      No Consent. No consent of, or notice to, any other Person and
no authorization, approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the grant by such
Pledgor of the Liens granted hereby or for the execution, delivery or
performance of this Agreement by such Pledgor, other than the filing of
financing statements and the filing of an investment act notice in connection
with the stock of any Company organized in Canada and except for such other
consents, notices or filings that have been obtained or made or that as of the
date hereof are not required to have been obtained or made and may be obtained
or made, as the case may be, when necessary.

SECTION 4. COVENANTS. Each Pledgor covenants and agrees that so long as any of
the Secured Obligations remain outstanding and until all of the commitments
relating thereto have been terminated such Pledgor shall:

         4.1      Encumbrances. Except as permitted by the Credit Agreement,
each Pledgor shall not create, permit, or suffer to exist, and shall defend the
Collateral against, any Lien on the Collateral except the pledge and security
interest of the Administrative Agent hereunder and except for Permitted Liens,
and shall warrant and defend title to and ownership of the Collateral of such
Pledgor at its own expense against the claims and demands of all other parties
claiming an interest therein and defend such Pledgor's rights in the Collateral
and the Administrative Agent's security interest in the Collateral against the
claims of all persons and entities (other than any person or entity claiming by,
through or under the Administrative Agent or any obligee of the Secured
Obligations).

         4.2      Sale of Collateral. No Pledgor shall sell, assign, or
otherwise dispose of the Collateral or any part thereof except as permitted by
the Credit Agreement.

                                       4
<PAGE>

         4.3      Dividends. If any Pledgor shall become entitled to receive or
shall receive any distribution (including, without limitation, any dividend or
distribution in connection with any reclassification, increase, or reduction of
capital or issued in connection with any reorganization), option or rights
constituting Collateral, whether as an addition to, in substitution of, or in
exchange for any Collateral or otherwise, such Pledgor agrees to accept the same
as the Administrative Agent's agent and to hold the same in trust for the
Administrative Agent and to deliver the same (to the extent in form capable of
delivery) promptly to the Administrative Agent in the exact form received, with
the appropriate endorsement of such Pledgor when necessary, to be held by the
Administrative Agent, as additional Collateral for the Secured Obligations,
subject to the terms hereof. Any sums paid upon or in respect of the Collateral
upon the liquidation or dissolution of the issuer thereof in violation of the
Credit Agreement shall be paid over to the Administrative Agent to be held by it
as additional Collateral for the Secured Obligations subject to the terms hereof
except as otherwise provided in the Credit Agreement; and in case any
distribution shall be made on or in respect of the Collateral while a Default or
an Event of Default shall be continuing or any property shall be distributed
while a Default or an Event of Default shall be continuing upon or with respect
to the Collateral pursuant to any recapitalization or reclassification of the
capital of the issuer thereof or pursuant to any reorganization of the issuer
thereof, the property so distributed shall be delivered to the Administrative
Agent to be held by it, as additional Collateral for the Secured Obligations,
subject to the terms hereof. All sums of money and property so paid or
distributed in respect of the Collateral that are received by such Pledgor
shall, until paid or delivered to the Administrative Agent, be held by such
Pledgor in trust as additional security for the Secured Obligations, provided
that except to the extent that such sums of money or property have theretofore
been applied against the Secured Obligations in accordance with the Credit
Agreement, such sums of money or property shall forthwith be delivered to such
Pledgor at such time as no Default or Event of Default shall be continuing under
the Credit Agreement.

         4.4      Further Assurances. At any time and from time to time, upon
the request of the Administrative Agent, and at the sole expense of such
Pledgor, such Pledgor shall promptly execute and deliver all such further
instruments and documents and take such further action as the Administrative
Agent may deem reasonably necessary or desirable to (a) preserve and perfect its
security interest in the Collateral; (b) enable the Administrative Agent to
exercise and enforce its rights and remedies hereunder in respect of the
Collateral of such Pledgor; and (c) carry out the provisions and purposes of
this Agreement, including, without limitation, (i) the execution and filing of
such financing statements as the Administrative Agent may require and (ii) upon
the occurrence and during the continuance of an Event of Default, if requested
by the Administrative Agent, delivering to the Administrative Agent irrevocable
proxies in respect of the Collateral of such Pledgor.

         4.5      Inspection Rights. Upon reasonable notice from the
Administrative Agent, each Pledgor shall permit the Administrative Agent and its
representatives to examine, inspect, and copy such Pledgor's books and records
concerning ownership of the Collateral at any reasonable time during normal
business hours and as often as the Administrative Agent may desire.

         4.6      Books and Records. Each Pledgor shall mark its books and
records (and shall cause the issuer of the Pledged Shares to mark its books and
records) to reflect the security interest of the Administrative Agent for the
benefit of the holders of the Secured Obligations under this Agreement.

         4.7      Receipt after Default. If any Collateral is received by any
Pledgor during the continuance of an Event of Default, Pledgor shall pay over to
the Administrative Agent all such Collateral on the day received, including the
cash and checks endorsed by such Pledgor evidencing the Collateral. Such Pledgor
shall not commingle the Collateral with any other funds, proceeds or monies of
such Pledgor, and

                                       5
<PAGE>

shall keep such proceeds separate and apart from any other funds, proceeds or
monies of such Pledgor and shall hold the Collateral in trust for the
Administrative Agent until same shall be paid over to the Administrative Agent
as agreed to herein.

         4.8      Pledge of Shares of Controlled Foreign Corporation.

         (a)      In the event that the Collateral hereunder would, but for this
                  Section 4.8(a), represent more than sixty-five percent (65%)
                  of the Voting Stock of a Company which is a controlled foreign
                  corporation, then the number of shares of Voting Stock of such
                  Company in excess of such sixty-five percent (65%)
                  automatically shall be released from the Lien of, and the
                  terms and provisions of, this Agreement.

         (b)      In the event that the Collateral hereunder represents less
                  than sixty-five percent (65%) of the Voting Stock of any
                  Company which is a controlled foreign corporation (or, if
                  less, 100% of the Voting Stock of such Company owned by
                  Pledgor), then such Pledgor will promptly pledge additional
                  capital stock to increase the number of shares pledged
                  hereunder to such sixty-five percent (65%) (or, if less, 100%
                  of the Voting Stock of such Company owned by such Pledgor).

         4.9      Amendments. Not make or consent to any amendment or other
modification or waiver with respect to any of the Collateral of such Pledgor or
enter into any agreement or allow to exist any restriction with respect to any
of the Collateral of such Pledgor that is prohibited under the Credit Agreement
or any other Loan Document.

         4.10     Compliance with Securities Laws. File all reports and other
information now or hereafter required to be filed by such Pledgor with the
United States Securities and Exchange Commission and any other state, federal or
foreign agency in connection with such Pledgor's ownership of the Collateral of
such Pledgor.

         4.11     Issuance or Acquisition of Capital Stock. Not, without
executing and delivering, or causing to be executed and delivered, to the
Administrative Agent such agreements, documents and instruments as the
Administrative Agent may reasonably request for the purpose of perfecting its
security interest therein, issue or acquire any Capital Stock constituting
Collateral consisting of an interest in a partnership or a limited liability
company that (i) is dealt in or traded on a securities exchange or in a
securities market, (ii) by its terms expressly provides that it is a security
governed by Article 8 of the UCC, (iii) is an investment company security, (iv)
is held in a securities account or (v) constitutes a Security or a Financial
Asset (as each is defined in the UCC).

SECTION 5. RIGHTS OF THE ADMINISTRATIVE AGENT AND PLEDGOR.

