Exhibit 10.1
SECOND AMENDMENT AND WAVIER TO CREDIT AGREEMENT
Dated as of July 9, 2004
This SECOND AMENDMENT AND WAIVER TO CREDIT AGREEMENT (this "Agreement") is
among IONICS, INCORPORATED, a Massachusetts corporation (the "Borrower"), UBS
AG, STAMFORD BRANCH, in its capacity as administrative agent for the Lenders (in
such capacity, the "Administrative Agent") and as collateral agent for the
Secured Parties (in such capacity, the "Collateral Agent") and the Lenders
signatory hereto, and is made pursuant to that certain Credit Agreement dated as
February 13, 2004, as amended by that certain First Amendment to Credit
Agreement dated as of March 15, 2004 (as further amended, modified, restated or
supplemented from time to time, the "Credit Agreement"), among IONICS,
INCORPORATED, a Massachusetts corporation, the Subsidiary Guarantors, the
Lenders, the Administrative Agent, the Collateral Agent, UBS SECURITIES LLC, as
lead arranger (in such capacity, the "Arranger"), sole bookmanager and
documentation agent (in such capacity, the "Documentation Agent"), FLEET
SECURITIES, INC. and BANK OF AMERICA, N.A., as syndication agents (in such
capacity, the "Syndication Agents"), WACHOVIA BANK, N.A. and GENERAL ELECTRIC
CAPITAL CORPORATION, as co-documentation agents (in such capacity, the
"Co-Documentation Agents"), UBS LOAN FINANCE LLC, as swingline lender (in such
capacity, "Swingline Lender"), and HSBC BANK USA, as issuing bank (in such
capacity, the "Issuing Bank").
Terms used but not otherwise defined in this Agreement shall have the
meaning ascribed to such terms in the Credit Agreement.
PRELIMINARY STATEMENTS:
1. The Borrower has requested that the Required Lenders agree to (i) delete
in its entirety existing Schedule 6.04(b) to the Credit Agreement (the "Existing
Schedule") and replace it with replacement Schedule 6.04(b) to the Credit
Agreement, attached hereto as Exhibit A (the "Replacement Schedule"), (ii) make
such other amendments to Section 6.04(c)(ii) as set forth herein, (iii) waive
for all periods from February 13, 2004 through the Amendment Effective Date (as
defined below) the provisions of Section 6.04(b) of the Credit Agreement to the
extent such provisions limit permitted Investments outstanding on the Closing
Date to those Investments identified on the Existing Schedule; provided all such
Investments outstanding on the Closing Date shall be identified on the
Replacement Schedule, (iv) waive the provisions of Section 2.08(a) of the Credit
Agreement with respect to the first Interest Period following the Amendment
Effective Date for the $167,900,025 Borrowing to the extent such provisions
require that such Borrowing have Interest Periods ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
after the date of conversion of such Borrowing from a Borrowing based on the
Alternate Base Rate to a Borrowing based on the Adjusted LIBOR Rate; provided
that such first Interest Period shall end on September 30, 2004; provided
further that such first Interest Period shall be available to all Lenders, and
(v) waive any Default or Event of Default that may have arisen by reason of
there being cash and Cash Equivalents in any account not subject to a Control
Agreement in an aggregate amount in excess of $5 million in violation of the
requirements set forth in Section 6.04(c)(ii) (provided that such amounts shall
not have been in excess of $80 million) for all periods from February 13, 2004
through the Amendment Effective Date.
2. Subject to the terms and conditions set forth below, the Required
Lenders, the Administrative Agent, and the Collateral Agent are willing to so
amend the Credit Agreement.
