EXHIBIT 10.9

 

EXECUTION COPY

 

 

TETRA TECH, INC.

 

SECOND AMENDMENT TO

NOTE PURCHASE AGREEMENT

 

$110,000,000

Senior Secured Notes

 

$92,000,000

7.28% Senior Secured Notes,

Series A, due May 30, 2011

 

$18,000,000

7.08% Senior Secured Notes,

Series B, due May 30, 2008

 

 

 

Dated as of April 22, 2003

 

 

To the Holders of the Senior Notes

      of Tetra Tech, Inc. Named in

      the Attached Schedule I

 

Ladies and Gentlemen:

 

                Reference is made to the Note Purchase Agreement dated as of May
15, 2001, as amended by the First Amendment to Note Purchase Agreement dated as
of September 30, 2001 (the “Note Agreement”), between Tetra Tech, Inc., a
Delaware corporation (the “Company”), and you pursuant to which the Company
issued $92,000,000 aggregate principal amount of its 7.28% Senior Secured Notes,
Series A, due May 30, 2011 (the “Series A Notes”) and $18,000,000 aggregate
principal amount of its 7.08% Senior Secured Notes, Series B, due May 30, 2008
(the ”Series B Notes” and, together with the Series A Notes, the “Notes”).  You
are referred to herein individually as a “Holder” and collectively as the
“Holders”.  Capitalized terms used and not otherwise defined herein shall have
the meanings ascribed to them in the Note Agreement, as amended hereby.

 

                The Company has requested that the Note Agreement be amended to
exclude the impact of a one-time write-off of goodwill related to the
deterioration of the telecommunications marketplace from Adjusted Consolidated
Net Worth and EBITDA for purposes of the financial covenants.  You have agreed
to such amendment on the terms and conditions set forth herein.

 

                In consideration of the premises and for good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
Company and the Holders agree as follows:

 

1.             AMENDMENT OF NOTE AGREEMENT

1.1.          Schedule B.  The following definitions are amended to read in
their entirety as follows:

                                “Adjusted Consolidated Net Worth” means, as of
any date, consolidated stockholders’ equity of the Company and its Restricted
Subsidiaries on such date, determined in accordance with GAAP, less the amount
by which outstanding Restricted Investments on such date

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exceed 10% of consolidated stockholders’ equity; provided, however that the
effects on stockholders’ equity of charges not in excess of $75,000,000 recorded
by the Company and its Restricted Subsidiaries in the fiscal quarter ended March
30, 2003 related to the impairment of goodwill and other intangibles as may be
required under Statement of Financial Accounting Standards No. 142 shall not be
taken into account in determining Adjusted Consolidated Net Worth.

 

                                “EBITDA” means, for any period, the sum of
Consolidated Net Income for such period, plus, to the extent deducted in
determining such Consolidated Net Income, (i) federal, state, local and foreign
income, value added and similar taxes, (ii) Consolidated Interest Expense, (iii)
depreciation and amortization expense, and (iv) charges not in excess of
$150,000,000 recorded by the Company and its Restricted Subsidiaries in the
fiscal quarter ended March 30, 2003 related to the impairment of goodwill and
other intangibles as may be required under Statement of Financial Accounting
Standards No. 142.

 

2.             REAFFIRMATION; REPRESENTATIONS AND WARRANTIES

2.1.          Reaffirmation of Note Agreement.  The Company reaffirms its
agreement to comply with each of the covenants, agreements and other provisions
of the Note Agreement and the Notes, including the amendment of such provisions
effected by this Second Amendment.

2.2.          Note Agreement.  The Company represents and warrants that the
representations and warranties contained in the Note Agreement are true and
correct as of the date hereof, except (a) to the extent that any of such
representations and warranties specifically relate to an earlier date, (b) for
such changes, facts, transactions and occurrences that have arisen since
September 30, 2001 in the ordinary course of business, (c) for such other
matters as have been previously disclosed in writing by the Company (including
in its financial statements and notes thereto) to the Holders and (d) for other
changes that could not reasonably be expected to have a Material Adverse Effect.

2.3.          No Default or Event of Default.  After giving effect to the
transactions contemplated hereby, there will exist no Default or Event of
Default.

2.4.          Authorization.  The execution, delivery and performance by the
Company of this Second Amendment have been duly authorized by all necessary
corporate action and, except as provided herein, do not require any registration
with, consent or approval of, notice to or action by, any Person (including any
Governmental Authority) in order to be effective and enforceable.  The Note
Agreement and this Second Amendment each constitute the legal, valid and binding
obligations of the Company, enforceable in accordance with their respective
terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

3.             EFFECTIVE DATE

                This Second Amendment shall become effective as of the date set
forth above upon the satisfaction of the following conditions:

 

3.1.          Consent of Holders to Second Amendment.  Execution by the Holders
of at least a majority of the aggregate principal amount of the Notes
outstanding and receipt by the Holders of a counterpart of this Second Amendment
duly executed by the Company.

3.2.          Amendment Fee.  Each Holder shall have received payment of an
amendment fee equal to 0.10% of the principal amount of the outstanding Notes
held by such Holder.

3.3.          Expenses.  The Company shall have paid all fees and expenses of
special counsel to the Holders.

 

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4.             MISCELLANEOUS

4.1.          Ratification.  Except as amended hereby, the Note Agreement,
including the representations and warranties contained therein, shall remain in
full force and effect and is ratified, approved and confirmed in all respects as
of the date hereof.

4.2.          Reference to and Effect on the Note Agreement.  Upon the final
effectiveness of this Second Amendment, each reference in the Note Agreement and
in other documents describing or referencing the Note Agreement to the
“Agreement,” “Note Agreement,” “hereunder,” “hereof,” “herein,” or words of like
import referring to the Note Agreement, shall mean and be a reference to the
Note Agreement, as amended hereby.

