Document:

EX-10.22 FIRST AMENDMENT TO LEASE/PURCHASE DOCS.

 

Exhibit 10.22

     EXECUTION COPY

FIRST AMENDMENT TO LEASE/PURCHASE FACILITIES DOCUMENTS

Dated as of June 22, 2006

     This FIRST AMENDMENT TO LEASE/PURCHASE FACILITIES DOCUMENTS (this “Amendment”) is
among THE TENSAR CORPORATION LLC (“Tensar”), TCO FUNDING CORP. (“TCO”), and CREDIT
SUISSE as administrative agent (in such capacity, the “Administrative Agent”).

PRELIMINARY STATEMENTS:

     A.
Tensar, TCO and the Administrative Agent entered into a Lease and License Financing Purchase
Option Agreement, dated as of October 31, 2005 (as amended, supplemented or otherwise modified from
time to time, the “Lease Agreement”) and Tensar, TCO, the Administrative Agent and certain
other parties thereto, entered into a Working Capital Murabaha Facility Agreement, dated as of
October 31, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Commodities Purchase Agreement”); capitalized terms used and not otherwise defined herein
shall have the meanings ascribed to such terms in the Lease Agreement, and, if not defined therein,
in the Commodities Purchase Agreement; and

     B. Tensar has requested that TCO and the Administrative Agent amend the Lease Agreement, the
Commodities Purchase Agreement and certain related documentation in connection with the acquisition
by Tensar of The Tensar Group Limited.

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

     2. Amendments to Lease Agreement. Subject to the satisfaction of the conditions
set forth in Section 5 hereof:

          (a) Schedule 1 of the Lease Agreement is hereby amended to add the following new defined
terms in appropriate alphabetical order:

“Amendment Effective Date” shall have the meaning
assigned thereto in Section 5 of the First Amendment to the Lease/Purchase
Facilities Documents.

“First Amendment to the Lease/Purchase Facilities
Documents” shall mean the First Amendment to Lease/Purchase
Facilities Documents, dated as of June 22, 2006, among TCO, Tensar
Holdings, Tensar, the Administrative Agent and the other Tensar
Parties party thereto.

“Foreign Security Documents” shall have the meaning assigned
to such term in the Luxco Commodities Purchase Agreement.

 

 

“Luxco”
shall mean TTC Holdings S.à.r.l, a private limited
liability company (société à responsabilité
limitée) registered with the
Luxembourg Register of Commerce and Companies

“Luxco Commodities Purchase Agreement” shall mean the
Luxco Murabaha Facility Agreement, dated as of the Amendment Effective
Date, among Tensar Holdings, Luxco, TCO, Arcapita Investment Funding
Limited, as agent for TCO, AIA Limited as agent for Luxco, and Credit
Suisse, as administrative agent, as the same may be amended,
supplemented or otherwise modified in accordance with the terms
thereof.

“Luxco Commodities Purchase Facility” shall mean the Murabaha
facility provided for in the Luxco Commodities Purchase Agreement.

“Luxco Security Documents” shall have the meaning assigned to
such term in the Luxco Commodities Purchase Agreement.

“Luxco Subsidiary Guarantors” shall have the meaning
assigned to such term in the Luxco Commodities Purchase Agreement.

“Share Purchase Agreement” shall mean the Share
Purchase Agreement, dated May 16, 2006, among Tensar Holdings, TTC
UK Holdings Limited, 3i Group Plc, Electra General Partner and the
other vendors party thereto.

“Tensar Group Limited Acquisition” shall mean the
acquisition by Tensar Holdings pursuant to the Share Purchase
Agreement of all the Equity Interests in the Tensar Group
Limited; the aggregate amount of cash consideration for such
acquisition is approximately $86,900,000.

“UK Guarantors” shall mean Tensar Group Limited, Tensar
International Limited, Tensar Techologies Limited, Tensar
Manufacturing Limited and TTC UK Holdings Limited and each other
subsidiary of Luxco which provides a guarantee in respect of Luxco’s
obligations under the Luxco Commodities Purchase Agreement pursuant to
the terms thereof.

          (b) The
definition of “Agreed Profit” set forth in Schedule 1 of the Lease Agreement is
hereby amended and restated as follows:

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“Agreed Profit” shall mean “Agreed Profit” as defined in the
Commodities Purchase Agreement, the Luxco Commodities Purchase
Agreement and in the Second Lien Commodities Purchase Agreement, as
applicable.

          (c) The
definition of “Asset Sale” set forth in Schedule 1 of the Lease Agreement is hereby
amended and restated as follows:

“Asset Sale” shall mean the sale, lease, sub-lease,
license, sub-license, sale and leaseback, assignment, conveyance,
transfer, issuance or other disposition (by way of merger, casualty,
condemnation or otherwise) by (x) any Tensar Party (other than Luxco
and its subsidiaries) or any of the Subsidiaries (other than Luxco and
its subsidiaries) to any person (other than Tensar or any US
Guarantor) or (y) Luxco or any of its subsidiaries to any person
(other than Tensar or any subsidiary thereof which is a Guarantor) of
(a) any Equity Interests of any of the Subsidiaries or (b) any other
assets of any Tensar Party or any of the Subsidiaries, including
Equity Interests of any person that is not a Subsidiary; provided
that any asset sale or series of related asset sales described in
clause (b) above having a value not in excess of $250,000 shall be
deemed not to be an “Asset Sale” for purposes of this
Agreement.

          (d) The
definition of “Change in Control” set forth in Schedule 1 of the Lease Agreement is
hereby amended to amend and restate clause (d) therein as follows:

“(d) Tensar Holdings shall at any time fail to own directly or
indirectly, beneficially and of record, 100% of each class of issued
and outstanding Equity Interests in Holdings, Holdings shall fail to
own directly or indirectly, beneficially and of record, 100% of each
class of issued and outstanding Equity Interests in Tensar, or Tensar
shall fail to own, directly or indirectly, beneficially and of record,
100% of each class of issued and outstanding Equity Interests in
Luxco, in each case, free and clear of all Liens (except Liens created
by the Guarantee and Collateral Agreement, the Luxco Security
Documents or by the Second Lien Commodities Purchase Facility
Documents);”

          (e) The
definition of “Commodities Purchase Facilities Documents” set forth in Schedule 1 of
the Lease Agreement is hereby amended and restated as follows:

“Commodities Purchase Facility Documents” shall mean (i) the
Commodities Purchase Agreement and all other instruments, agreements and
other documents evidencing or

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governing the foregoing or providing for any Guarantee,
Lien or other right in respect thereof, including the Reimbursement
Letter and the Security Documents, as the same may be amended,
supplemented or otherwise modified in accordance with the terms
hereof and (ii) the Luxco Commodities Purchase Agreement and all
other instruments, agreements and other documents evidencing or
governing the foregoing or providing for any Guarantee, Lien or other
right in respect thereof, including the Security Documents and the
Foreign Security Documents, as the same may be amended, supplemented
or otherwise modified in accordance with the terms hereof.

          (f) The definition of “Consolidated Financing Expense” set forth in
Schedule 1 of the Lease Agreement is hereby amended and restated as follows:

“Consolidated Financing Expense” shall mean, for any period, the sum
of (a) rent or profit expense or the Rental Rate portion of rent of Tensar
Holdings and its Subsidiaries for such period (including, without
duplication, all Agreed Profit, Supplemental Profit and the Rental Rate
portion of Rent payable, agreed profit under the Luxco Commodities
Purchase Agreement, the Commodities Purchase Agreement and the Second Lien
Commodities Purchase Agreement and all commissions, discounts and other
fees and charges owed by Tensar and the Subsidiaries with respect to
Murabaha Guarantee Obligations, letters of credit and bankers’ acceptance
financing), in each case determined on a consolidated basis in accordance
with GAAP, plus (b) any profit expense or the rental rate portion of any
rent of Tensar or any Subsidiary that is required to be capitalized rather
than expensed for such period in accordance with GAAP, plus (c) any other
similar expense under GAAP.

          (g) The definition of “Consolidated Fixed Charges” set forth in Schedule 1 of the Lease
Agreement is hereby amended and restated as follows:

“Consolidated Fixed Charges” shall mean, for any period,
without duplication, the sum of (a) Consolidated Financing Expense for
such period paid in cash, (b) the aggregate amount of scheduled
Acquisition Cost payments in respect of the Leased Assets or scheduled
payments (whether or not made) during such period to reduce the unpaid
stated amount in respect of long term Financing Obligations (including
Purchase Price obligations under the Luxco Commodities Purchase Facility
(to the extent the Purchase Price for any Metals Transaction thereunder
is less than the Purchase Price

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for the immediately preceding Metals Transaction), Capital
Lease Obligations and Synthetic Lease Obligations, but excluding
payments applied to Purchase Price under the Commodities Purchase
Facility) of Tensar and its Subsidiaries (other than payments made by
Tensar or any of its Subsidiaries to Tensar or another Subsidiary),
(c) Capital Expenditures for such period, less Capital Expenditures
incurred in connection with the new BX geogrid manufacturing line in
Morrow, Georgia, and (d) the aggregate amount of Taxes paid in cash
(net of refunds received with respect to such Taxes) payable by Tensar
and its Subsidiaries during such period in accordance with Section
1.06(iii)(y) of Schedule 4.

          (h) The definition of “Current Assets” set forth in Schedule 1 of the Lease Agreement
is hereby amended to replace the term “Tensar” with the term “Tensar Holdings”.

          (i) The
definition of “Current Liabilities” set forth in Schedule 1 of the Lease Agreement is
hereby amended to replace the term “Tensar” with the term “Tensar Holdings”.

          (j) The
definition of “Excess Cash Flow” set forth in Schedule 1 of the Lease Agreement is
hereby amended to amend and restate clause (iv) therein as follows:

“(iv) permanent repayments of Financing Obligations (other than
mandatory prepayments of Acquisition Cost pursuant to the terms of the
Put Option Letter or mandatory prepayments of Purchase Price pursuant
to Section 3.6 of the Luxco Commodities Purchase Agreement) permitted
hereunder made by Tensar and its Subsidiaries during such fiscal year,
but only to the extent that such prepayments by their terms cannot be
redrawn and do not occur in connection with a refinancing of all or
any portion of such Financing Obligations and”

          (k) The
definition of “First Lien Leverage Ratio” set forth in Schedule 1 of the Lease
Agreement is hereby amended and restated as follows:

“First Lien Leverage Ratio” shall mean, on any date, the
ratio of (a) Total Obligations with respect to this Agreement, the
Commodities Purchase Agreement and the Luxco Commodities Purchase
Agreement on such date to (b) Consolidated EBITDA for the period of four
consecutive fiscal quarters most recently ended on or prior to such
date, taken as one accounting period.

          (l) The
definition of “Metals Transaction” set forth in Schedule 1 of the Lease Agreement is
hereby amended and restated as follows:

 

5

 

“Metals Transaction” shall have the meaning assigned to such
term in the Commodities Purchase Facility Agreement or to the term
“Transaction” in the Luxco Commodities Purchase Facility Agreement, as
applicable.

          (m) The
definition of “Murabaha Price” set forth in Schedule 1 of the Lease Agreement is hereby
amended and restated as follows:

“Murabaha Price” shall have the meaning assigned to
such term in the Commodities Purchase Agreement, the Luxco
Commodities Purchase Agreement or the Second Lien Commodities
Purchase Agreement, as applicable.

          (n) The
definition of “Permitted Acquisition” set forth in
Schedule 1 of the Lease Agreement is
hereby amended to replace the term “Section 4” in
clause (B) thereof with the term “Schedule 4”.

          (o) The
definition of “Purchase Price” set forth in Schedule 1 of the Lease Agreement is
hereby amended and restated as follows:

“Purchase Price” shall have the meaning set forth in the
Commodities Purchase Agreement, the Luxco Commodities Purchase
Agreement or the Second Lien Commodities Purchase Agreement, as applicable.

          (p) The
definition of “Unpaid Reimbursement Obligations” set forth
in Schedule 1 of the Lease Agreement
is hereby amended and restated as follows:

“Unpaid Reimbursement Obligations” shall have the meaning assigned
to such term in the Commodities Purchase Agreement.

          (q) The
definition of “wholly-owned subsidiary” set forth in
Schedule 1 of the Lease Agreement is
hereby amended to replace the term “Tensar” with the term
“Tensar Holdings”.

          (r) Annex
1(c) to Schedule 1 of the Lease Agreement is hereby amended and restated as set
forth on Annex D hereto.