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. Amendments to Credit Agreement.
a. Upon the terms and subject to the conditions set forth in this
Agreement and in reliance on the representations and warranties of the Loan
Parties set forth in this Agreement, the Credit Agreement is hereby amended
such that the Existing Schedule shall be deleted in its entirety and
replaced with the Replacement Schedule.
b. Upon the terms and subject to the conditions set forth in this
Agreement and in reliance on the representations and warranties of the Loan
Parties set forth in this Agreement, Section 6.04(c)(ii) of the Credit
Agreement is hereby amended and restated in its entirety as follows:
"(ii) invest in, acquire and hold cash and Cash Equivalents (provided
that any such amounts constituting cash and Cash Equivalents that are held
in any account that is not then subject to a Control Agreement in favor of
the Collateral Agent for the benefit of the Secured Parties (other than
cash and Cash Equivalents (a) generated from the operations of Foreign
Subsidiaries that are not required to pledge their assets pursuant to the
last sentence of Section 5.11(b) (any such Foreign Subsidiary, an "Excluded
Foreign Subsidiary") or (b) generated from the disposition of assets of an
Excluded Foreign Subsidiary or the repayment of an intercompany loan owing
to an Excluded Foreign Subsidiary, in each case, in a transaction not
prohibited by the terms of this Agreement and, in each case, to the extent
held by an Excluded Foreign Subsidiary in an account of such Excluded
Foreign Subsidiary) shall not exceed $5 million in the aggregate at any
time outstanding),"
2. Waivers.
a. Required Lenders hereby waive for all periods from February 13,
2004 through the Amendment Effective Date the provisions of Section 6.04(b)
of the Credit Agreement to the extent such provisions limit permitted
Investments outstanding on the Closing Date to those Investments identified
on the Existing Schedule; provided all such Investments outstanding on the
Closing Date shall be identified on the Replacement Schedule.
b. Required Lenders hereby waive the provisions of Section 2.08(a) of
the Credit Agreement with respect to the first Interest Period after the
Amendment Effective Date for the $167,900,025 Borrowing to the extent such
provisions require that such Borrowing have Interest Periods ending on the
numerically corresponding day in the calendar month that is one, two, three
or six months after the date of conversion of such Borrowing from a
Borrowing based on the Alternate Base Rate to a Borrowing based on the
Adjusted LIBOR Rate; provided that such first Interest Period shall end on
September 30, 2004; provided further that such first Interest Period shall
be available to all Lenders.
c. Required Lenders hereby waive any Default or Event of Default that
may have arisen by reason of there being cash and Cash Equivalents in any
account not subject to a Control Agreement in an aggregate amount in excess
of $5 million in violation of the requirements set forth in Section
6.04(c)(ii) (provided that such amounts shall not have been in excess of
$80 million) for all periods from February 13, 2004 through the Amendment
Effective Date.
The waivers set forth in this Section 2 shall be effective only as to
the matters set forth specifically herein and shall not entitle the
Borrower to any other waiver or agreement with respect to any other matter.
3. Conditions to Effectiveness. The effectiveness of this Agreement is
conditioned upon the satisfaction of each of the following conditions
precedent on or before July __, 2004; provided that once such conditions
precedent have been satisfied this Agreement shall be deemed to be
effective as of June 30, 2004 (such date, the "Amendment Effective Date"):
a. the Administrative Agent shall have received counterparts of
this Agreement signed by the Borrower, the Subsidiary Guarantors, the
Required Lenders, the Administrative Agent and the Collateral Agent;
b. each of the representations and warranties in Section 4 below
shall be true and correct in all material respects as of the Amendment
Effective Date and as of the date hereof;
c. after giving effect to the amendments set forth in Section 1
hereof and the waivers set forth in Section 2 hereof, no Default or
Event of Default shall have occurred and be continuing under the
Credit Agreement or any other Loan Document;
d. the Administrative Agent shall have received payment in
immediately available funds of all expenses incurred by the
Administrative Agent (including, without limitation, legal fees) for
which invoices have been presented, on or before the Amendment
Effective Date; and
e. the Administrative Agent shall have received satisfactory
evidence that the execution, delivery and performance of this
Agreement have been duly approved by all necessary corporate action of
each Loan Party.
4. Representations and Warranties. The Borrower and each of the other
Loan Parties represents and warrants to the Administrative Agent, the
Collateral Agent and each Lender as of the date hereof as follows:
a. Authority. Each of the Loan Parties has the requisite
corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder and under the Credit
Agreement (as modified hereby). The execution, delivery and
performance by the Borrower and each other Loan Party of this
Agreement, the Credit Agreement (as modified hereby) and the
transactions contemplated hereby and thereby have been duly approved
by all necessary corporate action of such person and no other
corporate proceedings on the part of each such person are necessary to
consummate such transactions (except as expressly contemplated hereby
and thereby).
b. Due Execution; Enforceability. This Agreement has been duly
executed and delivered by the Borrower and the other Loan Parties.