         5.1      Power of Attorney. Each Pledgor hereby irrevocably and with
the power of substitution constitutes and appoints the Administrative Agent on
behalf of the holders of the Secured Obligations and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead and in the name of each Pledgor or in its own name, from time to time in
the Administrative Agent's discretion during the continuance of an Event of
Default and prior to the Collateral Termination Date, to take any and all action
and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives the Administrative Agent the power and
right on behalf of the Pledgors and in its own name to do any of the following
after the occurrence and during the continuance of an Event of Default and to
the extent permitted by applicable laws, without notice to or the consent of the
Pledgors:

                                       6
<PAGE>

                  (a)      to demand, sue for, collect, or receive in the name
                           of each Pledgor or in its own name, any money or
                           property at any time payable or receivable on account
                           of or in exchange for any of the Collateral and, in
                           connection therewith, endorse checks, notes, drafts,
                           acceptances, money orders, or any other instruments
                           for the payment of money under the Collateral;

                  (b)      to pay or discharge taxes, liens, security interests,
                           or other encumbrances (other than Permitted Liens)
                           levied or placed on or threatened against the
                           Collateral;

                  (c)      (i) to direct any parties liable for any payment
                           under any of the Collateral to make payment of any
                           and all monies due and to become due thereunder
                           directly to the Administrative Agent or as the
                           Administrative Agent shall direct, (ii) to receive
                           payment of and receipt for any and all monies,
                           claims, and other amounts due and to become due at
                           any time in respect of or arising out of any
                           Collateral; (iii) to sign and endorse any drafts,
                           assignments, proxies, stock powers, verifications,
                           notices, and other documents relating to the
                           Collateral; (iv) to commence and prosecute any suit,
                           actions or proceedings at law or in equity in any
                           court of competent jurisdiction to collect the
                           Collateral or any part thereof and to enforce any
                           other right in respect of any Collateral; (v) to
                           defend any suit, action, or proceeding brought
                           against any Pledgor with respect to any Collateral;
                           (vi) to settle, compromise, or adjust any suit,
                           action, or proceeding described in clause (v) above
                           and, in connection therewith, to give such discharges
                           or releases as the Administrative Agent may deem
                           appropriate; (vii) to exchange any of the Collateral
                           for other property upon any merger, consolidation,
                           reorganization, recapitalization, or other
                           readjustment of the issuer thereof and, in connection
                           therewith, deposit any of the Collateral with any
                           committee, depositary, transfer agent, registrar, or
                           other designated agency upon such terms as the
                           Administrative Agent may determine; (viii) to add or
                           release any guarantor, endorser, surety, or other
                           party to any of the Collateral or the Secured
                           Obligations; (ix) to sell, transfer, pledge, make any
                           agreement with respect to or otherwise deal with any
                           of the Collateral as fully and completely as though
                           the Administrative Agent were the absolute owner
                           thereof for all purposes, and to do, at the
                           Administrative Agent's option and such Pledgor's
                           expense, at any time, or from time to time, all acts
                           and things which the Administrative Agent deems
                           necessary to protect, preserve, or realize upon the
                           Collateral and the Administrative Agent's security
                           interest; (x) to execute and deliver all assignments,
                           conveyances, statements, financing statements,
                           renewal financing statements, security and pledge
                           agreements, affidavits, notices and other agreements,
                           instruments and documents that the Administrative
                           Agent may reasonably deem appropriate in order to
                           perfect and maintain the security interests and liens
                           granted in this Agreement and in order to fully
                           consummate all of the transactions contemplated
                           herein; and (xi) to vote for a shareholder
                           resolution, or to sign an instrument in writing,
                           sanctioning the transfer of any or all of the
                           Collateral into the name of the Administrative Agent
                           or one or more of the holders of the Secured
                           Obligations or into the name of any transferee to
                           whom the Collateral or any part thereof may be sold
                           pursuant to Section 6.2 hereof.

This power of attorney is a power coupled with an interest and shall be
irrevocable. The Administrative Agent shall be under no duty to exercise or
withhold the exercise of any of the rights, powers, privileges,

                                       7
<PAGE>

and options expressly or implicitly granted to the Administrative Agent in this
Agreement, and shall not be liable for any failure to do so or any delay in
doing so. The Administrative Agent shall not be liable for any act or omission
or for any error of judgment or any mistake of fact or law in its individual
capacity or in its capacity as attorney-in-fact except acts or omissions
constituting or resulting from its willful misconduct or gross negligence. This
power of attorney is conferred on the Administrative Agent solely to protect,
preserve, and realize upon its security interest in the Collateral.

         5.2      Voting Rights. Until written notice shall be given to the
Pledgors in accordance with Section 6.2(d) that the Administrative Agent has
exercised its rights under Section 6.2(d) to vote the Collateral (provided,
however, if the Administrative Agent is prevented from providing such notice as
a result of Section 362 of the United States Bankruptcy Code or similar law the
Pledgors shall be entitled to exercise such rights so long as no Event of
Default shall have occurred and be continuing), a Pledgor shall be entitled to
exercise any and all voting and other rights relating or pertaining to the
Collateral or any part thereof and the Administrative Agent shall execute and
deliver (or cause to be executed and delivered) to such Pledgor all such proxies
and other instruments as such Pledgor may reasonably request for the purpose of
enabling such Pledgor to exercise the voting and other rights which it is
entitled to exercise pursuant to this sentence).

         5.3      Collateral Proceeds. Until written notice shall be given to
the Pledgors in accordance with Section 6.2(d) that the Administrative Agent has
exercised its rights under Section 6.2(d) to vote the Collateral, each Pledgor
shall be entitled to receive and collect for its own use all Collateral
Proceeds.

         5.4      Performance by the Administrative Agent of the Pledgors'
Obligations. If an Event of Default has occurred and is continuing or if a
Pledgor fails to perform or comply with any of its agreements contained herein,
the Administrative Agent may perform or cause performance of or compliance with
such agreement and in so doing may expend such sums as the Administrative Agent
may reasonably deem advisable in the performance thereof. All such expenses of
the Administrative Agent so expended, together with interest thereon at the rate
of interest provided in the Credit Agreement, shall be payable by the Pledgors
on a joint and several basis to the Administrative Agent on demand and shall
constitute Secured Obligations secured by this Agreement.

         5.5      The Administrative Agent's Duty of Care. Other than the
exercise of reasonable care in the physical custody of the Collateral while held
by the Administrative Agent hereunder, the Administrative Agent shall have no
responsibility for or obligation or duty with respect to all or any part of the
Collateral or any matter or proceeding arising out of or relating thereto,
including, without limitation, any obligation or duty to collect any sums due in
respect thereof or to protect or preserve any rights against prior parties or
any other rights pertaining thereto, it being understood and agreed that Pledgor
shall be responsible for preservation of all rights in the Collateral. Without
limiting the generality of the foregoing, the Administrative Agent shall be
conclusively deemed to have exercised reasonable care in the custody of the
Collateral if the Administrative Agent takes such action, for purposes of
preserving rights in the Collateral, as Pledgor may reasonably request in
writing, but no failure or omission or delay by the Administrative Agent in
complying with any such request by Pledgor, and no refusal by the Administrative
Agent to comply with any such request by Pledgor, shall of itself be deemed to
be a failure to exercise reasonable care.

SECTION 6. EVENTS OF DEFAULT AND REMEDIES.

         6.1      Events of Default. The Pledgors shall be in default under this
Agreement upon the occurrence of and during the continuation of any of the
events or conditions defined as Events of Default in the Credit Agreement (an
"Event of Default").