          (s) Section 1.14 of Schedule 2 of the Lease Agreement is hereby amended to amend and restate
the first sentence thereof as follows:

“Except with respect to the tax returns of The Tensar Group
Limited for the period ended September 30, 2002, each of the
Tensar Parties and each of the Subsidiaries has timely filed or
timely caused to be filed all Federal, state, local and foreign
tax returns or materials required to be filed

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by it and all such tax returns are correct and complete
in all materal requests.”

          (t) Section 1.19(a) of Schedule 2 of the Lease Agreement is hereby amended to amend and
resated clause (i) therein as follows:

“(i) in the case of the Pledged Securities described
therein when financing statements in appropriate form are filed
in the offices specified on Annex 19(a) to this Schedule 2 (as
such schedule may be supplemented for any new Subsidiary in
connection with the execution of an Assumption Agreement (as
defined in the Guarantee and Collateral Agreement), or solely
with respect to certificated Pledged Securities which have
elected to be treated as securities under Article 8 of the UCC,
when such Pledged Securities are delivered to TCO and”

          (u) Section 1.01(d) of Schedule 4 of the Lease Agreement is hereby amended to replace the
number “2,500,000” with the number “4,000,000”.

          (v) Section 1.01(e) of Schedule 4 of the Lease Agreement is hereby amended and
restated as follows:

“(e) Financing Obligations (i) of Tensar Holdings and Tensar under
the Commodities Purchase Facility Agreement in an aggregate stated
amount (excluding profit amount) not to exceed $40,000,000 and Financing
Obligations of the Guarantors under any Guarantees in respect of such
Financing Obligations and any Permitted Refinancing Obligations in
respect of any such Financing Obligations, (ii) of Tensar Holdings and
Luxco under the Luxco Commodities Purchase Facility Agreement in an
aggregate stated amount (excluding profit amount) not to exceed
$80,000,000, and Financing Obligations of the Guarantors and the UK
Guarantors under any Guarantees in respect of such Financing Obligations
and any Permitted Refinancing Obligations in respect of any such
Financing Obligations, and (iii) of Tensar Holdings and Tensar under the
Second Lien Commodities Purchase Facility in aggregate stated amount
(excluding profit amount) not to exceed $84,000,000 and Financing
Obligations of the Guarantors under any Guarantees in respect of such
Financing Obligations and any Permitted Refinancing Obligations in
respect of any such Financing Obligations;”

7

 

          (w) Section 1.01(f)
of Schedule 4 of the Lease Agreement is hereby amended to replace the
number “2,500,000” with the number “4,000,000”.

          (x) Section 1.0l(k) of Schedule 4 of the Lease Agreement is hereby amended to replace the
number “2,500,000” with the number “4,000,000”.

          (y) Section 1.02(i) of Schedule 4 of the Lease Agreement is hereby amended to replace the
number “2,500,000” with the number “4,000,000”.

          (z) Section 1.04(a) of Schedule 4 of the Lease Agreement is hereby amended to amend and
restate clause (B) therein as follows:

“(B)the aggregate amount of Investments by the Tensar Parties
(other than Luxco and its subsidiaries) in Subsidiaries of Tensar
that are not Subsidiary Guarantors shall not exceed $14,000,000, at
any time outstanding; provided that the aggregate amount of
Investments in Subsidiaries of Tensar other than Luxco or the Luxco
Subsidiary Guarantors shall not exceed $4,000,000, at any time
outstanding and”

          (aa) Section 1.04(m) of Schedule 4 of the Lease Agreement is hereby amended to replace the
number “2,500,000” with the number “4,000,000”.

          (bb) Section 1.04 of Schedule 4 of the Lease Agreement is hereby further amended (i) to delete
the word “and” at the end of clause (l) thereof, (ii) reletter clause (m) as clause (n) and (iii)
insert the following new clause (m):

“(m) the Tensar Group Limited Acquisition; and”

          (cc) 
Section 1.05(f) of Schedule 4 of the Lease Agreement is hereby amended and restated as
follows:

“(f) the purchase and sale of commodities by Tensar under the
Commodities Purchase Agreement and the purchase and sale of
commodities by Luxco under the Luxco Commodities Purchase Agreement;”

          (dd) Section 1.08(b) of Schedule 4 of the Lease Agreement is hereby amended to insert the
following parenthetical at the end of clause (ii) therein:

“(other than the issuance or sale of Equity Interests in
connection with intercompany Investments otherwise permitted under
Section 1.04 of this Schedule 4)”

          (ee) Section 1.08 of Schedule 4 of the Lease Agreement is hereby further amended to add the
following new clause (d) at the end thereof:

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“(d) With respect to Luxco, engage in any business activities or have any
assets or liabilities other than its ownership of the Equity Interests in
TTC UK Holdings Limited and liabilities incidental thereto, including its
liabilities pursuant to the Luxco Commodities Purchase Agreement.”

          (ff) Sections 1.10, 1.11, 1.12, 1.13 and 1.14 of Schedule 4 of the Lease Agreement are hereby
amended and restated as set forth on Annex A hereto.

          (gg) Annex 7 to Schedule 4 of the Lease Agreement is hereby amended to add transactions set
forth on Annex E hereto.

          (hh) Annex 8 to Schedule 4 of
the Lease Agreement is hereby amended and restated as set forth on
Annex F hereto.

          (ii) Annex 17 to Schedule 4 of the Lease Agreement is hereby amended and restated as set
forth on Annex G hereto.

          (jj) Section 1 of Schedule 7 of the Lease Agreement is hereby amended to replace the phrase
“the payment in full of the Acquisition Cost and the Rent” in the last sentence thereof, the phrase
“the payment in full of the Obligations”.

          (kk) Section 4(c) of Schedule 7 of the Lease Agreement is hereby amended and restated as
follows

“(c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 25. Nothing in
this Agreement will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.”

     3. Amendments to Commodities Purchase Agreement. Subject to the satisfaction of the
conditions set forth in Section 5 hereof:

          (a) the definition of Maximum Facility Amount contained in Section 1.1 of the Commodities
Purchase Agreement is hereby amended by replacing the dollar amount “$30,000,000” with the dollar
amount “$40,000,000”.

          (b) Sections 3.7(c), (d), (e) and (f) of the Commodities Purchase Agreement are hereby amended
and restated as follows:

“(c) Not later than the third Business Day following the receipt
by Tensar Holdings, Tensar or any of the Subsidiaries of Net Cash
Proceeds arising from completion of any Asset Sale or the occurrence of
any Recovery Event, and to the extent that less than 100% of the Net
Cash Proceeds from such Asset Sale or Recovery Event have been applied
towards the payment of the Acquisition Cost

9

 

of the Leased Assets under the Lease Agreement
pursuant to an exercise of the Asset Sales Option
under the Put Option Letter and toward the
repayment of Murabaha Prices in respect of Metals
Transactions pursuant to Section 3.6 of the Luxco
Commodities Purchase Agreement, Tensar shall remit
any such excess Net Cash Proceeds to TCO to repay
one or more Murabaha Prices in respect of Metals
Transactions (in the direct order of the Payment
Dates therefor) and, thereafter, to be remitted to
TCO to be held as cash collateral in accordance
with Section 2.4.

(d) In the event and on each occasion that an
Equity Issuance occurs, and to the extent that
less than 50% of the Net Cash Proceeds from such
Equity Issuance have been applied towards the
payment of the Acquisition Cost of the Leased
Assets under the Lease Agreement pursuant to an
exercise of the Equity Issuance Option under the
Put Option Letter and toward the repayment of
Murabaha Prices in respect of Metals Transactions
pursuant to Section 3.6 of the Luxco Commodities
Purchase Agreement, Tensar shall remit such excess
Net Cash Proceeds to TCO to repay one or more
Murabaha Prices in respect of Metals Transactions
(in the direct order of the Payment Dates
therefor) and, thereafter, to be remitted to TCO
to be held as cash collateral in accordance with
Section 2.4.

(e) In the event that any Tensar Party receives
Net Cash Proceeds from the issuance or other
incurrence of Financing Obligations of any Tensar
Party (other than Financing Obligations permitted
to be incurred under Section 1.01 of Schedule 4
hereto), and to the extent that less than 100% of
the Net Cash Proceeds from the issuance or
incurrence of such Financing Obligations have
been applied towards the payment of the
Acquisition Cost of the Leased Assets under the
Lease Agreement pursuant to an exercise of the
Financing Obligation Option under the Put Option
Letter and toward the repayment of Murabaha
Prices in respect of Metals Transactions pursuant
to Section 3.6 of the Luxco Commodities Purchase
Agreement, Tensar shall remit such excess Net
Cash Proceeds to TCO to repay one or more
Murabaha Prices in respect of Metals Transactions
(in the direct order of the Payment Dates
therefor) and, thereafter, to be remitted to TCO
to be held as cash collateral in accordance with
Section 2.4.

(f) Not later than the earlier of (1) 90 days
after the end of each fiscal year of Tensar,
commencing with the

10

 

fiscal year ending on December 31, 2006, and (2) the date which
is five Business Days after the date on which the financial
statements with respect to such period are delivered pursuant to
Schedule 3 hereto, and to the extent that an amount less than
(A) the ECF Percentage times (B) the Excess Cash Flow for the fiscal
year then ended has been applied towards the payment of the
Acquisition Cost of the Leased Assets under the Lease Agreement
pursuant to an exercise of the ECF Option under the Put Option Letter
and toward the repayment of Murabaha Prices in respect of Metals
Transactions pursuant to Section 3.6 of the Luxco Commodities
Purchase Agreement, Tensar shall remit such excess amount to TCO to
repay one or more Murabaha Prices in respect of Metals Transactions
(in the direct order of the Payment Dates therefor) and, thereafter,
to be remitted to TCO to be held as cash collateral in accordance
with Section 2.4.”

          (c) Section 5.2
of the Commodities Purchase Agreement is hereby amended to replace the phrase
“each of the other Tensar Parties” with the phrase
“each of its Subsidiaries”.

          (d) Section 5.3
of the Commodities Purchase Agreement is hereby amended to replace the phrase
“each of the other Tensar Parties” with the phrase
“each of its Subsidiaries”.

          (e) Schedule 1
of the Commodities Purchase Agreement is hereby amended to add the following new
defined terms in appropriate alphabetical order:

“Amendment Effective Date” shall have the meaning assigned thereto
in Section 5 of the First Amendment to the Lease/Purchase Facilities
Documents.

“First Amendment to the Lease/Purchase Facilities
Documents” shall mean the First Amendment to Lease/Purchase
Facilities Documents, dated as of June 22, 2006, among TCO, Tensar
Holdings, Tensar, the Administrative Agent and the other Tensar
Parties party thereto.

“Foreign Security Documents” shall have the meaning assigned
to such term in the Luxco Commodities Purcahse Agreement.

“Luxco”
shall mean TTC Holdings S.à.r.l., a private
limited liability company (société à
responsabilité limitée) registered
with the Luxembourg Register of Commerce and Companies

“Luxco Commodities Purchase Agreement” shall mean the Luxco
Murabaha Facility Agreement, dated as of the

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Amendment Effective Date, among Tensar Holdings, Luxco,
TCO, Arcapita Investment Funding Limited, as agent for TCO, AIA
limited as agent for Luxco, and Credit Suisse, as administrative
agent, as the same may be amended, supplemented or otherwise modified
in accordance with the terms hereof.

“Luxco Commodities Purchase Facility” shall mean the
Murabaha facility provided for in the Luxco Commodities Purchase
Agreement.

“Luxco Commodities Purchase Facility Documents” shall have the
meaning assigned to such term in the definition of Commodities Purchase
Facility Documents.

“Luxco Security Documents” shall have the meaning assigned to
such term in the Luxco Commodities Purchase Agreement.

“Luxco Subsidiary Guarantors” shall have the meaning
assigned to such term in the Luxco Commodities Purchase Agreement.

“Put Option Letter” shall have the meaning assigned to
such term in the Lease Agreement.

“Share Purchase Agreement” shall mean the Share Purchase
Agreement, dated May 16, 2006, among Tensar Holdings, TTC UK
Holdings Limited, 3i Group Plc, Electra General Partner and the
other vendors party thereto.

“Tensar Group Limited Acquisition” shall mean the
acquisition by Tensar Holdings pursuant to the Share Purchase
Agreement of all the Equity Interests in the Tensar Group
Limited; the aggregate amount of cash consideration for such
acquisition is approximately $86,900,000.

“UK Guarantors” shall mean Tensar Group Limited, Tensar
International Limited, Tensar Techologies Limited, Tensar
Manufacturing Limited and TTC UK Holdings Limited and each other
subsidiary of Luxco which provides a guarantee in respect of Luxco’s
obligations under the Luxco Commodities Purchase Agreement pursuant to
the terms thereof.

