exv10w1



 



Exhibit 10.1



LAIDLAW INTERNATIONAL, INC.

$825,000,000 CREDIT AGREEMENT


SECOND AMENDMENT

Dated as of December 17, 2003


THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of December 17, 2003
(this “Amendment”), is among LAIDLAW INTERNATIONAL, INC. (f/k/a Laidlaw
Investments Ltd., an Ontario corporation), a Delaware corporation (“LII” or the
"US Borrower”), LAIDLAW TRANSIT LTD., an Ontario corporation (“LTI”) and
GREYHOUND CANADA TRANSPORTATION CORP., an Ontario corporation (together with
LII and LTI, collectively, the “Borrowers”), the Lenders (as defined below)
signatories hereto, CITICORP NORTH AMERICA, INC., as administrative agent for
the Lenders (in such capacity, the “Administrative Agent”), CREDIT SUISSE FIRST
BOSTON, acting through its Cayman Islands Branch, as syndication agent (in such
capacity, the “Syndication Agent”), and GENERAL ELECTRIC CAPITAL CORPORATION,
as co-documentation agent (in such capacity, the “Co-Documentation Agent”).



WITNESSETH:


WHEREAS, the Borrowers, certain financial institutions and other persons
from time to time parties thereto (collectively, the “Lenders”), Citicorp North
America, Inc., as Collateral Agent, the Administrative Agent, the Syndication
Agent and the Co-Documentation Agent, have entered into that certain Credit
Agreement dated as of June 19, 2003, as amended by the Amendment to the Credit
Agreement, dated as of June 26, 2003 (as so amended, the “Credit Agreement”;
capitalized terms used herein but not defined shall be used herein as defined
in the Credit Agreement);



WHEREAS, the Borrowers desire to refinance outstanding Term B Advances
under the Credit Agreement with a new class of Term B1 Advances under the
Credit Agreement (the “Term B1 Advances”) having identical terms with, having
the same rights and obligations under the Loan Documents as and in the same
aggregate principal amounts as the Term B Advances, as set forth in the Loan
Documents, except as such terms are amended hereby;



WHEREAS, each Term B Lender who executes and delivers this Amendment shall
be deemed, upon the effectiveness of this Amendment, to have exchanged its Term
B Commitment and Term B Advances (which Term B Commitment and Term B Advances
shall thereafter be deemed terminated and refinanced in full) for a Term B1
Commitment (a “Term B1 Commitment”) and Term B1 Advances in the same aggregate
principal amount as such Lender’s outstanding Term B Advances as set forth in
Schedule I to the Credit Agreement, as amended as of the Second Amendment
Effective Date (as defined below), and such Lender shall thereafter become a
Term B1 Lender (each, a “Term B1 Lender”);



 







 


WHEREAS, each Person who executes and delivers this Amendment as an
Additional Term B1 Lender (each, an “Additional Term B1 Lender”), will make
Term B1 Advances on the Second Amendment Effective Date (as defined herein)
(each, an “Additional Term B1 Advance”) to the US Borrower in an aggregate
principal amount equal to the amount set forth opposite its name on Schedule I
to the Credit Agreement, as amended as of the Second Amendment Effective Date
(as defined below), the proceeds of which will be used by the US Borrower to
refinance in full the outstanding principal amount of Term B Advances of Term B
Lenders, if any, who do not execute and deliver this Amendment, it being
understood that an Additional Term B1 Lender may be a Term B Lender prior to
the Second Amendment Effective Date;



WHEREAS, the US Borrower shall pay to each Term B Lender all accrued and
unpaid interest on its Term B Advances to the Second Amendment Effective Date
on such Second Amendment Effective Date;



WHEREAS, the Borrowers have requested that the Lenders amend the Credit
Agreement (i) to effect the changes described above and (ii) to make other
amendments as described below; and



WHEREAS, the Lenders have agreed, subject to the terms and conditions
hereinafter set forth, to amend the Credit Agreement in certain respects as set
forth below;



NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which is hereby
acknowledged), the parties hereto hereby agree as follows:



SECTION 1. Amendment of Credit Agreement. The Credit Agreement is hereby
amended as follows:



(a) Section 1.01 of the Credit Agreement is hereby amended as
follows:



(i) By amending and restating clause (c)(1) of the definition of
“Applicable Margin” in its entirety to read as follows:



"(c)(1) with respect to the Term B1 Facility, 2.75% per annum for
Base Rate Advances and 3.75% per annum for Eurodollar Rate Advances
or”



(ii) By deleting, in the definition of “Eurodollar Rate”, the last
proviso therein in its entirety and inserting the following proviso in
its place:



"provided, further, however, that in no event shall (i) the
Eurodollar Rate for any Interest Period for any Eurodollar Rate
Advance that constitutes a Revolving Credit Advance be less than
2.00% per annum, and (ii) the Eurodollar Rate for any Interest
Period for any Eurodollar Rate Advance that constitutes a Term B1
Advance be less than 1.75% per annum.”



