Exhibit 10.2

 

TETRA TECH, INC.

 

FIFTH AMENDMENT TO NOTE PURCHASE AGREEMENT

 

Dated as of March 24, 2006

 

To the Holders of the Senior Notes of Tetra Tech, Inc.

Named in the Attached Schedule I (the “Noteholders”)

 

Ladies and Gentlemen:

 

Reference is made to the Note Purchase Agreements, each dated as of May 15,
2001, as amended by the First Amendment to Note Purchase Agreement dated as of
September 30, 2001, the Second Amendment to Note Purchase Agreement dated as of
April 22, 2003, the Third Amendment to Note Purchase Agreement dated as of
December 14, 2004 and the Fourth Amendment to Note Purchase Agreement dated as
of May 12, 2005 (collectively, as in effect immediately prior to the
effectiveness hereof, the “Existing Note Agreement”, and as amended hereby, the
“Note Agreement”), by and between Tetra Tech, Inc., a Delaware corporation (the
“Company”), and each of the Noteholders, 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 (as amended, collectively, the “Series A Notes”) and
$18,000,000 aggregate principal amount of its 7.08% Senior Secured Notes, Series
B, due May 30, 2008 (as amended, collectively, the “Series B Notes”, and,
together with the Series A Notes, the “Notes”). Capitalized terms used and not
otherwise defined herein shall have the meanings ascribed to them in the
Existing Note Agreement.

 

In connection with the Company’s sale of all of the capital stock of its
Subsidiaries Expert Wireless Solutions, Inc., Vertex Engineering Services, Inc.
and Tetra Tech Canada Ltd, the Company has made certain loans (the “Loans”) to
certain purchasers of such entities, as evidenced by (i) that certain promissory
note dated October 1, 2005, from Dr. Shawn Ziglari in the aggregate principal
amount of $1,840,000, due September 30, 2007 (the “Ziglari Note”), (ii) that
certain promissory note dated November 1, 2005 from The Breakwater Companies,
LLC in the aggregate principal amount of $13,350,000, due November 1, 2009 (the
“Breakwater Note”), (iii) that certain promissory note dated December 1, 2005
from Tetra Tech Canada Ltd. in the aggregate principal amount of C$1,170,000
(US$1,000,000) (the “Paid in Full Canada Note”) and (iv) that certain promissory
note dated December 1, 2005, from Tetra Tech Canada Ltd. in the aggregate
principal amount of C$4,620,000 (US$3,960,000), due December 1, 2007 (the
“Second Canada Note”, and together with the Ziglari Note, the Breakwater Note
and the Paid in Full Canada Note, collectively, the “Seller Notes”).

 

The Company has requested that the Noteholders agree to amend and waive certain
provisions of the Note Agreement to permit the Loans, and the Noteholders have
agreed to such amendments and waiver on the terms and subject to the 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
Noteholders hereby agree as follows:

 

 

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

 

 

1.             AMENDMENT OF NOTE AGREEMENT.

 

                Subject to the satisfaction of the conditions set forth in
Section 4 of this Fifth Amendment, the Noteholders and the Company agree as
follows:

 

1.1.          Amendment of Section 10.13. Section 10.13 of the Existing Note
Agreement is hereby amended in its entirety to read as follows:

 

“10.13  Loans and Advances.

 

                The Company will not, and will not permit any Subsidiary to,
make any loan or advance; except for (i) loans or advances by the Company to any
Subsidiary or by any Subsidiary to the Company, (ii) loans and advances to
officers and employees of the Company and its Subsidiaries for travel,
entertainment, relocation and similar ordinary business purposes in an aggregate
amount not exceeding $500,000 at any time outstanding, (iii) the loans described
on Schedule 10.13 and (iv) other loans and advances in an aggregate amount not
exceeding $5,000,000 at any time outstanding.”

 

1.2.          Addition of Schedule 10.13. The Schedule 10.13 attached to this
Fifth Amendment is hereby added to the Existing Note Agreement as Schedule 10.13
thereto.