Each of this Agreement and, after giving effect to this Agreement, the
Credit Agreement and the other Loan Documents is the legal, valid and
binding obligation of each Loan Party hereto and thereto, enforceable
against such Loan Party in accordance with its terms, and is in full
force and effect. Neither the execution, delivery or performance of
this Agreement or of the Credit Agreement (as modified hereby), nor
the performance of the transactions contemplated hereby or thereby,
will adversely affect the validity, perfection or priority of the
Collateral Agent's Lien, for the benefit of the Secured Parties, on
any of the Collateral.
c. Representations and Warranties. After giving effect to this
Agreement, the representations and warranties contained in the Credit
Agreement and the other Loan Documents (other than any such
representations and warranties that, by their terms, are specifically
made as of a date other than the date hereof) are true and correct on
and as of the date hereof as though made on and as of the date hereof.
d. No Conflicts. Neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated
hereby, nor performance of and compliance with the terms and
provisions hereof by the Borrower or any Loan Party will, at the time
of such performance, (a) violate or conflict with any provision of its
articles or certificate of incorporation or bylaws or other
organizational or governing documents of such Person, (b) violate,
contravene or materially conflict with any Requirement of Law or any
other law, regulation (including, without limitation, Regulation U or
Regulation X), order, writ, judgment, injunction, decree or permit
applicable to it, except for any violation, contravention or conflict
which could not reasonably be expected to have a Material Adverse
Effect, (c) violate, contravene or conflict with contractual
provisions of, or cause an event of default under, any indenture, loan
agreement, mortgage, deed of trust, contract or other agreement or
instrument to which it is a party or by which it may be bound, or (d)
result in or require the creation of any Lien (other than those
contemplated in or created in connection with the Loan Documents) upon
or with respect to its properties.
e. No Default. After giving effect to the amendments set forth in
Section 1 hereof and the waivers set forth in Section 2 hereof, no
Default or Event of Default has occurred and is continuing under the
Credit Agreement or any other Loan Document.
5. Reference to and Effect on Credit Agreement.
a. Upon and after the effectiveness of this Agreement, each
reference in the Credit Agreement to "this Agreement", "hereunder",
"hereof" or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to "the Credit
Agreement", "thereunder", "thereof" or words of like import referring
to the Credit Agreement, shall mean and be a reference to the Credit
Agreement as modified hereby.
b. Except as specifically modified above, the Credit Agreement
and the other Loan Documents are and shall continue to be in full
force and effect and are hereby in all respects ratified and
confirmed. Without limiting the generality of the foregoing, the
Security Documents and all of the Collateral described therein do and
shall continue to secure the payment of all Obligations under and as
defined therein, in each case as modified hereby.
c. The execution, delivery and effectiveness of this Agreement
shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Secured Party under any of the Loan
Documents, nor, except as expressly provided herein, constitute a
waiver or amendment of any provision of any of the Loan Documents.
6. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Agreement.
7. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
8. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.
IONICS, INCORPORATED
By: /s/Xxxxxx X. Xxxxxx
-------------------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Vice President and Chief Financial Officer
SUBSIDIARY GUARANTORS:
AQUA DESIGN, INC.
FIDELITY PUREWATER, INC.
FIDELITY WATER SYSTEMS, INC.
IONICS KOREA, INC.
IONICS LIFE SCIENCES, INC.
IONICS SECURITIES CORPORATION
IONICS ULTRAPURE WATER CORPORATION
RESOURCES CONSERVATION CO. INTERNATIONAL
SEPARATION TECHNOLOGY, INC.
XXXXXXX INSTRUMENTS, INC.
ECOLOCHEM, INC.
ECOLOCHEM HOLDINGS, INC.
ECOLOCHEM JV HOLDINGS, INC.
