Document:

Exhibit 4.5 

EXECUTION VERSION 

SUPPLEMENT

 

SUPPLEMENT (this “Supplement”), dated as of September 19, 2005, among United Rentals, Inc. (the “Company”), The Bank of New York (Delaware), as Delaware Trustee under the Trust Agreement referred to below, The Bank of New York, as Property Trustee under the Trust Agreement referred to below and as Trustee under the Indenture and the Guarantee Agreement referred to below referred to below, and the administrative trustees listed on the signature page hereto. 

 

W I T N E S S E T H:

 

WHEREAS, the Company, The Bank of New York, as property trustee, The Bank of New York (Delaware), as Delaware trustee, and the Administrative Trustees named therein have heretofore entered into an Amended and Restated Trust Agreement, dated as of August 5, 1998 (the “Original Trust Agreement”), related to United Rentals Trust I (the “Trust”); the Company and The Bank of New York, as trustee, have heretofore entered into an Indenture, dated as of August 5, 1998 (the “Original Indenture”), related to the 61⁄2% Convertible Subordinated Debentures due August 1, 2028 issued by the Company; and the Company and The Bank of New York, as trustee, have heretofore entered into a Guarantee Agreement, dated as of August 5, 1998
(the “Original Guarantee Agreement” and, together with the Original Trust Agreement and the Original Indenture, the “Original Documents”), related to the Preferred Securities issued by the Trust;

 

WHEREAS, the Company and the Trust have solicited consents from Holders of the Preferred Securities to, among other things, certain amendments (the “Amendments”) to the Original Documents which are set forth in this Supplement;

 

WHEREAS, the Company and the Trust have received consents to the Amendments from Holders of a majority in aggregate liquidation preference of the outstanding Preferred Securities; and

 

WHEREAS, pursuant to the Original Documents, the Trustees are authorized to execute and deliver this Supplement. 

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto mutually covenant and agree for the equal and ratable benefit of Holders of the Preferred Securities as follows:

 

ARTICLE I

AMENDMENTS

 

A.          Section 1.1 of each of the Original Documents shall be amended to insert alphabetically therein the following defined terms:

 

“Consent Fee” means the payment defined as such with respect to the Preferred Securities in the Solicitation Documents. 

 

 

 

“Covenant Reversion Date” means, 11:59 p.m., New York City time, on the earlier of (i) the Business Day following the Company’s failure to pay the Consent Fee, if due, for the Preferred Securities in accordance with the Solicitation Documents and (ii) March 31, 2006.

“Solicitation Documents” means the Consent Solicitation Statement dated as of August 22, 2005, as amended on September 12, 2005, and the related Consent Form, each as may be amended and supplemented from time to time. 

B.           Clause (c) of Section 5.1 of the Original Indenture shall be amended to read in its entirety as follows:

(c)          failure on the part of the Company duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Company contained in the Debentures or contained in this Indenture (other than a covenant or agreement which has been expressly included in this Indenture solely for the benefit of the Company) and continuance for such failure for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by a Holder or Holders of at least 25% in aggregate principal amount of the Debentures at the time
Outstanding or the holder or holders of at least 25% in aggregate liquidation preference of the Preferred Securities; provided, however, that notwithstanding any of the foregoing or any other provision of this Indenture or the Debentures, the failure of the Company to comply with Sections 7.4 and 10.5 of this Indenture, and §314 of the Trust Indenture Act, at any time before the Covenant Reversion Date shall not constitute a Default or Event of Default under this clause (c); or

C.          Section 7.4 of the Original Indenture shall be amended to insert the following paragraph at the end thereof:

 

Notwithstanding the foregoing or any other provision of this Indenture or the Debentures, the information, documents and reports referred to in this Section 7.4 that the Company would have been required (but for this sentence) to file with the Trustee and the Commission, and transmit to the Holders or any other Person, at any time before the Covenant Reversion Date, shall not be required to be filed or transmitted until the Covenant Reversion Date.

 

D.          Section 10.5 of the Original Indenture shall be amended to insert the following at the end thereof:

 

Notwithstanding the foregoing or any other provision of this Indenture or the Debentures, Officer’s Certificates that the Company would have been required (but for this sentence) to deliver pursuant to Section 10.5 at any time before the Covenant Reversion Date shall not be required to be delivered until the Covenant Reversion Date.

 

	
             
 	
            E.
 	