(iii) By deleting the definition of “Commitment” in its entirety and
inserting the following definition in its place:



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""Commitment” means a Term B1 Commitment, an Additional Term B1
Commitment, a Revolving Credit Commitment, a Letter of Credit
Commitment, a Canadian Revolving Credit Commitment or an
Incremental Term Commitment.”



(iv) By deleting the definition of “Lenders” in its entirety and
inserting the following definition in its place:



""Lenders” means the Initial Lenders, the Additional Term B1
Lenders and each Person that shall become a Lender hereunder
pursuant to Section 8.07 for so long as such Initial Lender,
Additional Term B1 Lender or Person, as the case may be, shall be a
party to this Agreement.”



(v) By deleting the definition of “Term B Advance” in its entirety
and inserting the following definition in its place:



""Term B1 Advance” means a term loan or term loans in US Dollars
made pursuant to Sections 2.01(a)(i) or 2.01(a)(iv) or deemed made
pursuant to Section 2.01(a)(iii). Unless the context shall
otherwise require, the term “Term B1 Advance” shall also include
Incremental Term Advances.”



(vi) By deleting the definition of “Term B Commitment” in its
entirety and inserting the following definition in its place:



""Term B1 Commitment” means, with respect to any Term B1 Lender at
any time, the amount set forth opposite such Lender’s name on
Schedule I hereto under the caption “Total Term B1 Commitment” or,
if such Lender has entered into one or more Assignment and
Acceptances, set forth for such Lender in the Register maintained
by the Administrative Agent pursuant to Section 8.07(d) as such
Lender’s “Total Term B1 Commitment”, as such amount may be reduced
at or prior to such time pursuant to Section 2.06. Unless the
context shall otherwise require, after the effectiveness of any
Incremental Term Commitment, the term “Term B1 Commitment” shall
include such Incremental Term Commitment.”



(vii) By deleting the definition of “Term B Facility” in its
entirety and inserting the following definition in its place:



""Term B1 Facility” means, at any time, the aggregate amount of the
Term B1 Lenders’ Term B1 Commitments at such time.”



(viii) By deleting the definition of “Term B Lender” in its entirety
and inserting the following definition in its place:



""Term B1 Lender” means, collectively, (a) each Term B Lender that
executes and delivers the Second Amendment on or prior to the
Second Amendment Effective Date and (b) each Additional Term B1
Lender.”



(ix) By deleting the definition of “Term B Note” in its entirety and
inserting the following definition in its place:



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""Term B1 Note” means a promissory note of the US Borrower payable
to the order of any Term B1 Lender, in substantially the form of
Exhibit A-2 hereto, evidencing the indebtedness of the US Borrower
to such Lender resulting from the Term B1 Advance made or deemed
made by such Lender, as amended.”



(x) By inserting the following new definitions therein in the
appropriate alphabetical order:



""Additional Term B1 Advance” means a term loan or term loans in US
Dollars made pursuant to Section 2.01(a)(iii) of this Agreement on
the Second Amendment Effective Date.



"Additional Term B1 Borrowing” means a borrowing consisting of
simultaneous Additional Term B1 Advances of the same Type made by
the Additional Term B1 Lenders.



"Additional Term B1 Commitment” means, with respect to an
Additional Term B1 Lender, the commitment of such Additional Term
B1 Lender to make Additional Term B1 Advances on the Second
Amendment Effective Date, in an amount in US Dollars set forth next
to the name of such Additional Term B1 Lender on Schedule I thereto
under the caption “Additional Term B1 Commitment”. The aggregate
amount of the Additional Term B1 Commitments shall equal the
outstanding principal amount of Term B Advances of Term B Lenders
that do not execute and deliver the Second Amendment on or prior to
the Second Amendment Effective Date.



"Additional Term B1 Lender” means a Person with an Additional Term
B1 Commitment to make Additional Term B1 Advances to the Borrower
on the Second Amendment Effective Date, it being understood that an
Additional Term B1 Lender may be a Term B Lender.



"Second Amendment” means the Second Amendment, dated as of December
17, 2003, to this Agreement among the Borrowers, the Administrative
Agent and the Lender party thereto.



"Second Amendment Effective Date” is defined in Section 3 of the
Second Amendment.