 

2.             WAIVER.

 

Subject to the satisfaction of the conditions set forth in Section 4 of this
Fifth Amendment, the Required Holders hereby waive any Default or Event of
Default existing as a result of the failure of the Company to comply with
Section 10.13(iii) of the Existing Note Agreement caused by the making of any
loan described on Schedule 10.13 attached hereto.

 

3.             REAFFIRMATION; REPRESENTATIONS AND WARRANTIES.

 

3.1.          Reaffirmation of Note Agreement. The Company reaffirms its
agreement to comply with each of the covenants, agreements and provisions of the
Note Agreement, the Notes and the other Financing Documents.

 

3.2.          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 Noteholders and (d) for
other changes that could not reasonably be expected to have a Material Adverse
Effect.

 

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

 

3.4.          Authorization and Enforceability. The execution, delivery and
performance by the Company of this Fifth Amendment (and the acknowledgement of
this Fifth Amendment by

 

 

 

2

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

 

the Subsidiaries) have been duly authorized by all necessary corporate action.
The Note Agreement, the Notes, this Fifth Amendment and the other Financing
Documents each constitute the legal, valid and binding obligations of the
Company and each Subsidiary party thereto, 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).

3.5.          Other Loans Outstanding. The Company represents and warrants that
as of the Effective Date (and after giving effect to this Fifth Amendment), all
loans and advances made by the Company or any Subsidiary and permitted only
under clause (iv) of Section 10.13 of the Note Agreement are set forth on Annex
1 hereto, and that the aggregate amount thereof does not exceed $5,000,000.

 

4.             EFFECTIVE DATE.

 

This Fifth Amendment shall become effective on the date (the “Effective Date”)
upon which the following conditions are satisfied:

 

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

 

4.2.          Expenses. The Company shall have paid all fees and expenses of
special counsel to the Noteholders contemplated by Section 5.6.

 

4.3.          Credit Agreement. The Required Banks (as defined in the Credit
Agreement) and the Company shall have entered into an agreement consistent
herewith and otherwise in form and substance satisfactory to the Noteholders,
and the Noteholders shall have received an executed copy of such agreement.

 

4.4.          Pledge of Seller Notes. The Company shall have pledged and
delivered the Seller Notes (other than the Paid in Full Canada Note) to the
Collateral Agent for the benefit of the Benefited Parties (as defined in the
Security Agreement) together with bond powers executed in blank or such other
instrument of transfers acceptable to the Collateral Agent, and the Noteholders
shall have received evidence thereof.

 

5.             MISCELLANEOUS.

 

5.1.          Ratification. Except as amended hereby, the Existing 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.

 

5.2.          Effect of Fifth Amendment. Except as expressly provided herein,
(a) no terms or provisions of the Note Agreement or any other agreement are
waived, modified or changed by this Fifth Amendment, and (b) the terms of this
Fifth Amendment shall not operate as a waiver or amendment by the Noteholders
of, or otherwise prejudice the Noteholders’ rights, remedies or

 

 

3

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

 

powers under, the Note Agreement or under any applicable law, and all of such
rights, remedies and powers are hereby expressly reserved.

 

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

 

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

 

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

 

5.6.          Expenses. Without limiting the provisions of Section 15.1 of the
Note Agreement, the Company agrees to pay the reasonable costs and expenses of
the holders of Notes (including reasonable attorneys’ fees and charges) in
connection with the preparation, execution and delivery of this Fifth Amendment.

 

5.7.          Seller Notes as Collateral.   The Company hereby acknowledges and
agrees that the Seller Notes constitute “securities” under Section 2 of the
Pledge Agreement and are included in the definition of “Collateral” therein.

[Remainder of page intentionally left blank. Next page is signature page.]

 

 

4

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

 

IN WITNESS WHEREOF, the Company and the Noteholders have caused this Fifth
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

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

 

NOTEHOLDERS:

 

The foregoing is agreed to as of the date thereof.