          (f) The
definition of “Asset Sale” set forth in Schedule 1 of the Commodities Purchase
Agreement is hereby amended and restated as follows:

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“Asset Sale” shall mean the sale, lease, sub-lease, license,
sub-license, sale and leaseback, assignment, conveyance, transfer,
issuance or other disposition (by way of merger, casualty,
condemnation or otherwise) by (x) any Yensar Party (other than Luxco
and its subsidiaries) or any of the Subsidiaries (other than Luxco and
its subsidiaries) to any person (other than Tensar or any US
Guarantor) or (y) Luxco or any of its subsidiaries to any person
(other than Tensar or any subsidiary thereof which is a Guarantor) of
(a) any Equity Interests of any of the Subsidiaries or (b) any other
assets of any Tensar Party or any of the Subsidiaries, including
Equity Interests of any person that is not a Subsidiary;
provided that any asset sale or series of related asset sales
described in clause (b) above having a value not in excess of $250,000
shall be deemed not to be an “Asset Sale” for purposes of this
Agreement.

          (g) The
definition of “Change in Control” set forth in Schedule 1 of the Commodities Purchase
Agreement is hereby amended to amend and restate clause
(d) therein as  follows:

“(d) Tensar Holdings shall at any time fail to own directly or
indirectly, beneficially and of record, 100% of each class of issued
and outstanding Equity Interests in Holdings, Holdings shall fail to
own directly or indirectly, beneficially and of record, 100% of each
class of issued and outstanding Equity Interests in Tensar, or Tensar
shall fail to own, directly or indirectly, beneficially and of record,
100% of each class of issued and outstanding Equity Interests in
Luxco, in each case, free and clear of all Liens (except Liens created
by the Guarantee and Collateral Agreement, the Luxco Security
Documents or by the Second Lien Commodities Purchase Facility
Documents);”

          (h) The
definition of “Commodities Purchase Facilities Documents”
set forth in Schedule 1 of the
Commodities Purchase Agreement is hereby amended and restated as follows:

“Commodities Purchase Facility Documents” shall mean (i)
this Agreement and all other instruments, agreements and other documents
evidencing or governing the foregoing or providing for any Guarantee,
Lien or other right in respect thereof, including the Reimbursement
Letter and the Security Documents, as the same may be amended,
supplemented or otherwise modified in accordance with the terms hereof
and (ii) the Luxco Commodities Purchase Agreement and all other
instruments, agreements and other documents evidencing or governing the
foregoing or providing for any Guarantee, Lien

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or other right in respect thereof, including the Security Documents and
the Foreign Security Documents, as the same may be amended,
supplemented or otherwise modified in accordance with the terms hereof
(the “Luxco Commodities Purchase Facility Documents”).

          (i) The
definition of “Consolidated Financing Expense” set forth in
Schedule 1 of the Commodities
Purchase Agreement is hereby amended and restated as follows:

“Consolidated Financing Expense” shall mean, for any period, the
sum of (a) rent or profit expense or the Rental Rate portion of rent of
Tensar Holdings and its Subsidiaries for such period (including, without
duplication, all Agreed Profit, Supplemental Profit and the Rental Rate
portion of Rent payable, agreed profit under this Agreement, the Second
Lien Commodities Purchase Agreement and the Luxco Commodities Purchase
Agreement and all commissions, discounts and other fees and charges owed
by Tensar and the Subsidiaries with respect to Guarantee Obligations,
letters of credit and bankers’ acceptance financing), in each case
determined on a consolidated basis in accordance with GAAP, plus (b) any
profit expense or the rental rate portion of any rent of Tensar or any
Subsidiary that is required to be capitalized rather than expensed for
such period in accordance with GAAP, plus (c) any other similar expense
under GAAP.

          (j) The
definition of “Consolidated Fixed Charges” set forth in
Schedule 1 of the Commodities
Purchase Agreement is hereby amended and restated as follows:

“Consolidated Fixed Charges” shall mean, for any period,
without duplication, the sum of (a) Consolidated Financing Expense for
such period paid in cash, (b) the aggregate amount of scheduled
Acquisition Cost payments in respect of the Leased Assets or scheduled
payments (whether or not made) during such period to reduce the unpaid
stated amount in respect of long term Financing Obligations (including
Purchase Price obligations under the Luxco Commodities Purchase Facility
(to the extent the Purchase Price for any Metals Transaction thereunder
is less than the Purchase Price for the immediately preceding Metals
Transaction), Capital Lease Obligations and Synthetic Lease Obligations,
but excluding payments applied to Purchase Price under the Commodities
Purchase Facility) of Tensar and its Subsidiaries (other than payments
made by Tensar or any of its Subsidiaries to Tensar or another
Subsidiary), (c) Capital Expenditures for such period, less Capital
Expenditures incurred in connection with the new BX geogrid

14

 

manufacturing line in Morrow, Georgia, and (d) the aggregate
amount of Taxes paid in cash (net of refunds received with respect to
such Taxes) payable by Tensar and its Subsidiaries during such period
in accordance with Section 1.06(iii)(y) of Schedule 4.

          (k) The
definition of “Current Assets” set forth in Schedule 1 of the Commodities
Purchase Agreement is hereby amended to replace the term “Tensar” with the term “Tensar Holdings”.

      
    (l) The
definition of “Current Liabilities” set forth in Schedule 1 of the Commodities Purchase
Agreement is hereby amended to replace the term “Tensar” with the term “Tensar Holdings”.

          (m) The
definition of “Excess Cash Flow” set forth in Schedule 1 of the Commodities Purchase
Agreement is hereby amended to amend and restate clause (iv) therein as follows:

“(iv) permanent repayments of Financing Obligations (other than
mandatory prepayments of Acquisition Cost pursuant to the terms of
the Put Option Letter or mandatory prepayments of Purchase Price
pursuant to Section 3.6 of the Luxco Commodities Purchase Agreement)
permitted hereunder made by Tensar and its Subsidiaries during such
fiscal year, but only to the extent that such prepayments by their
terms cannot be redrawn and do not occur in connection with a
refinancing of all or any portion of such Financing Obligations and”

          (n) The
definition of “First Lien Leverage Ratio” set forth in Schedule 1 of the Commodities
Purchase Agreement is hereby amended and restated as follows:

“First Lien Leverage Ratio” shall mean, on any date, the
ratio of (a) Total Obligations with respect to this Agreement, the
Commodities Purchase Agreement and the Luxco Commodities Purchase
Agreement on such date to (b) Consolidated EBITDA for the period of four
consecutive fiscal quarters most recently ended on or prior to such date,
taken as one accounting period.

          (o) The
definition of “Material Obligations” set forth in Schedule 1 to the Commodities
Purchase Agreement is hereby amended (i) by inserting the words “any Luxco Commodity Purchase
Facility Document,” immediately after the words “any Lease
Document” in clause (i) thereof and (ii) by
replacing the term “Commodities Purchase Facility
Documents” with the term “this Agreement” in clause (ii)
thereof.

15

 

          (p) The
definition of “Metals Transaction” set forth in Schedule 1 of the Commodities
Purchase Agreement is hereby amended and restated as follows:

“Metals Transaction”
shall have the meaning assigned to such term in Article 1 of this Agreement or the term “Transaction” in the
Luxco Commodities Purchase Facility Agreement, as applicable.

          (q) The
definition of “Permitted Acquisition” set forth in Schedule 1 of the
Commodities Purchase Agreement is hereby amended to replace the term “Section 4” in
clause (B) thereof with the term “Schedule 4”.

          (r) The
definition of “Related Financing Documents” set forth in
Schedule 1 to the Commodities Purchase
Agreement is hereby amended by inserting the words “the Luxco
Commodity Purchase Facility Documents,”
immediately after the words “the Lease Documents”.

          (s) The
definition of “wholly-owned subsidiary” set forth in
Schedule 1 of the Commodities
Purchase Agreement is hereby amended to replace the term
“Tensar” with the term “Tensar Holdings”.

          (t) Annex
1(c) of Schedule 1 of the Lease Agreement is hereby amended
and restated as set
forth on Annex D hereto.

          (u) Section 1.14
of Schedule 2 of the Commodities Purchase Agreement is hereby amended to amend and
restate the first sentence thereof as follows:

“Except with respect to the tax returns of The Tensar
Group Limited for the period ended September 30, 2002, each of
the Tensar Parties and each of the Subsidiaries has timely
filed or timely caused to be filed all Federal, state, local
and foreign tax returns or materials required to be filed by it
and all such tax returns are correct and complete in all
materal requests.”

          (v) Section 1.19(a)
of Schedule 2 of the Commodities Purchase Agreement is hereby amended to
amend and resated clause (i) therein as follows:

“(i) in the case of the Pledged Securities described
therein when financing statements in appropriate form are
filed in the offices specified on Annex 19(a) to this Schedule
2 (as such schedule may be supplemented for any new Subsidiary
in connection with the execution of an Assumption Agreement
(as defined in the Guarantee and Collateral Agreement), or
solely with respect to certificated Pledged Securities which
have elected to be treated as securities

16

 

under Article 8 of the UCC, when such Pledged
Securities are delivered to TCO and”

          (w) Section 1.01(c) of Schedule 4 of the Commodities Purchase Agreement is hereby amended to
replace the words “an Affiliate Subordination Agreement” with the words, “the Affiliate
Subordination Agreement or such other subordination agreement as is reasonably acceptable to TCO”.

          (x) Section 1.01(d) of Schedule 4 of the Commodities Purchase Agreement is hereby amended
to replace the number “2,500,000” with the number “4,000,000”.

          (y) Section 1.01(e) of Schedule 4 of the Commodities Purchase Agreement is hereby amended
and restated as follows:

“(e) Financing Obligations (i) of Tensar under the Lease
Agreement in an aggregate stated amount (excluding profit amount) not
to exceed $147,000,000 and Financing Obligations of the Guarantors
under any Guarantees in respect of such Financing Obligations and any
Permitted Refinancing Obligations in respect of any such Financing
Obligations, (ii) of Tensar Holdings and Luxco under the Luxco
Commodities Purchase Facility Agreement in an aggregate stated amount
(excluding profit amount) not to exceed $80,000,000 and Financing
Obligations of the Guarantors and the UK Guarantors under any
Guarantees in respect of such Financing Obligations and any Permitted
Refinancing Obligations in respect of any such Financing Obligations
and (iii) of Tensar and Tensar Holdings under the Second Lien
Commodities Purchase Facility in aggregate stated amount (excluding
profit amount) not to exceed $84,000,000 and Financing Obligations of
the Guarantors under any Guarantees in respect of such Financing
Obligations and any Permitted Refinancing Obligations in respect of
any such Financing Obligations;

          (z) Section 1.01(f) of Schedule 4 of the Commodities Purchase Agreement is hereby
amended to replace the number “2,500,000” with the number “4,000,000”.

          (aa) Section 1.01(k) of Schedule 4 of the Commodities Purchase Agreement is hereby
amended to replace the number “2,500,000” with the number “4,000,000”.

          (bb) Section 1.02(i) of Schedule 4 of the Commodities Purchase Agreement is hereby
amended to replace the number “2,500,000” with the number “4,000,000”.

          (cc) Section 1.04(a) of Schedule 4 of the Commodities Purchase Agreement is hereby amended
to amend and restate clause (B) therein as follows:

17

 

“(B) the aggregate amount of Investments by the Tensar
Parties (other than Luxco and its subsidiaries) in Subsidiaries of
Tensar that are not Subsidiary Guarantors shall not exceed
$14,000,000, at any time outstanding; provided that the
aggregate amount of Investments in Subsidiaries of Tensar other than
Luxco or the Luxco Subsidiary Guarantors shall not exceed
$4,000,000, at any time outstanding and”

          (dd) Section 1.04(m) of Schedule 4 of the Commodities Purchase Agreement is hereby amended to
replace the number “2,500,000” with the number “4,000,000”.

          (ee) Section 1.04
of Schedule 4 of the Commodities Purchase Agreement is hereby further amended (i)
to delete the word “and” at the end of clause
(1) thereof, (ii) reletter clause (m) as clause (n) and
(iii) insert the following new clause (m):

“(m) the Tensar Group Limited Acquisition; and”

          (ff) Section 1.05(f) of Schedule 4 of the Commodities Purchase Agreement is hereby amended and
restated as follows:

“(f) the purchase and sale of commodities by Tensar under this
Agreement and the purchase and sale of commodities by Luxco under the
Luxco Commodities Purchase Agreement;”

          (gg) Section 1.08(b) of Schedule 4 of the Commodities Purchase Agreement is hereby amended to
insert the following parenthetical at the end of clause (ii) therein:

“(other than the issuance or sale of Equity Interests in
connection with intercompany Investments otherwise permitted
under Section 1.04 of this Schedule 4)”

          (hh) Section 1.08
of Schedule 4 of the Commodities Purchase Agreement is hereby further amended to
add the following new clause (d) at the end thereof:

“(d) With respect to Luxco, engage in any business activities or
have any assets or liabilities other than its ownership of the Equity
Interests in TTC UK Holdings Limited and liabilities incidental thereto,
including its liabilities pursuant to the Luxco Commodities Purchase
Facility Agreement.”