                                       8
<PAGE>

         6.2      Rights and Remedies. Prior to the Collateral Termination Date,
upon the occurrence of an Event of Default and so long as the same shall be
continuing, the Administrative Agent shall have the following rights and
remedies to the extent not prohibited by applicable laws:

                  (a)      In addition to all other rights and remedies granted
                           to the Administrative Agent in this Agreement and in
                           any other instrument or agreement securing,
                           evidencing, or relating to the Secured Obligations,
                           the Administrative Agent shall have all of the rights
                           and remedies of a secured party under the UCC of the
                           jurisdiction applicable to the affected Collateral.
                           Without limiting the generality of the foregoing, the
                           Administrative Agent may (i) without demand or notice
                           to the Pledgors, collect, receive, or take possession
                           of the Collateral or any part thereof, (ii) sell or
                           otherwise dispose of the Collateral, or any part
                           thereof, in one or more parcels at public or private
                           sale or sales, at the Administrative Agent's offices
                           or elsewhere, for cash, on credit, or for future
                           delivery without assumption of any credit risk,
                           and/or (iii) bid and become a purchaser at any such
                           sale free of any right or equity of redemption in any
                           of the Pledgors, which right or equity is hereby
                           expressly waived and released by all of the Pledgors.
                           Upon the request of the Administrative Agent, any of
                           the Pledgors shall assemble the Collateral and make
                           it available to the Administrative Agent at any place
                           designated by the Administrative Agent that is
                           reasonably convenient to such Pledgor and the
                           Administrative Agent. Each of the Pledgors agrees
                           that the Administrative Agent shall not be obligated
                           to give more than ten (10) days' prior written notice
                           of the time and place of any public sale or of the
                           time after which any private sale may take place and
                           that such notice shall constitute reasonable notice
                           of such matters. Each of the Pledgors shall be
                           liable, jointly and severally, for all reasonable
                           expenses of retaking, holding, preparing for sale, or
                           the like, and all reasonable attorneys' fees and
                           other reasonable expenses incurred by the
                           Administrative Agent in connection with the
                           collection of the Secured Obligations and the
                           enforcement of the Administrative Agent's rights
                           under this Agreement, in each case during the
                           continuance of an Event of Default, all of which
                           expenses and fees shall constitute additional Secured
                           Obligations secured by this Agreement. The
                           Administrative Agent may apply the Collateral against
                           the Secured Obligations then due and payable in such
                           order and manner as it shall elect in its sole
                           discretion. Each of the Pledgors shall remain liable
                           for any deficiency (subject to Section 7.16 hereof)
                           together with interest thereon at the Default Rate if
                           the proceeds of any sale or disposition of the
                           Collateral are insufficient to pay the Secured
                           Obligations. Each of the Pledgors waives all rights
                           of marshaling in respect of the Collateral.

                  (b)      The Administrative Agent may cause any or all of the
                           Collateral held by it to be transferred into the name
                           of the Administrative Agent or the name or names of
                           the Administrative Agent's nominee or nominees (in
                           each case as pledgee hereunder).

                  (c)      The Administrative Agent shall be entitled to receive
                           all dividends and cash distributions payable in
                           respect of the Collateral. Pledgor shall execute
                           notice letters, in form and substance satisfactory to
                           the Administrative Agent (as and when requested by
                           the Administrative Agent), notifying the Company or
                           Companies of the fact of this Agreement and directing
                           the Company or Companies to make payment directly to
                           the Administrative Agent of all of the distributions
                           which are due and owing to Pledgor by the Company or
                           Companies,

                                       9
<PAGE>

                           and directing the Company or Companies to accompany
                           each transmission of such distributions to the
                           Administrative Agent with a report in such form as
                           the Administrative Agent may reasonably require in
                           order to identify (i) the type of distribution being
                           made, and (ii) the calculations made by the Company
                           or Companies to determine the amount of the
                           distribution distributed to the Administrative Agent.

                  (d)      The Administrative Agent shall have the right, but
                           shall not be obligated to, exercise or cause to be
                           exercised all voting rights and powers in respect of
                           the Collateral, and Pledgor shall deliver to the
                           Administrative Agent, if requested by the
                           Administrative Agent, irrevocable proxies with
                           respect to the Collateral in form satisfactory to the
                           Administrative Agent.

Because of applicable securities laws, including without limitation, the
Securities Act of 1933, as amended, and other applicable state securities laws,
there may be legal restrictions or limitations affecting attempts of the
Administrative Agent to dispose of the Collateral in the enforcement of its
rights and remedies hereunder, the Administrative Agent is hereby authorized by
the Pledgors, but not obligated, upon the occurrence and during the continuance
of an Event of Default, to the extent permitted by applicable law, to sell all
or any part of the Collateral at private sale, subject to investment letters or
in any other manner which will not require the Collateral or any part thereof,
to be registered in accordance with the Securities Act of 1933, as amended, or
the rules and regulations promulgated thereunder, or any other applicable
securities law or regulation. The Pledgors specifically agree that under these
circumstances, such a sale is a commercially reasonable method of disposition of
the Collateral. The Administrative Agent is also hereby authorized by the
Pledgors, but not obligated, to take such actions, give such notices, obtain
such rulings and consents, and do such other things as the Administrative Agent
may deem appropriate in the event of such a sale or disposition of any of the
Collateral. The Pledgors acknowledge that the Administrative Agent may, in its
reasonable discretion, approach a restricted number of potential purchasers and
that a sale under such circumstances may yield a lower price for the Collateral
or any part or parts thereof than would otherwise be obtainable if the same were
registered and sold in the open market, the Pledgors agrees that such private
sale shall constitute a commercially reasonable method of disposing of the
Collateral in view of the time, expense, and potential liability to the parties
of such transactions of registration of the Collateral in accordance with
applicable securities laws.

         6.3      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the
Administrative Agent or any of the holders of the Secured Obligations in cash or
its equivalent, will be applied in reduction of the Secured Obligations in the
order set forth in the Credit Agreement.

SECTION 7. MISCELLANEOUS.

         7.1      No Waiver; Cumulative Remedies. No failure on the part of the
Administrative Agent to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power, privilege or remedy under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power, privilege or remedy under this Agreement preclude
any other or further exercise thereof or the exercise of any other right, power,
privilege or remedy. To the fullest extent permitted by applicable laws, the
rights, powers, privileges and remedies provided for in this Agreement are
cumulative and not exclusive of any rights, powers, privileges and remedies
provided by law. The Administrative Agent may exercise any right, power,
privilege or remedy under this Agreement or under applicable law against any
Pledgor without enforcing any rights, powers, privileges or remedies against any
other Pledgor under this Agreement or otherwise, each of the Pledgors expressly
waiving any rights

                                       10
<PAGE>

or requirements that the Administrative Agent or any Lender first enforce any
right, power, privilege or remedy against the Borrower, any other Pledgor or any
other Collateral for the Secured Obligations.

         7.2      Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of each Pledgor and the Administrative Agent for the
benefit of the holders of the Secured Obligations and their respective heirs,
successors, and assigns, except that none of the Pledgors may assign any of its
rights or obligations under this Agreement without the prior written consent of
the Required Lenders under the Credit Agreement except to the extent permitted
by the Credit Agreement. To the fullest extent permitted by law, each Pledgor
hereby releases the Administrative Agent and each holder of the Secured
Obligations, and their respective successors and assigns, from any liability for
any act or omission relating to this Agreement or the Collateral, except for any
liability arising from the gross negligence or willful misconduct of the
Administrative Agent or such holder, or their respective officers, employees or
agents.

         7.3      Notices. All notices required or permitted to be given under
this Agreement shall be given as provided in Section 11.02 of the Credit
Agreement.

         7.4      Governing Law; Submission to Jurisdiction; Waiver of Jury
Trial; Arbitration.

         (a)      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, the LAWS OF THE STATE OF NEW YORK applicable to agreements made
and to be performed entirely within such State; PROVIDED THAT THE PARTIES HERETO
SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

         (b)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PLEDGOR AND
THE ADMINISTRATIVE Agent, ON BEHALF OF ITSELF AND EACH LENDER, CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THOSE COURTS. EACH PLEDGOR AND THE ADMINISTRATIVE Agent, ON BEHALF OF ITSELF AND
EACH LENDER, IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER
DOCUMENT RELATED THERETO. EACH PLEDGOR AND THE ADMINISTRATIVE Agent, ON BEHALF
OF ITSELF AND EACH LENDER, WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR
OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE.

         7.5      Waiver of Right to Trial by Jury.

         EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN
CONTRACT OR TORT OR

                                       11
<PAGE>

OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         7.6      Headings. The headings, captions, and arrangements used in
this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

         7.7      Survival of Representations and Warranties. All
representations and warranties made in this Agreement or in any certificate
delivered pursuant hereto shall survive the execution and delivery of this
Agreement, and no investigation by the Administrative Agent or any Lender shall
affect the representations and warranties or the right of the Administrative
Agent or any Lender to rely upon them.

         7.8      Amendments and Waivers. This Agreement and the provisions
hereof may not be amended, waived, modified, changed, discharged or terminated
except as set forth in Section 11.01 of the Credit Agreement.

         7.9      Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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

         7.11     Construction. The Pledgors and the Administrative Agent
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement with its
legal counsel and that this Agreement shall be construed as if jointly drafted
by the Pledgors and the Administrative Agent.