 

MASSMUTUAL ASIA LIMITED

 

By:          Babson Capital Management LLC as
Investment Adviser

 

 

By:

/s/ Elisabeth A. Perenick

 

Name: Elisabeth A. Perenick

 

Title: Managing Director

 

 

 

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

 

By:          Babson Capital Management LLC as
Investment Adviser

 

 

 

By:

/s/ Elisabeth A. Perenick

 

Name: Elisabeth A. Perenick

 

Title: Managing Director

 

 

 

 

S-2

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

 

C.M. LIFE INSURANCE COMPANY

 

By:          Babson Capital Management LLC as Investment Sub-Adviser

 

 

 

By:

/s/ Elisabeth A. Perenick

 

Name: Elisabeth A. Perenick

 

Title: Managing Director

 

 

 

 

S-3

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

 

PRUDENTIAL RETIREMENT CEDED BUSINESS TRUST

 

By:          Prudential Investment Management, Inc., as Investment Manager

 

By:

/s/ Matt R. Douglass

 

 

Name: Matt R. Douglass

 

 

Title: Vice President

 

 

 

UNITED OF OMAHA INSURANCE COMPANY

 

 

 

By:

/s/ Curtis R. Caldwell

 

Name: Curtis R. Caldwell

 

Title: Vice President

 

 

 

MUTUAL OF OMAHA LIFE INSURANCE COMPANY

 

 

 

By:

/s/ Curtis R. Caldwell

 

Name: Curtis R. Caldwell

 

Title: Vice President

 

 

 

 

S-4

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

 

HARTFORD LIFE INSURANCE COMPANY

 

By: Hartford Investment Services, Inc., its Agent and
Attorney-in-Fact

 

 

 

By:

/s/ Daniel Leimbach

 

Name: Daniel Leimbach

 

Title: Senior Vice President

 

 

 

NATIONWIDE LIFE INSURANCE COMPANY

 

 

 

By:

/s/ Joseph P. Young

 

Name: Joseph P. Young

 

Title: Authorized Signatory

 

 

 

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

 

 

 

By:

/s/ Joseph P. Young

 

Name: Joseph P. Young

 

Title: Authorized Signatory

 

 

 

 

S-5

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

 

NATIONWIDE LIFE INSURANCE COMPANY OF
AMERICA (formerly Provident Mutual Life Insurance Company)

 

 

 

By:

/s/ Joseph P. Young

 

Name: Joseph P. Young

 

Title:  Authorized Signatory

 

 

 

SECURITY FINANCIAL LIFE INSURANCE CO.

 

 

 

By:

/s/ Kevin W. Hammond

 

Name: Kevin W. Hammond

 

Title: Senior Director—Investments

 

 

 

THE CANADA LIFE ASSURANCE COMPANY, as beneficial
owner

 

 

 

By:

/s/ Tad Anderson

 

Name: Tad Anderson

 

Title:

Ass't. Vice President, Investments,
U.S. Operations

 

 

 

 

By:

/s/ J.G. Lowery

 

Name: J.G. Lowery

 

Title:

Ass't. Vice President, Investments,
U.S. Operations

 

 

 

 

S-6

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

 

GREAT-WEST LIFE & ANNUITY INSURANCE
COMPANY, as beneficial owner

 

 

 

By:

/s/ Tad Anderson

 

Name: Tad Anderson

 

Title:

Ass't. Vice President, Investments

 

 

 

By:

/s/ B.G. Masters

 

Name: B.G. Masters

 

Title: Ass't. Vice President, Investments

 

 

FIRST GREAT-WEST LIFE & ANNUITY INSURANCE
COMPANY, as beneficial owner

 

 

 

By:

/s/ Tad Anderson

 

Name: Tad Anderson

 

Title:

Ass't. Vice President, Investments

 

 

 

By:

/s/ B.G. Masters

 

Name: B.G. Masters

 

Title: Ass't. Vice President, Investments

 

 

THRIVENT FINANCIAL FOR LUTHERANS (successor by
merger to Lutheran Brotherhood)

 

 

By:

/s/ Mark O. Swenson

 

Name: Mark O. Swenson

 

Title: Vice President

 

 

 

MODERN WOODMEN OF AMERICA

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

S-7

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

 

CONFIRMATION

Each of the undersigned acknowledges receipt of the foregoing Fifth Amendment
and confirms the continuing validity and enforceability against such undersigned
of each of the Note Agreement, the Notes, the Subsidiary Guaranty, the Pledge
Agreement and the Security Agreement, in each case to the extent such
undersigned is a party thereto.