          (ii) Sections 1.10, 1.11, 1.12, 1.13 and 1.14 of Schedule 4 of the Commodities Purchase
Agreement are hereby amended and restated as set forth on Annex A hereto.

          (jj) Annex 7 to Schedule 4 of the Commodities Purchase Agreement is hereby amended to add
those transactions set forth on Annex E hereto.

18

 

          (kk) Annex 8 to Schedule 4 of the Commodities Purchase Agreement is hereby amended and
restated as set forth on Annex F hereto.

          (ll) Anned 17 to Schedule 4 of the Commodities Purchase Agreement is hereby amended and
restated as set forth on Annex G hereto.

          (mm) Section 1 of Schedule 6 of the Commodities Purchase Agreement is hereby amended to
replace the phrase “the payment in full of the Acquisition Cost and the Rent” in the last sentence
thereof, with the phrase “the payment in full of the
Obligations”.

          (nn) Section 4(c) of Schedule 6 of the Commodities Purchase Agreement is hereby amended and
restated as follows

“(c) Each party to this Agreement irrevocably consents to service
of process in the manner provided for notices in Section 8.1.
Nothing in this Agreement will affect the right of any party to
this Agreement to serve process in any other manner permitted by
law.”

     4. Amendments to Guarantee and Collateral Agreement. Subject to the satisfaction of the
conditions set forth in Section 5 hereof:

          (a) Section 1.1 of the Guarantee and Collateral Agreement is hereby amended to add the
following defined term in appropriate alphabetical order:

“Luxco Commodities Purchase Facility Documents”
small mean, collectively, the Luxco Commodities Purchase
Agreement and all other instruments, agreements and other
documents evidencing or governing the foregoing or providing for
any Guarantee, Lien or other right in respect thereof, including
the Security Documents and the Foreign Security Documents, as
the same may be amended, supplemented or otherwise modified in
accordance with the terms hereof.

          (b) Section 1.1 of the Guarantee and Collateral Agreement is hereby amended to add the
following new definition in correct alphabetical order

“Luxco Murabaha Obligations” shall mean the collective
reference to the aggregate amount of unpaid Murabaha Price, Agreed
Profit, fees, including late fees at the Default Rate under the Luxco
Commodities Purchase Agreement (including Agreed Profit and such late
fees incurred or accruing after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding,
relating to any Grantor, whether or not a claim for post-filing or
post-petition obligations is allowed in such proceeding) and all

19

 

other obligations and liabilities of Luxco, whether direct
or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in
connection with any Luxco Commodities Purchase Facility Document, or
any other document made, delivered or given in connection herewith or
therewith, whether on the Effective Date or thereafter and whether on
account of principal, purchase price, agreed profit, reimbursement
obligations, fees, indemnities, costs, expenses (including all fees,
charges and disbursements of counsel to TCO or to the Administrative
Agent that are required to be paid by any Grantor pursuant to any
Luxco Commodities Purchase Facility Document) or otherwise, including
any Guarantee, obligation or indemnity (contingent or otherwise) owed
by Luxco to TCO or entered into to support the obligations or
indemnities of any holder of TCO’s equity interests to any third
party.

          (c) The
Definition of Commodities Purchase Agreement contained in Section 1.1 of the
Guarantee and Collateral Agreement is hereby amended to add the
following immediately after the word
“recitals” : “; provided that, for purposes of the definition of Default, Event of Default,
Security Documents, Sections 4, 5, 6, 7 and 8, the term
Commodities Purchase Agreement shall also be
deemed to include the Luxco Commodities Purchase Agreement”.

          (d) The Definition of Lease/Purchase Facilities Documents contained in
Section 1.1 of the Guarantee and Collateral Agreement is hereby amended and restated as follows:

“Lease/Purchase Facilities Documents” shall
mean, collectively, the Lease Documents, the Commodities Purchase
Facility Documents and the Luxco Commodities Purchase Facility
Documents.

          (e) The
definition of “Obligations” contained in Section 1.1 of the Guarantee and
Collateral Agreement is hereby amended and restated as follows:

“Obligations” shall mean (i) in the case of Tensar,
the Lease Obligations and the Working Capital Obligations, (ii) in the
case of Luxco, the Luxco Murabaha Obligations, and (iii) in the of each
Guarantor (including Tensar in its capacity as a Guarantor hereunder),
its Guarantor Obligations,”

          (f) The
definition of “Guarantors” contained in Section 1.1 of the Guarantee and
Collateral Agreement is hereby amended and restated as follows:

“Guarantors” shall mean, with respect to the Obligations of
Tensar, the collective reference to each Grantor other than

20

 

Tensar and, with respect to the Obligations of Luxco, the collective
reference to each Grantor.

          (g) The
definition of “Guarantor Obligations” contained in Section 1.1 of the Guarantee and
Collateral Agreement is hereby amended and restated as follows:

“Guarantor Obligations” shall mean with respect to any
Guarantor, all obligations and liabilities of such Guarantor which may
arise under or in connection with this Agreement (including Section 2)
or any other Lease/Purchase Facilities Document to which such Guarantor
is a party, in each case whether on account of guarantee obligations,
reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including all fees and disbursements of counsel to any
Secured Party that are required to be paid by such Guarantor pursuant
to the terms of this Agreement or any other Lease/Purchase Facilities
Document); provided that, for the avoidance of doubt, the Guarantor
Obligations of Tensar shall exclude the Lease Obligations and Working
Capital Obligations.

          (h) The
definition of “Security Documents” contained in Section 1.1 of the Guarantee and
Collateral Agreement is hereby amended to insert the words “by a Grantor” immediately after the
words “executed and delivered”.

          (i) Section 2 of the Guarantee and Collateral Agreement is hereby amended and restated as set
forth on Annex B.

     5. Conditions to Effectiveness. The effectiveness of the amendments
contained in
Section 1 of this Amendment are conditioned upon satisfaction of the following conditions precedent
(the date on which all such conditions precedent have been satisfied being referred to herein as
the “Amendment Effective Date”):

          (a) the Administrative Agent and TCO shall have received counterparts of this Amendment signed
by each of Tensar, TCO and the Administrative Agent;

          (b) each of the representations and warranties in Section 6 below shall be true and correct in
all material respects on and as of the Amendment Effective Date; and

          (c) the Administrative Agent and TCO shall have received payment in immediately available
funds of all expenses incurred by the Administrative Agent (including, without limitation, legal
fees) that are then due and payable and reimbursable under the Lease/Purchase Facilities Documents
and for which invoices have been presented.

     6.
Representations and Warranties. Each of Tensar Holdings and Tensar represents and
warrants to the Administrative Agent and TCO as follows:

21

 

          (a) Authority. Each Tensar Party party hereto has the corporate or other
organizational power and authority to execute and deliver this Amendment and to perform its
obligations hereunder and under each of the Lease/Purchase Facilities Documents amended hereby (as
amended hereby). The execution, delivery and performance by each Tensar Party party hereto of this
Amendment and each of the Lease/Purchase Facilities Documents (as amended hereby) and the
consummation by Tensar Holdings and Tensar of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate or other organizational action of such Person. No
material consent or authorization of, filing with, notice to, or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the execution, delivery,
performance, validity or enforceability of this Amendment, each of the Lease/Purchase Facilities
Documents (as amended hereby), except such as have been made or obtained and are in full force and
effect.

          (b) Enforceability. This Amendment has been duly executed and delivered on behalf of
each Tensar Party that is party hereto. Assuming the conditions precedent in Section 5 of this
Amendment have been satisfied, this Amendment and each of the Lease/Purchase Facilities Documents
(as amended hereby) (i) constitutes a legal, valid and binding obligation of each Tensar Party that
is a party hereto or thereto, as applicable, enforceable against such Tensar Party in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in equity or at law) and
(ii) is in full force and effect. Neither the execution or delivery of this Amendment by Tensar or
any of the Guarantors, as applicable, or the performance by Tensar or the Guarantors of their
respective obligations under this Amendment or each of the Lease/Purchase Facilities Documents (as
amended hereby), will adversely affect the validity, perfection or priority TCO’s Lien (for the
ratable benefit of Secured Parties) on any of the Collateral or its ability to realize thereon.

          (c) Representations and Warranties. After giving effect to this Amendment, the
representations and warranties contained in the Lease/Purchase Facilities Documents (other than any
such representations and warranties that, by their terms, are specifically made as of a date other
than the date hereof) are true and correct in all material respects on and as of the date hereof as
though made on and as of the date hereof; provided that Schedule 4.7(a) to the Guarantee
and Collateral Agreement is hereby supplemented to include the information set forth on Annex C.

          (d) No Conflicts. Neither the execution and delivery of this Amendment, nor the
consummation of the transactions contemplated hereby, nor the performance of and compliance with
the terms and provisions hereof, thereof or of the Lease/Purchase Facilities Documents (as amended
hereby) by any Tensar Party will, at the time of such performance, (i) violate (x) any provision of
law, statute, rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of any Tensar Party or any Subsidiary, (y) any order of any
Governmental Authority or arbitrator or (z) any provision of any indenture, agreement or other
instrument to which any Tensar Party or any Subsidiary is a party or by which any of them or any of
their property is or may be bound, (ii) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under, or give rise to any right to
accelerate or to require the prepayment, repurchase or redemption of any obligation under any such
indenture, agreement or other instrument or (iii) result in the creation or imposition of any Lien
upon or with respect to any property or assets

22

 

now owned or hereafter acquired by any Tensar Party or any Subsidiary (other than Liens created
under the Lease/Purchase Facility Documents and the Second Lien Commodities Purchase Facility
Documents).

          (e) No Default. After giving effect to this Amendment, no event has occurred and is
continuing that constitutes a Default or Event of Default.

     7. Reference to and Effect on the Lease/Purchase Facilities Documents.

          (a) Upon and after the effectiveness of this Amendment, each reference in any Lease/Purchase
Facilities Document to “this Agreement”, “hereunder”, “hereof” or words of like import referring to
such Lease/Purchase Facility Document, and each reference in the other Lease/Purchase Facilities
Documents to any Lease/Purchase Facility Document amended hereby (or “thereunder”, “thereof” or
words of like import referring to such Lease/Purchase Facilities Document), shall mean and be a
reference to such Lease/Purchase Facilities Document as amended hereby. This Amendment is a
Lease/Purchase Facilities Document.

          (b) Except as specifically amended by this Amendment, the Lease/Purchase
Facilities Documents 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 Security
Documents and all of the Collateral described therein do and shall continue to secure the payment
of all Financing Obligations under and as defined therein, in each case as modified hereby.

          (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 Secured Party under any
of the Lease/Purchase Facilities Documents, or, except as expressly provided herein, constitute a
waiver or amendment of any provision of any of the Lease/Purchase Facilities Documents.

     8. 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 one and the same
agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
shall be effective as delivery of a manually executed counterpart of this Amendment, as the case
may be.

     9. Severability. Any provision of this Amendment that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     10. 
Governing Law. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of New York.

     11. Reaffirmation.

23

 

          (a) Each Tensar Party party hereto hereby reaffirms and admits the validity and enforceability
of the Lease/Purchase Facilities Documents, all of such Tensar Party’s obligations thereunder and
all Liens and security interests created thereunder and agrees and admits that such Liens secure
the Obligations (as defined in the Guarantee and Collateral Agreement (as amended hereby),
including the additional Obligations added in connection with the this Amendment) and as of the date
hereof, it has no defenses to, or offsets or counterclaim against, any of its Obligations to, the
Liens and security interests created in favor of, the Administrative Agent or any other Secured
Party under the Lease/Purchase Facility Documents of any kind whatsoever.

          (b) Each
Tensar Party hereto which is a Guarantor of the Financing Obligations of Tensar under
the Lease/Purchase Facilities Documents hereby (i) consents to the foregoing amendments, and (ii)
acknowledges and agrees that notwithstanding the execution and delivery of this Amendment, the
obligations of each of the undersigned Guarantors are not impaired or affected and all guaranties given to
the holders of Financing Obligations (including, without limitation, the Financing Obligations after
giving effect to this Amendment) continue in full force and effect.

[Signature pages follow]

24

 

     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 written
above.