By: /s/Xxxxxxx Xxxx
------------------------------------------------
Name: Xxxxxxx Xxxx
Title: Secretary
ECOLOCHEM SERVICES - MEXICO, LLC
MOSON HOLDINGS, LLC
By: Ionics, Incorporated as Managing Member
By: /s/Xxxxxxx Xxxx
-----------------------------------------------
Name: Xxxxxxx Xxxx
Title: Vice President and General Counsel
UBS AG, STAMFORD BRANCH, as Administrative Agent
and Collateral Agent
By: /s/Xxxxxxx X. Saint
----------------------------------------------
Name: Xxxxxxx X. Saint
Title: Director, Banking Products Services, US
By: /s/Salloz Xxxxx
----------------------------------------------
Name: Salloz Xxxxx
Title: Associate Director, Banking Products
Services, US
LENDERS:
UBS LOAN FINANCE LLC, as a Lender
By: /s/Xxxxxxx X. Saint
----------------------------------------------
Name: Xxxxxxx X. Saint
Title: Director, Banking Products Services, US
By: /s/Salloz Xxxxx
----------------------------------------------
Name: Salloz Xxxxx
Title: Associate Director, Banking Products
Services, US
Northwoods Capital III, Limited
By: Xxxxxx, Xxxxxx & Co., L.P.,
as Collateral Manager
By: /s/Xxxx X. Xxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxx
Title: Managing Director
Northwoods Capital II, Limited
By: Xxxxxx, Xxxxxx & Co., L.P.,
as Collateral Manager
By: /s/Xxxx X. Xxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxx
Title: Managing Director
Northwoods Capital IV, Limited
By: Xxxxxx, Xxxxxx & Co., L.P.,
as Collateral Manager
By: /s/Xxxx X. Xxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxx
Title: Managing Director
Bank of America, N.A., as a Lender
By: /s/Xxxx X. Xxxxx
----------------------------------------------
Name: Xxxx X. Xxxxx
Title: Senior Vice President
Fleet National Bank, as a Lender
By: /s/Xxxx X. Xxxxx
----------------------------------------------
Name: Xxxx X. Xxxxx
Title: Senior Vice President
Olympic Cloi Ltd., as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Chief Operating Officer
Centre Pacific LLP (Manager)
Apex (IDM) CDO I, Ltd.
ELC (Cayman) Ltd. 1999-II
ELC (Cayman) Ltd. 1999-III
ELC (Cayman) Ltd. 2000-I
Xxxxx CLO Ltd. 2000-I
By: Babson Capital Management LLC as Collateral
Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Babson CDO Ltd. 2003-I
By: Babson Capital Management LLC as Collateral
Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Maplewood (Cayman) Limited
By: Babson Capital Management LLC under delegated
authority from Massachusetts Mutual LIfe Insurance
Company as Investment Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Massachusetts Mutual Life Insurance Company
By: Babson Capital Management LLC as Collateral
Advisor, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Seaboard CLO 2000 Ltd.
By: Babson Capital Management LLC as Collateral
Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Suffield CLO, Limited
By: Babson Capital Management LLC as Collateral
Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Simsbury CLO, Limited
By: Babson Capital Management LLC under delegated
authority from Massachusetts Mutual LIfe Insurance
Company as Collateral Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Xxxxxx CDO, Limited
By: Babson Capital Management LLC under delegated
authority from Massachusetts Mutual Life Insurance
Company as Collateral Manager, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Xxxx & Xxxxxxx Xxxxx Foundatioin
By: Babson Capital Management LLC as Investment
Advisor, as a Lender
By: /s/Xxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Managing Director
Senior Debt Portfolio
By: Boston Management and Research as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxx Xxxxx Senior Income Trust
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxx Xxxxx Institutional Senior Loan Fund
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Costantinus Xxxxx Xxxxx CDO V. Ltd.
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxx Xxxxx CDO VI Ltd.
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxxxx & Co.
By: Boston Management and Research as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxx Xxxxx
VT Floating-Rate Income Fund
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Xxxxx Xxxxx
Limited Duration Income Fund
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Tolli & Co.
