EXHIBIT 10.2
Draft of March 15, 2005
================================================================================
INSITUFORM TECHNOLOGIES, INC.
-----------------------------------
FIFTH AMENDMENT AND WAIVER
TO
NOTE PURCHASE AGREEMENT
Dated as of March 16, 2005
-----------------------------------
Re: Note Purchase Agreement dated as of February 14, 1997
and
$110,000,000 Senior Notes, Series A,
Due February 14, 2007
================================================================================
FIFTH AMENDMENT AND WAIVER
TO
NOTE PURCHASE AGREEMENT
THIS FIFTH AMENDMENT AND WAIVER TO NOTE PURCHASE AGREEMENT dated as of
March 16, 2005 (the or this "Fifth Amendment") is between INSITUFORM
TECHNOLOGIES, INC., a Delaware corporation (the "Company"), and each of the
institutions holding a Note (as hereinafter defined) and party hereto
(collectively, the "Noteholders").
RECITALS:
A. The Company entered into the Note Purchase Agreement dated as of
February 14, 1997 (as amended, supplemented or otherwise modified through the
date hereof, the "Note Agreement"), pursuant to which the Company issued its
7.88% Senior Notes, Series A, due February 14, 2007 in the original aggregate
principal amount of $110,000,000 (as amended, supplemented or otherwise modified
through the date hereof, the "Notes").
B. The Company and the Noteholders now desire to amend the Note Agreement
and the Notes in the respects, but only in the respects, hereinafter set forth
in order to reflect certain agreements between the Company and the Noteholders.
C. The Company has also advised the Noteholders that the Company has
violated certain terms and conditions set forth in the Note Agreement and more
particularly described herein and requests that the Noteholders waive such
Defaults and Events of Default.
D. Capitalized terms used herein shall have the respective meanings
ascribed thereto in the Note Agreement unless herein defined or the context
shall otherwise require.
E. All requirements of law have been fully complied with and all other
acts and things necessary to make this Fifth Amendment a valid, legal and
binding instrument according to its terms for the purposes herein expressed have
been done or performed.
NOW, THEREFORE, upon the full and complete satisfaction of the conditions
precedent to the effectiveness of this Fifth Amendment set forth in Section 4.1
hereof, and in consideration of good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged, the Company and the Noteholders do
hereby agree as follows:
SECTION 1. WAIVER OF DEFAULTS.
Section 1.1. Waiver of Defaults (Fixed Charge Coverage Ratio). The Company
has notified the Noteholders that the Company has violated the minimum Fixed
Charge Coverage Ratio required to be maintained under Section 10.2 of the Note
Agreement for the fiscal quarter ended December 31, 2004. The Noteholders hereby
waive the Event of Default arising under the Note Agreement on account of the
Company's violation of the financial covenant described above for the fiscal
quarter ended December 31, 2004.
Section 1.2. Waiver of Defaults and Consent (Acquisitions). The Company
has notified the Noteholders that Insituform Technologies Limited, a foreign
Subsidiary of the Company organized in England and Wales ("ITL"), entered into a
joint venture arrangement with Environmental Techniques Limited, a Northern
Ireland company ("ETL"), during the fiscal year ended 2004, pursuant to which
ITL and ETL formed a new company in Northern Ireland called Insituform
Environmental Techniques Limited ("IETL"), in connection with which ITL has
subscribed to purchase 499 shares of the authorized share capital (the
"Subscribed Joint Venture Shares") (comprised of a total of 1000 ordinary
shares) of IETL for an amount equal to (pound)499 (approximately equivalent to
U.S. $1,000). The Noteholders hereby waive compliance with Section 10.11 of the
Note Agreement to the extent necessary to waive any Event of Default arising
under the Note Agreement on account of the Subscribed Joint Venture Shares and
hereby consent to the purchase by ITL of the Subscribed Joint Venture Shares.