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, 

as Administrative Agent

 	 
	 	By:  	/s/ Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	DIRECTOR 	 
	 
	 	 	 
	 	By:  	/s/ Rianka Mohan
 	 
	 	 	Name:  	Rianka Mohan	 
	 	 	Title:  	ASSOCIATE 	 
	 

[FIRST AMENDMENT TO LEASE/PURCHASE FACILITIES DOCUMENTS]

 

 

	 	 	 	 	 
	 	TCO FUNDING CORP.

 	 
	 	By:  	/s/
John M. DeMilt
 	 
	 	 	Name:  	John M. DeMilt 	 
	 	 	Title:  	Vice President 	 
	 
	 	TENSAR HOLDINGS, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	CEO and President	 
	 
	 	THE TENSAR CORPORATION, LLC 

 	 
	 	By:  	The Tensar Corporation, its sole member
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	President and CEO	 
	 
	 	THE TENSAR CORPORATION 

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	President	 
	 
	 	TENSAR EARTH TECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	President	 
	 
	 	TENSAR POLYTECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 

[FIRST
AMENDMENT TO LEASE/PURCHASE FACILITIES DOCUMENTS]

 

 

	 	 	 	 	 
	 	GEOPIER FOUNDATION COMPANY, INC. 

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	GEOTECHNICAL REINFORCEMENT COMPANY, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	NORTH AMERICAN GREEN, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	ATLANTECH ALBAMA INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	ADVANCED EARTH TECHNOLOGY, INC.

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	MERITEX PRODUCTS CORPORATION 

 	 
	 	By:  	/s/ Philip D. Egan	 
	 	 	Name:  	Philip D. Egan	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

[FIRST
AMENDMENT TO LEASE/PURCHASE FACILITIES DOCUMENTS]

 

 

Annex A

Amended and Restated Financial Covenants

     1.10 Capital Expenditures. Permit the aggregate amount of Capital Expenditures made by
Tensar and its Subsidiaries in any period set forth below to exceed the amount set forth below for
such period:

	 	 	 	 	 
	Fiscal Year	 	Amount
	2006
	 	$	25,000,000	 
	2007
	 	$	12,000,000	 
	2008 and each fiscal year thereafter
	 	$	10,000,000	 

     1.11
Financing Coverage Ratio. Permit the Financing Coverage Ratio
during any period set
forth below to be less than the ratio set forth opposite such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	1.60:1.00	 
	September 30, 2006
	 	 	1.60:1.00	 
	December 31, 2006
	 	 	1.60:1.00	 
	March 31, 2007
	 	 	1.60:1.00	 
	June 30, 2007
	 	 	1.75:1.00	 
	September 30, 2007
	 	 	1.75:1.00	 
	December 31, 2007
	 	 	2.00:1.00	 
	March 31, 2008
	 	 	2.00:1.00	 
	June 30, 2008
	 	 	2.00:1.00	 
	September 30, 2008
	 	 	2.00:1.00	 
	December 31, 2008
	 	 	2.25:1.00	 
	March 31, 2009
	 	 	2.25:1.00	 
	June 30, 2009
	 	 	2.25:1.00	 
	September 30, 2009
	 	 	2.25:1.00	 
	December 31, 2009
	 	 	2.50:1.00	 
	March 31, 2010
	 	 	2.50:1.00	 
	June 30, 2010
	 	 	2.50:1.00	 
	September 30, 2010
	 	 	2.50:1.00	 
	December 31, 2010 and each fiscal quarter thereafter
	 	 	3.00:1.00	 

 

 

     1.12 Leverage Ratio. Permit the Leverage Ratio during any period set forth below to be
greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	6.75:1.00	 
	September 30, 2006
	 	 	6.75:1.00	 
	December 31, 2006
	 	 	6.75:1.00	 
	March 31, 2007
	 	 	6.75:1.00	 
	June 30, 2007
	 	 	6.25:1.00	 
	September 30, 2007
	 	 	6.00:1.00	 
	December 31, 2007
	 	 	5.50:1.00	 
	March 31, 2008
	 	 	5.50:1.00	 
	June 30, 2008
	 	 	5.50:1.00	 
	September 30, 2008
	 	 	5.50:1.00	 
	December 31, 2008
	 	 	4.75:1.00	 
	March 31, 2009
	 	 	4.75:1.00	 
	June 30, 2009
	 	 	4.75:1.00	 
	September 30, 2009
	 	 	4.75:1.00	 
	December 31, 2009
	 	 	4.25:1.00	 
	March 31, 2010
	 	 	4.25:1.00	 
	June 30, 2010
	 	 	4.25:1.00	 
	September 30, 2010
	 	 	4.25:1.00	 
	December 31, 2010
	 	 	3.75:1.00	 
	March 31, 2011
	 	 	3.75:1.00	 
	June 30, 2011
	 	 	3.75:1.00	 
	September 30, 2011
	 	 	3.75:1.00	 
	December 31, 2011
	 	 	3.25:1.00	 
	March 31, 2012
	 	 	3.25:1.00	 
	June 30, 2012
	 	 	3.25:1.00	 
	September 30, 2012
	 	 	3.25:1.00	 
	December 31, 2012 and each fiscal quarter thereafter
	 	 	2.75:1.00	 

     1.13
Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage
Ratio during any period
set forth below to be less than the ratio set forth opposite such period below:

 

 

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	1.15:1.00	 
	September 30, 2006
	 	 	1.15:1.00	 
	December 31, 2006
	 	 	1.15:1.00	 
	March 31, 2007
	 	 	1.15:1.00	 
	June 30, 2007
	 	 	1.25:1.00	 
	September 30, 2007
	 	 	1.25:1.00	 
	December 31, 2007
	 	 	1.35:1.00	 
	March 31, 2008
	 	 	1.35:1.00	 
	June 30, 2008
	 	 	1.35:1.00	 
	September 30, 2008
	 	 	1.35:1.00	 
	December 31, 2008
	 	 	1.40:1.00	 
	March 31, 2009
	 	 	1.40:1.00	 
	June 30, 2009
	 	 	1.40:1.00	 
	September 30, 2009
	 	 	1.40:1.00	 
	December 31, 2009 and each fiscal quarter thereafter
	 	 	1.50:1.00	 

     1.14 First Lien Leverage Ratio. Permit the First Lien Leverage Ratio during any
period set forth below to be greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	4.75:1.00	 
	September 30, 2006
	 	 	4.75:1.00	 
	December 31, 2006
	 	 	4.75:1.00	 
	March 31, 2007
	 	 	4.75:1.00	 
	June 30, 2007
	 	 	4.50:1.00	 
	September 30, 2007
	 	 	4.25:1.00	 
	December 31, 2007
	 	 	4.00:1.00	 
	March 31, 2008
	 	 	4.00:1.00	 
	June 30, 2008
	 	 	4.00:1.00	 
	September 30, 2008
	 	 	4.00:1.00	 
	December 31, 2008
	 	 	3.50:1.00	 
	March 31, 2009
	 	 	3.50:1.00	 
	June 30, 2009
	 	 	3.50:1.00	 
	September 30, 2009
	 	 	3.50:1.00	 

 

 

	 	 	 	 	 
	Fiscal Quarter Ended:
	 	Ratio
	 
	 	 	 	 
	December 31, 2009
	 	 	2.50:1.00	 
	March 31, 2010
	 	 	2.50:1.00	 
	June 30, 2010
	 	 	2.50:1.00	 
	September 30, 2010
	 	 	2.50:1.00	 
	December 31, 2010
	 	 	2.25:1.00	 
	March 31, 2011
	 	 	2.25:1.00	 
	June 30, 2011
	 	 	2.25:1.00	 
	September 30, 2011
	 	 	2.25:1.00	 
	December 31, 2011
	 	 	2.00:1.00	 
	March 31, 2012
	 	 	2.00:1.00	 
	June 30, 2012
	 	 	2.00:1.00	 
	September 30, 2012
	 	 	2.00:1.00	 
	December 31, 2012 and each fiscal quarter thereafter
	 	 	1.75:1.00	 

 

 

Annex B

SECTION 2. GUARANTEE

     2.1. Guarantee.

     (a) Each of the Guarantors (other than Tensar) hereby, jointly and severally, unconditionally
and irrevocably, guarantees to TCO, for the ratable benefit of the Secured Parties and their
respective successors, indorsees, transferees and assigns, the prompt and complete payment and
performance by Tensar when due (whether at the stated maturity, by acceleration or otherwise) of
Tensar’s Obligations. Each of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably, guarantees to TCO, for the ratable benefit of the Secured Parties and their respective
successors, indorsees, transferees and assigns, the prompt and complete payment and performance by
Luxco when due (whether at the stated maturity, by acceleration or otherwise) of Luxco’s
Obligations.

     (b) If and to the extent required in order for the Obligations of any Guarantor to be
enforceable under applicable federal, state and other laws relating to the insolvency of debtors,
the maximum liability of such Guarantor hereunder shall be limited to the greatest amount which can
lawfully be so guaranteed by such Guarantor under such laws, after giving effect to any rights of
contribution, reimbursement and subrogation arising under Section 2.2. Each Guarantor acknowledges
and agrees that, to the extent not prohibited by applicable law, (i) such Guarantor (as opposed to
its creditors, representatives of creditors or bankruptcy trustee, including such Guarantor in its
capacity as debtor in possession exercising any powers of a bankruptcy trustee) has no personal
right under such laws to reduce, or request any judicial relief that has the effect of reducing,
the amount of its liability under this Agreement, (ii) such Guarantor (as opposed to its creditors,
representatives of creditors or bankruptcy trustee, including such Guarantor in its capacity as
debtor in possession exercising any powers of a bankruptcy trustee) has no personal right to
enforce the limitation set forth in this Section 2.1 (b) or to reduce, or request judicial relief
reducing, the amount of its liability under this Agreement, and (iii) the limitation set forth in
this Section 2.l (b) may be enforced only to the extent required under such laws in order for the
obligations of such Guarantor under this Agreement to be enforceable under such laws and only by or
for the benefit of a creditor, representative of creditors or bankruptcy trustee of such Guarantor
or other person entitled, under such laws, to enforce the provisions thereof.

     (c) Each Guarantor (other than Tensar) agrees that the Obligations of Tensar may at any time
and from time to time be incurred or permitted in an amount exceeding the maximum liability of such
Guarantor under Section 2.1 (b) without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of any Secured Party hereunder and each Guarantor agrees that the
Obligations of Luxco may at any time and from time to time be incurred or permitted in an amount
exceeding the maximum liability of such Guarantor under Section 2.1 (b) without impairing the
guarantee contained in this Section 2 or affecting the rights and remedies of any Secured Party
hereunder.

     (d) The guarantee contained in this Section 2 shall remain in full force and effect until
payment in full of the Obligations, notwithstanding that from time to time during the

 

 

term of the Lease/Purchase Facilities Documents, Tensar may be free from any of its
Obligations and Luxco may be from any of its Obligations.

     (e) No payment made by Tensar, Luxco, any of the Guarantors, any other guarantor or any
other person or received or collected by any Secured Party from Tensar, Luxco, any of the
Guarantors, any other guarantor or any other person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in
payment of the Obligations of Tensar or the Obligations of Luxco shall be deemed to modify, reduce,
release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding
any such payment (other than, with respect to any Tensar Obligations, any payment made by such
Guarantor in respect of Tensar’s Obligations or any payment received or collected from such
Guarantor in respect of Tensar’s Obligations and, with respect to any Luxco Obligations, any
payment made by such Guarantor in respect of Luxco’s Obligations or any payment received or
collected from such Guarantor in respect of Luxco’s Obligations), remain liable for Tensar’s
Obligations and Luxco’s Obligations up to the maximum liability of such Guarantor hereunder until
the Obligations of Tensar and the Obligations of Luxco are paid in full and all of the
Lease/Purchase Facilities Documents (and any commitments to lease property or to engage in
commodities transactions thereunder and any letters of credit or other Guarantee Obligations
referred to therein) shall have been terminated or have expired.

     2.2.
Rights of Reimbursement, Contribution and Subrogation. In case any payment is made
on account of the Obligations by any Grantor or is received or collected on account of the
Obligations from any Grantor or its property:

     (a) If such payment is made by Tensar (with respect to Obligations other than its Guarantor
Obligations) or from its property, then, if and to the extent such payment is made on account of
Obligations arising from or relating to any Lease/Purchase Facility Document, Tensar shall not be
entitled, other than in accordance with the terms of this Agreement (i) to demand or enforce
reimbursement or contribution in respect of such payment from any other Grantor or (ii) to be
subrogated to any claim, interest, right or remedy of any Secured Party against any other person,
including any other Grantor or its property.

