SECOND AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT
Exhibit 10.3
Execution
Copy
SECOND
AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT
This SECOND AMENDMENT TO REIMBURSEMENT AND
CREDIT AGREEMENT (the "Second Amendment") is
made and entered into this 23rd day of August, 2007 by and between THE CONNECTICUT WATER COMPANY,
a corporation duly organized and existing under the laws of the State of
Connecticut with an office at 00 Xxxx Xxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxxx 00000
(the "Borrower"), and CITIZENS BANK OF RHODE ISLAND,
with an office at Xxx Xxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxx Xxxxxx 00000,
(the "Bank").
WITNESSETH:
WHEREAS,
the Connecticut Development Authority issued and sold the $4,550,000 Water
Facilities Refunding Revenue Bonds (The Connecticut Water Company Project-2004B
Series (the “Bonds”) and loaned funds to the Borrower pursuant to the terms of
the Indenture;
WHEREAS,
the Borrower and the Bank entered into a Reimbursement and Credit Agreement,
dated as of August 1, 2004, to provide for an irrevocable direct pay letter of
credit to be issued by the Bank for the account of the Borrower to secure the
Bonds, as amended by a First Amendment to Reimbursement and Credit Agreement
dated April 28, 2006 by and between the Borrower and the Bank (collectively, the
“Agreement”). Capitalized terms used in this Second Amendment and not
otherwise defined herein shall have the meanings ascribed thereto in the
Agreement;
WHEREAS,
the Borrower wishes to increase the amount of Borrower’s Permitted Indebtedness
to the Connecticut Development Authority; and
WHEREAS,
the Borrower wishes to increase the amount of the Borrower’s Permitted
Indebtedness to Connecticut Water Service, Inc. or the Borrower’s Affiliates
allowed under the Agreement.
NOW
THEREFORE, in consideration of the premises, mutual promises and covenants
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, it is agreed by and between the
parties hereto, each being legally bound hereby, as follows:
1. Clause
(v) of the definition of Permitted Indebtedness in subsection 1.01 of the
Agreement is hereby deleted and replaced by the following:
“(v)
indebtedness to the CDA, Connecticut Water Service, Inc. or Borrower’s
Affiliates related to new money bonds to be issued through the CDA prior to
March 4, 2006 not exceeding Fifteen Million Dollars ($15,000.000) in the
aggregate and indebtedness to the CDA related to new money bonds to be issued
through the CDA during the period from June 1, 2007 through December 31, 2008
not exceeding Fifteen Million Dollars ($15,000,000) in the
aggregate;
2. Clause
(vi) of the definition of Permitted Indebtedness in subsection 1.01 of the
Agreement is hereby deleted and replaced by the following:
“(vi)
indebtedness, in addition to the indebtedness described in Subsection (v), to
Connecticut Water Service, Inc. or Borrower’s Affiliates not exceeding
Twenty-one Million Dollars ($21,000,000) in the aggregate; and”
3. This
Second Amendment may be executed in counterparts and all such counterparts shall
be deemed to be originals and together shall constitute but one and the same
instrument.
4. Except
as expressly provided herein, the Agreement is unmodified and remains in full
force and effect.
IN
WITNESS WHEREOF, and intending to be legally bound hereby, the parties have
executed this Second Amendment as of the date first written above.
THE CONNECTICUT WATER
COMPANY
By: /s/ Xxxxx X.
Xxxxxx
Name: Xxxxx X.
Xxxxxx
Title: Vice
President-Finance and Chief Financial
Officer
CITIZENS BANK OF RHODE
ISLAND
By: /s/ Xxxxxxx
Xxxxxxxxx
Name: Xxxxxxx Xxxxxxxxx
Title: Senior Vice
President
