Exhibit 10.21

 

AMENDMENT AND CONSENT

 

This AMENDMENT AND CONSENT (this “Amendment”) dated as of May 11, 2005, is among
(a) WASTE INDUSTRIES USA, INC. (f/k/a Waste Holdings, Inc.), a North Carolina
corporation having its principal place of business at 3301 Benson Drive, Suite
601, Raleigh, North Carolina 27609 (the “Company”), and each of the subsidiaries
of the Company that has executed a Guaranty Agreement (as defined in each of the
Note Agreements defined below) (the “Guarantors”) and (b) THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA (“Prudential”), PRUCO LIFE INSURANCE COMPANY, PRUCO
LIFE INSURANCE COMPANY OF NEW JERSEY, U.S. PRIVATE PLACEMENT FUND and any other
noteholders who are or may become parties to the Note Agreements (as defined
below) (collectively, the “Noteholders”).

 

WHEREAS, the Company and Prudential are parties to the Amended and Restated Note
Purchase Agreement, dated as of March 31, 2001 (as amended, restated or
otherwise modified through the date hereof, the “Purchase Agreement”), and the
Company and the Noteholders are parties to the Amended and Restated Note
Purchase and Private Shelf Agreement, dated as of March 31, 2001 (as amended,
restated or otherwise modified through the date hereof, the “Shelf Agreement”
and, together with the Purchase Agreement, the “Note Agreements”);

 

WHEREAS, the Guarantors have entered into the Guaranty Agreements in connection
with the Note Agreements; and

 

WHEREAS, the Company and the Guarantors have requested that the Noteholders
agree, and the Noteholders have agreed, on the terms and subject to the
conditions set forth herein, to modify, among other things, the negative
covenants under the Note Agreements described below;

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1. Defined Terms. Capitalized terms that are used herein without definition and
that are defined in the Note Agreements shall have the same meanings herein as
in the Note Agreements.

 

2. Amendments to Note Agreements.

 

2A. Paragraph 5A(3) of the Note Agreements.

 

(i) Paragraph 5A(3) of the Note Agreements is amended by deleting it in its
entirety and substituting the word “Reserved” in lieu thereof.

 

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2B. Paragraph 6A of the Note Agreements.

 

(i) Subparagraph (f) of Paragraph 6A of the Note Agreements is hereby amended to
read in its entirety as follows:

 

“(f). Capital Expenditures. Capital Expenditures for any fiscal year shall not
exceed (i) $42,000,000 for the fiscal year 2005, and (ii) $43,000,000 for the
fiscal year 2006 and thereafter.”

 

2C. Paragraph 6G of the Note Agreements.

 

(i) Paragraph 6G of the Note Agreements is hereby amended to read in its
entirety as follows:

 

“6G. Restricted Distributions and. Redemptions. Neither the Company nor any of
its Subsidiaries shall redeem, convert, retire or otherwise acquire shares of
any class of its capital stock or other equity interest, or make any
Distributions, except that (i) the Company or any Subsidiary may make
Distributions to the Company or another Subsidiary of the Company and (ii) so
long as no Default or Event of Default then exists or would result from such
payment, the Company or any Subsidiary may make cash dividend payments in an
amount not to exceed $3,500,000 in any fiscal year. In addition, neither the
Company nor any of its Subsidiaries shall effect or permit any change in or
amendment to any document or instrument pertaining to the terms of the Company’s
or any of its Subsidiaries’ capital stock or other equity interest.
Notwithstanding the foregoing, neither the Company nor any of its Subsidiaries
shall make any Distribution under this paragraph 6G if a Default or Event of
Default exists or would be created by the making of such Distribution.”

 

2D. Schedule 8A of the Note Agreements.

 

(i) Schedule 8A of the Note Agreements are hereby amended by replacing Schedule
8A of each Note Agreement in its entirety with Schedule 8A attached to this
Amendment.

 

3. Consent. Notwithstanding the provisions of paragraph 6H of each of the Note
Agreements that prohibit the amendment of any negative covenant, financial
covenant or event of default relating to the Bank Debt, each of the undersigned
consents to the amendments to the Bank Agreement as effectuated by the amendment
of the Bank Agreement on the date hereof as delivered to the Noteholders under
Section 5(a)(iii) hereof.

 

4. Affirmation and Acknowledgment. The Company and each of the Guarantors hereby
ratifies and confirms all of its obligations to the Noteholders as evidenced by
the Note Agreements and the Related Documents, including, without limitation,
the Notes, and the Company and each of the Guarantors hereby affirms its
absolute and unconditional promise to pay to the Noteholders all obligations
under the Note Agreements and the Related Documents. The Company and each of the
Guarantors hereby confirms that the Obligations (as defined in the Security
Agreement) are and remain secured pursuant to the Security Documents and
pursuant to all other instruments and documents executed and delivered by the
Company and the Guarantors as security for the Obligations.

