Document:

Exhibit

4.2

 

AMENDMENT NO. 1

and

WAIVER NO. 1

to

CREDIT AGREEMENT

 

AMENDMENT NO. 1 and WAIVER NO. 1 (this “Amendment”),

dated as of March 26, 2002, to the Credit Agreement, dated as of November 5,

2001, by and between META GROUP, INC., a Delaware corporation (the “Borrower”)

and THE BANK OF NEW YORK (the “Bank”) (as amended, the “Credit

Agreement”).

 

RECITALS

 

A.            Capitalized

terms used herein which are defined in the Credit Agreement shall have the

meanings therein defined.

 

B.            The

Borrower has requested that the Bank (i) waive violations of certain covenants

which have occurred prior to the date hereof, and (ii) amend certain financial

covenants for the fiscal year of the Borrower ending on December 31, 2002, and,

subject to the terms and conditions set forth herein, the Bank is willing to

agree to the foregoing.

 

In consideration of the covenants, conditions and

agreements hereinafter set forth, and for other good and valuable

consideration, the receipt and adequacy of which are acknowledged, it is agreed

as follows:

 

I.              Amendments

 

1.             Section

1.1 of the Credit Agreement is amended to add the following new definition

thereto:

 

“Quarterly Net Income”:  For each fiscal quarter of the Borrower, the

net income of the Borrower and its Subsidiaries for such fiscal quarter

determined on a consolidated basis in accordance with GAAP as of the end of

such fiscal quarter.

 

2.             Section

4.1 of the Credit Agreement is amended and restated in its entirety, as

follows:

 

4.1.                              Subsidiaries;

Capitalization.

 

As of the Effective Date,

the only Subsidiaries of the Borrower are those listed on Schedule 4.1,

and the authorized, issued and outstanding

 

 

Capital Stock of the Borrower and each such Subsidiary

is as set forth on Schedule 4.1. 

As of the Effective Date, except as set forth on Schedule 4.1, (i) the

shares of, or partnership or other interests in, each Subsidiary of the

Borrower are owned beneficially and of record by the Borrower or another

Subsidiary of the Borrower, are free and clear of all Liens, and are duly authorized,

validly issued, fully paid and nonassessable, (ii) except as set forth on

Schedule 4.1, none of its Subsidiaries has issued any securities convertible

into, or options or warrants for, any common or preferred equity securities

thereof, (iii) there are no agreements, voting trusts or understandings binding

upon the Borrower or any of its Subsidiaries with respect to the voting

securities of the Borrower or any of its Subsidiaries or affecting in any

manner the sale, pledge, assignment or other disposition thereof, including any

right of first refusal, option, redemption, call or other right with respect

thereto, whether similar or dissimilar to any of the foregoing.

 

3.             Section

7.11 of the Credit Agreement is amended and restated in its entirety, as follows:

 

7.11.        Financial

Covenants

 

(a)           Leverage Ratio. The Borrower

shall maintain as of the last day of each fiscal quarter ending during the

periods set forth below, a Leverage Ratio of not more than the ratios set forth

below:

 

	

  Period

  	

   

  	

  Ratio

  	

   

  
	

  March

  31, 2002

  	

   

  	

  1.50:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  June

  30, 2002

  	

   

  	

  1.50:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  September

  30, 2002

  	

   

  	

  1.00:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  December

  31, 2002 and each fiscal quarter end thereafter

  	

   

  	

  1.00:1.00

  	

   

  

 

 

2

 

(b)           Fixed Charge Coverage Ratio. The

Borrower shall maintain as of the last day of each fiscal quarter ending during

the periods set forth below, a Fixed Charge Coverage Ratio of not less than the

ratios set forth below:

 

	

  Period

  	

   

  	

  Ratio

  	

   

  
	

  March

  31, 2002

  	

   

  	

  1.50:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  June

  30, 2002

  	

   

  	

  1.50:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  September

  30, 2002

  	

   

  	

  1.50:1.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  December

  31, 2002 and each fiscal quarter end thereafter

  	

   

  	

  1.50:1.00

  	

   

  

 

(c)           Minimum EBITDA.  EBITDA for each four fiscal quarter

period of the Borrower ending during the periods set forth below shall not be

less than the amounts set forth below:

 

	

  Period

  	

   