Section 1.3. Limited Waivers; Reservation of Rights. The Company
acknowledges and agrees that the waivers granted in this Section 1 are specific
in intent and are valid only for the specific purpose for which they are being
given, are waivers the events described in Sections 1.1 and 1.2 hereof only,
shall not in any way obligate the Noteholders to agree to any additional waivers
of the provisions of the Note Agreement, including but not limited to Section
10.2, Section 10.11, Section 11(c) and Section 11(d) and shall not in any way be
deemed to constitute or operate as a waiver of any Noteholder's right under the
Note Agreement to exercise remedies resulting from (i) existing and/or
continuing Defaults or Events of Default of which such Noteholder is not
actually aware or (ii) other future Defaults or Events of Default, whether or
not of a similar nature and whether or not known to any Noteholder.
SECTION 2. AMENDMENTS TO NOTE AGREEMENT AND THE NOTES.
Section 2.1. Amendment to Interest Rate on the Series A Notes. Upon the
Effective Date (as defined in Section 4.1 of this Fifth Amendment), the rate of
interest payable on each outstanding Note shall be changed from 8.63% per annum
to 8.88% per annum. As used in the Note Agreement and the Notes "Applicable
Rate" shall mean (i) 8.63% for the period commencing August 14, 2004 to but not
including the Effective Date and (ii) 8.88% from and after the Effective Date.
Section 2.2. Amendment to Section 8.5 (Maturity; Surrender; etc.). Section
8.5 of the Note Agreement shall be and is hereby amended by deleting the
reference to "Section 8" therein and substituting in lieu thereof a reference to
"Section 8 or Section 10.7(b)".
Section 2.3. Amendment to Section 9 (Additional Financial Covenants).
Section 9.9 of the Note Agreement shall be and is hereby amended in its entirety
to read as follows:
"Section 9.9. Additional Covenants. If the Bank Credit
Agreement is amended, replaced or renewed after the Effective Date
in a manner which makes the financial covenants set forth therein
more restrictive on the Company and its Subsidiaries than the
financial covenants contained in Section 10 of this Agreement or to
add additional financial covenants or to make the existing
-2-
Bank Credit Agreement covenants more restrictive than the financial
covenants in the Bank Credit Agreement on the Effective Date, then
such more restrictive financial covenants and any related
definitions (the "Additional Financial Covenants") shall
automatically be deemed to be incorporated into SECTION 7.2(a) and
SECTION 10 of this Agreement by reference and SECTION 11(c) shall be
deemed to be amended to include such Additional Financial Covenants
from the time such Additional Financial Covenants become binding
upon the Company. No amendment or modification of the Additional
Financial Covenants shall result in any change in the covenants
expressly set forth in Section 10 which shall at all times remain in
effect. Promptly but in no event more than 5 Business Days following
the execution of any new Bank Credit Agreement, or any amendment to
the Bank Credit Agreement, the Company shall furnish each holder of
the Notes with a copy of such agreement. In no event shall the
Company or any Subsidiary provide any collateral or other security
to secure Indebtedness under the Bank Credit Agreement."
Section 2.4. Amendment to Section 10.1 (Consolidated Net Worth). Section
10.1 of the Note Agreement shall be and is hereby amended in its entirety to
read as follows:
"Section 10.1. Consolidated Net Worth. The Company will not,
at any time, permit Consolidated Net Worth to be less than the sum
of (i) $260,000,000 plus (ii) 50% of Consolidated Net Income (if
positive) on a cumulative basis for each fiscal quarter ending after
December 31, 2004."
Section 2.5. Amendment to Section 10.2 (Fixed Charge Coverage Ratio).
Section 10.2 of the Note Agreement shall be and is hereby amended in its
entirety to read as follows:
"Section 10.2. Fixed Charge Coverage Ratio. The Company will
not at any time permit the Fixed Charge Coverage Ratio to be less
than 1.25 to 1.0 for the fiscal quarters ending March 31, 2005 and
June 30, 2005, 1.50 to 1.0 for the fiscal quarter ending September
30, 2005, 1.75 to 1.0 for the fiscal quarter ending December 31,
2005, 2.0 to 1.0 for each of the fiscal quarters ending March 31,
2006 and June 30, 2006, 2.25 to 1.0 for each of the fiscal quarters
ending September 30, 2006 and December 31, 2006, and 2.5 to 1.0 for
each fiscal quarter ending thereafter."