"Term B Advance” has the meaning specified in Section 1.01 of this
Credit Agreement, as in effect prior to the Second Amendment
Effective Date.



"Term B Lender” has the meaning specified in Section 1.01 of this
Credit Agreement, as in effect prior to the Second Amendment
Effective Date.”



(b) Article II of the Credit Agreement is hereby amended by adding the
following new subsections (iii) through (vi) at the end of Section 2.01(a)(ii):



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"(iii) Exchange. Subject to the terms and conditions hereof, each
Term B Lender with a Term B1 Commitment severally agrees to exchange its
Term B Advance for a like principal amount in US Dollars of Term B1
Advances on the Second Amendment Effective Date, and from and after the
Second Amendment Effective date such Term B Advance shall be deemed
refinanced in full and such Term B1 Advances shall be deemed made
hereunder.



(iv) The Additional Term B1 Advances. Subject to the terms and
conditions hereof, each Additional Term B1 Lender severally agrees to
make Additional Term B1 Advances in US Dollars to the Borrower on the
Second Amendment Effective Date in a principal amount not to exceed its
Additional Term B1 Commitment on the Second Amendment Effective Date.
The Borrower shall refinance all Term B Advances of Term B Lenders that
do not execute and deliver the Second Amendment on the Second Amendment
Effective Date with the gross proceeds of the Additional Term B1
Advances.



(v) Interest. On the Second Amendment Effective Date the Borrower
shall pay all accrued and unpaid interest on the Term B Advances to the
Term B Lenders; provided, however, it is understood that the existing
Interest Periods of the Term B Advances prior to the Second Amendment
Effective Date shall continue on and after the Second Amendment Effective
Date and shall accrue interest at the Applicable Margin in effect on and
after the Second Amendment Effective Date.”



(c) Upon the Second Amendment Effective Date, the Term B1 Advances
shall have the same terms, rights and obligations as the Term B Advances
as set forth in the Loan Documents, except as modified by Section 1 of
this Amendment, and all references to “Term B Advances”, “Term B
Commitment”, “Term B Facility”, “Term B Note”, “Term B Lenders” and “Term
B Borrowings” in the Loan Documents shall be deemed to be references to
“Term B1 Advances”, “Term B1 Commitment”, “Term B1 Facility”, “Term B1
Note”, “Term B1 Lenders” and “Term B1 Borrowings”, respectively.



SECTION 2. Other Amendments. The Credit Agreement is hereby further amended as
follows:



(a) Section 2.01(f)(ii) of the Credit Agreement is hereby amended by
deleting, in the 13th line after the word “of”, the word “US$15,000,000” and
inserting in its place the word, “US$20,000,000”.



(b) Article II of the Credit Agreement is hereby amended by adding the
following new Section 2.01(f)(v):



"(v) Conversions of US Revolving Letters of Credit and Additional
Letters of Credit. The US Borrower may on any Business Day, upon
written notice given to the Administrative Agent not later than
11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed conversion and
subject to the approval of the Administrative Agent (which approval
shall not be unreasonably withheld) convert (i) a Letter of Credit
issued under the US Revolving Letter of



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Credit Facility into a
Letter of Credit issued under the Additional Letter of Credit
Facility or (ii) a Letter of Credit issued under the Additional
Letter of Credit Facility into a Letter of Credit issued under the
US Revolving Letter of Credit Facility; provided, however, no
Letter of Credit may be converted pursuant to this Section
2.01(f)(v) if the Available Amount of such Letter of Credit is
greater than, in the case of a proposed conversion of a US
Revolving Letter of Credit into an Additional Letter of Credit, the
unused Additional Letter of Credit Commitment and, in the case of a
proposed conversion of an Additional Letter of Credit into a US
Revolving Letter of Credit, the unused US Revolving Letter of
Credit Commitment.”



(c) Section 2.07(a) of the Credit Agreement is hereby amended by
adding the following proviso at the end of the first sentence thereof:



"provided, further, that if any prepayment of Term B1 Advances is
made prior to December 17, 2004 with the proceeds of any Debt
financing or issuance of Equity Interests, unless 100% of the Term B1 Lenders
otherwise agree, the US Borrower shall pay to the Administrative
Agent for the ratable account of each Term B1 Lender a prepayment
premium in an amount equal to 1.00% of the aggregate principal
amount of Term B1 Advances being so prepaid, such prepayment
premium to be due and payable on the date of any such prepayment.”



(d) Section 2.09(b) of the Credit Agreement is hereby amended by adding,
in the 5th line after the comma after the word “expiration”, the following:
“conversion pursuant to Section 2.01(f)(v),”.