By: Xxxxx Xxxxx Management as Investment
Advisor, as a Lender
By: /s/Xxxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
Fidelity Advisor Series II:
By: Fidelity Advisor Floating RAte High Income
Fund, as a Lender
By: /s/Xxxx X. Xxxxxxxx
----------------------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Assistant Treasurer
Ballyrock CLO II Limited
By: Ballyrock Investment Advisors LLC, as Collateral
Manager, as a Lender
By: /s/Xxxx Xxxxx
----------------------------------------------
Name: Xxxx Xxxxx
Title: Assistant Treasurer
Ballyrock CLO I Limited
By: Ballyrock Investment Advisors LLC, as Collateral
Manager, as a Lender
By: /s/Xxxx Xxxxx
----------------------------------------------
Name: Xxxx Xxxxx
Title: Assistant Treasurer
Flagship CLO 2000-1
By: Flagship Capital Management, Inc., as a Lender
By: /s/Xxxxxxx Xxxxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Director
Flagship CLO II
By: Flagship Capital Management, Inc., as a Lender
By: /s/Xxxxxxx Xxxxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Director
General Electric Capital Corporation, as a Lender
By: /s/Xxxx Xxxx
----------------------------------------------
Name: Xxxx Xxxx
Title: Duly Authorized Signatory
HSBC Bank USA, National Association, as a Lender
By: /s/Xxxxxxxx Xxxxxxxxxx
----------------------------------------------
Name: Xxxxxxxx Xxxxxxxxxx
Title: Vice President
LightPoint CLO-I, Ltd., as a Lender
By: /s/Xxxxxxx X. Xxx Xxxx
----------------------------------------------
Name: Xxxxxxx X. Xxx Xxxx
Title: Managing Director
Longhorn CDO (Cayman) Ltd.
By: Xxxxxxx Xxxxx Investment Manager, L.P.,
as Investment Advisor, as a Lender
By: /s/Xxxxxxx Xxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Authorized Signatory
Longhorn CDO II, Ltd.
By: Xxxxxxx Xxxxx Investment Manager, L.P.,
as Investment Advisor, as a Lender
By: /s/Xxxxxxx Xxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Authorized Signatory
Longhorn CDO III, Ltd.
By: Xxxxxxx Xxxxx Investment Manager, L.P.,
as Investment Advisor, as a Lender
By: /s/Xxxxxxx Xxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Authorized Signatory
Xxxxxxxxxxx Senior Floating Rate Fund, as a Lender
By: /s/Xxxx Xxxxxxx
----------------------------------------------
Name: Xxxx Xxxxxxx
Title: Manager
Harbourview CLO IV, Ltd., as a Lender
By: /s/Xxxx Xxxxxxx
----------------------------------------------
Name: Xxxx Xxxxxxx
Title: Manager
Harbourview CLO V, Ltd., as a Lender
By: /s/Xxxx Xxxxxxx
----------------------------------------------
Name: Xxxx Xxxxxxx
Title: Manager
Foxe Basin CLO 2003, Ltd.
By: Royal Bank of Canada as Collateral Manager,
as a Lender
By: /s/Xxxxxxx Xxxxxx
----------------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Authorized Signatory
Sovereign Bank, as a Lender
By: /s/Xxxxxx X. Xxxxxxx
----------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Senior Vice President
Wachovia Bank, N.A., as a Lender
By: /s/Xxxx Xxxxxx
----------------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
Re: Second Amendment and Waiver to Credit Agreement
WhiteHorse I, Ltd., as a Lender
By: WhiteHorse Capital Partners, L.P., as Collateral
Manager
By: /s/Xxxxx X. Xxxxxxxxx
----------------------------------------------
Name: Xxxxx X. Xxxxxxxxx, CFA
Title: Portfolio Manager
Metlife Bank National Association, as a Lender
By: /s/Xxxxx X. Dinsler
----------------------------------------------
Name: Xxxxx X. Dinsler
Title: Director
Metropolitan Life Insurance Company, as a Lender
By: /s/Xxxxx X. Dinsler
----------------------------------------------
Name: Xxxxx X. Dinsler
Title: Director
EXHIBIT A
Replacement Schedule 6.04(b) to the Credit Agreement
[See attached]
Schedule 6.04(b)
Existing Investments
Ionics, Incorporated
Advances and Trade Payables
-----------------------------------------------------------------------------------------------------------------------------
OWED TO OWED BY AMOUNT (USD)
-----------------------------------------------------------------------------------------------------------------------------
ELITE CHEMICALS PTY LTD IONICS ACAPULCO S.A. DE C.V. 52,285
-----------------------------------------------------------------------------------------------------------------------------
GLOBAL WATER SERVICES, S.A. IONICS (UK) LTD 580,187
-----------------------------------------------------------------------------------------------------------------------------
GLOBAL WATER SERVICES, S.A. IONICS ITALBA S.P.A. 37,716
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD GLOBAL WATER SERVICES, S.A. 344,456
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD IONICS FRANCE S.A. 1,677,271
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD IONICS IBERICA S.A. 383,277
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD FAVOURABLE TRADING LIMITED 2,678,385
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD IONICS ITALBA S.P.A. 205,702
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD IONICS VENTURES LTD 46,180