Section 2.6. Amendment to Section 10.3. (Limitation on Consolidated
Indebtedness). Section 10.3 of the Note Agreement shall be and is hereby amended
in its entirety to read as follows:
-3-
"Section 10.3. Limitation on Consolidated Indebtedness. The
Company will not at any time permit (i) the Consolidated Leverage
Ratio to exceed 4.25 to 1.0 for the fiscal quarter ending March 31,
2005, 4.0 for the fiscal quarters ending June 30, 2005 and September
30, 2005, and 3.0 to 1.0 for each fiscal quarter ending thereafter;
and (ii) the ratio of Consolidated Total Indebtedness to
Consolidated Total Capitalization to exceed 0.45 to 1.0; provided
that in connection with any calculation of Indebtedness for purposes
of determining compliance with this SECTION 10.3, there shall be
excluded all Indebtedness of the Company and its Subsidiaries
outstanding under any revolving credit agreement between the Company
and a committed bank or banks if, during the 365-day period
immediately preceding the date of any such calculation of
Indebtedness, there shall have been a period of at least 60
consecutive days on each day of which Indebtedness of the Company
and its Subsidiaries outstanding under such revolving credit
agreement is equal to zero by virtue, and solely by virtue, of such
Indebtedness having been paid from general corporate funds of the
Company and not from funds borrowed by the Company or any Subsidiary
pursuant to any other revolving credit agreement for the purpose of
paying such Indebtedness. If there shall not have been such 60
consecutive day period on each day of which such Indebtedness was
equal to zero, then and in such event there shall be included in
such calculation of Indebtedness for purposes of this SECTION 10.3
an amount equal to the average aggregate amount of all Indebtedness
outstanding under such revolving credit agreement during such
preceding 365-day period."
Section 2.7. Amendment to Section 10.4 (Priority Debt). Section 10.4 of
the Note Agreement shall be and is hereby amended in its entirety to read as
follows:
"Section 10.4. Priority Debt. The Company will not, and will
not permit any Subsidiary to, create, issue, assume, guarantee or
otherwise incur or in any manner become liable in respect of any
Priority Debt unless at the time of creation, issuance, assumption,
guarantee or incurrence thereof and after giving effect thereto and
to the application of the proceeds thereof: (a) no Specified Default
or Event of Default would exist and (b) the aggregate amount of all
Priority Debt would not exceed $7,500,000 at any time. In addition
from and after the Effective Date, no Priority Debt shall be
incurred except by foreign Subsidiaries of the Company under
agreements for which the Company shall have no liability except
pursuant to an unsecured Guaranty of such Subsidiary obligation.
Any Person which becomes a Subsidiary after the date of this
Agreement, shall, for all purposes of this SECTION 10.4, be deemed
to have created, issued, assumed, guaranteed or incurred,
-4-
at the time it becomes a Subsidiary, all Priority Debt of such
Person existing immediately after it becomes a Subsidiary."
Section 2.8. Amendment to Section 10.6 (Restricted Payments). Section 10.6
of the Note Agreement shall be and is hereby amended in its entirety to read as
follows:
"Section 10.6. Restricted Payments. The Company will not:
(1) declare or pay any dividends, either in cash or property,
on any shares of its capital stock of any class (except dividends or
other distributions payable solely in shares of common stock of the
Company),
(2) directly or indirectly, or through any Subsidiary or
through any Affiliate of the Company, purchase, redeem or retire any
shares of its capital stock of any class or any warrants, rights or
options to purchase or acquire any shares of its capital stock
(other than in exchange for or out of the net cash proceeds to the
Company from the substantially concurrent issue or sale of shares of
common stock of the Company or warrants, rights or options to
purchase or acquire any shares of its common stock), or
(3) make any other payment or distribution, either directly or
indirectly or through any Subsidiary, in respect of its capital
stock."
Section 2.9. Amendment to Section 10.7 (Mergers, Consolidations and Sales
of Assets).
(a) Section 10.7(b)(iii)(1) of the Note Agreement shall be and is hereby
amended by deleting the reference to the phrase "25% of Consolidated Total
Assets, determined as set forth in the Company's most recently filed Form 10-K"
therein and substituting in lieu thereof a reference to "$20,000,000".