     (b) If such payment is made by a Guarantor or from its property, such Guarantor shall
be entitled, subject to and upon payment in full of all of the Obligations, (i) to demand and
enforce reimbursement for the full amount of such payment from Tensar or Luxco (as the case may be)
and (ii) to demand and enforce contribution in respect of such payment from each other Guarantor
that has not paid its fair share of such payment, as necessary to ensure that (after giving effect
to any enforcement of reimbursement rights provided hereby) each Guarantor pays its fair share of
the unreimbursed portion of such payment. For this purpose, the fair share of each Guarantor as to
any unreimbursed payment shall be determined based on an equitable apportionment of such
unreimbursed payment among all Guarantors based on the relative value of their assets and any other
equitable considerations deemed appropriate by a court of competent jurisdiction.

     (c) If and whenever (after payment in full of the Obligations) any right of reimbursement
or contribution becomes enforceable by any Grantor against any other Grantor under Sections 2.2(a)
and 2.2(b), such Grantor shall be entitled, subject to and upon payment in

 

 

full of all of the Obligations, to be subrogated (equally and ratably with all other
Grantors entitled to reimbursement or contribution from any other Grantor as set forth in this
Section 2.2) to any security interest that may then be held by TCO upon any Collateral granted to it
in this Agreement. Such right of subrogation shall be enforceable
solely against the Grantors, and not
against the Secured Parties, and neither TCO nor any other Secured Party shall have any duty
whatsoever to warrant, ensure or protect any such right of subrogation or to obtain, perfect,
maintain, hold, enforce or retain any Collateral for any purpose related to any such right of
subrogation. If subrogation is demanded by any Grantor, then (after payment in full of all of
Obligations) TCO shall deliver to the Grantors making such demand, or to a representative of such
Grantors or of the Grantors generally, an instrument satisfactory to TCO and the Administrative
Agent transferring, on a quitclaim basis without any recourse, representation, warranty or
obligation whatsoever, whatever security interest TCO then may hold in whatever Collateral may then
exist that was not previously released or disposed of by TCO.

     (d) All rights and claims arising under this Section 2.2 or based upon or relating to any
other right of reimbursement, indemnification, contribution or subrogation may at any time arise or
exist in favor of any Grantor as to any payment on account of the Obligations made by it or
received or collected from its property shall be fully subordinated
in all respects to the prior payment
in full of all of the Obligations. Until payment in full of all of Obligations, no Grantor shall
demand or receive any collateral security, payment or distribution whatsoever (whether in cash,
property or securities or otherwise) on account of any such right or claim. If any such payment or
distribution is made or becomes available to any Grantor in  any bankruptcy case or receivership,
insolvency or liquidation proceeding, such payment or distribution shall be delivered by the person
making such payment or distribution directly to TCO for application to the payment of the
Obligations. If any such payment or distribution is received by any Grantor, it shall be held by
such Grantor in trust, as trustee of an express trust for the benefit of the Secured Parties, and
shall forthwith be transferred and delivered by such Grantor to TCO, in the exact form received
and, if necessary, duly endorsed.

     (e) The obligations of the Grantors under the Lease/Purchase Facilities Documents, including
their liability for the Obligations and the enforceability of the security interests granted
thereby, are not contingent upon the validity, legality, enforceability, collectibility or
sufficiency of any right of reimbursement, contribution or subrogation arising under this Section
2.2. The invalidity, insufficiency, unenforceability or
uncollectibility of any such right shall not in
any respect diminish, affect or impair any such obligation or any other claim, interest, right or
remedy at any time held by any Secured Party against any Guarantor its property. The Secured
Parties make no representations or warranties in respect of any such right and shall have no duty
to assure, protect, enforce or ensure any such right or otherwise relating to any such right.

     (f) Each Grantor reserves any and all other rights of reimbursement, contribution or
subrogation at any time available to it as against any other Grantor, but (i) the exercise and
enforcement of such rights shall be subject to Section 2.2(d) and (ii) neither TCO nor any other
Secured Party shall ever have any duty or liability whatsoever in respect of any such right, except
as provided in Section 2.2(c).

 

 

     2.3. Amendments, etc. with respect to the Obligations of Tensar and Luxco. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against any Guarantor and without notice to or further assent by any Guarantor, any demand for
payment of any of Obligations of Tensar or of Luxco made by any Secured Party may be rescinded by
such Secured Party and any of the Obligations of Tensar or Luxco continued, and such Obligations,
or the liability of any other person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, increased, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by any Secured Party, and the Lease/Purchase Facilities Documents and any
other documents executed and delivered in connection therewith may be amended, modified,
supplemented or terminated, in whole or in part, as the parties thereto may deem advisable from
time to time, and any collateral security, guarantee or right of offset at any time held by any
Secured Party for the payment of the Obligations of Tensar or of Luxco may be sold, exchanged,
waived, surrendered or released. No Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Obligations of Tensar or of
Luxco or for the guarantee contained in this Section 2 or any property subject thereto.

     2.4. Guarantee Absolute and Unconditional. Each Guarantor waives any and all
notice of the creation, renewal, extension or accrual of any of the Obligations of Tensar or of
Luxco and notice of or proof of reliance by any Secured Party upon the guarantee contained in this
Section 2 or acceptance of the guarantee contained in this Section 2; the Obligations of Tensar and
of Luxco shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all
dealings between Tensar, Luxco and any of the Guarantors, on the one hand, and the Secured Parties,
on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2. Each Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon Tensar,
Luxco or any of the Guarantors with respect to the Obligations of Tensar or of Luxco. Each
Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed
as a continuing, absolute and unconditional guarantee of payment and performance (but not of
collection) without regard to (a) the validity or enforceability of the Lease/Purchase Facilities
Documents, any of the Obligations or any collateral security therefor or guarantee or right of
offset with respect thereto at any time or from time to time held by any Secured Party, (b) any
defense, set-off or counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by Tensar or any other person against any Secured Party, or (c)
any other circumstance whatsoever (with or without notice to or knowledge of Tensar, Luxco or such
Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge
of Tensar of its Obligations or of Luxco of its Obligations, or of such Guarantor under the
guarantee contained in this Section 2, in bankruptcy or in any other instance. When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, any
Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against Tensar, Luxco, any other Guarantor or any
other person or against any collateral security or guarantee for the Obligations of Tensar or of
Luxco or any right of offset with respect thereto, and any failure by any Secured Party to make any
such demand, to pursue such other rights or remedies or to collect any payments from Tensar, Luxco,
any other Guarantor or any

 

 

other person or to realize upon any such collateral security or guarantee or to exercise any
such right of offset, or any release of Tensar, Luxco, any other Guarantor or any other person or
any such collateral security, guarantee or right of offset, shall not
relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of any Secured Party against any Guarantor. For
the purposes hereof “demand” shall include the commencement and continuance of any proceedings.

     2.5. Reinstatement. The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations of Tensar or of Luxco is rescinded or must otherwise be restored or returned
by any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
Tensar, Luxco or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, Tensar, Luxco or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had not been made.

     2.6. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to TCO without set-off or counterclaim in Dollars or, with respect to obligations arising with
respect to the Luxco Murabaha Obligations, in pounds sterling, in immediately available funds at
the office of TCO, as specified in the Lease Agreement, the Commodities Purchase Agreement or the
Luxco Commodities Purchase Agreement, from time to time.EX-10.23 FIRST AMENDMENT MURABAHA FACILITY AGRMT.

 

Exhibit 10.23

Execution Copy

FIRST AMENDMENT TO MURABAHA FACILITY AGREEMENT

Dated as of June 22, 2006

     This FIRST AMENDMENT TO MURABAHA FACILITY AGREEMENT (this “Amendment”) is between TCO
FUNDING CORP. (“TCO”) and THE TENSAR CORPORATION, LLC (“Tensar”).

PRELIMINARY STATEMENTS:

     A. Tensar, TCO, Arcapita Investment Funding Limited, AIA Limited and the American Capital
Financial Services, Inc. entered into a Murabaha Facility Agreement, dated as of October 31, 2005
(the “Second Lien Commodities Purchase Agreement”); capitalized terms used and not
otherwise defined herein shall have the meanings ascribed to such terms in the Second Lien
Commodities Purchase Agreement); and

     B. Tensar has requested that TCO amend the Second Lien Commodities Purchase Agreement, in
connection with the acquisition by Tensar Holdings of The Tensar Group Limited.

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

     1. Amendments to Second Lien Commodities Purchase Agreement. Subject to the
satisfaction of the conditions set forth in Section 2 hereof:

          (a) Section 3.3 of the Second Lien Commodities Purchase Agreement is hereby amended
and restated in its entirety as follows:

     “(a) Any and all payments by Tensar to or for the account of TCO hereunder or
under any other Commodities Purchase Facility Document shall be made free and clear
of and without deduction for any and all present or future taxes, duties, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding taxes imposed on TCO’s net income, and franchise taxes imposed on
it, by the jurisdiction under the laws of which TCO is organized or any political
subdivision thereof (all such non-excluded taxes, duties, levies, imposts,
deductions, charges, withholdings, and liabilities being hereinafter referred to as
“Taxes”). If Tensar shall be required by law to deduct or withhold any Taxes from or
in respect of any sum payable under this Agreement or any other Commodities Purchase
Facility Document to TCO, (i) the sum payable shall be increased as necessary so that
after making all required deductions and withholdings (including deductions and
withholdings applicable to additional sums payable under this Section 3.3) TCO
receives an amount equal to the sum it would have received had no such deductions
been made, (ii) Tensar shall make such deductions and withholdings, (iii) Tensar
shall pay the full amount deducted or withheld to the relevant taxation authority or
other authority in accordance with applicable law, and (iv) Tensar shall furnish to
TCO the original or a certified copy of a receipt evidencing payment thereof, to the
extent Tensar Holdings requests TCH to defend such positions. Notwithstanding the
foregoing, taxes imposed on TCO’s net income, and any franchise taxes imposed on it
by the jurisdiction under the

 

 

laws of which TCO is organized and any political
subdivision thereof shall be included as Taxes to the extent that any such taxes are
reported or required by any taxing authority to be reported for income tax purposes
in a manner that is inconsistent with the intentions set forth in Section 8.10,
including any costs and expenses incurred in defending the positions set forth in
Section 8.10 to any taxing authority, to the extent Tensar Holdings requests TCO to
defend such positions”.

     “(b) In addition, Tensar agrees to pay any and all present or future stamp or
documentary taxes and any other excise or property taxes or charges or similar levies
that arise from any payment made under this Agreement or any other Commodities
Purchase Facility Document or from the execution or delivery of, or otherwise with
respect to, this Agreement or any other Commodities Purchase Facility Document
(hereinafter referred to as “Other Taxes”).”

     “(c) Tensar shall indemnify TCO, within 10 days after written demand therefor,
for the full amount of any Taxes or Other Taxes paid or incurred by TCO, on or with
respect to any payment by or on account of any obligation of Tensar hereunder or
under any other Commodities Purchase Facility Document (including Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this Section so
that TCO receives an amount equal to the sum it would have received or retained net
of tax in the absence of any tax imposed on any indemnification payments pursuant to
this Section) and any penalties, interest and expenses arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to Tensar by TCO or the Administrative
Agent shall be conclusive absent manifest error. For the avoidance of doubt, the
payments made pursuant to the parenthetical in the first sentence of this Section
3.3(c) shall be deemed to be included as Taxes.”

     “(d) As soon as practicable after any payment of Taxes or Other Taxes pursuant
to this Section to a taxing authority as opposed to direct payments to TCO, and in
any event within 30 days of any such payment being due, Tensar shall deliver (or
cause to be delivered) to the Administrative Agent the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.”

          (b) Section 5.2 of the Second Lien Commodities Purchase Agreement is amended to
replace the phrase “each of the other Tensar Parties” with the phrase “each of its Subsidiaries”.

          (c) Sections 5.3 of the Second Lien Commodities Purchase Agreement is amended to
replace the phrase “each of the other Tensar Parties” with the phrase “each of its Subsidiaries”.

          (d) Section 1 of Schedule 1 to the Second Lien Commodities Purchase Agreement is
amended to add each of the following new defined terms in its proper alphabetical order:

2

 

“Luxco” shall mean TTC Holdings S.a.r.l., a company incorporated in
the Grand Duchy of Luxembourg.

“Luxco Commodities Purchase Agreement” shall mean the Luxco Murabaha
Facility Agreement, dated as of the Amendment Effective Date, by and between
Tensar Holdings, Luxco, TCO Funding Corp., and Credit Suisse, as
administrative agent, as the same may be amended, supplemented or otherwise
modified in accordance with the terms hereof.

“Luxco Commodities Purchase Facility” shall mean the Murabaha
facility provided for in the Luxco Commodities Purchase Agreement.