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD IONICS, INCORPORATED 1,134,524
-----------------------------------------------------------------------------------------------------------------------------
IONICS (UK) LTD SEPARATIONS TECHNOLOGY UK 1,407,336
-----------------------------------------------------------------------------------------------------------------------------
IONICS ASIA PACIFIC PTE. LTD IONICS, INCORPORATED 99,658
-----------------------------------------------------------------------------------------------------------------------------
IONICS ASIA PACIFIC PTE. LTD XXXXXXX INSTRUMENTS, INC. 75,465
-----------------------------------------------------------------------------------------------------------------------------
IONICS CARIBBEAN INVESTORS LTD IONICS CONSTRUCTORS TRINIDAD LTD 608,647
-----------------------------------------------------------------------------------------------------------------------------
IONICS CONSTRUCTORS TRINIDAD LTD IONICS VENTURES LTD 180,833
-----------------------------------------------------------------------------------------------------------------------------
FIDELITY PUREWATER, INC. FAVOURABLE TRADING LIMITED 1,705,184
-----------------------------------------------------------------------------------------------------------------------------
FIDELITY PUREWATER, INC. IONICS, INCORPORATED 41,601,837
-----------------------------------------------------------------------------------------------------------------------------
IONICS FRANCE S.A. IONICS ITALBA S.P.A. 259,969
-----------------------------------------------------------------------------------------------------------------------------
IONICS FRANCE S.A. IONICS, INCORPORATED 31,737
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. IONICS ITALBA S.P.A. 5,832
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. IONICS, INCORPORATED 1,122,850
-----------------------------------------------------------------------------------------------------------------------------
FAVOURABLE TRADING LIMITED IONICS (UK) LTD 359,162
-----------------------------------------------------------------------------------------------------------------------------
FAVOURABLE TRADING LIMITED IONICS, INCORPORATED 22,936
-----------------------------------------------------------------------------------------------------------------------------
IONICS ITALBA S.P.A. IONICS (UK) LTD 947
-----------------------------------------------------------------------------------------------------------------------------
IONICS ITALBA S.P.A. IONICS FRANCE S.A. 1,225,087
-----------------------------------------------------------------------------------------------------------------------------
IONICS ITALBA S.P.A. IONICS, INCORPORATED 104,643
-----------------------------------------------------------------------------------------------------------------------------
IONICS LIFE SCIENCES, INC. IONICS ULTRAPURE WATER CORP. 348
-----------------------------------------------------------------------------------------------------------------------------
IONICS TAIWAN, INC IONICS ASIA PACIFIC PTY. LET. 11,200
-----------------------------------------------------------------------------------------------------------------------------
IONICS TAIWAN, INC IONICS, INCORPORATED 36,154
-----------------------------------------------------------------------------------------------------------------------------
IONICS TAIWAN, INC KUNSHAN IONICS 174,058
-----------------------------------------------------------------------------------------------------------------------------
IONICS ULTRAPURE WATER CORP. IONICS LIFE SCIENCES, INC. 49,116
-----------------------------------------------------------------------------------------------------------------------------
IONICS ULTRAPURE WATER CORP. IONICS WATERTEC PTY. LTD 431,396
-----------------------------------------------------------------------------------------------------------------------------
IONICS ULTRAPURE WATER CORP. IONICS, INCORPORATED 2,594,922
-----------------------------------------------------------------------------------------------------------------------------
IONICS WATERTEC PTY. LTD IONICS, INCORPORATED 2,193
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED AQUA DESIGN, INC. 14,889,738
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ACAPULCO S.A. DE C.V. 1,665,171
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS (UK) LTD 1,291,238
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ASIA PACIFIC PTY. LTD 3,363,191
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS CARIBBEAN INVESTORS LTD 4,100
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS CONSTRUCTORS TRINIDAD LTD 11,002,734
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED FIDELITY PUREWATER, INC. 17,701,270
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS IBERICA, S.A. 1,759,408
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED FAVOURABLE TRADING LIMITED 1,814,013
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ITALBA S.P.A. 8,524,401