(b) Section 10.7(b)(y)(C) of the Note Agreement shall be and is hereby
amended in its entirety to read as follows:
"(C) to prepay or retire Senior Indebtedness of the Company
and/or its Subsidiaries; provided that the Company (i) shall offer
to prepay each outstanding Note in a principal amount which equals
the Ratable Portion for such Note, and (ii) any such prepayment of
the Notes shall be made at par, together with accrued interest and
the applicable Make-Whole Amount or other premium to the date of
such prepayment, and".
(c) The last paragraph of Section 10.7 of the Note Agreement shall be and
is hereby amended by the addition thereto of a new sentence at the end thereof
to read as follows:
"If any holder of Senior Indebtedness elects not to accept such
offer of prepayment, then, only for purposes of such application of
an amount equal to such Net Proceeds for the prepayment of
-5-
Senior Indebtedness, the Company nevertheless will be deemed on such
particular occasion to have paid Senior Indebtedness in an amount
equal to the Ratable Portion of such Senior Indebtedness."
Section 2.9. Amendment to Section 10.9 (Prepayment and Purchase of Notes).
Section 10.10 of the Note Agreement shall be and is hereby amended in its
entirety to read as follows:
"Section 10.9. Prepayment and Purchase of Notes. Except as
provided in SECTION 8.1 of this Agreement, so long as any 2003 Note
shall be outstanding, the Company will not make any optional
prepayment of the Notes pursuant to SECTION 8.2 or otherwise prepay
or purchase any Notes from any holder unless concurrently therewith,
the Company shall prepay or purchase, as the case may be, a pro rata
principal amount of the 2003 Notes."
Section 2.10. Amendment to Section 10.10 (Capital Expenditures and
Acquisitions). Section 10.10 of the Note Agreement shall be and is hereby
amended in its entirety to read as follows:
"Section 10.10. Capital Expenditures and Acquisitions. The
Company will not, and will not permit any Subsidiary to, make any
(a) Capital Expenditures or (b) acquisitions of stock or other
equity interests in any Person, or all or substantially all of the
assets of any Person if the aggregate amount of all such Capital
Expenditures and acquisitions made by the Company and its
Subsidiaries would exceed (i) $40,000,000 during the fiscal year
ending December 31, 2005 and (ii) $40,000,000 during the fiscal year
ending December 31, 2006; provided that any calculation of Capital
Expenditures during such periods shall be done net of proceeds
realized by the Company from the routine sale of fixed assets in the
ordinary course of business during such period so long as such sale
of fixed assets comply with the requirements of SECTION 10.7(b)
hereof and the proceeds therefrom are applied in the manner
described in SECTION 10.7(b)(y)(A) and (B)."
Section 2.11. Amendment to Section 10.11 (Deletion of Acquisition; New
Covenant). Section 10.11 of the Note Agreement shall be and is hereby amended in
its entirety to read as follows:
"Section 10.11. Bank Credit Agreement.
(a) The Company shall at all times maintain a Bank Credit
Agreement which provides for commitments in favor of the Company of
not less than $25,000,000.
-6-
(b) So long as the Company is required to maintain an
Unrestricted Cash Balance under the Bank Credit Agreement, initially
$50,000,000 or its equivalent in any other currency, the Company
will not permit such Unrestricted Cash Balance to be less than the
amount from time to time required under the Bank Credit Agreement."
Section 2.12. Amendment to Section 11 (Events of Default). Section 11(c)
of the Note Agreement shall be and is hereby amended in its entirety to read as
follows:
"(c) the Company defaults in the performance of or compliance
with the terms of SECTION 7.1(d), SECTION 9.8 or any term contained
in SECTION 10; or".
Section 2.13. Amendment to Section 11 (Events of Default). Section 11(f)
of the Note Agreement shall be and is hereby amended by deleting the reference
to "from and after the Effective Date to and including the Transition Date," in
clause (ii) thereof.
Section 2.14. Amendment to Schedule B (Definitions - Amended Terms). The
definitions of "Applicable Rate", "Capital Expenditures", "Default Rate",
"Effective Date" and "Interest Expense" shall be and are hereby amended in their
entirety to read as follows:
"`Applicable Rate' has the meaning set forth in Section 2.1 of
the Fifth Amendment."