(e) Article V of the Credit Agreement is hereby amended by adding
the following new Section 5.02(a)(viii):



"(viii) Liens on real property securing debt and other obligations
not to exceed in the aggregate $1,500,000 at any time outstanding
and described on Schedule 5.02(a)(viii) hereto.”



(f) Section 8.02 of the Credit Agreement is hereby amended by
deleting paragraph (b) in its entirety and inserting the following new
paragraph (b) in its place:



"(b) So long as CNAI is the Administrative Agent, materials
required to be delivered pursuant to Section 5.03(a), (b), (c), (d)
and (g) shall be delivered to the Administrative Agent in an
electronic medium in a format acceptable to the Administrative
Agent and the Lenders by e-mail at oploanswebadmin@citigroup.com.
The Borrowers agree that the Administrative Agent may make such
materials, as well as any other written information, documents,
instruments and other material relating to any Borrower, any of its
Subsidiaries or any other materials or matters relating to this
Agreement, the
Notes or any of the transactions contemplated hereby (collectively,
the “Communications”) available to the Lenders by posting such
notices on Intralinks, “e-Disclosure”, the Administrative Agent’s
internet delivery system



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that is part of Fixed Income Direct,
Global Fixed Income’s primary web portal or a substantially similar
electronic system (the “Platform”). Each Borrower acknowledges
that (i) the distribution of material through an electronic medium
is not necessarily secure and that there are confidentiality and
other risks associated with such distribution, (ii) the Platform is
provided “as is” and “as available” and (iii) neither the
Administrative Agent nor any of its Affiliates warrants the
accuracy, adequacy or completeness of the Communications or the
Platform and each expressly disclaims liability for errors or
omissions in the Communications or the Platform. No warranty of
any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the
Administrative Agent or any of its Affiliates in connection with
the Platform.”



(g) The Credit Agreement is hereby further amended by adding a new
Schedule 5.02(a)(viii) attached hereto.



(h) Upon and after the effectiveness of this Amendment, Schedule I
to the Credit Agreement shall be amended to reflect the allocations of
the Lender Parties as of the Second Amendment Effective Date (as defined
below).



SECTION 3. Conditions to Effectiveness. This Amendment and the amendments
contained herein shall become effective on the date (the “Second Amendment
Effective Date”) when each of the conditions set forth in this Section 3 to
this Amendment shall have been fulfilled to the satisfaction of the
Administrative Agent.



(i) Execution of Counterparts. The Administrative Agent shall have
received counterparts of this Amendment, duly executed and delivered on
behalf of each of the (a) Borrowers, (b) the Administrative Agent, (c)
the Required Lenders and (d) each Term B Lender, or in lieu of one or
more Term B Lenders, one or more Additional Term B1 Lenders providing
Additional Term B1 Commitments in an amount sufficient to refinance all
of the principal of the Term B Advances owed to such non-consenting Term
B Lenders or as to any of the foregoing parties, advice reasonably
satisfactory to the Administrative Agent that each of the foregoing
parties has executed a counterpart of this Amendment.



(ii) Notice of Borrowing. The US Borrower shall have provided the
Administrative Agent with a Notice of Borrowing in accordance with the
requirements of Section 2.02(a) of the Credit Agreement prior to the
Second Amendment Effective Date with respect to the borrowing of the
Additional Term B1 Advances on the Second Amendment Effective Date except
that the three Business Day notice requirement is hereby waived.



(iii) Payment of Fees and Expenses. The Borrower shall have paid
all expenses (including the fees and expenses of Shearman & Sterling)
incurred in connection with the preparation, negotiation and execution of
this Amendment and other matters relating to the Credit Agreement from
and after the last invoice to the extent invoiced.



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(iv) Evidence of Debt. Each Term B1 Lender shall have received, if
requested, one or more Notes payable to the order of such Lender duly
executed by the US Borrower in substantially the form of Exhibit A-2 to
the Credit Agreement, as modified by this Amendment, evidencing the Term
B1 Advances.



(v) Interest, Etc. Simultaneously with the making of the Term B1
Advances, the Borrower shall have paid to all the Term B Lenders all
accrued and unpaid interest on the Term B Advances to the Second
Amendment Effective Date plus any loss or expense pursuant to Section
8.04(c) of the Credit Agreement.



(vi) Execution of Consent. The Administrative Agent shall have
received counterparts of a Consent substantially in the form of Exhibit A
to this Amendment, duly executed by each of the entities listed therein.



(vii) Resolutions. The Administrative Agent shall have received
certified copies of (A) the resolutions of the Board of Directors of each
of the Borrowers evidencing approval for this Amendment and all matters
contemplated hereby and (B) all documents evidencing other necessary
corporate action and governmental and other third party approvals and
consents if any, with respect to this Amendment and the matters
contemplated hereby.