         7.12     Secured Obligations Absolute. The obligations of the Pledgors
under this Agreement shall be absolute and unconditional and shall not be
released, discharged, reduced, or in any way impaired by any circumstance
whatsoever, including, without limitation, any amendment, modification,
extension, or renewal of this Agreement, the Secured Obligations, or any
document or instrument evidencing, securing, or otherwise relating to the
Secured Obligations, or any release, subordination, or impairment of collateral,
or any waiver, consent, extension, indulgence, compromise, settlement, or other
action or inaction in respect of this Agreement, the Secured Obligations, or any
document or instrument evidencing, securing, or otherwise relating to the
Secured Obligations, or any exercise or failure to exercise any right remedy,
power, or privilege in respect of the Secured Obligations.

         7.13     Termination. On the Collateral Termination Date, the Liens
created hereby shall terminate, and the Administrative Agent, at the request and
expense of each Pledgor, forthwith will execute and deliver to such Pledgor a
proper instrument or instruments acknowledging the satisfaction and termination
of the Liens created hereby and will duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty), such of
the Collateral as may be in the possession of the Lender and as has not
theretofore been sold or otherwise applied pursuant to this Agreement or the
Credit Agreement. Upon such release and redelivery, this Agreement shall
terminate.

                                       12
<PAGE>

         7.14     ENTIRE AGREEMENT. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN
DOCUMENTS, EMBODIES THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.

         7.15     Other Security. To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Collateral
(including, without limitation, real and other personal property owned by a
Pledgor), or by a guarantee, endorsement or property of any other Person in
favor of the Administrative Agent on behalf of the holders of the Secured
Obligations, then the Administrative Agent shall have the right to proceed
against such other property, guarantee or endorsement upon the occurrence and
during the continuance of any Event of Default, and the Administrative Agent
shall have the right, in its sole discretion, to determine which rights,
security, liens, security interests or remedies the Administrative Agent shall
at any time pursue, relinquish, subordinate, modify or take with respect
thereto, without in any way modifying or affecting any of them or the Secured
Obligations or any of the rights of the Administrative Agent or the holders of
the Secured Obligations under this Agreement, under any of the other Loan
Documents or under any other document relating to the Secured Obligations.

         7.16     Joint and Several Obligations of Pledgors.

         (a)      Each of the Pledgors is accepting joint and several liability
hereunder in consideration of the financial accommodation to be provided by the
holders of the Secured Obligations, for the mutual benefit, directly and
indirectly, of each of the Pledgors and in consideration of the undertakings of
each of the Pledgors to accept joint and several liability for the obligations
of each of them.

         (b)      Each of the Pledgors jointly and severally hereby irrevocably
and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Pledgors with respect to the payment
and performance of all of the Secured Obligations arising under this Agreement,
the other Loan Documents and any other documents relating to the Secured
Obligations, it being the intention of the parties hereto that all the Secured
Obligations shall be the joint and several obligations of each of the Pledgors
without preferences or distinction among them.

         (c)      Notwithstanding any provision to the contrary contained
herein, in any other of the Loan Documents or in any other documents relating to
the Secured Obligations, the obligations of each Guarantor under the Credit
Agreement, the other Loan Documents and the documents relating to the Secured
Obligations shall be limited to an aggregate amount equal to the largest amount
that would not render such obligations subject to avoidance under Section 548 of
the United States Bankruptcy Code or any comparable provisions of any applicable
state law.

                   [Signatures on immediately following page.]

                                       13
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first written above.

PLEDGOR:                        QUANTA SERVICES, INC.,
                                a Delaware corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                ARBY CONSTRUCTION, INC.
                                AUSTIN TRENCHER, INC.
                                CCLC, INC.
                                CONTI COMMUNICATIONS, INC.
                                CROCE ELECTRIC COMPANY, INC.
                                DILLARD SMITH CONSTRUCTION COMPANY
                                DRIFTWOOD ELECTRICAL CONTRACTORS, INC.
                                GLOBAL ENERCOM MANAGEMENT, INC.
                                GOLDEN STATE UTILITY CO.
                                H.L. CHAPMAN PIPELINE CONSTRUCTION, INC.
                                HAINES CONSTRUCTION COMPANY
                                MANUEL BROS., INC.
                                MEARS GROUP, INC.
                                NETWORK ELECTRIC COMPANY
                                NORTH PACIFIC CONSTRUCTION CO., INC.
                                NORTH SKY COMMUNICATIONS, INC.
                                PARKSIDE SITE & UTILITY COMPANY CORPORATION
                                PARKSIDE UTILITY CONSTRUCTION CORP.
                                PWR FINANCIAL COMPANY
                                QPC, INC.
                                QSI, INC.
                                QUANTA HOLDINGS, INC.
                                QUANTA GOVERNMENT SERVICES, INC.
                                QUANTA LI ACQUISITION, INC.
                                QUANTA LIV ACQUISITION, INC.
                                QUANTA LVII ACQUISITION, INC.
                                QUANTA LVIII ACQUISITION, INC.
                                QUANTA LIX ACQUISITION, INC.
                                QUANTA LX ACQUISITION, INC.
                                QUANTA LXI ACQUISITION, INC.
                                QUANTA LXII ACQUISITION, INC.
                                QUANTA LXIII ACQUISITION, INC.
                                QUANTA LXIV ACQUISITION, INC.
                                QUANTA LXV ACQUISITION, INC.,
                                each a Delaware corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       14
<PAGE>

                                QUANTA LXVI ACQUISITION, INC.
                                QUANTA LXVII ACQUISITION, INC.
                                QUANTA LXVIII ACQUISITION, INC.
                                QUANTA LXIX ACQUISITION, INC.
                                QUANTA LXX ACQUISITION, INC.
                                QUANTA LXXI ACQUISITION, INC.
                                QUANTA LXXII ACQUISITION, INC.
                                QUANTA LXXIII ACQUISITION, INC.
                                QUANTA UTILITY INSTALLATION CO., INC.
                                R.A. WAFFENSMITH & CO., INC.
                                SOUTHEAST PIPELINE CONSTRUCTION, INC.
                                SOUTHWESTERN COMMUNICATIONS, INC.
                                SPALJ CONSTRUCTION COMPANY
                                SUMTER UTILITIES, INC.
                                TOM ALLEN CONSTRUCTION COMPANY
                                TTGP, INC.
                                TTLP, INC.
                                TXLP, INC.
                                UNDERGROUND CONSTRUCTION CO., INC.
                                VCI TELCOM, INC.
                                W.C. COMMUNICATIONS, INC.,
                                each a Delaware corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                ADVANCED TECHNOLOGIES AND INSTALLATION
                                   CORPORATION,
                                ALLTECK LINE CONTRACTORS (USA), INC.
                                MUSTANG LINE CONTRACTORS, INC.
                                POTELCO, INC.,
                                each a Washington corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                BRADFORD BROTHERS, INC.
                                TTM, INC.,
                                each a North Carolina corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       15
<PAGE>

                                COMMUNICATION MANPOWER, INC.
                                P.D.G. ELECTRIC COMPANY
                                TRAWICK CONSTRUCTION COMPANY, INC.,
                                each a Florida corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                CROWN FIBER COMMUNICATIONS, INC.,
                                a Virginia corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                ENVIRONMENTAL PROFESSIONAL ASSOCIATES,
                                         LIMITED
                                W.H.O.M. CORPORATION
                                each a California corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                FIVE POINTS CONSTRUCTION CO.
                                MEJIA PERSONNEL SERVICES, INC.
                                TRANS TECH ACQUISITION, INC.
                                SOUTHWEST TRENCHING COMPANY, INC.
                                each a Texas corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                INTERMOUNTAIN ELECTRIC, INC.,
                                a Colorado corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       16
<PAGE>

                                IRBY CONSTRUCTION COMPANY,
                                a Mississippi corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                OLD LESCO CORPORATION, INC.
                                a South Carolina corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                METRO UNDERGROUND SERVICES, INC.
                                PROFESSIONAL TELECONCEPTS, INC. (IL)
                                each an Illinois corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                PAR ELECTRICAL CONTRACTORS, INC.,
                                a Missouri corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                PROFESSIONAL TELECONCEPTS, INC. (NY),
                                A New York corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                THE RYAN COMPANY, INC.,
                                a Massachusetts corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       17
<PAGE>