 

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5. Conditions of Effectiveness. This Amendment shall become effective when, and
only when (the “Effective Date”):

 

(a) The Noteholders shall have received executed originals of this Amendment in
form and substance satisfactory to the Required Holders in all respects;

 

(b) The Noteholders shall have received executed originals of the Amendment to
Bank Agreement, in form and substance satisfactory to the Required Holders in
all respects;

 

(c) The Company shall have paid to the Noteholders an amendment fee equal to
0.02% of the outstanding Notes, which percentage the Company represents and
warrants to the Noteholders is not less than the highest percentage all-in fee
(including arrangement fees, upfront and other fees) paid to any party to the
Bank Agreement, based on their commitments thereunder, in connection with the
Amendment to Bank Agreement.

 

6. Representations and Warranties.

 

(a) Except as disclosed in the updated disclosure schedules attached hereto and
incorporated herein, the Company hereby repeats and confirms each of the
representations and warranties made by it in each of the Note Agreements, as
amended hereby, as though made on and as of the date hereof, except to the
extent such representations and warranties by their terms are made solely as of
a prior date, with each reference therein to “this Agreement”, “hereof”,
“hereunder”, “thereof”, “thereunder” and words of like import being deemed to be
a reference to the Note Agreements as amended hereby.

 

(b) The Company and each Guarantor further represents and warrants as follows:

 

(i) The execution, delivery and performance by the Company and each Guarantor of
this Amendment are within its corporate or company powers, have been duly
authorized by all necessary corporate or company action and do not contravene
(A) its charter or by-laws, or certificate of formation or operating agreement,
as the case may be, (B) law or (C) any legal or contractual restriction binding
on or affecting the Company or the Guarantors; and such execution, delivery and
performance do not or will not result in or require the creation of any Lien
upon or with respect to any of its properties.

 

(ii) No governmental approval is required for the due execution, delivery and
performance by the Company or any Guarantor of this Amendment, except for such
governmental approvals as have been duly obtained or made and which are in full
force and effect on the date hereof and not subject to appeal.

 

(iii) This Amendment constitutes the legal, valid and binding obligations of the
Company and the Guarantors enforceable against the Company and the Guarantors in
accordance with its terms.

 

(iv) There are no pending or threatened actions, suits or proceedings affecting
the Company, the Guarantors or any of their Subsidiaries or the properties of
the Company, the Guarantors or any of their Subsidiaries before any court,
governmental

 

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agency or arbitrator, that may, if adversely determined, materially adversely
affect the financial condition, properties, business, operations or prospects of
the Company, the Guarantors or any of their Subsidiaries, considered as a whole,
or affect the legality, validity or enforceability of either of the Note
Agreements, as amended by this Amendment.

 

(v) No Event of Default or Default has occurred and is continuing.

 

(vi) There has been no material adverse change in the financial condition,
business operation or prospects of the Company or its Subsidiaries since
December 31, 2004.

 

7. Miscellaneous.

 

7A. Reference to and Effect on the Note Agreement.

 

(a) Upon the effectiveness of this Amendment, on and after the date hereof each
reference in either of the Note Agreements to “this Agreement”, “hereunder”,
“hereof” or words of like import referring to such Note Agreement, and each
reference in any other document to “the Note Agreement”, “thereunder”, “thereof”
or words of like import referring to such Note Agreement, shall mean and be a
reference to such Note Agreement, as amended hereby .

 

(b) Except as specifically amended above, the Note Agreements, and all other
related documents, are and shall continue to be in full force and effect and are
hereby in all respects ratified and confirmed.

 

(c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any holder of a Note under either of the Note Agreements or the Notes
issued thereunder, nor constitute a waiver of any provision of any of the
foregoing.

 

7B. Costs and Expenses. The Company agrees to pay on demand all costs and
expenses incurred by the Noteholders or any other holder of a Note under either
of the Note Agreements in connection with the preparation, execution and
delivery of this Amendment, including, without limitation, the reasonable fees
and out-of-pocket expenses of counsel. The Company further agrees to pay on
demand all costs and expenses, if any (including, without limitation, counsel
fees and expenses of counsel), incurred by the Noteholders or any other any
holder of a Note in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Amendment, including,
without limitation, counsel fees and expenses in connection with the enforcement
of rights under this paragraph 7B.

 

7C. Execution in Counterparts. This Amendment 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 but one and the same instrument.

 

7D. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

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7E. Estoppel. To induce the Noteholders to enter into this Amendment, the
Company and each Guarantor hereby acknowledges and agrees that, as of the date
hereof, there exists no right of offset, defense or counterclaim in favor of the
Company or any Guarantor against any holder of the Notes with respect to the
obligations of the Company or any Guarantor owing to any such holder, either
with or without giving effect to this Amendment.

 

7F. Date of May 2004 Amendment and Consent. The parties hereto acknowledge and
agree that the date of the Amendment and Consent executed in May 2004 is May 5,
2004, for purposes of this Amendment, the Note Agreements and all other
documents related thereto.