 

TETRA TECH, INC.

 

 

 

By:

/s/ David W. King

 

Name: David W. King

 

Title: Chief Financial Officer and Treasurer

 

 

ADVANCED MANAGEMENT TECHNOLOGY, INC.

ARDAMAN & ASSOCIATES, INC.

COSENTINI ASSOCIATES, INC.

ENGINEERING MANAGEMENT CONCEPTS, INC.

EVERGREEN UTILITY CONTRACTORS, INC.

FHC, INC.

HARTMAN & ASSOCIATES, INC.

KCM, INC.

MFG, INC.

RIZZO ASSOCIATES, INC.

SCIENCES INTERNATIONAL, INC.

TETRA TECH CONSTRUCTION SERVICES, INC.

TETRA TECH CONSULTING & REMEDIATION, INC.

TETRA TECH EM INC.

TETRA TECH NUS, INC.

TETRA TECH RMC, INC.

THE THOMAS GROUP OF COMPANIES, INC.

WHALEN & COMPANY, INC.

WESTERN UTILITY CONTRACTORS, INC.

 

 

 

By:

/s/ David W. King

 

Name: David W. King

 

Title: Treasurer

 

 

 

 

S-8

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

 

GEOTRANS, INC.

SCM CONSULTANTS, INC.

TETRA TECH EC, INC.

 

 

 

By:

/s/ David W. King

 

Name: David W. King

 

Title:  Assistant Treasurer

 

 

 

 

S-9

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

 

SCHEDULE I

 

NOTEHOLDERS

 

Series A Noteholders

 

Massachusetts Mutual Life Insurance Company

C.M. Life Insurance Company

MassMutual Asia Limited

 

Prudential Retirement Business Ceded Trust

 

United of Omaha Insurance Company

Mutual of Omaha Insurance Company

 

Hartford Life Insurance Company

 

Nationwide Life Insurance Company

Nationwide Life and Annuity Insurance Company

Nationwide Life Insurance Company of America (formerly Provident Mutual Life
Insurance Company)

 

Security Financial Life Insurance Co.

 

Series B Noteholders

 

The Canada Life Assurance Company

Great-West Life & Annuity Insurance Company

First Great-West Life & Annuity Insurance Company

 

Thrivent Financial for Lutherans (successor by merger to Lutheran Brotherhood)

 

Modern Woodmen of America

 

 

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

 

SCHEDULE 10.13

 

LOANS

 

Borrower

 

Dr. Shawn Ziglari

 

The Breakwater Companies, LLC

 

Tetra Tech Canada Ltd.

 

Tetra Tech Canada Ltd.

Principal Amount

 

$1,840,000

 

$13,350,000

 

C$1,170,000
(US$1,000,000)

 

C$4,620,000
(US$3,960,000)

Note Date

 

10/1/05

 

11/1/05

 

12/1/05

 

12/1/05

Term

 

2 years

 

4 years

 

60 days

 

2 years

Payment Schedule

 

Quarterly

 

Annually

 

60 days

 

Annually

Balance due as of
March 31, 2006

 

$930,000

 

$13,350,000

 

$—

 

C$4,620,000 (US$3,960,000)

 

 

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

 

ANNEX I

 

OTHER OUTSTANDING LOANS

 

 

Borrower

 

Sullivan International Group, Inc.

Principal Amount

 

$2,500,000.00

Note Date

 

1/31/06

Term

 

6 months

Payment Schedule

 

Quarterly

Balance Due as of March 31, 2006

 

$1,100,000.00

 

 

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