                                UTILCO, INC.,
                                a Georgia corporation

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                QDE, LLC
                                QUANTA DELAWARE, INC.
                                QUANTA ASSET MANAGEMENT LLC
                                each a Delaware limited liability company

                                By:    /s/ Linda Bubacz
                                         -----------------------------------
                                Name:  Linda Bubacz
                                Title: President

                                TOTAL QUALITY MANAGEMENT
                                LLC, a Delaware limited
                                liability company COAST TO
                                COAST, LLC, a California
                                limited liability company

                                By:    Environmental Professional Associates,
                                       Limited, Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                NORTHERN LINE LAYERS, LLC,
                                a Delaware limited liability company

                                By:    PAR Electrical Contractors, Inc.,
                                       Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       18
<PAGE>

                                DOT 05, LLC
                                TJADER, L.L.C.
                                OKAY CONSTRUCTION COMPANY, LLC
                                each a Delaware limited liability company

                                By:    Spalj Construction Company,
                                       Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                LAKE NORMAN PIPELINE, LLC,
                                a North Carolina limited liability company

                                By:    Bradford Brothers, Inc.,
                                       Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                MEARS/CPG, LLC
                                MEARS ENGINEERING, LLC
                                MEARS/HDD, LLC
                                MEARS SERVICES, LLC
                                each a Michigan limited liability company

                                By:    Mears Group, Inc., The Sole Member of
                                       each of the foregoing limited liability
                                       companies

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                S.K.S. PIPELINERS, LLC, a
                                Delaware limited liability
                                company

                                By:    Arby Construction, Inc., Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       19
<PAGE>

                                TNS-VA, LLC,
                                a Delaware limited liability company

                                By:    Professional Teleconcepts, Inc. (NY)
                                       Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                LINECO LEASING, LLC,
                                a Washington limited liability company

                                By:    Mustang Line Contractors, Inc.,
                                       Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                AIRLAN TELECOM SERVICES, L.P.
                                NORTH HOUSTON POLE LINE, L.P.
                                LINDSEY ELECTRIC, L.P.
                                DIGCO UTILITY CONSTRUCTION, L.P.
                                each a Texas limited partnerships

                                By:    Mejia Personnel Services, Inc.,
                                       Its General Partner

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                QUANTA SERVICES MANAGEMENT PARTNERSHIP, L.P.
                                QUANTA ASSOCIATES, L.P.
                                each a Texas limited partnerships

                                By:    QSI, Inc., Its General Partnership

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       20
<PAGE>

                                TRANS TECH ELECTRIC, L.P.,
                                a Texas limited partnership

                                By:    TTGP, Inc., Its General Partner

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                PWR NETWORK, LLC,
                                a Delaware limited liability company

                                By:    PWR Financial Company,
                                       Its Sole Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                QUANTA RECEIVABLES, L.P.
                                a Delaware limited partnership

                                By: PWR Financial Company, Its General Partner

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                Q RESOURCES, LLC
                                a Delaware limited liability company

                                By:    Quanta Holdings, Inc., Its Member

                                By:    /s/ Dana A. Gordon
                                       -----------------------------------------
                                Name:  Dana A. Gordon
                                Title: Vice President

                                       21
<PAGE>

Accepted and agreed to as of the date first above written.

Bank of America, N.A., as Administrative Agent

By:    /s/ Suzanne M. Paul
       -----------------------------------
Name:  Suzanne M. Paul
Title: Vice President

                                       22
<PAGE>

                                 SCHEDULE 2.1(a)

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
                      ISSUER                                  OWNER                 NO.    OF FORMATION      SHARES   INTEREST
                      ------                                  -----                 ---    ------------      ------   --------
<S>                                                 <C>                            <C>   <C>               <C>       <C>
Advanced Technologies and Installation Corporation    Quanta Services, Inc.          7      Washington       1,000      100%
Airlan Telecom Services, L.P.                                QDE LLC                N/A        Texas          N/A        98%
Airlan Telecom Services, L.P.                       Mejia Personnel Services,       N/A        Texas          N/A         2%
                                                               Inc.
Allteck Line Contractors (USA), Inc.                  Quanta Services, Inc.          2      Washington         100      100%
Allteck Line Contractors, Inc.*                       Quanta Services, Inc.         1C   British Columbia    C-100      100%
                                                                                    1P                       P-485
Arby Construction, Inc.                               Quanta Services, Inc.          2       Delaware        1,000      100%
Austin Trencher, Inc.                                 Quanta Services, Inc.          2       Delaware        1,000      100%
Bradford Brothers, Incorporated                       Quanta Services, Inc.         21    North Carolina     1,165      100%
CCLC, Inc.                                          Conti Communications, Inc.       1       Delaware        1,000      100%
Coast to Coast, LLC                                       Environmental             N/A     California        N/A       100%
                                                     Professional Associates,
                                                             Limited
Communication Manpower, Inc.                        Trawick Construction, Inc.      20        Florida        1,000      100%
</TABLE>

                                       23
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
                      ISSUER                                  OWNER                 NO.    OF FORMATION      SHARES   INTEREST
                      ------                                  -----                 ---    ------------      ------   --------
<S>                                                 <C>                            <C>     <C>             <C>       <C>
Conti Communications, Inc.                            Quanta Services, Inc.          2       Delaware        1,000      100%
Croce Electric Company, Inc.                          Quanta Services, Inc.          2       Delaware        1,000      100%
Crown Fiber Communications, Inc.                      Quanta Services, Inc.          5       Virginia        1,000      100%
Digco Utility Construction, L.P.                             QDE LLC                N/A        Texas          N/A      99.9%
Digco Utility Construction, L.P.                    Mejia Personnel Services,       N/A        Texas          N/A       0.1%
                                                               Inc.
Dillard Smith Construction Company                    Quanta Services, Inc.          2       Delaware        1,000      100%
Dot 05, LLC                                         Spalj Construction Company      N/A      Delaware         N/A       100%
Driftwood Electrical Contractors, Inc.                Quanta Services, Inc.          2       Delaware        1,000      100%
Environmental Professional Associates, Limited        Quanta Services, Inc.         18      California     1,000,000    100%
Five Points Construction Co.                         Underground Construction       37         Texas         4,093      100%
                                                            Co., Inc.
Global Enercom Management, Inc.                       Quanta Services, Inc.          3       Delaware        1,000      100%
Golden State Utility Co.                              Quanta Services, Inc.          2       Delaware        1,000      100%
H. L. Chapman Pipeline Construction, Inc.             Quanta Services, Inc.          2       Delaware        1,000      100%
Haines Construction Company                           Quanta Services, Inc.          2       Delaware        1,000      100%
Intermountain Electric, Inc.                          Quanta Services, Inc.          6       Colorado        1,000      100%
Irby Construction Company                             Quanta Services, Inc.          2      Mississippi      1,000      100%
</TABLE>

                                       24
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
             ISSUER                                           OWNER                 NO.    OF FORMATION      SHARES   INTEREST
             ------                                           -----                 ---    ------------      ------   --------
<S>                                                 <C>                            <C>    <C>                <C>     <C>
Lake Norman Pipeline, LLC                            Bradford Brothers, Inc.        N/A   North Carolina      N/A       100%
Lindsey Electric, L.P.                               North Houston Pole Line,       N/A        Texas          N/A      99.9%
                                                               L.P.
Lindsey Electric, L.P.                                   Mejia Personnel            N/A        Texas          N/A       0.1%
                                                          Services,Inc.
Lineco Leasing, LLC                                 Mustang Line Contractors,       N/A     Washington        N/A       100%
                                                               Inc.
Manuel Bros., Inc.                                    Quanta Services, Inc.          2       Delaware        1,000      100%
Mears Canada Corp.*                                     Mears Group, Inc.            2      Nova Scotia        1        100%
Mears Engineering, LLC                                  Mears Group, Inc.           N/A      Michigan         N/A       100%
Mears Group, Inc.                                     Quanta Services, Inc.          2       Delaware        1,000      100%
Mears HDD, LLC                                          Mears Group, Inc.           N/A      Michigan         N/A       100%
Mears Services, LLC                                     Mears Group, Inc.           N/A      Michigan         N/A       100%
Mears/CPG, LLC                                          Mears Group, Inc.           N/A      Michigan         N/A       100%
Mearsmex S. de R.L. de C.V.*                            Mears Group, Inc.           N/A       Mexico          N/A        90%
Mearsmex S. de R.L. de C.V.*                              Mears/HDD, LLC            N/A       Mexico          N/A        10%
Mejia Personnel Services, Inc.                        Quanta Services, Inc.          4         Texas         1,000      100%
Metro Underground Services, Inc.                      Quanta Services, Inc.          7       Illinois        1,000      100%
Mustang Line Contractors, Inc.                        Quanta Services, Inc.         13      Washington         500      100%
</TABLE>