“Tensar Group Limited Acquisition” shall mean the acquisition by
Tensar Holdings pursuant to the Share Purchase Agreement, dated as of May 16,
2006 of all the Equity Interests in Tensar Group Limited, a company
incorporated under the laws of England and Wales from the existing
shareholders of Tensar Group Limited; the aggregate amount of consideration
for such acquisition is approximately $86,900,000.

“UK Guarantors” shall mean Tensar Group Limited, Tensar International
Limited, Tensar Manufacturing Limited and TTC UK Holdings Limited and each
other subsidiary of Luxco which provides a guarantee under the Luxco
Commodities Purchase Agreement.

          (e) The definition of “Asset Sale” set forth in Schedule 1 t to the Second Lien
Commodities Purchase Agreement is hereby amended and restated as follows:

“Asset Sale” shall mean the sale, lease, sub-lease, license,
sub-license, sale and leaseback, assignment, conveyance, transfer, issuance
or other disposition (by way of merger, casualty, condemnation or otherwise)
by (x) any Tensar Party (other than Luxco and its subsidiaries) or any of the
Subsidiaries (other than Luxco and its subsidiaries) to any person (other
than Tensar or any US Guarantor) or (y) Luxco or any of its subsidiaries to
any person (other than Tensar or any subsidiary thereof which is a Guarantor)
of (a) any Equity Interests of any of the Subsidiaries or (b) any other
assets of any Tensar Party or any of the Subsidiaries, including Equity
Interests of any person that is not a Subsidiary; provided that any
asset sale or series of related asset sales described in clause (b) above
having a value not in excess of $250,000 shall be deemed not to be an “Asset
Sale” for purposes of this Agreement.

          (f) The definition of “Change in Control” set forth in Schedule 1 to the Second Lien
Commodities Purchase Agreement is hereby amended to amend and restate clause (d) therein as
follows:

“(d) Tensar Holdings shall at any time fail to own directly or indirectly,
beneficially and of record, 100% of each class of issued and outstanding
Equity Interests in Holdings, Holdings shall fail to own directly or
indirectly, beneficially and of record, 100% of each class of issued and
outstanding Equity

3

 

Interests in Tensar, or Tensar shall fail to own, directly
or indirectly, beneficially and of record, 100% of each class of issued and
outstanding Equity Interests in Luxco, in each case, free and clear of all
Liens (except Liens created by the Guarantee and Collateral Agreement, the
Luxco Security Documents or by the Second Lien Commodities Purchase Facility
Documents);”

          (g) The definition of “Commodities Purchase Facility Documents” set forth in Section
1 of Schedule 1 to the Second Lien Commodities Purchase Agreement is amended and restated in its
entirety as follows:

“Commodities Purchase Facility Documents” shall mean (i) the
Commodities Purchase Agreement and all other instruments, agreements and
other documents evidencing or governing the foregoing or providing for
any Guarantee, Lien or other right in respect thereof, including the
Reimbursement Letter and the Security Documents, as the same may be
amended, supplemented or otherwise modified in accordance with the terms
hereof and (ii) the Luxco Commodities Purchase Agreement and all other
instruments, agreements and other documents evidencing or governing the
foregoing or providing for any Guarantee, Lien or other right in respect
thereof, including the Security Documents, as the same may be amended,
supplemented or otherwise modified in accordance with the terms hereof
(the “Luxco Commodities Purchase Facility Documents”).

          (h) The definition of “Consolidated Financing Expense” set forth in Section 1 of
Schedule 1 to the Second Lien Commodities Purchase Agreement is amended and restated in its
entirety as follows:

“Consolidated Financing Expense” shall mean, for any period, the sum
of (a) rent or profit expense or the Rental Rate portion of rent of Tensar
Holdings and its Subsidiaries for such period (including all Agreed Profit,
Supplemental Profit and the Rental Rate portion of Rent payable, agreed
profit under the Lease Agreement, the Tensar Holdings Commodities Purchase
Agreement, the Commodities Purchase Agreement, the Luxco Commodities Purchase
Agreement and all commissions, discounts and other fees and charges owed by
Tensar and the Subsidiaries with respect to Murabaha Guarantee Obligations,
letters of credit and bankers’ acceptance financing), in each case determined
on a consolidated basis in accordance with GAAP, plus (b) any profit expense
or the rental rate portion of any rent of Tensar or any Subsidiary that is
required to be capitalized rather than expensed for such period in accordance
with GAAP, plus (c) any other similar expense under GAAP.

          (i) The definition of “Consolidated Fixed Charges” set forth in Section 1 of
Schedule 1 to the Second Lien Commodities Purchase Agreement is amended and restated in its
entirety as follows:

4

 

“Consolidated Fixed Charges” shall mean, for any period, without
duplication, the sum of (a) Consolidated Financing Expense for such period
paid in cash, (b) the aggregate amount of scheduled Acquisition Cost payments
in respect of the Leased Assets or scheduled payments (whether or not made)
during such period to reduce the unpaid stated amount in respect of long term
Financing Obligations (including Purchase Price obligations under the Luxco
Commodities Purchase Facility (to the extent the Purchase Price for any
Metals Transaction thereunder is less than the Purchase Price for the
immediately preceding Metals Transaction), Capital Lease Obligations and
Synthetic Lease Obligations, but excluding payments applied to Purchase Price
under the Commodities Purchase Facility) of Tensar and its Subsidiaries
(other than payments made by Tensar or any of its Subsidiaries to Tensar or
another Subsidiary), (c) Capital Expenditures for such period, less Capital
Expenditures incurred in connection with the new BX geogrid manufacturing
line in Morrow, Georgia, and (d) the aggregate amount of Taxes paid in cash
(net of refunds received with respect to such Taxes) payable by Tensar and
its Subsidiaries during such period in accordance with Section 1.06(iii)(y)
of Schedule 4.

          (j) The definition of “First Lien Leverage Ratio” set forth in Section 1 of Schedule
1 to the Second Lien Commodities Purchase Agreement is amended and restated in its entirety as
follows:

“First Lien Leverage Ratio” shall mean, on any date, the ratio of (a)
Total Obligations with respect to the Lease Agreement, the Commodities
Purchase Agreement and the Luxco Commodities Purchase Agreement on such date
to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters
most recently ended on or prior to such date, taken as one accounting period.

          (k) The definition of “Current Assets” set forth in Schedule 1 to the Second Lien
Commodities Purchase Agreement is hereby amended to replace the term “Tensar” with the term “Tensar
Holdings”.

          (l) The definition of “Current Liabilities” set forth in Schedule 1 to the Second
Lien Commodities Purchase Agreement is hereby amended to replace the term “Tensar” with the term
“Tensar Holdings”.

          (m) The definition of “Excess Cash Flow” set forth in Schedule 1 to the Second Lien
Commodities Purchase Agreement is hereby amended to amend and restate clause (iv) therein as
follows:

“(iv) permanent repayments of Financing Obligations (other than mandatory
prepayments of Acquisition Cost pursuant to the terms of the Put Option
Letter or mandatory prepayments of Purchase Price pursuant to Section 3.6 of
the Luxco Commodities Purchase Agreement) permitted hereunder made by Tensar
and its Subsidiaries during such fiscal year, but only to the extent that
such prepayments by their terms cannot be redrawn and do not occur in

5

 

connection with a refinancing of all or any portion of such Financing
Obligations and”

          (n) The definition of “Material Obligations” set forth in Schedule 1 to the Second
Lien Commodities Purchase Agreement is hereby amended by inserting the words “any Luxco Commodity
Purchase Facility Document,” immediately after the words “any Lease Document”.

          (o) The definition of “Permitted Acquisition” set forth in Schedule 1 to the Second
Lien Commodities Purchase Agreement is hereby amended to replace the term “Section 4” in clause (B)
thereof with the term “Schedule 4”.

          (p) The definition of “Related Financing Documents” set forth in Schedule 1 to the
Second Lien Commodities Purchase Agreement is hereby amended by inserting the words “the Luxco
Commodity Purchase Facility Documents,” immediately after the words “the Lease Documents”.

          (q) The definition of “wholly-owned subsidiary” set forth in Schedule 1 to the
Second Lien Commodities Purchase Agreement is hereby amended to replace the term “Tensar” with the
term “Tensar Holdings”.

          (r) Section 1.14 of Schedule 2 to the Second Lien Commodities Purchase Agreement is
hereby amended to amend and restate the first sentence thereof as follows:

“Except with respect to the tax returns of The Tensar Group Limited for the
period ended September 30, 2002, each of the Tensar Parties and each of the
Subsidiaries has timely filed or timely caused to be filed all Federal,
state, local and foreign tax returns or materials required to be filed by it
and all such tax returns are correct and complete in all materal requests.”

          (s) Section 1.19(a) of Schedule 2 to the Second Lien Commodities Purchase Agreement
is hereby amended to amend and resated clause (i) therein as follows:

“(i) in the case of the Pledged Securities described therein when financing
statements in appropriate form are filed in the offices specified on Annex
19(a) to this Schedule 2 (as such schedule may be supplemented for any new
Subsidiary in connection with the execution of an Assumption Agreement (as
defined in the Guarantee and Collateral Agreement), or solely with respect to
certificated Pledged Securities which have elected to be treated as
securities under Article 8 of the UCC, when such Pledged Securities are
delivered to TCO and”

          (t) Section 1.11 of Schedule 3 to the Second Lien Commodities Purchase Agreement is
hereby amended by inserting the words “Luxco Purchase Commodities Agreement,” immediately after the
words “the Lease,”.

          (u) Each of Section 1.01(d), Section 1.01(f), Section 1.01(j) and Section 1.01(k) of
Schedule 4 to the Second Lien Commodities Purchase Agreement is hereby amended to replace the
number “2,500,000” appearing therein with the number “4,000,000”.

6

 

          (v) Section 1.01(e) of Schedule 4 to the Second Lien Commodities Purchase Agreement
is hereby amended and restated as follows:

“(e) Financing Obligations of Tensar under (i) the Lease Agreement and the
Commodities Purchase Facility in an aggregate stated amount (excluding profit
amount) not to exceed $192,000,000 less the amount of any prepayment
reductions in the amount of the Lease or Commodities Purchase Facility and
(ii) the Luxco Commodities Purchase Facility Agreement in an aggregate stated
amount (excluding profit amount) not to exceed $80,000,000 and Financing
Obligations of the Guarantors and the UK Guarantors under any Guarantees in
respect of such Financing Obligations and any Permitted Refinancing
Obligations in respect of any such Financing Obligations;

          (w) Section 1.04(a) of Schedule 4 to the Second Lien Commodities Purchase Agreement
is hereby amended to amend and restate clause (ii)(B) therein as follows:

“(B) the aggregate amount of Investments by the Tensar Parties (other than
Luxco and its subsidiaries) in Subsidiaries of Tensar that are not
Subsidiary Guarantors shall not exceed $14,000,000, at any time outstanding;
provided that the aggregate amount of Investments in Subsidiaries of
Tensar other than Luxco or the Luxco Subsidiary Guarantors shall not exceed
$4,000,000, at any time outstanding and”

          (x) Section 1.04 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
hereby amended (i) to delete the word “and” at the end of clause (l) thereof, (ii) reletter clause
(m) as clause (n) and (iii) insert the following new clause (m):

“(m) the Tensar Group Limited Acquisition; and”

          (y) Section 1.05(g) of Schedule 4 to the Second Lien Commodities Purchase Agreement
is amended and restated as follows:

“(g) the purchase and sale of commodities by Tensar Holdings pursuant to the
Tensar Holdings Commodities Purchase Agreement and by Tensar under the
Commodities Purchase Agreement and the purchase and sale of commodities by
Luxco under the Luxco Commodities Purchase Agreement;”

          (z) Section 1.08 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
hereby amended to add the following new clause (d) at the end thereof:

“(d) With respect to Luxco, engage in any business activities or have any
assets or liabilities other than its ownership of the Equity Interests in
TTC UK Holdings Limited and liabilities incidental thereto, including its
liabilities pursuant to the Luxco Commodities Purchase Agreement.”