"`Capital Expenditure' means an expenditure for an asset that
must be depreciated or amortized under GAAP, for goodwill, or for
any asset that under GAAP must be treated as a capital asset,
including payments under Capital Leases. An expenditure for purposes
of this definition includes any deferred or seller financed portion
of the purchase price of an asset and the original capitalized
amount of a Capital Lease. Capital Expenditures shall exclude
expenditures by the Company and its Subsidiaries for equipment
related to its tunnel business which is acquired by the Company or
any Subsidiary in connection with the performance of any
construction contract but only to the extent to which the Company
has received payments under the contract sufficient to cover the
cost of the equipment."
"Default Rate' means that rate of interest that is the greater
of (i) 10.88% per annum or (ii) 2% over the rate of interest
publicly announced by XX Xxxxxx Xxxxx Bank in New York, New York as
its base or "prime" rate."
"Effective Date' has the meaning set forth in Section 4.1 of
the Fifth Amendment."
"`Effective Date' has the meaning set forth in Section 4.1 of
the Fifth Amendment."
"`Interest Expense' means, with respect to any period, the sum
(without duplication) of the following (in each case, after
eliminating all offsetting debits and credits between the Company
and its Subsidiaries and all other items required to be eliminated
in
-7-
the course of the preparation of the consolidated financial
statements of the Company and its Subsidiaries in accordance with
GAAP): (a) all interest in respect of Indebtedness of the Company
and its Subsidiaries (including imputed interest on Capitalized
Rentals) deducted in determining Consolidated Net Income for such
period, and (b) all debt discount and expense amortized or required
to be amortized in the determination of Consolidated Net Income for
such period."
Section 2.14. Amendment to Schedule B (Definitions - New Terms). Schedule
B of the Note Agreement shall be and is hereby amended by the addition thereto
of the following new definitions which shall appear in alphabetical order
therein and which shall read as follows:
"`Bank Credit Agreement' shall mean the Amended and Restated
Credit Agreement dated as of March 12, 2004 between the Company and
Bank of America, N.A., as such agreement may be amended, restated,
joined, supplemented, renewed, replaced, refunded or refinanced from
time to time and any successor bank credit facility which
constitutes the primary bank credit facility of the Company."
"`Consolidated Income Available for Fixed Charges' shall mean,
with respect to any period, the sum of (i) EBITDA for such period
and (ii) Rentals for such period."
"`Consolidated Leverage Ratio' shall mean, on any date, the
ratio of Consolidated Total Indebtedness at such date to EBITDA for
the period of the four consecutive fiscal quarters most recently
ended as of such date. For purposes of calculating EBITDA for any
period of four consecutive fiscal quarters, if during such period
the Company or any Subsidiary shall have acquired any Person which
becomes a Subsidiary or acquired all or substantially all of the
operating assets of any Person or disposed of any Subsidiary or all
or substantially all of the operating assets of any Subsidiary or
disposed of any segment of the business of the Company or a
Subsidiary, EBITDA for such period shall be calculated after giving
pro forma effect thereto as if such acquisition or disposition
occurred on the first day of such period of four consecutive fiscal
quarters."
"`Consolidated Net Income' shall mean, for any period, the net
income (or loss), before any extraordinary items, of the Company and
its Subsidiaries for such period (taken as a cumulative whole), as
calculated in accordance with GAAP."
-8-
"`Consolidated Net Worth' shall mean, as of any date of
determination thereof, the consolidated stockholder's equity of the
Company and its Subsidiaries, as determined in accordance with
GAAP."
"`EBITDA' shall mean, with respect to any period, the total of
the following calculated without duplication for the Company and its
Subsidiaries on a consolidated basis for such period: (a)
Consolidated Net Income for such period; plus (b) taxes deducted in
determining Consolidated Net Income for such period; plus (c)
Interest Expense deducted in determining Consolidated Net Income for
such period; plus (d) amortization and depreciation expense deducted
in determining Consolidated Net Income for such period."
"`Fair Market Value' means, at any time and with respect to
any property, the sale value of such property that would be realized
in an arm's-length sale at such time between an informed and willing
buyer and an informed and willing seller (neither being under a
compulsion to buy or sell), as reasonably determined in the good
faith opinion of the Company's board of directors."