  	

  Amount

  	

   

  
	

  March

  31, 2002

  	

   

  	

  $

  	

  6,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  June

  30, 2002

  	

   

  	

  $

  	

  8,065,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  September

  30, 2002

  	

   

  	

  $

  	

  10,657,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  December

  31, 2002 and each fiscal quarter end thereafter

  	

   

  	

  $

  	

  13,000,000

  	

   

  

 

(d)           Minimum Quarterly Net Income.  Quarterly Net Income for each fiscal quarter

period of the Borrower ending during the periods set forth below shall not be

less than the amounts set forth below:

 

	

  Period

  	

   

  	

  Amount

  	

   

  
	

  March

  31, 2002

  	

   

  	

  $

  	

  (1,500,000

  	

  )

  
	

   

  	

   

  	

   

  	

   

  
	

  June

  30, 2002

  	

   

  	

  $

  	

  1,000,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  September

  30, 2002

  	

   

  	

  $

  	

  1,400,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  December

  31, 2002 and each fiscal quarter end thereafter

  	

   

  	

  $

  	

  1,500,000

  	

   

  

 

II.            Waivers

 

1.             Compliance

with the provisions of Section 7.11(a) of the Credit Agreement is irrevocably

waived with respect to the fiscal quarter ended on December 31, 2001.

 

3

 

2.             Compliance

with the provisions of Section 7.11(b) of the Credit Agreement is irrevocably

waived with respect to the fiscal quarter ended on December 31, 2001.

 

III.           Miscellaneous

 

1.             (a)

The waiver provisions contained in Part II of this Amendment shall be deemed

effective as of December 31, 2001, and (b) the remaining provisions of this

Amendment shall be deemed effective as of the date of this Amendment, in each

case upon receipt by the Bank of (i) counterparts of this Amendment, duly

executed by the Borrower, (ii) payment by the Borrower of a $25,000 fee to the

Bank, and (iii) payment of all of the Bank’s expenses (including the reasonable

fees and disbursements of Special Counsel) in connection herewith.

 

2.             In

order to induce the Bank to execute this Amendment, the Borrower hereby (i)

certifies that, immediately after giving effect to this Amendment, all

representations and warranties contained in the Credit Agreement are true and

correct in all material respects as of the date hereof, and that, except for

the events that are waived herein, no Default or Event of Default exists under

the Credit Agreement, (ii) reaffirms and admits the validity and enforceability

of the Loan Documents and its obligations thereunder, and (iii) agrees and

admits that it has no valid defenses to or offsets against any of its

obligations under the Loan Documents as of the date hereof.

 

3.             In

all other respects, the Credit Agreement and the other Loan Documents shall

remain in full force and effect, and no waiver contained herein with respect to

any certain time period or any certain Section of the Credit Agreement shall be

deemed to be a waiver with respect to any other time period or any other

Section of the Credit Agreement.

 

4.             This

Amendment may be executed in any number of counterparts, each of which shall be

an original and all of which shall constitute one agreement.  It shall not be necessary in making proof of

this Amendment to produce or account for more than one counterpart containing

the signature of the party to be charged.

 

5.             This

Amendment is being delivered in and is intended to be performed in the State of

New York and shall be construed and is enforceable in accordance with, and

shall be governed by, the internal laws of the State of New York without regard

to principles of conflict of laws.

 

6.             This

Amendment shall be subject to such conditions and limitations as are specified

herein, and the rights of the parties under the Credit Agreement and the other

Loan Documents shall be otherwise unaffected.

 

4

 

IN WITNESS WHEREOF, the parties have caused this

Amendment to be duly executed as of the date first written above.

 

	

   

  	

   

  	

   

  
	

   

  	

  META GROUP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ John A. Piontkowski

  	

   

  
	

   

  	

  Name:

  	

  John A. Piontkowski

  	

   

  
	

   

  	

  Title:

  	

  Chief Financial Officer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  THE BANK OF NEW YORK

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Mark J. Sicinski

  	

   

  
	

   

  	

   

  	

  Mark J. Sicinski,

  
	

   

  	

   

  	

  Vice President

  
					

 

5

 

Schedule 4.1

 

1.                                       MG

(Bermuda) Ltd.