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS LIFE SCIENCES, INC. 6,337,685
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS TAIWAN, INC 1,545,809
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ULTRAPURE WATER CORP. 35,791,147
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS WATER RESOURCES 695,068
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS WATERTEC PTY. LTD 2,552,568
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED KUNSHAN IONICS LIMITED 782,315
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED XXXXXXX INSTRUMENTS, INC. 1,100
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED SEPARATIONS TECHNOLOGY INC 7,881,192
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED TORAY MEMBRANE AMERICA, INC. 5,430,000
-----------------------------------------------------------------------------------------------------------------------------
KUNSHAN IONICS LIMITED IONICS TAIWAN, INC 98,994
-----------------------------------------------------------------------------------------------------------------------------
SEPARATIONS TECHNOLOGY UK SEPARATIONS TECHNOLOGY INC 964,041
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS (UK) LTD 2,520,135
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS ASIA PACIFIC PTY. LTD 278,084
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS FRANCE S.A. 164,379
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS ITALBA S.P.A. 20,524
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS LIFE SCIENCES, INC. 21,085
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS TAIWAN, INC 930
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS WATERTEC PTY. LTD 4,850
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS, INCORPORATED 20,854,981
-----------------------------------------------------------------------------------------------------------------------------
IONICS, IBERICA, S.A. IONICS, INCORPORATED 5,040,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS FRANCE S.A. IONICS, INCORPORATED 9,072,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, IBERICA, S.A. IONICS FRANCE S.A. 4,992,496
-----------------------------------------------------------------------------------------------------------------------------
IONICS, IBERICA, S.A. IONICS ITALBA S.P.A. 3,155,769
-----------------------------------------------------------------------------------------------------------------------------
IONICS, IBERICA, S.A. IONICS ITALBA S.P.A 3,786,922
-----------------------------------------------------------------------------------------------------------------------------
IONICS (U.K.) LIMITED IONICS FRANCE S.A. 5,921,244
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS (BERMUDA) LTD 5,000,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS ITALBA S.P.A 2,000,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS CARIBBEAN INVESTORS LTD 11,110,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS TAIWAN, INC. 1,030,746
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS WATER RESOURCES LTD 1,290,353
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED IONICS, INCORPORATED 52,300,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS (U.K.) LIMITED IONICS VENTURES LIMITED 2,250,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS (U.K.) LIMITED IONICS, INCORPORATED 9,000,000
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN ANTIGUA LTD 136,325
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN ANGUILLA LTD 230,633
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN BAHAMAS LTD 297,343
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN CURACAO NV 573,057
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN VI, INC. 356,109
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN B.V.I. LTD 74,078
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. AQUA DESIGN NETHERLAND ANTILLES N.V. 15,296
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. IONICS AQUA DESIGN BONAIRE N.V. 111,401
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. IONICS FRESHWATER LTD 10,037
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN, INC. BIMINI BAY WATER LTD 119,943
-----------------------------------------------------------------------------------------------------------------------------
XXXXXXX INSTRUMENTS, INC. IONICS AGAR ENVIRONMENTAL LTD 212,460
-----------------------------------------------------------------------------------------------------------------------------
IONICS CARIBBEAN INVESTORS LTD XXXXXX XXXXXXXX ENGINEERING SERVICES LIMITED 11,748,786
-----------------------------------------------------------------------------------------------------------------------------
Investments in Project Subsidiaries
-----------------------------------------------------------------------------------------------------------------------------
INVESTOR INVESTMENT AMOUNT (USD)
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. GRUPO EMPRESARIAL DE MEJORMIENTO AMBIETAL, S. DE 4,970,000
X.X. DE C.V.
