THIRD AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT
Exhibit 10.7
Execution
Copy
THIRD
AMENDMENT TO REIMBURSEMENT AND CREDIT AGREEMENT
This THIRD AMENDMENT TO REIMBURSEMENT AND
CREDIT AGREEMENT (the “Third Amendment”) is
made and entered into this 1st day of
June, 2009 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 Borrower issued and sold the $12,500,000 Variable Rate Taxable Debenture
Bonds, Series 2004 (the “Bonds”) pursuant to
the terms of the Indenture;
WHEREAS,
the Borrower and the Bank entered into a Reimbursement and Credit Agreement,
dated as of March 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 and a Second
Amendment to Reimbursement and Credit Agreement dated August 23, 2007 by and
between the Borrower and the Bank (collectively, the “Agreement”). Capitalized
terms used in this Third Amendment and not otherwise defined herein shall have
the meanings ascribed thereto in the Agreement;
WHEREAS,
the Borrower wishes to increase the amount of the 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
(vi) of the definition of Permitted Indebtedness in subsection 1.01 of the
Agreement is hereby deleted and replaced by the following:
“(vi)
indebtedness to the Connecticut Development Authority related to new money bonds
to be issued through the Connecticut Development Authority prior to March 4,
2006 not exceeding Fifteen Million Dollars ($15,000,000) in the aggregate and
indebtedness to the Connecticut Development Authority related to new money bonds
to be issued through the Connecticut Development Authority during the period
from June 1, 2009 through December 31, 2010 not exceeding Twenty Million Dollars
($20,000,000) in the aggregate;”
2. Clause
(vii) of the definition of Permitted Indebtedness in subsection 1.01 of the
Agreement is hereby deleted and replaced by the following:
“(vii)
indebtedness to Connecticut Water Service, Inc. or Borrower’s Affiliates not
exceeding Forty Million Dollars ($40,000,000) in the aggregate;
and”
3. This
Third 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 Third 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: Xxxxxx Xxxxxxxxx
Title: Senior Vice
President