2.                                       META

Group Australia Holdings PTY. Limited

3.                                       Cenntinum PTE LTD.

4.                                       1422722

Ontario Inc.

5.                                       Meta

Group AG

6.                                       Meta

Group France S.A.

 

Authorized, issued and outstanding Capital Stock

of the Borrower and each such Subsidiary

 

	

  Borrower/Subsdiary

  	

   

  	

  Issued and

  outstanding Capital Stock

  
	

  MG (Bermuda) Ltd.

  	

   

  	

   

  
	

  META Group Australia Holdings PTY, Limited

  	

   

  	

   

  
	

  Cenntinum PTE LTD.

  	

   

  	

   

  
	

  1422722 Ontario Inc.

  	

   

  	

   

  
	

  Meta Group AG

  	

   

  	

   

  
	

  Meta Group France S.A.

  	

   

  	

   

  

 

Description of securities convertible into, or options

or warrants for, any common or preferred equity securities of its Subsidiaries:

 

45,742 Stock Options in Meta Group AG.Exhibit 10.3

 

WATER PURCHASE AGREEMENT

 

                THIS AGREEMENT is made and

entered into this 24th day of May, 2002, by and between South

Lincoln Rural Water System, Inc., a South Dakota corporation, of Box 155,

Canton, South Dakota, 57013, hereinafter referred to as “South Lincoln” and

Great Plains Ethanol, L.L.C., a South Dakota corporation, of

                    ,

hereinafter referred to as “Great Plains”, as follows:

 

                WHEREAS, South Lincoln is

organized and exists for the purpose of constructing and operating a water

distribution system within a designated area in which Great Plains intends to

locate the construction of an ethanol plant; and

 

                WHEREAS, Great Plains desires to

purchase raw non-potable water from a source convenient to the location of the

proposed plant, and derive both its domestic, secondary source and 300,000 —

500,000 gallons of water for fire protection at the plant site; and

 

                WHEREAS, South Lincoln is

desirous of adding to its system and in conjunction with that addition, is

desirous of expanding its system to sell potable and non-potable water to Great

Plains,

 

                NOW, THEREFORE, in consideration

of the terms, conditions, and mutual covenants herein contained, the parties

agree as follows:

 

                1.             South Lincoln shall furnish to Great Plains raw

non-potable water pumped from three (3) wells to be located at a mutually

agreed upon location. This water shall be diverted from three wells each

capable of pumping 400 gpm +/- 10% at pressures of at least 25 psi at the

ethanol plant site. South Lincoln understands that normal flow rates required

at the plant will be in the order of 375 gpm (540,000 gallons per day), with a

peak instantaneous flow of 660 gpm. In the event of equipment failure or any

other cause resulting in the quantity of water failing to meet demand, South

Lincoln shall immediately notify Great Plains of the specifics of the problem,

and South Lincoln shall repair or otherwise rectify the situation as quickly as

reasonably possible. The parties further acknowledge that South Lincoln is not

responsible for water quantity after the water enters the pipeline owned by

Great Plains. South Lincoln does not guarantee availability of this supply.

 

                2.             Great Plains agrees to construct a water storage

facility. This water storage facility will hold a minimum of 330,000 gallons of

raw non-potable water. Great Plains will incur the expense of construction and

operation of the storage facility. Great Plains will own the storage facility,

and all maintenance of the facility will be the responsibility of owner.

 

                3.             Great Plains will pay for the construction, repairs and

upgrades of a raw non-potable process water service line from the South Lincoln

well field to the ethanol plant site, and shall own the same. Such service line

shall be constructed, repaired and owned by Great Plains from the point of

connection with South Lincoln’s meters located at each of the wells. South

Lincoln will maintain and repair well motors and pumps for each of the wells

supplying water to

 

 

 

Great

Plains. South Lincoln is authorized to obtain and award bids on the

construction of the raw non-potable process water line. Prior to the award of

the bid, South Lincoln agrees to:

 

(a)                                  Supply Great Plains with copies of the bids submitted on the

project.

 

(b)                                 Consult with Great Plains during the five (5) day period between

the opening of bids and the award of the bid. Great Plains acknowledges that

the bid will be awarded solely within the discretion of South Lincoln.

 

Great

Plains agrees to pay to South Lincoln the following sums:

 

(a)                                  The sum of $65,000.00 project start up costs on May 1, 2002.

