Exhibit 10.24

 

COMMITMENT INCREASE AGREEMENT

 

This Commitment Increase Agreement (this “Agreement”), dated as of September 16,
2005, is by and among Waste Industries USA, Inc., a North Carolina corporation
(the “Parent”), its Subsidiaries (collectively with the Parent, the
“Borrowers”), Bank of America, N.A. (the “Increasing Bank”) and Bank of America,
N.A. (successor by merger to Fleet National Bank) as Administrative Agent (the
“Administrative Agent”), for the Banks (as hereinafter defined). All capitalized
terms used herein without definitions shall have the meanings given such terms
in the Credit Agreement (as hereinafter defined).

 

WHEREAS, the Amended and Restated Revolving Credit Agreement, dated as of
August 27, 2003 (as amended and in effect from time to time, the “Credit
Agreement”), is by and among the Borrowers, the Administrative Agent and the
banks or other financial institutions which are or become a party thereto (each
a “Bank” and, collectively, the “Banks”), Wachovia Bank, N.A., as Syndication
Agent for the Banks and Branch Banking and Trust Company, as Documentation Agent
for the Banks;

 

WHEREAS, Section 2.2.2 of the Credit Agreement provides that the Borrowers may
request, subject to the approval of the Administrative Agent, that the Total
Commitment be increased to $200,000,000;

 

WHEREAS, the Borrowers have requested that the Total Commitment be increased to
$200,000,000 and the Increasing Bank has agreed to increase its Commitment by
$25,000,000 (the “Commitment Increase”); and

 

WHEREAS, the Administrative Agent is willing to consent to the Commitment
Increase provided that the Borrowers, the Administrative Agent and the
Increasing Bank enter into this Agreement;

 

NOW THEREFORE, the parties hereto hereby agree as follows:

 

1. Consent to Commitment Increase. Pursuant to Section 2.2.2 of the Credit
Agreement, the Administrative Agent hereby consents to the increase in the Total
Commitment to $200,000,000.

 

2. Funding of Commitment Increase. Pursuant to Section 2.2.2 of the Credit
Agreement, the Increasing Bank hereby agrees to fund the Commitment Increase.

 

3. Amendment of Schedule 1. Schedule 1 to the Credit Agreement is hereby amended
to reflect the Banks’ adjusted Commitment Percentages and the increase in the
Total Commitment. The Administrative Agent shall make such arrangements with the
Banks as shall be necessary to provide that each Bank shall hold its Commitment
Percentage of outstanding Loans after giving effect to this Agreement, with any
breakage costs to be borne by the Borrowers.

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

4. Affirmation and Acknowledgment. The Borrowers hereby ratify and confirm all
of their Obligations to the Banks, including, without limitation, the Revolving
Credit Loans, the Notes and the other Loan Documents, and the Borrowers hereby
affirm their absolute and unconditional promise to pay to the Banks all
Obligations under the Credit Agreement, the Swap Contracts and Fuel Derivative
Obligations. The Borrowers hereby confirm that the Obligations are and remain
secured pursuant to the Security Documents and pursuant to all other instruments
and documents executed and delivered by the Borrowers as security for the
Obligations.

 

5. Representations and Warranties. Each of the Borrowers hereby represents and
warrants to the Banks as follows:

 

(a) The execution and delivery by each Borrower of this Agreement, and the
performance by each Borrower of its obligations and agreements under this
Agreement and the Credit Agreement, are within the corporate authority of each
Borrower and, have been duly authorized by all necessary corporate proceedings
on behalf of each Borrower, and do not and will not contravene any provision of
law, statute, rule or regulation to which any Borrower is subject or any
Borrower’s charter, other incorporation papers, by-laws or any stock provision
or any amendment thereof or of any agreement or other instrument binding upon
any Borrower.

 

(b) This Agreement and the Credit Agreement constitute legal, valid and binding
obligations of each Borrower, enforceable in accordance with their respective
terms, except as limited by bankruptcy, insolvency, reorganization, moratorium
or other laws relating to or affecting generally the enforcement of creditors’
rights and except to the extent that availability of the remedy of specific
performance or injunctive relief is subject to the discretion of the court
before which any proceeding therefor may be brought.

 

(c) Other than approvals or consents which have been obtained, no approval or
consent of, or filing with, any governmental agency or authority is required to
make valid and legally binding the execution, delivery or performance by any
Borrower of this Agreement or the Credit Agreement.

 

(d) The representations and warranties contained in §5 of the Credit Agreement
are true and correct at and as of the date made and as of the date hereof,
except to the extent of changes resulting from transactions contemplated or
permitted by the Credit Agreement and the other Loan Documents and changes
occurring in the ordinary course of business that singly or in the aggregate are
not materially adverse, or to the extent that such representations and
warranties relate expressly to an earlier date.