                                       25
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
                    ISSUER                                    OWNER                 NO.    OF FORMATION      SHARES   INTEREST
                    ------                                    -----                 ---    ------------      ------   --------
<S>                                                 <C>                            <C>    <C>               <C>      <C>
Network Electric Company                              Quanta Services, Inc.           2      Delaware        1,000      100%
North Houston Pole Line, L.P.                                QDE LLC                N/A        Texas           N/A     99.9%
North Houston Pole Line, L.P.                       Mejia Personnel Services,       N/A        Texas           N/A      0.1%
                                                               Inc.
North Pacific Construction Co., Inc.,                 Quanta Services, Inc.           2      Delaware        1,000      100%
North Sky Communications, Inc.                        Quanta Services, Inc.           2      Delaware        1,000      100%
Northern Line Layers, LLC                                 PAR Electrical            N/A      Delaware          N/A      100%
                                                        Contractors, Inc.
Okay Construction Company, LLC                      Spalj Construction Company      N/A      Delaware          N/A      100%
Old Lesco Corporation, Inc.                           Sumter Utilities, Inc.          9   South Carolina    10,000      100%
P.D.G. Electric Co.                                   Quanta Services, Inc.           8       Florida        1,000      100%
PAR Electrical Contractors, Inc.                      Quanta Services, Inc.         100      Missouri          200      100%
Par Internacional, S. de R.L. de C.V.*                Quanta Services, Inc.         N/A       Mexico           N/A       50%
Par Internacional, S. de R.L. de C.V.*                    PAR Electrical            N/A       Mexico           N/A       50%
                                                        Contractors, Inc.
Parkside Site and Utility Company Corporation         Quanta Services, Inc.           2      Delaware        1,000      100%
Parkside Utility Construction Corp.                   Quanta Services, Inc.           2      Delaware        1,000      100%
Potelco, Inc.                                         Quanta Services, Inc.         100     Washington           2      100%
</TABLE>

                                       26
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
             ISSUER                                           OWNER                 NO.    OF FORMATION      SHARES   INTEREST
             ------                                           -----                 ---    ------------      ------   --------
<S>                                                   <C>                          <C>     <C>               <C>     <C>
Professional Teleconcepts, Inc.                       Quanta Services, Inc.         11       Illinois          100       100%
Professional Teleconcepts, Inc.                       Quanta Services, Inc.         11       New York          100      100%
PWR Financial Company                                 Quanta Services, Inc.          1       Delaware         1000      100%
PWR Network, LLC                                      PWR Financial Company         N/A      Delaware          N/A      100%
Q Resources, LLC                                      Quanta Holdings, Inc.         N/A      Delaware          N/A      100%
QDE LLC                                               PWR Financial Company         N/A      Delaware          N/A      100%
QPC, Inc.                                             Quanta Services, Inc.          2       Delaware        1,000      100%
QSI, Inc.                                             Quanta Holdings, Inc.          2       Delaware        1,000      100%
Quanta Asset Management LLC                                 QSI, Inc.               N/A      Delaware          N/A      100%
Quanta Associates, L.P.                              Quanta Asset Management,       N/A        Texas           N/A     99.9%
                                                               LLC
Quanta Associates, L.P.                                     QSI, Inc.               N/A        Texas           N/A      0.1%
Quanta Delaware, Inc.                                 Quanta Holdings, Inc.          2       Delaware        1,000      100%
Quanta Government Services, Inc.                      Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta Holdings, Inc.                                 Quanta Services, Inc.          1       Delaware        8,000      100%
Quanta LI Acquisition, Inc.                           Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LIV Acquisition, Inc.                          Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LIX Acquisition, Inc.                          Quanta Services, Inc.          1       Delaware        1,000      100%
</TABLE>

                                       27
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
            ISSUER                                            OWNER                 NO.    OF FORMATION      SHARES   INTEREST
            ------                                            -----                 ---    ------------      ------   --------
<S>                                                   <C>                          <C>     <C>               <C>     <C>
Quanta LVII Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LVIII Acquisition, Inc.                        Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LX Acquisition, Inc.                           Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXI Acquisition, Inc.                          Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXII Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXIII Acquisition, Inc.                        Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXIV Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXIX Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXV Acquisition, Inc.                          Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXVI Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXVII Acquisition, Inc.                        Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXVIII Acquisition, Inc.                       Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXX Acquisition, Inc.                          Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXXI Acquisition, Inc.                         Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXXII Acquisition, Inc.                        Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta LXXIII Acquisition, Inc.                       Quanta Services, Inc.          1       Delaware        1,000      100%
Quanta Receivables, L.P.                                     QDE LLC                N/A      Delaware         N/A        99%
</TABLE>

                                       28
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
                      ISSUER                                  OWNER                 NO.    OF FORMATION      SHARES   INTEREST
                      ------                                  -----                 ---    ------------      ------   --------
<S>                                                 <C>                            <C>   <C>                <C>      <C>
Quanta Receivables, L.P.                                 PWR Network, LLC           N/A      Delaware         N/A         1%
Quanta Services Management Partnership, L.P.          Quanta Delaware, Inc.         N/A        Texas          N/A        99%
Quanta Services Management Partnership, L.P.                QSI, Inc.               N/A        Texas          N/A         1%
Quanta Services of Canada Ltd.*                       Quanta Services, Inc.         C-2  British Columbia     C-10      100%
                                                                                    P-2                     P-3,499
Quanta Utility Installation Company, Inc.             Quanta Services, Inc.          2       Delaware        1,000      100%
R.A. Waffensmith & Co., Inc.                          Quanta Services, Inc.          2       Delaware        1,000      100%
S.K.S. Pipeliners, LLC                               Arby Construction, Inc.        N/A      Delaware         N/A       100%
Servicios Par Electric, S. de R.L. de C.V.*           Quanta Services, Inc.         N/A       Mexico          N/A        50%
Servicios Par Electric, S. de R.L. de C.V.*               PAR Electrical            N/A       Mexico          N/A        50%
                                                        Contractors, Inc.
Southeast Pipeline Construction, Inc.                 Quanta Services, Inc.          2       Delaware        1,000      100%
Southwest Trenching, Inc.                             Quanta Services, Inc.          2         Texas         1,000      100%
Southwestern Communications, Inc.                     Quanta Services, Inc.          2       Delaware        1,000      100%
Spalj Construction Company                            Quanta Services, Inc.          2       Delaware        1,000      100%
Sumter Utilities, Inc.                                Quanta Services, Inc.          3       Delaware        1,000      100%
The Ryan Company, Inc.                                Quanta Services, Inc.         19     Massachusetts     1,000      100%
Tjader, LLC                                         Spalj Construction Company      N/A      Delaware         N/A       100%
</TABLE>