 

[Signatures on Next Page.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

 

   

COMPANY

   

WASTE INDUSTRIES USA, INC.

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

GUARANTORS

   

WASTE INDUSTRIES, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

DUPLIN COUNTY DISPOSAL, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

VAN BUREN COUNTY LANDFILL, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE INDUSTRIES LANDCO, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

6

 

[May 2005 Amendment and Consent]

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ECO SERVICES, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

RELIABLE TRASH SERVICES, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE INDUSTRIES OF MISSISSIPPI, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE SERVICES OF MEMPHIS, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTECO, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

7

 

[May 2005 Amendment and Consent]

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LAURENS COUNTY LANDFILL, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

S&S ENTERPRISES OF MISSISSIPPI, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

SAMPSON COUNTY DISPOSAL, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

SAFEGUARD LANDFILL MANAGEMENT, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

SHAMROCK ENVIRONMENTAL SERVICES, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

8

 

[May 2005 Amendment and Consent]

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TRANSWASTE SERVICES, LLC

By

 

 

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Name:

   

Title:

   

OLD KINGS ROAD SOLID WASTE, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE INDUSTRIES PROPERTY CO., LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

DOUGLASVILLE TRANSFER, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE INDUSTRIES ATLANTA, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

9

 

[May 2005 Amendment and Consent]

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BLACK BEAR DISPOSAL, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

ETC OF GEORGIA, LLC

By

 

 

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Name:

   

Title:

   

WASTE SERVICES OF TENNESSEE, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE INDUSTRIES OF TENNESSEE, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

WASTE SERVICES OF DECATUR, LLC

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

10

 

[May 2005 Amendment and Consent]

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RED ROCK DISPOSAL, LLC

By

 

 

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Name:

   

Title:

   

MOSS POINT DISPOSAL, LLC

By

 

 

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Name:

   

Title:

 

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[May 2005 Amendment and Consent]

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NOTEHOLDERS

    THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By

 

 

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Name:

   

Title:

   

PRUCO LIFE INSURANCE COMPANY

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

   

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

12

 

[May 2005 Amendment and Consent]

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U.S. PRIVATE PLACEMENT FUND

By Prudential Private Placement Investors, L.P., as

Investment Advisor

By Prudential Private Placement Investments, Inc.,

its General Partner

 

 

By

 

 

--------------------------------------------------------------------------------

   

Name:

   

Title:

 

13

 

[May 2005 Amendment and Consent]

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SCHEDULE 8A

 

Subsidiaries of Waste Holdings, Inc. as of May 10, 2005

 

    

            Name

--------------------------------------------------------------------------------

  

Jurisdiction

of Organization

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Equity Interests

Outstanding

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1.

   S. & S. Enterprises of Mississippi, LLC    DE    (1)

2.

   Sampson County Disposal, LLC    NC    (1)

3.

   ETC of Georgia, LLC    GA    (2)

4.

   ECO Services, LLC    DE    (1)

5.

   Laurens County Landfill, LLC    NC    (1)

6.

   Old Kings Road Solid Waste, LLC    DE    (2)

7.

   Reliable Trash Service, LLC    DE    (2)

8.

   Safeguard Landfill Management, LLC    GA    (1)

9.

   Shamrock Environmental Services, LLC    GA    (1)

10.

   TransWaste Services, LLC    GA    (1)

11.

   Waste Industries of Mississippi, LLC    DE    (1)

12.

   Waste Industries of Tennessee, LLC    DE    100% of Membership Interests
owned by Waste Services of Tennessee, LLC

13.

   Waste Industries Property Co., LLC    DE    (2)

14.

   Waste Services of Decatur, LLC    NC    100% of Membership Interests owned by
Waste Industries of Tennessee, LLC

15.

   Waste Services of Memphis, LLC    DE    (1)

16.

   Waste Services of Tennessee, LLC    DE    99% of Membership Interests owned
by Waste Industries of Mississippi, LLC and 1% owned by WasteCo, LLC

 

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17.

   WasteCo, LLC    DE    (1)

18.

   Duplin County Disposal, LLC    NC    (1)

19.

   Van Buren County Landfill, LLC    NC    (1)

20.

   Waste Industries LandCo, LLC    NC    (1)

21.

   Waste Industries, LLC    NC    (1)

22.

   Red Rock Disposal, LLC    NC    (1)

23.

   Moss Point Disposal, LLC    DE    (1)

24.

   Black Bear Disposal, LLC    NC    (1)

25.

   Douglasville Transfer, LLC    DE    (1)

26.

   Waste Industries Atlanta, LLC    DE    (1)

 

(1) 100% of the Membership Interests are owned by Waste Industries USA, Inc.

(2) 100% of the Membership Interests are owned by Waste Industries of
Mississippi, LLC

 

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