 

(e) Each Borrower has performed and complied in all material respects with all
terms and conditions herein required to be performed or complied with by it
prior to or at the time hereof, and as of the date hereof, after giving effect
to the provisions hereof, there exists no Event of Default or Default.

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

6. Conditions Precedent. This Agreement shall be deemed to be effective as of
the date first written above, subject to the execution and delivery of the
following documents, each in form and substance satisfactory to the
Administrative Agent, and the payment of certain fees and expenses noted below:

 

(a) this Agreement executed by each Borrower, the Administrative Agent and the
Increasing Bank;

 

(b) an Amended and Restated Revolving Credit Note issued in favor of the
Increasing Bank in the original principal amount of $74,000,000, which Note
shall represent the aggregate Commitment of Bank of America, including the
Commitment Increase and shall be a replacement of and substitution for the
Revolving Credit Note dated as of August 27, 2003 in the principal amount of
$39,000,000 held by Bank of America (successor by merger to Fleet National Bank)
and the Revolving Credit Note dated as of August 27, 2003 in the principal
amount of $10,000,000 held by Bank of America; and

 

(c) a work fee of $5,000, payable to the Increasing Bank.

 

7. Miscellaneous Provisions.

 

(a) This Agreement is intended to take effect as an agreement under seal and
shall be construed according to and governed by the laws of the Commonwealth of
Massachusetts.

 

(b) This Agreement may be executed in any number of counterparts, but all such
counterparts shall together constitute but one instrument. In making proof of
this Agreement it shall not be necessary to produce or account for more than one
counterpart signed by each party hereto by and against which enforcement hereof
is sought.

 

(c) The Borrowers hereby agree to pay to the Administrative Agent, on demand by
the Administrative Agent, all reasonable out-of-pocket costs and expenses
incurred or sustained by the Administrative Agent in connection with the
preparation of this Amendment (including reasonable legal fees).

 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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

IN WITNESS WHEREOF, the Administrative Agent, the Increasing Bank and the
Borrowers have duly executed this Agreement as of the date first above written.

 

BANK OF AMERICA, N.A.,     as Administrative Agent By:  

/s/ Meghan S. Hinds

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

Name:   Meghan S. Hinds Title:   Vice President BANK OF AMERICA, N.A.,     as
Increasing Bank By:  

/s/ Meghan S. Hinds

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

Name:   Meghan S. Hinds Title:   Vice President

 

Signature Page to Commitment Increase Agreement

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

THE BORROWERS: WASTE INDUSTRIES USA, INC. By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO WASTE INDUSTRIES, LLC DUPLIN COUNTY
DISPOSAL, LLC VAN BUREN COUNTY LANDFILL, LLC WASTE INDUSTRIES LANDCO, LLC ECO
SERVICES, LLC RELIABLE TRASH SERVICE, LLC WASTE INDUSTRIES OF MISSISSIPPI, LLC
WASTE SERVICES OF MEMPHIS, LLC WASTECO, LLC LAURENS COUNTY LANDFILL, LLC S & S
ENTERPRISES OF MISSISSIPPI, LLC SAMPSON COUNTY DISPOSAL, LLC
SAFEGUARD LANDFILL MANAGEMENT, LLC SHAMROCK ENVIRONMENTAL SERVICES, LLC
TRANSWASTE SERVICES, LLC RED ROCK DISPOSAL, LLC MOSS POINT DISPOSAL, LLC BLACK
BEAR DISPOSAL, LLC WASTE INDUSTRIES ATLANTA, LLC DOUGLASVILLE TRANSFER, LLC    
By: Waste Industries USA, Inc.,
            its Manager By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO

 

Signature Page to Commitment Increase Agreement

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

ETC OF GEORGIA, LLC WASTE INDUSTRIES PROPERTY CO., LLC OLD KINGS ROAD SOLID
WASTE, LLC     By: Waste Industries of Mississippi, LLC,
            its Manager By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO WASTE SERVICES OF TENNESSEE, LLC    

By: Wasteco, LLC,

            its Manager

By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO WASTE INDUSTRIES OF TENNESSEE, LLC    
By: Waste Services of Tennessee, LLC,
            its Manager By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO WASTE SERVICES OF DECATUR, LLC     By:
Waste Industries of Tennessee, LLC,
            its Manager By:  

/s/ D. Stephen Grissom

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

Name:   D. Stephen Grissom Title:   CFO

 

Signature Page to Commitment Increase Agreement