                                       29
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
                 ISSUER                                       OWNER                 NO.    OF FORMATION      SHARES   INTEREST
                 ------                                       -----                 ---    ------------      ------   --------
<S>                                                  <C>                           <C>    <C>                <C>     <C>
TNS-VA, LLC                                                Professional             N/A      Delaware         N/A       100%
                                                        Teleconcepts, Inc.
Tom Allen Construction Company                        Quanta Services, Inc.          2       Delaware        1,000      100%
Total Quality Management Services, LLC                    Environmental             N/A      Delaware         N/A       100%
                                                     Professional Associates,
                                                             Limited
Trans Tech Acquisition, Inc.                          Quanta Services, Inc.          1         Texas         1,000      100%
Trans Tech Electric, L.P.                                   TTGP, Inc.              N/A        Texas          N/A         1%
Trans Tech Electric, L.P.                                   TTLP, Inc.              N/A        Texas          N/A        99%
Trawick Construction Company, Inc.                    Quanta Services, Inc.         53        Florida        1,000      100%
TTGP, Inc.                                            Quanta Services, Inc.          2       Delaware        1,000      100%
TTLP, Inc.                                            Quanta Services, Inc.          2       Delaware        1,000      100%
TTM, Inc.                                             Quanta Services, Inc.          9    North Carolina     1,000      100%
TXLP, Inc.                                            Quanta Services, Inc.          2       Delaware        1,000      100%
Underground Construction Co., Inc.                    Quanta Services, Inc.          2       Delaware        1,000      100%
Utilco, Inc.                                          Quanta Services, Inc.         12        Georgia        1,000      100%
VCI Telcom, Inc.                                      Quanta Services, Inc.          2       Delaware        1,000      100%
</TABLE>

                                       30
<PAGE>

<TABLE>
<CAPTION>
                                                                                             ISSUER'S                   % OF
                                                                                   CERT    JURISDICTION      NO. OF  OWNERSHIP
           ISSUER                                             OWNER                 NO.    OF FORMATION      SHARES   INTEREST
           ------                                             -----                 ---    ------------      ------   --------
<S>                                                   <C>                          <C>     <C>               <C>     <C>
W. C. Communications, Inc.                            Quanta Services, Inc.          2       Delaware        1,000      100%
W.H.O.M. Corporation                                  Quanta Services, Inc.         14      California       1,000      100%
</TABLE>

                                       31
<PAGE>

                                 SCHEDULE 2.3(a)

                         Form of Irrevocable Stock Power

   FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

the following shares of capital stock of ____________________, a ____________
corporation:

         Number of Shares                      Certificate Number

and irrevocably appoints __________________________________ its agent and
attorney-in-fact to transfer all or any part of such capital stock and to take
all necessary and appropriate action to effect any such transfer. The agent and
attorney-in-fact may substitute and appoint one or more persons to act for him.

                                                     [HOLDER]

                                                     By: _______________________
                                                         Name:
                                                         Title:

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>6
<FILENAME>h13605exv21w1.txt
<DESCRIPTION>SUBSIDIARIES
<TEXT>
<PAGE>
                                                                               .
                                                                               .
                                                                               .
EXHIBIT 21.1

<Table>
<Caption>
                                                      STATE OF
SUBSIDIARY                                            INCORPORATION
----------                                            -------------
<S>                                                   <C>
Advanced Technologies and Installation                Washington
Corporation
Airlan Telecom Services, L.P.                         Texas
Allteck Line Contractors (USA), Inc.                  Washington
Allteck Line Contractors, Inc.                        British Columbia
Arby Construction, Inc.                               Delaware
Austin Trencher, Inc.                                 Delaware
Bradford Brothers, Inc.                               North Carolina
CCLC, Inc.                                            Delaware
Coast to Coast, LLC                                   California
Communication Manpower, Inc.                          Florida
Conti Communications, Inc.                            Delaware
Croce Electric Company, Inc.                          Delaware
Crown Fiber Communications, Inc.                      Virginia
         Choice Optics Communications
         DeltaComm
         Fiber Technology
         Marlboro Cablevision
         World Fiber
Digco Utility Construction, L.P.                      Texas
Dillard Smith Construction Company                    Delaware
Driftwood Electrical Contractors, Inc.                Delaware
         Maddux Communications
Environmental Professional Associates, Limited        California
         Provco
Five Points Construction Co.                          Texas
Global Enercom Management, Inc.                       Delaware
Golden State Utility Co.                              Delaware
H.L. Chapman Pipeline Construction, Inc.              Delaware
         DB Utilities
Intermountain Electric, Inc.                          Colorado
         Grand Electric
Irby Construction Company                             Mississippi
Lindsey Electric, L.P.                                Texas
Manuel Bros., Inc.                                    Delaware
         Renaissance Construction
         Western Directional
Mears Canada Corp.                                    Nova Scotia
Mears Engineering, LLC                                Michigan
Mears Group, Inc.                                     Delaware
Mears Services, LLC                                   Michigan
Mears/CPG, LLC                                        Michigan
</Table>

<PAGE>
<Table>
<Caption>
                                                   STATE OF
SUBSIDIARY                                         INCORPORATION
----------                                         -------------
<S>                                                <C>
Mears/HDD, LLC                                     Michigan
Mearsmex de R.L. de C.V.                           Mexico
Mejia Personnel Services, Inc.                     Texas
Metro Underground Services, Inc.                   Illinois
Mustang Line Contractors, Inc.                     Washington
Network Electric Company                           Delaware
North Houston Pole Line, L.P.                      Delaware
         North Houston Pole Line Corp.
North Pacific Construction Co., Inc.               Texas
North Sky Communications, Inc.                     Delaware
Northern Line Layers, LLC                          Delaware
Okay Construction Company, LLC                     Delaware
P.D.G. Electric Co.                                Florida
PAR Electrical Contractors, Inc.                   Missouri
         Harker & Harker
         Par Infrared Consultants
         Riggin & Diggin Line Construction
         Union Power Construction Company
Par Internacional, S. de R.L. de C.V.              Mexico
Parkside Site and Utility Company Corporation      Delaware
Parkside Utility Construction Corp.                Delaware
Potelco, Inc.                                      Washington
         Kingston Constructors
         Kingston Constructors DBA Talking Signs
           Services
         Kuenzi Construction
         NorAm Telecommunications
Professional Teleconcepts, Inc.                    Illinois
Professional Teleconcepts, Inc.                    New York
PWR Financial Company                              Delaware
PWR Network, LLC                                   Delaware
Q Resources, LLC                                   Delaware
QDE LLC                                            Delaware
QPC, Inc.                                          Delaware
QSI, Inc.                                          Delaware
Quanta Asset Management LLC                        Delaware
Quanta Associates, L.P.                            Texas
Quanta Delaware, Inc.                              Delaware
Quanta Government Services, Inc.                   Delaware
Quanta Government Solutions, Inc.                  Delaware
Quanta Holdings, Inc.                              Delaware
Quanta LIV Acquisition, Inc.                       Delaware
Quanta LIX Acquisition, Inc.                       Delaware
Quanta LVII Acquisition, Inc.                      Delaware
Quanta LVIII Acquisition, Inc.                     Delaware
Quanta LX Acquisition, Inc.                        Delaware
Quanta LXI Acquisition, Inc.                       Delaware
Quanta LXII Acquisition, Inc.                      Delaware
Quanta LXIII Acquisition, Inc.                     Delaware
Quanta LXIV Acquisition, Inc.                      Delaware
Quanta LXIX Acquisition, Inc.                      Delaware
Quanta LXV Acquisition, Inc.                       Delaware
Quanta LXVI Acquisition, Inc.                      Delaware
</Table>