"`Fifth Amendment' means the Fifth Amendment and waive to Note
Purchase Agreement dated as of March 16, 2005 between the Company
and the holders of Notes, in respect of this Agreement."
"`Fixed Charge Coverage Ratio' means, on any date, the ratio
of (a) Consolidated Income Available for Fixed Charges for the
period of four consecutive fiscal quarters ending on, or most
recently ended prior to, such date to (b) Consolidated Fixed Charges
for such period."
"`Net Proceeds' means with respect to any sale of property by
any Person an amount equal to (a) the aggregate amount of the
consideration received by such Person in respect of such sale
(valued at the Fair Market Value of such consideration at the time
of such sale), minus (b) the sum of (i) all out-of-pocket costs and
expenses actually incurred by such Person in connection with such
sale, and (ii) all state, federal and foreign taxes incurred, or to
be incurred, by the seller in connection with such sale."
"`Ratable Portion' means, with respect to any Note, an amount
equal to the product of (x) the amount equal to the Net Proceeds
being so applied to the prepayment of Senior Indebtedness multiplied
by (y) a fraction the numerator of which is the outstanding
principal amount of such Note and the
-9-
denominator of which is the aggregate principal amount of Senior
Indebtedness of the Company and its Subsidiaries."
"`Unrestricted Cash Balance' means as of any date of
determination for the Company and its Subsidiaries on a consolidated
basis, an amount equal to the sum of cash and cash equivalents
(excluding any restricted cash balances or other retainage
deposits), determined in accordance with GAAP."
Section 2.15. Amendment to Schedule B (Definitions - Deletions). The
definition of "Consolidated Cash Flow Available for Fixed Charges" shall be and
is hereby deleted from Schedule B to the Note Agreement.
SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
Section 3.1. To induce the Noteholders to execute and deliver this Fifth
Amendment, the Company represents and warrants (which representations shall
survive the execution and delivery of this Fifth Amendment) to the Noteholders
that:
(a) this Fifth Amendment has been duly authorized, executed
and delivered by it and this Fifth Amendment constitutes the legal,
valid and binding obligation, contract and agreement of the Company
enforceable against it in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws or equitable principles
relating to or limiting creditors' rights generally;
(b) the Note Agreement and the Notes, as amended by this Fifth
Amendment, constitute the legal, valid and binding obligations,
contracts and agreements of the Company enforceable against it in
accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws
or equitable principles relating to or limiting creditors' rights
generally;
(c) the execution, delivery and performance by the Company of
this Fifth Amendment (i) has been duly authorized by all requisite
corporate action and, if required, shareholder action, (ii) does not
require the consent or approval of any governmental or regulatory
body or agency, and (iii) will not (A) violate (1) any provision of
law, statute, rule or regulation or its certificate of incorporation
or bylaws, (2) any order of any court or any rule, regulation or
order of any other agency or government binding upon it, or (3) any
provision of any material indenture, agreement or other instrument
to which it is a party or by which its properties or assets are or
may be bound, or (B) result in a breach or constitute (alone or with
due notice or lapse of time or both) a default under any indenture,
agreement or other instrument referred to in clause (iii)(A)(3) of
this Section 3.1(c), other than any violation, breach or default
which individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect;
-10-
(d) as of the date hereof and after giving effect to this
Fifth Amendment, no Default or Event of Default has occurred which
is continuing;
(e) the unaudited financial statements of the Company for the
fiscal year ended December 31, 2004 furnished to you do not, nor
does any written statement furnished by the Company to you in
connection with the execution and delivery of this Fifth Amendment,
contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements contained therein not
misleading in light of the circumstances under which they were made.
There is no fact known to the Company which the Company has not
disclosed to you in writing which could reasonably be expected to
have a Material Adverse Effect; and
(f) The Company has not paid any consideration to any holder
of indebtedness of the Company in connection with the transactions
contemplated by this Fifth Amendment, except for the legal fees of
counsel to the holders of such indebtedness and consideration paid
to the holders of the 2003 Notes which is identical to the
consideration to be paid to the holders of the Notes and
consideration paid to Bank of America, N.A. pursuant to and as set
forth in the First Amendment to Credit Agreement dated as of March
16, 2005 (the "Bank Credit Agreement Amendment") between the Company
and Bank of America, N.A. (in respect of the Amended and Restated
Credit Agreement dated as of March 12, 2004 (the "Bank Credit
Agreement") between the Company and Bank of America, N.A.).