 

(b)                                 The sum of $220,000.00 for materials within five (5) days of the

receipt of invoice by South Lincoln for pipe materials,

 

(c)                                  The sum of $70,000.00 on August 15, 2002, for installation costs.

 

(d)                                 The sum of $85,502.50 on September 15, 2002, for project

completion costs.

 

(e)                                  The balance of the final contract price including any approved

change order less retainage within fifteen (15) days of authorization for

payment issued by the engineer.

 

(f)                                    The amount of any retainage within fifteen (15) days of

authorization for payment issued by the engineer.

 

(g)                                 Great Plains agrees to pay a late charge of one percent (1%) of

the unpaid amount due plus interest as allowed by law for any payment not made

on due dates as provided herein.

 

South

Lincoln will not provide materials or backhoe/excavator services on this line

in the case of repair, but will provide support personnel as herein described.

South Lincoln will pig the line as required, upon agreement of both parties.

South Lincoln shall provide support personnel up to 100 hours per year, to

supervise/coordinate any repair and pigging of the line at no charge to Great

Plains. The cost of any outside contractor services and materials will be borne

by Great Plains and approved by Great Plains prior to awarding service work or

purchasing materials.  Both parties

agree not to install any additional taps onto the process water service line of

Great Plains without the prior consent of the other party. In exchange for

South Lincoln obtaining and awarding the contract for the construction of the

raw non-potable water process line, Great Plains agrees to pay South Lincoln a

sum equal to fifteen percent (15%) of the total construction, cost of the contract

as awarded by South Lincoln (including any approved change order) as

reimbursement to South Lincoln for the cost of providing engineering and

support personnel during design and construction of the raw non-potable process

water line. Great Plains will pay this amount to South Lincoln within fifteen

(15) days of the award of the contract.

 

2

 

Great

Plains shall be solely liable for all costs and expenses incurred in order to

obtain necessary easements, rights of way, permits and other approval, and

shall be solely liable for any crop damage or other liabilities incurred in

relation to the construction or maintenance of the raw non-potable process

water service line.  Great Plains shall

indemnify South Lincoln for any such liability.

 

                4.             If at any time Great Plains or its successor(s) in

interest shall offer the raw non-potable process water service line for sale or

transfer to someone other than the purchaser of the plant, then South Lincoln

shall have the right of first refusal in the purchase or transfer thereof, with

an appropriate easement for ingress and egress. This shall not prevent Great

Plains from selling, transferring or encumbering its business or other

property.

 

                5.             South Lincoln shall provide a master meter at each of

the three wells for the purpose of measuring flow of raw non-potable water to

the ethanol plant. Great Plains shall pay a base price of fifty-five cents (55¢)

per thousand gallons metered. In the event of meter malfunction, the amount of

water metered shall be based on the average monthly gallons of raw non-potable

water supplied to the ethanol plant for the preceding three months. The base

price of fifty-five cents (55¢)

per thousand gallons of water metered is set for the first two full years of

service with an automatic price increase adjustment at the end of the first two

year term and at the end of every two year term thereafter tied to the variable

cost of operations and the South Dakota consumer price index (CPI) as published

by the State Department of Labor. South Lincoln and Great Plains agree that the

base price of fifty-five cents (55¢)

per thousand gallons metered will be reduced to a base price of fifty cents (50¢)

per thousand gallons metered in the event the prohibition against the

application of hog manure in the vicinity of South Lincoln’s wells is removed

or hog manure is not applied in the vicinity of South Lincoln’s wells.

 

                6.             For the cost of delivering potable water to the ethanol

plant for “domestic and sanitary use”, South Lincoln will charge Great Plains

its standard consumer rate based on a graduated usage schedule, as such rate is

adjusted from time to time.  In

addition, Great Plains agrees to pay South Lincoln one thousand two hundred

dollars ($1,200.00) as the standard initial membership charge, and to further

pay any other charges as may from time to time apply to South Lincoln’s

customers, Delivery of potable water may be from the existing distribution

lines.

 

                7.             For the cost of delivering potable water as a secondary

potable process water supply, whether planned or in an emergency situation,

South Lincoln will charge for water use, one dollar and fifty cents ($1.50) per

thousand gallons metered or estimated at the ethanol plant for the initial five

year term of this contract and on such terms and conditions as may be agreed to

by the parties thereafter. The operation of fire hydrants for water supply is

prohibited in all but emergency situations. 