                                        2
<PAGE>
<Table>
<Caption>
                                                STATE OF
SUBSIDIARY                                      INCORPORATION
----------                                      -------------
<S>                                             <C>
Quanta LXVII Acquisition, Inc.                  Delaware
Quanta LXVIII Acquisition, Inc.                 Delaware
Quanta LXX Acquisition, Inc.                    Delaware
Quanta LXXI Acquisition, Inc.                   Delaware
Quanta LXXII Acquisition, Inc.                  Delaware
Quanta LXXIII Acquisition, Inc.                 Delaware
Quanta Receivables, L.P.                        Delaware
Quanta Services Management Partnership, L.P.    Texas
Quanta Services of Canada Ltd.                  British Columbia
Quanta Utility Installation Co., Inc.           Delaware
R.A. Waffensmith & Co., Inc.                    Delaware
S.K.S. Pipeliners, LLC                          Delaware
Servicios Par Electric, S. de R.L. de C.V.      Mexico
Southeast Pipeline Construction, Inc.           Delaware
Southwestern Communications, Inc.               Delaware
    NetCom Management Group, Inc.
    TVS Systems
Spalj Construction Company                      Delaware
         Dot 05 Optical Communications
         Span-Con of Deerwood
         Tjader & Highstrom
         Wilson Roadbores
Sumter Utilities, Inc.                          Delaware
The Ryan Company, Inc.                          Massachusetts
 Eastern Communications
Tjader, L.L.C.                                  Delaware
TNS-VA, LLC                                     Delaware
Tom Allen Construction Company                  Delaware
Total Quality Management Services, LLC          Delaware
Trans Tech Acquisition, Inc.                    Texas
Trans Tech Electric, L.P.                       Texas
Trawick Construction Co.                        Florida
TTGP, Inc.                                      Delaware
TTLP, Inc.                                      Delaware
TTM, Inc.                                       North Carolina
TXLP, Inc.                                      Delaware
Underground Construction Co., Inc.              Delaware
VCI Telcom, Inc.                                Delaware
W.C. Communications, Inc.                       Delaware
W.H.O.M. Corporation                            California
</Table>



                                       3

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>7
<FILENAME>h13605exv23w1.htm
<DESCRIPTION>CONSENT OF PRICEWATERHOUSECOOPERS LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">EXHIBIT&nbsp;23.1</FONT></B>

<P align="center">
<B><FONT size="2">CONSENT OF INDEPENDENT ACCOUNTANTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We hereby consent to the incorporation by
reference in the Registration Statements on Form&nbsp;S-8
(Nos.&nbsp;333-47069, 333-56849, 333-86375, 333-102448,
333-103570 and 333-105997) and Form&nbsp;S-3 (File
Nos.&nbsp;333-81419, 333-90961, 333-39744, 333-111738) of Quanta
Services, Inc. of our report dated March&nbsp;10, 2004, relating
to the consolidated financial statements, which appears in this
Form&nbsp;10-K.
</FONT>

<P align="left">
<FONT size="2">PRICEWATERHOUSECOOPERS LLP
</FONT>

<P align="left">
<FONT size="2">Houston, Texas
</FONT>

<DIV align="left">
<FONT size="2">March&nbsp;10, 2004
</FONT>
</DIV>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>8
<FILENAME>h13605exv31w1.txt
<DESCRIPTION>CERTIFICATION OF CEO PURSUANT TO SECTION 302
<TEXT>
<PAGE>

                                                                    Exhibit 31.1

I, John R. Colson, certify that:

     1.  I have reviewed this annual report on Form 10-K of Quanta Services,
         Inc.;

     2.  Based on my knowledge, this report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading with respect to the period
         covered by this report;

     3.  Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations and cash flows
         of the registrant as of, and for, the periods presented in this report;

     4.  The registrant's other certifying officer(s) and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
         registrant and have:

              (a) Designed such disclosure controls and procedures, or caused
              such disclosure controls and procedures to be designed under our
              supervision, to ensure that material information relating to the
              registrant, including its consolidated subsidiaries, is made known
              to us by others within those entities, particularly during the
              period in which this report is being prepared;

              (b) Evaluated the effectiveness of the registrant's disclosure
              controls and procedures and presented in this report our
              conclusions about the effectiveness of the disclosure controls and
              procedures, as of the end of the period covered by this report
              based on such evaluation; and

              (c) Disclosed in this report any change in the registrant's
              internal control over financial reporting that occurred during the
              registrant's most recent fiscal quarter (the registrant's fourth
              fiscal quarter in the case of an annual report) that has
              materially affected, or is reasonably likely to materially affect,
              the registrant's internal control over financial reporting; and

     5.  The registrant's other certifying officer(s) and I have disclosed,
         based on our most recent evaluation of internal control over financial
         reporting, to the registrant's auditors and the audit committee of the
         registrant's board of directors (or persons performing the equivalent
         functions):

              (a) All significant deficiencies and material weaknesses in the
              design or operation of internal control over financial reporting
              which are reasonably likely to adversely affect the registrant's
              ability to record, process, summarize and report financial
              information; and

              (b) Any fraud, whether or not material, that involves management
              or other employees who have a significant role in the registrant's
              internal control over financial reporting.

Date: March 11, 2004

                  /s/ John R. Colson
                  --------------------------------
                  John R. Colson
                  Chief Executive Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>9
<FILENAME>h13605exv31w2.txt
<DESCRIPTION>CERTIFICATION OF CFO PURSUANT TO SECTION 302
<TEXT>
<PAGE>

                                                                    Exhibit 31.2

I, James H. Haddox, certify that:

     1.  I have reviewed this annual report on Form 10-K of Quanta Services,
         Inc.;

     2.  Based on my knowledge, this report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading with respect to the period
         covered by this report;

     3.  Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations and cash flows
         of the registrant as of, and for, the periods presented in this report;

     4.  The registrant's other certifying officer(s) and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
         registrant and have:

              (a) Designed such disclosure controls and procedures, or caused
              such disclosure controls and procedures to be designed under our
              supervision, to ensure that material information relating to the
              registrant, including its consolidated subsidiaries, is made known
              to us by others within those entities, particularly during the
              period in which this report is being prepared;

              (b) Evaluated the effectiveness of the registrant's disclosure
              controls and procedures and presented in this report our
              conclusions about the effectiveness of the disclosure controls and
              procedures, as of the end of the period covered by this report
              based on such evaluation; and

              (c) Disclosed in this report any change in the registrant's
              internal control over financial reporting that occurred during the
              registrant's most recent fiscal quarter (the registrant's fourth
              fiscal quarter in the case of an annual report) that has
              materially affected, or is reasonably likely to materially affect,
              the registrant's internal control over financial reporting; and

     5.  The registrant's other certifying officer(s) and I have disclosed,
         based on our most recent evaluation of internal control over financial
         reporting, to the registrant's auditors and the audit committee of the
         registrant's board of directors (or persons performing the equivalent
         functions):

              (a) All significant deficiencies and material weaknesses in the
              design or operation of internal control over financial reporting
              which are reasonably likely to adversely affect the registrant's
              ability to record, process, summarize and report financial
              information; and

              (b) Any fraud, whether or not material, that involves management
              or other employees who have a significant role in the registrant's
              internal control over financial reporting.

Date: March 11, 2004

                  /s/ James H. Haddox
                  --------------------------------
                  James H. Haddox
                  Chief Financial Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>10
<FILENAME>h13605exv32w1.txt
<DESCRIPTION>CERTIFICATION OF CEO PURSUANT TO SECTION 3906
<TEXT>
<PAGE>

                                                                    Exhibit 32.1

                                  CERTIFICATION
                       PURSUANT TO 18 U.S.C. SECTION 1350,
           AS ADOPTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

         I, John R. Colson, as Chief Executive Officer of Quanta Services, Inc.
(the "Company"), certify, pursuant to 18 U.S.C. Section 1350, as adopted by
Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

         (1) the accompanying Form 10-K report of the Company for the period
ending December 31, 2003, as filed with the U.S. Securities and Exchange
Commission (the "Report"), fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and

         (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

Dated: March 11, 2004

                                                     /s/ John R. Colson
                                                     ---------------------------
                                                     John R. Colson
                                                     Chief Executive Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>11
<FILENAME>h13605exv32w2.txt
<DESCRIPTION>CERTIFICATION OF CFO PURSUANT TO SECTION 906
<TEXT>
<PAGE>

                                                                    Exhibit 32.2

                                  CERTIFICATION
                       PURSUANT TO 18 U.S.C. SECTION 1350,
           AS ADOPTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

         I, James H. Haddox, as Chief Financial Officer of Quanta Services, Inc.
(the "Company"), certify, pursuant to 18 U.S.C. Section 1350, as adopted by
Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

         (1) the accompanying Form 10-K report of the Company for the period
ending December 31, 2003, as filed with the U.S. Securities and Exchange
Commission (the "Report"), fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and

         (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

Dated: March 11, 2004

                                                     /s/ James H. Haddox
                                                     ---------------------------
                                                     James H. Haddox
                                                     Chief Financial Officer

</TEXT>
</DOCUMENT>
</SUBMISSION>