SECTION 4. CONDITIONS TO EFFECTIVENESS OF THIS FIFTH AMENDMENT.
Section 4.1. This Fifth Amendment shall become effective when each of the
following conditions has been satisfied:
(a) executed counterparts of this Fifth Amendment, duly
executed by the Company and the holders of at least 66-2/3% of the
outstanding principal of the Notes, shall have been delivered to the
Noteholders;
(b) executed copies of a consent to this Agreement shall have
been duly executed by the Subsidiaries which are parties to the
Subsidiary Guaranties;
(c) the representations and warranties of the Company set
forth in Section 3 hereof shall be true and correct on and with
respect to the date hereof and a certificate of a Responsible
Officer certifying the same shall have been delivered to the
Noteholders;
(d) the Second Amendment to Note Purchase Agreement dated as
of March 16, 2005, in respect of the 2003 Notes, shall have been
duly executed and delivered by the requisite percentage of the
noteholders thereunder needed to approve such amendment and such
agreement shall be in form and substance satisfactory to each
Noteholder;
-11-
(e) the Company shall have paid a fee to each Noteholder in an
amount equal to .25% of the outstanding principal amount of the
Notes held by such Noteholder;
(f) Xxxxxxxx Xxxxxx LLP, counsel for the Company, shall have
delivered a legal opinion, dated as of the effective date of this
Fifth Amendment, in form and substance reasonably satisfactory to
the Noteholders and their special counsel to the effect that this
Fifth Amendment constitutes the legal, valid and binding obligation
of the Company;
(g) the Bank Credit Agreement Amendment shall have been duly
executed and delivered by the parties thereto and such agreement
shall be in form and substance satisfactory to each Noteholder
executing this Fifth Amendment; and
(h) the Company shall have paid the fees, costs, expenses and
disbursements of Xxxxxxx and Xxxxxx LLP, special counsel to the
Noteholders, incurred in connection with the consummation of the
transactions contemplated by this Fifth Amendment.
Upon receipt of all of the foregoing, this Fifth Amendment shall become
effective. Delivery of this Fifth Amendment to the Company, duly executed by the
holders of at least 66-2/3% of the outstanding principal amount of the Notes,
shall acknowledge satisfaction of the foregoing conditions. The date upon which
this Fifth Amendment becomes effective is herein referred to as the "Effective
Date." The Company shall give written notice to the Noteholders of the Effective
Date, confirming the date upon which the increased interest rate referred to in
Section 2.1 hereof shall begin to accrue.
SECTION 5. MISCELLANEOUS.
Section 5.1. Automatically, and without any further action on the part of
the Company or any holder of a Note, on the Effective Date, the Notes shall be
deemed to be amended to reflect the change in interest rate set forth in Section
2.1 of this Fifth Amendment; provided, however, that if any holder of a Note
elects to surrender its Note (an "Existing Note") to the Company for
cancellation and the issuance of a new note reflecting such change in interest
rate (a "New Note"), the Company shall issue a New Note to such holder within 5
business days of receipt of the Existing Note surrendered therefor, such New
Note to be dated the date to which interest has been paid on the Existing Note
surrendered therefor and such New Note shall be payable on the same dates as set
forth in the Existing Note surrendered therefor.
Section 5.2. Release of Claims. In further consideration of each
Noteholder's execution of this Fifth Amendment, the Company hereby releases each
Noteholder and its respective affiliates, officers, employees, directors,
trustees, agents and attorneys (collectively, the "Releasees") from any and all
claims, demands, liabilities, responsibilities, disputes, causes of action
(whether at law or in equity) and obligations of every nature whatsoever,
whether liquidated or unliquidated, known or unknown, matured or unmatured,
fixed or contingent, that the Company may have against the Releasees which arise
from or relate to any actions which the Releasees may have taken or omitted to
take prior to the date thereof with respect to the Notes, the Note Agreement or
any Subsidiary Guaranty. For purposes of the release contained in this
-12-
section, the term "Company" shall mean and include such party's successors and
assigns, including, without limitation, any trustees acting on behalf of such
party and any debtor-in-possession in respect of such party.