Any flushing of the fire lines shall be reported to South Lincoln prior

to any water use.  South Lincoln does

not guarantee availability of this supply.

 

                8.             Great Plains shall read all meters on the 1st  of

the month with payment made before the 20th  day of the month.  Great Plains agrees to pay a late charge of

2% for any payments made after the 20th day of each month.

 

                9.             Emergency failures of pressure of potable and raw

non-potable water supply due to main supply breaks, power failure, water

producing capacity of the three (3) wells referred to

 

3

 

herein,

flood, fire, earthquake, or other catastrophe, or any of them, shall excuse

South Lincoln from compliance with this agreement for such periods of time as

are reasonably necessary to fully restore service, if reasonably possible.

South Lincoln agrees to maintain an emergency standby generator capable of,

providing sufficient electrical generation to operate one of the pumps in the

event of the failure of electrical supply.

 

                10.           Either party may request, at its expense, to check the

metering equipment of the other party, but the same shall not be done more

often than once every twelve (12) consecutive months, unless faulty operation

of said metering equipment is suspected or discovered within said time frame.  A meter registering not more than three

percent (3%) above or below the test result shall be deemed accurate. South

Lincoln will check metering equipment on an annual basis.  If a meter check is requested by Great Plains

at any time between the 12 month annual meter check and the meter is above the

3% test allowance, then in that event South Lincoln will pay for the meter test

cost. In the event that the tested meter is 3% of the test allowance or below,

Great Plains will pay for the meter test cost.

 

                11.           The initial term of this contract shall be for a period of

five (5) years from and after the date of completion of the hookup. The parties

agree to extend this agreement for such additional five year terms upon the

terms and conditions as the parties shall mutually agree. South Lincoln

guarantees that upon renewal of this contract for a second five (5) year term,

the initial cost of process water delivered from the well field shall be no

greater than sixty-five (65) cents per thousand gallons metered.

 

                12.           Neither party shall be responsible for continuing this

contract in the event that such party’s business is materially or adversely

affected by any act of God, sabotage, or other casualty, whether or not covered

by insurance.

 

                13.           South Lincoln shall, at all times, operate and maintain

the water system in an efficient manner and shall take prompt action whenever

necessary to remedy any situation hindering full delivery to the ethanol plant

as specified herein. In the event of any water shortage occurring caused by

drought or unforeseen natural or man-made causes, South Lincoln shall have the

right to reduce the quantity of water delivered.

 

                14.           Each party shall indemnify and hold harmless the other

party from and against any and all loss, damage, liability, cost and expense

including, without limitation, reasonable attorneys’ fees and disbursements

relating to any personal injury, death or property damage, or other economic

losses arising from or concerning this agreement, or the negligence or willful

misconduct of the party holding the other harmless, including that party’s

employees and agents.

 

                15.           This agreement shall be governed by applicable local,

state or federal regulations or laws in the State of South Dakota. The parties

agree to cooperate in the obtaining of all permits, certificates and other

documents necessary or convenient to carry out the terms and purpose thereof.

 

                16.           This agreement may be modified at any time by mutual

written consent of the parties.

 

4

 

                17.           The parties mutually acknowledge that this is the entire

agreement between the parties.

 

                18.           This agreement and all terms and conditions herein shall

be binding upon the parties and their agents, successors and assigns.

 

                IN WITNESS WHEREOF, the parties

have hereunto executed this agreement by and through their authorized officers,

on the date first above written.

 

	

   

  	

   

  	

  SOUTH LINCOLN RURAL WATER SYSTEM, INC.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ Charles Kieehl

  
	

   

  	

   

  	

  Its

  	

  Chairman

  
	

  ATTEST:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  /s/ Ralph Homons

  	

   

  	

   

  	

   

  
	

  Its Secretary

  	

   

  	

   

  	

   

  

 

 

	

   

  	

  GREAT PLAINS ETHANOL, L.L.C.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  /s/ Darrin Innen

  
	

   

  	

  Its

  	

  President

  
	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  /s/ Darrell Buller

  	

   

  	

   

  	

   

  
	

  Its Secretary

  	

   

  	

   

  
				

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]