          (aa) Section 1.10 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
amended and restated in its entirety as follows:

7

 

     1.10 Capital Expenditures. Permit the aggregate amount of Capital
Expenditures made by Tensar and its Subsidiaries in any period set forth below to
exceed the amount set forth below for such period:

	 	 	 	 	 
	Fiscal Year	 	Amount
	2006
	 	$	25,000,000	 
	2007
	 	$	12,000,000	 
	2008 and each fiscal year thereafter
	 	$	10,000,000	 

          (bb) Section 1.11 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
amended and restated in its entirety as follows:

     1.11 Financing Coverage Ratio. Permit the Financing Coverage Ratio
during any period set forth below to be less than the ratio set forth opposite such
period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	1.60:1.00	 
	September 30, 2006
	 	 	1.60:1.00	 
	December 31, 2006
	 	 	1.60:1.00	 
	March 31, 2007
	 	 	1.60:1.00	 
	June 30, 2007
	 	 	1.75:1.00	 
	September 30, 2007
	 	 	1.75:1.00	 
	December 31, 2007
	 	 	2.00:1.00	 
	March 31, 2008
	 	 	2.00:1.00	 
	June 30, 2008
	 	 	2.00:1.00	 
	September 30, 2008
	 	 	2.00:1.00	 
	December 31, 2008
	 	 	2.25:1.00	 
	March 31, 2009
	 	 	2.25:1.00	 
	June 30, 2009
	 	 	2.25:1.00	 
	September 30, 2009
	 	 	2.25:1.00	 
	December 31, 2009
	 	 	2.50:1.00	 
	March 31, 2010
	 	 	2.50:1.00	 
	June 30, 2010
	 	 	2.50:1.00	 
	September 30, 2010
	 	 	2.50:1.00	 
	December 31, 2010 and each fiscal quarter thereafter
	 	 	3.00:1.00	 

8

 

          (cc) Section 1.12 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
amended and restated in its entirety as follows:

     1.12 Leverage Ratio. Permit the Leverage Ratio during any period set
forth below to be greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	6.75:1.00	 
	September 30, 2006
	 	 	6.75:1.00	 
	December 31, 2006
	 	 	6.75:1.00	 
	March 31, 2007
	 	 	6.75:1.00	 
	June 30, 2007
	 	 	6.25:1.00	 
	September 30, 2007
	 	 	6.00:1.00	 
	December 31, 2007
	 	 	5.50:1.00	 
	March 31, 2008
	 	 	5.50:1.00	 
	June 30, 2008
	 	 	5.50:1.00	 
	September 30, 2008
	 	 	5.50:1.00	 
	December 31, 2008
	 	 	4.75:1.00	 
	March 31, 2009
	 	 	4.75:1.00	 
	June 30, 2009
	 	 	4.75:1.00	 
	September 30, 2009
	 	 	4.75:1.00	 
	December 31, 2009
	 	 	4.25:1.00	 
	March 31, 2010
	 	 	4.25:1.00	 
	June 30, 2010
	 	 	4.25:1.00	 
	September 30, 2010
	 	 	4.25:1.00	 
	December 31, 2010
	 	 	3.75:1.00	 
	March 31, 2011
	 	 	3.75:1.00	 
	June 30, 2011
	 	 	3.75:1.00	 
	September 30, 2011
	 	 	3.75:1.00	 
	December 31, 2011
	 	 	3.25:1.00	 
	March 31, 2012
	 	 	3.25:1.00	 
	June 30, 2012
	 	 	3.25:1.00	 
	September 30, 2012
	 	 	3.25:1.00	 
	December 31, 2012 and each fiscal quarter thereafter
	 	 	2.75:1.00	 

          (dd) Section 1.13 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
amended and restated in its entirety as follows:

9

 

     1.13 Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage
Ratio during any period set forth below to be less than the ratio set forth opposite
such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	1.15:1.00	 
	September 30, 2006
	 	 	1.15:1.00	 
	December 31, 2006
	 	 	1.15:1.00	 
	March 31, 2007
	 	 	1.15:1.00	 
	June 30, 2007
	 	 	1.25:1.00	 
	September 30, 2007
	 	 	1.25:1.00	 
	December 31, 2007
	 	 	1.35:1.00	 
	March 31, 2008
	 	 	1.35:1.00	 
	June 30, 2008
	 	 	1.35:1.00	 
	September 30, 2008
	 	 	1.35:1.00	 
	December 31, 2008
	 	 	1.40:1.00	 
	March 31, 2009
	 	 	1.40:1.00	 
	June 30, 2009
	 	 	1.40:1.00	 
	September 30, 2009
	 	 	1.40:1.00	 
	December 31, 2009 and each fiscal quarter thereafter
	 	 	1.50:1.00	 

          (ee) Section 1.14 of Schedule 4 to the Second Lien Commodities Purchase Agreement is
amended and restated in its entirety as follows:

     1.14. First Lien Leverage Ratio. Permit the First Lien Leverage Ratio
during any period set forth below to be greater than the ratio set forth opposite
such period below:

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	June 30, 2006
	 	 	4.75:1.00	 
	September 30, 2006
	 	 	4.75:1.00	 
	December 31, 2006
	 	 	4.75:1.00	 
	March 31, 2007
	 	 	4.75:1.00	 
	June 30, 2007
	 	 	4.50:1.00	 
	September 30, 2007
	 	 	4.25:1.00	 
	December 31, 2007
	 	 	4.00:1.00	 

10

 

	 	 	 	 	 
	Fiscal Quarter Ended:	 	Ratio
	March 31, 2008
	 	 	4.00:1.00	 
	June 30, 2008
	 	 	4.00:1.00	 
	September 30, 2008
	 	 	4.00:1.00	 
	December 31, 2008
	 	 	3.50:1.00	 
	March 31, 2009
	 	 	3.50:1.00	 
	June 30, 2009
	 	 	3.50:1.00	 
	September 30, 2009
	 	 	3.50:1.00	 
	December 31, 2009
	 	 	2.50:1.00	 
	March 31, 2010
	 	 	2.50:1.00	 
	June 30, 2010
	 	 	2.50:1.00	 
	September 30, 2010
	 	 	2.50:1.00	 
	December 31, 2010
	 	 	2.25:1.00	 
	March 31, 2011
	 	 	2.25:1.00	 
	June 30, 2011
	 	 	2.25:1.00	 
	September 30, 2011
	 	 	2.25:1.00	 
	December 31, 2011
	 	 	2.00:1.00	 
	March 31, 2012
	 	 	2.00:1.00	 
	June 30, 2012
	 	 	2.00:1.00	 
	September 30, 2012
	 	 	2.00:1.00	 
	December 31, 2012 and each fiscal quarter thereafter
	 	 	1.75:1.00	 

          (gg) Section 4(c) of Schedule 6 to the Second Lien Commodities Purchase Agreement is hereby
amended and restated in its entirety as follows:

“(c) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 8.1. Nothing in this Agreement will affect
the right of any party to this Agreement to serve process in any other manner
permitted by law.”

          (hh) Each of Annex 1(c) to Schedule 1 to the Commodities Purchase Agreement, Annex 7 to
Schedule 4 to the Commodities Purchase Agreement, Annex 8 to Schedule 4 to the Commodities Purchase
Agreement and Annex 17 to Schedule 4 to the Commodities Purchase Agreement is hereby supplemented
to include the information set forth on Annex A with respect to such annex or schedule, as
applicable.

     2. Conditions to Effectiveness. The effectiveness of the amendments
contained in Section 1 of this Amendment are conditioned upon satisfaction of the following
conditions precedent (the date on which all such conditions precedent have been satisfied being
referred to herein as the “Amendment Effective Date”):

11

 

          (a) TCO shall have received counterparts of this Amendment signed by each of Tensar
and TCO;

          (b) each of the representations and warranties in Section 3 below shall be true and
correct in all material respects on and as of the Amendment Effective Date; and

          (c) TCO shall have received payment in immediately available funds of all expenses
incurred by TCO (including, without limitation, legal fees) that are then due and payable and
reimbursable under the Second Lien Commodities Purchase Agreement and for which invoices have been
presented.

     3. Representations and Warranties. Tensar represents and warrants to TCO as
follows:

          (a) Authority. Tensar has the corporate or other organizational power and
authority to execute and deliver this Amendment and to perform its obligations hereunder and under
the Second Lien Commodities Purchase Agreement (as amended hereby). The execution, delivery and
performance by Tensar of this Amendment and the Second Lien Commodities Purchase Agreement (as
amended hereby) and the consummation by Tensar of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate or other organizational action of Tensar. No
material consent or authorization of, filing with, notice to, or other act by or in respect of, any
Governmental Authority or any other person is required in connection with the execution, delivery,
performance, validity or enforceability of this Amendment or the Second Lien Commodities Purchase
Agreement (as amended hereby), except such as have been made or obtained and are in full force and
effect.

          (b) Enforceability. This Amendment has been duly executed and delivered on
behalf of Tensar. Assuming the conditions precedent in Section 2 of this Amendment have been
satisfied, each of this Amendment and the Second Lien Commodities Purchase Agreement (as amended
hereby) (i) constitutes a legal, valid and binding obligation of Tensar, enforceable against Tensar
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law) and (ii) is in full force and effect. Neither the execution or delivery of
this Amendment by Tensar or the performance by Tensar of its obligations under this Amendment or
the Second Lien Commodities Purchase Agreement (as amended hereby), will adversely affect the
validity, perfection or priority of TCO’s Lien (for the ratable benefit of Secured Parties) on any
of the Collateral or its ability to realize thereon.

          (c) Representations and Warranties. After giving effect to this Amendment,
the representations and warranties contained in the Second Lien Commodities Purchase Agreement
(other than any such representations and warranties that, by their terms, are specifically made as
of a date other than the date hereof) are true and correct in all material respects on and as of
the date hereof as though made on and as of the date hereof; provided, that Schedule 4.7(a)
to the Guarantee and Collateral Agreement is hereby supplemented to include the information set
forth on Annex A with respect to such schedule.

12

 

          (d) No Conflicts. Neither the execution and delivery of this Amendment, nor
the consummation of the transactions contemplated hereby, nor the performance of and compliance
with the terms and provisions hereof, thereof or of the Second Lien Commodities Purchase Agreement
(as amended hereby) by Tensar will, at the time of such performance, (i) violate (x) any provision
of law, statute, rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of Tensar or any Subsidiary, (y) any order of any Governmental
Authority or arbitrator or (z) any provision of any indenture, agreement or other instrument to
which Tensar or any Subsidiary is a party or by which any of them or any of their property is or
may be bound, (ii) be in conflict with, result in a breach of or constitute (alone or with notice
or lapse of time or both) a default under, or give rise to any right to accelerate or to require
the prepayment, repurchase or redemption of any obligation under any such indenture, agreement or
other instrument or (iii) result in the creation or imposition of any Lien upon or with respect to
any property or assets now owned or hereafter acquired by Tensar or any Subsidiary (other than
Liens created under the Lease/Purchase Facility Documents and the Second Lien Commodities Purchase
Facility Documents).

          (e) No Default. After giving effect to this Amendment, no event has
occurred and is continuing that constitutes a Default or Event of Default.

     4. Reference to and Effect on the Second Lien Commodities Purchase Facility
Documents. 

          (a) Upon and after the effectiveness of this Amendment, each reference in the Second
Lien Commodities Purchase Agreement to “this Agreement”, “hereunder”, “hereof” or words of like
import referring to the Second Lien Commodities Purchase Agreement, and each reference in the other
Second Lien Commodities Purchase Facility Documents to the Second Lien Commodities Purchase
Agreement (or “thereunder”, “thereof” or words of like import referring to the Second Lien
Commodities Purchase Agreement), shall mean and be a reference to the Second Lien Commodities
Purchase Agreement as amended hereby. This Amendment is a Second Lien Commodities Purchase
Facility Document.

          (b) Except as specifically amended by this Amendment, the Second Lien Commodities
Purchase Facility Documents 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
Security Documents and all of the Collateral described therein do and shall continue to secure the
payment of all Financing Obligations under and as defined therein, in each case as modified hereby.

          (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 Secured Party
under any of the Second Lien Commodities Purchase Facility Documents, or, except as expressly
provided herein, constitute a waiver or amendment of any provision of any of the Second Lien
Commodities Purchase Facility Documents.

     5. 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 one and the same agreement. Delivery of an executed counterpart of a signature page to
this Amendment by facsimile

13

 

shall be effective as delivery of a manually executed counterpart of
this Amendment, as the case may be.

     6. Severability. Any provision of this Amendment that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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

     8. Reaffirmation. Tensar hereby reaffirms and admits the validity and
enforceability of the Second Lien Commodities Purchase Facility Documents, all of Tensar’s
obligations thereunder and all Liens and security interests created thereunder and agrees and
admits that such Liens secure the Obligations and as of the date hereof, it has no defenses to, or
offsets or counterclaim against, any of its Obligations to, or the Liens and security interests
created in favor of, any Secured Party under the Second Lien Commodities Purchase Facility
Documents of any kind whatsoever.

[Signature pages follow]

14

 

Execution Copy

     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 written above.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TCO FUNDING CORP.	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ John M. DeMilt 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	Name:   John M. DeMilt	 	 
	 
	 	 	 	Title:     Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	THE TENSAR CORPORATION, LLC	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Philip D. Egan 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	Name:   Philip D. Egan	 	 
	 
	 	 	 	Title:     CEO and President

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