Section 5.3. The Company acknowledges and agrees that by agreeing to the
amendments of the Note Agreement set forth herein, the Noteholders shall not be
deemed to have waived any rights as on account of any Default or Event of
Default which may at any time hereafter exist under the Note Agreement, which
rights are hereby expressly reserved by the holders of the Notes.
Section 5.4. This Fifth Amendment shall be construed in connection with
and as part of the Note Agreement, and except as modified and expressly amended
by this Fifth Amendment, all terms, conditions and covenants contained in the
Note Agreement and the Notes are hereby ratified and shall be and remain in full
force and effect.
Section 5.5. Any and all notices, requests, certificates and other
instruments executed and delivered after the execution and delivery of this
Fifth Amendment may refer to the Note Agreement without making specific
reference to this Fifth Amendment but nevertheless all such references shall
include this Fifth Amendment unless the context otherwise requires.
Section 5.6. The descriptive headings of the various Sections or parts of
this Fifth Amendment are for convenience only and shall not affect the meaning
or construction of any of the provisions hereof.
Section 5.7. This Fifth Amendment shall be governed by and construed in
accordance with Illinois law.
-13-
The execution hereof by you shall constitute a contract between us for the
uses and purposes hereinabove set forth, and this Fifth Amendment may be
executed in any number of counterparts, each executed counterpart constituting
an original, but all together only one agreement.
INSITUFORM TECHNOLOGIES, INC.
By /s/ Xxxxxxxxx X. Xxxxxx
Name: Xxxxxxxxx X. Xxxxxx
Title: Senior Vice President and CFO
Accepted and agreed to as of the date first written above:
THE NORTHWESTERN MUTUAL LIFE INSURANCE
COMPANY
By /s/ Xxxxx X. Xxxxxx
Name: Xxxxx X. Xxxxxx
Title: Authorized Representative
Accepted and agreed to as of the date first written above:
PRINCIPAL LIFE INSURANCE COMPANY
By: Principal Global Investors, LLC, a
Delaware limited liability company,
its Authorized Signatory
By /s/ Xxx X. Xxxxx
----------------------------------
Name: Xxx X. Xxxxx
-----------------------------
Title: Counsel
---------------------------
By /s/ Xxxxxxx X. Xxxxxxxxx
----------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
-----------------------------
Title: Counsel
---------------------------
Accepted and agreed to as of the date first written above:
ALLSTATE LIFE INSURANCE COMPANY
By _______________________________________
By _______________________________________
Authorized Signatories
Accepted and agreed to as of the date first written above:
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: CIGNA Investments, Inc. (authorized
agent)
By /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Managing Director
LIFE INSURANCE COMPANY OF NORTH AMERICA
By: CIGNA Investments, Inc. (authorized
agent)
By /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Managing Director
CONNECTICUT GENERAL LIFE INSURANCE
COMPANY, on behalf of one or more
separate accounts
By: CIGNA Investments, Inc. (authorized
agent)
By /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Managing Director
Accepted and agreed to as of the date first written above:
XXXXXXXXX-PILOT LIFE INSURANCE COMPANY
By _______________________________________
Its____________________________________
JEFFERSON PILOT FINANCIAL INSURANCE
COMPANY
By
Its____________________________________
Accepted and agreed to as of the date first written above:
RELIASTAR LIFE INSURANCE COMPANY
RELIASTAR LIFE INSURANCE COMPANY
OF NEW YORK
By: ING Investment Management LLC,
as Agent
By /s/ Xxxxx Xxxxxxx
Name: Xxxxx Xxxxxxx
Title: Senior Vice President
Accepted and agreed to as of the date first written above:
ACE PROPERTY & CASUALTY INSURANCE COMPANY
By: Columbia Management Advisors
Incorporated, as agent
By /s/ Xxxxxxx X. Xxxxxxx
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
Accepted and agreed to as of the date first written above:
THE SECURITY FINANCIAL LIFE INSURANCE CO.
By /s/ Xxxxx X. Xxxxxxx
Name: Xxxxx X. Xxxxxxx
Title: Senior Vice President & Chief
Actuary