4.3.          Binding Effect.  This Second Amendment shall be binding upon and
inure to the benefit of the respective successors and assigns of the parties
hereto.

4.4.          Governing Law.  This Second Amendment shall be governed by and
construed in accordance with Illinois law.

4.5.          Counterparts.  This Second Amendment may be executed in any number
of counterparts, each executed counterpart constituting an original, but
altogether only one instrument.

 

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                IN WITNESS WHEREOF, the Company and the Holders have caused this
Second Amendment to be executed and delivered by their respective officer or
officers thereunto duly authorized.

 

 

TETRA TECH, INC.

 

 

By:

/s/  David W. King

Name:

David W. King

Title:

Chief Financial Officer and Treasurer

 

 

 

S-1

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HOLDERS:

 

The foregoing is agreed

to as of the date thereof.

 

 

MASSMUTUAL ASIA LIMITED.

By:

David L. Babson & Company Inc. as Investment Adviser

 

 

By:

/s/ Elisabeth A. Perenick

Name:

Elisabeth A. Perenick

Title:

Managing Director

 

 

 

 

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

By:

David L. Babson & Company Inc. as Investment Adviser

 

 

By:

/s/ Elisabeth A. Perenick

Name:

Elisabeth A. Perenick

Title:

Managing Director

 

 

 

 

C.M. LIFE INSURANCE COMPANY

By:

David L. Babson & Company Inc. as Investment Sub-Adviser

 

 

By:

/s/ Elisabeth A. Perenick

Name:

Elisabeth A. Perenick

Title:

Managing Director

 

 

S-2

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CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By:

CIGNA Investments, Inc. (authorized agent)

 

 

By:

/s/ Lori E. Hopkins

Name:

Lori E. Hopkins

Title:

Vice President

 

 

 

 

LIFE INSURANCE COMPANY OF NORTH AMERICA

By:

CIGNA Investments, Inc. (authorized agent)

 

 

By:

/s/ Lori E. Hopkins

Name:

Lori E. Hopkins

Title:

Vice President

 

 

S-3

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UNITED OF OMAHA LIFE INSURANCE COMPANY

 

 

By:

/s/ Curtis R. Caldwell

Name:

Curtis R. Caldwell

Title:

Vice President

 

 

 

 

MUTUAL OF OMAHA INSURANCE COMPANY

 

 

By:

/s/ Curtis R. Caldwell

Name:

Curtis R. Caldwell

Title:

Vice President

 

S-4

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HARTFORD LIFE INSURANCE COMPANY

By:

Hartford Investment Services, Inc.,

its Agent and Attorney-in-Fact

 

 

By:

/s/ Ronald Mendel

Name:

Ronald Mendel

Title:

Senior Vice President

 

 

S-5

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NATIONWIDE LIFE INSURANCE COMPANY

 

 

By:

/s/ Joseph P. Young

Name:

Joseph P. Young

Title:

Credit Officer, Fixed Income Securities

 

 

 

 

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

 

 

By:

/s/ Joseph P. Young

Name:

Joseph P. Young

Title:

Credit Officer, Fixed Income Securities

 

 

S-6

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NATIONWIDE LIFE INSURANCE COMPANY OF AMERICA (formerly PROVIDENT MUTUAL LIFE
INSURANCE COMPANY)

 

 

By:

/s/ Joseph P. Young

Name:

Joseph P. Young

Title:

Credit Officer, Fixed Income Securities

 

 

S-7

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SECURITY FINANCIAL LIFE INSURANCE CO.

 

 

By:

/s/ Kevin W. Hammond

Name:

Kevin W. Hammond

Title:

Vice President, Chief Investment Officer

 

 

S-8

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THE CANADA LIFE ASSURANCE COMPANYas

beneficial owner

 

 

By:

/s/ C. Paul English

Name:

C. Paul English

Title:

Associate Treasurer

 

 

 

 

CANADA LIFE INSURANCE COMPANY OF NEW YORK as beneficial owner

 

 

By:

/s/ C. Paul English

Name:

C. Paul English

Title:

Assistant Treasurer

 

 

S-9

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THRIVENT FINANCIAL FOR LUTHERANS,

Successor by merger to Lutheran Brotherhood

 

 

By:

/s/ Glen J. Vanic

Name:

Glen J. Vanic

Title:

Portfolio Manager

 

 

S-10

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MODERN WOODMEN OF AMERICA

 

 

By:

/s/ Michael E. Dau

Name:

Michael E. Dau

Title:

Manager, Securities Division

 

 

S-11

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SCHEDULE I

 

 

Series A Holders

 

Principal Amount

 

Massachusetts Mutual Life Insurance Company

 

$

21,500,000

 

C.M. Life Insurance Company

 

3,000,000

 

MassMutual Asia Limited

 

500,000

 

Connecticut General Life Insurance Company

 

17,000,000

 

Life Insurance Company of North America

 

3,000,000

 

United of Omaha Life Insurance Company

 

12,000,000

 

Mutual of Omaha Insurance Company

 

3,000,000

 

Hartford Life Insurance Company

 

15,000,000

 

Nationwide Life Insurance Company

 

7,000,000

 

Nationwide Life and Annuity Insurance Company

 

3,000,000

 

Provident Mutual Life Insurance Company

 

5,000,000

 

Security Financial Life Insurance Co.

 

2,000,000

 

 

 

Series B Holders

 

Principal Amount

 

The Canada Life Assurance Company

 

$

8,700,000

 

Canada Life Insurance Company of New York

 

300,000

 

Lutheran Brotherhood

 

6,000,000

 

Modern Woodmen of America

 

3,000,000

 

 

 

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