(viii) Certificates. The Administrative Agent shall have received a
certificate of the Secretary or an Assistant Secretary of each of the
Borrowers certifying (A) the names and true signatures of the officers of
each Borrower authorized to sign this Amendment and the other documents
to be delivered hereunder, (B) that no authorization or approval or other
action by, and no notice to or filing with, any governmental authority or
regulatory body, or any third party to any agreements and instruments is
required for the due execution, delivery or performance by each Borrower
of this Amendment, (C) the representations and warranties contained in
Section 5 of this Amendment are true and correct and (D) no event has
occurred and is continuing that constitutes a Default.



(ix) Legal Details, Etc. All documents executed or submitted
pursuant hereto shall be satisfactory in form and substance to the
Administrative Agent and Shearman & Sterling as counsel. The
Administrative Agent and its counsel shall have received all information
and such counterpart originals or such certified or other copies or such
materials as the Administrative Agent or its counsel may reasonably
request, and all legal matters incident to the transactions contemplated
by this Amendment shall be satisfactory to the Administrative Agent and
its counsel.



(x) No Default. No Default shall have occurred and be continuing,
or would occur as a result of the transactions contemplated by this
Agreement.



SECTION 4. Confirmation of Representations and Warranties. Each of the
Borrowers hereby represents and warrants, on and as of the date hereof, that
the representations and warranties contained in the Credit Agreement are
correct and true in all material respects on



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and as of the date hereof, before
and after giving effect to this Amendment, as though made on and as of the date
hereof, other than any such representations or warranties that, by their terms,
refer to a specific date.



SECTION 5. Reference to and Effect on the Transaction Documents. (a) On
and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the other transaction documents to the
“Credit Agreement”, “thereunder”, “thereof” or words of like import referring
to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as modified by this Amendment.



(b) The Credit Agreement, the Notes and each of the other Loan
Documents, as specifically amended by this Amendment, are and shall
continue to be in full force and effect and are hereby in all respects
ratified and confirmed. Without limiting the generality of the
foregoing, the Collateral Documents and all of the Collateral described
therein do and shall continue to secure the payment of all Obligations of
the Loan Parties under the Loan Documents, in each case as amended by
this Amendment.



(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 Lender or any Agent under any of the
Loan Documents, nor constitute a waiver of any provision of any of the
Loan Documents.



SECTION 6. 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 shall be deemed to be an original
and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.



SECTION 7. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York, and shall be
subject to the jurisdictional and service provisions of the Credit Agreement,
as if this were a part of the Credit Agreement.



SECTION 8. Entire Agreement; Modification. This Amendment constitutes the
entire agreement of the parties hereto with respect to the subject matter
hereof, there being no other agreements or understandings, oral, written or
otherwise, respecting such subject matter, any such agreement or understanding
being superseded hereby, shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, and may not be
amended, extended or otherwise modified, except in a writing executed in whole
or in counterparts by each party hereto.



[Signatures follow.]


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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered by their respective authorized officers as of the day
and year first above written.



	 	 	 	 	 
	 	 	
Borrowers:
	 	
	 	 	 	 	 
	 	 	LAIDLAW INTERNATIONAL, INC
	 	 	 	 	 
	 	 	
By:
	 	/s/ Ivan Cairns
	 	 	 	 	

	 	 	 	 	Name: Ivan Cairns

Title: Senior Vice President
	 	 	 	 	 
	 	 	
By:
	 	/s/ Geoff Mann
	 	 	 	 	

	 	 	 	 	Name: Geoff Mann

Title: Vice President, Treasurer
	 	 	 	 	 
	 	 	LAIDLAW TRANSIT LTD
	 	 	 	 	 
	 	 	
By:
	 	/s/ Ivan Cairns
	 	 	 	 	

	 	 	 	 	Name: Ivan Cairns

Title: Secretary
	 	 	 	 	 
	 	 	GREYHOUND CANADA TRANSPORTATION CORP
	 	 	 	 	 
	 	 	
By:
	 	/s/ Ivan Cairns
	 	 	 	 	

	 	 	 	 	Name: Ivan Cairns

Title: Secretary







 







 





	 	 	 	 	 
	 	 	Administrative Agent:
	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC
	 	 	 	 	 
	 	 	
By:
	 	/s/ Asghar Ali
	 	 	 	 	

	 	 	 	 	Name: Asghar Ali

Title: Vice President
	 	 	 	 	 
	 	 	Lenders:
	 
	 	 	[                    ]
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 





[Etc.]