-----------------------------------------------------------------------------------------------------------------------------
IONICS CARIBBEAN INVESTORS LTD DESALINATION COMPANY OF TRINIDAD AND TOBAGO 5,471,740
-----------------------------------------------------------------------------------------------------------------------------
IONICS VENTURES LIMITED DESALINATION COMPANY OF TRINIDAD AND TOBAGO 10,177,932
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED UTILITIES DEVELOPMENT COMPANY, W.L.L. 15,200,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED MAAGAN DESALINATION LTD 1,300,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED CARMEL DESALINATION LTD* 13,300,000
(PROJECTED)
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED HAMMA WATER DESALINATION S.P.A.* 45,600,000
(PROJECTED)
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS FRESHWATER LTD 1,100,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED XXXXXXXXXX WATERWORKS LIMITED - BERMUDA 2,735,670
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED XXXXX IONICS 534,755
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED AQUA COOL SAUDI ARABIA 1,490,044
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED AQUA COOL KUWAIT 456,800
-----------------------------------------------------------------------------------------------------------------------------
IONICS (BERMUDA) LTD AQUA DESIGN LTD 32,973
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. UTE EL REVENTON 103,924
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. UTE TAMAIMO 3,518
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED YUASA-IONICS CO LTD 721,480
-----------------------------------------------------------------------------------------------------------------------------
* Financial close has not yet been reached.
Investments in Foreign Subsidiaries
-----------------------------------------------------------------------------------------------------------------------------
INVESTOR INVESTMENT AMOUNT (USD)
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS WATERTEC PTY LTD 1,896,012
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ITALBA S.P.A. 1,321,251
-----------------------------------------------------------------------------------------------------------------------------
IONICS ITALBA S.P.A. AGRINORD S.R.L. 2,093,765
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS VENTURES LIMITED 11,838,312
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS (UK) LTD 6,039,996
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ACAPULCO, S.A. DE C.V. 1,665,320
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS AGAR ENVIRONMENTAL 76,892
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS ASIA PACIFIC PTE LTD 2,853,912
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS IBERICA, S.A. 15,448,647
-----------------------------------------------------------------------------------------------------------------------------
IONICS IBERICA, S.A. PLANTAS DESALADORAS DE MASPALOMAS S.L. SOCIEDAD 11,010,370
UNIPERSONAL
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS (BERMUDA) LTD 552,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS TAIWAN, INC. 1,321,050
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS NEDERLAND B.V. 15,508
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS FRANCE S.A. 905,683
-----------------------------------------------------------------------------------------------------------------------------
IONICS FRANCE S.A. IONICS WATER SERVICES 46,705
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS CONSTRUCTORS TRINIDAD LIMITED 340
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS CARIBBEAN INVESTORS LTD 10,661,628
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED HAMMA WATER DESALINATION S.P.A. 175,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS, INCORPORATED IONICS FRESHWATER LTD 625,000
-----------------------------------------------------------------------------------------------------------------------------
IONICS (BERMUDA) LTD AQUA DESIGN B.V.I. LIMITED 1,728,125
-----------------------------------------------------------------------------------------------------------------------------
IONICS (BERMUDA) LTD AQUA DESIGN ANGUILLA LIMITED 2,271,169
-----------------------------------------------------------------------------------------------------------------------------
IONICS (BERMUDA) LTD AQUA DESIGN LIMITED CAYMAN 395,000
-----------------------------------------------------------------------------------------------------------------------------
AQUA DESIGN B.V.I. LIMITED KUNSHAN IONICS LIMITED 510,000
-----------------------------------------------------------------------------------------------------------------------------
Ecolochem, Inc. and its Affiliated Entities
Pursuant to the Partnership Agreement dated September 18, 2001 between Nalco PWS, Inc. and Ecolochem JV Holdings, Inc., Ecolochem,
Inc. is obligated to provide capital contributions to the Joint Venture in the amount of $450,000.