            The Original Indenture shall be amended to insert the following Section 10.11:
 

 

SECTION 10.11.   Interim Period Provisions.  Within 25 days after the end of each calendar month ending during the Interim Period (as defined below), other than a month that 

 

	
             
 	
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is the last month in a fiscal quarter or the month that is January, and within 45 days after the end of each January ending during the Interim Period, the Company will cause to be filed with (or furnished to) the Commission a Report on Form 8-K (or other publicly-available report under the Exchange Act) containing unaudited financial information setting forth revenue, dollar utilization, outstanding debt, liquidity (cash position plus borrowing availability), cash flow from operations, and capital expenditures, presented for the Company on a consolidated basis (the “Specified Financial Information”), for the immediately preceding monthly period or as of the end of such monthly period, as the case may be.  Within 45 days after the end of each fiscal quarter ending during the Interim Period (other than the last fiscal quarter in the fiscal year), and within 75 days after the last
fiscal quarter of the fiscal year ending during the Interim Period, the Company will cause to be filed with (or furnished to) the Commission a Report on Form 8-K (or other publicly-available report under the Exchange Act) containing unaudited Specified Financial Information for the immediately preceding fiscal quarter or as of the end of such quarterly period, as the case may be.  All Specified Financial Information will be subject to such changes determined by the Company to be appropriate in connection with any Commission inquiry, the Company’s internal review and possible restatements announced prior to the end of the Interim Period.  As used in this Section, the term “Interim Period” means the period beginning on September 20, 2005 and ending on such date (the “End Date”) by which the Company shall have filed with the Commission all Annual Reports on Form 10-K and all Quarterly Reports on Form 10-Q due pursuant to the Exchange Act for periods ended prior
to the End Date.  This Section shall expire and cease to have any effect upon the End Date.

 

F.           Section 2.4 of the Original Guarantee Agreement shall be amended to insert the following at the end thereof:

 

Notwithstanding the foregoing or any other provision of this Guarantee Agreement, (i) the documents, reports and information referred to in this Section 2.4 that the Guarantor would have been required (but for this sentence) to file with, or provide to, the Guarantee Trustee, the Securities and Exchange Commission, the Holders or any other Person, at any time before the Covenant Reversion Date, shall not be required to be filed or provided until the Covenant Reversion Date and (ii) compliance certificates that the Guarantor would have been required (but for this sentence) to provide pursuant to this Section 2.4 at any time before the Covenant Reversion Date shall not be required to be delivered until the Covenant Reversion Date.

 

G.          Section 8.14 of the Original Trust Agreement shall be amended to insert the following at the end thereof:

 

Notwithstanding the foregoing or any other provision of this Trust Agreement, (i) the documents, reports and information referred to in this Section 8.14 that the Depositor and Administrative Trustees on behalf of the Trust would have been required (but for this sentence) to provide to the Property Trustee or any other Person, at any time before the Covenant Reversion Date, shall not be required to be provided until the Covenant Reversion Date, and (ii) the compliance certificates that the Depositor and Administrative Trustees on behalf of the Trust would have been required (but for this sentence) to provide pursuant to this Section 8.14 at any time before the Covenant Reversion Date shall not be required to be delivered until the Covenant Reversion Date.

 

 

	
             
 	
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ARTICLE II

MISCELLANEOUS

 

A.          Definitions.  All capitalized terms which are used herein and not otherwise defined herein are used herein with the same meanings as in the Original Documents.

 

B.          Effect of Supplement; Effectiveness and Operation.  This Supplement shall be effective upon execution hereof by the Company and the Trustees.  From and after such execution, the Amendments set forth herein shall be deemed to have modified the applicable articles or sections, or portions thereof, or clauses, of the Original Documents.  In all other respects, the Original Documents are confirmed by the parties hereto as supplemented by the terms of this Supplement.  In the event that there is a conflict or inconsistency between the Original Documents and this Supplement, the provisions of this Supplement shall control. 

 

C.          Trust Indenture Act Controls.   If any provision of this Supplement limits, qualifies or conflicts with another provision which is required to be included in this Supplement by the Trust Indenture Act of 1939, as amended (the “TIA”), the required provision shall control.  If any provision of this Supplement modifies any TIA provision that may be so modified, such TIA provision shall be deemed to apply to this Supplement as so modified.  If any provision of this Supplement excludes any TIA provision that may be so excluded, such TIA provision shall be excluded from this Supplement. 

 

D.          Trustees.  The recitals contained herein shall be taken as the statements of the Company and the Trustees assume no responsibility for their correctness.  The Trustees make no representations as to the validity or sufficiency of this Supplement.

 

E.           Governing Law.  This Supplement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law principles thereof.

 

F.           Severability.  In case any provisions in this Supplement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

G.          Counterparts.  The parties may sign any number of copies of this Supplement. Each signed copy shall be an original, but all of them together represent the same agreement. 

 

	
             
 	
            [signature page follows]
 

 

	
             
 	
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IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly executed, all as of the date first above written.

 

UNITED RENTALS, INC.

 

By: /s/ Alfred P. Colangelo

	
             
 	
            Name:
 	
            Alfred P. Colangelo
 	
             

	
             
 	
            Title:
 	
            Vice President, Finance
 

 

ADMINISTRATIVE TRUSTEES OF THE TRUST:

 

    /s/ Wayland Hicks      

	
             
 	
            Wayland Hicks
 

 

    /s/ Matthew Womble    

	
             
 	
            Matthew Womble
 

 

    /s/ Alfred Colangelo    

	
             
 	
            Alfred Colangelo
 

 

THE BANK OF NEW YORK, as Property Trustee under the Trust Agreement and as Trustee under the Indenture and the Guarantee Agreement

 

By: /s/ Geovanni Barris

	
             
 	
            Name:
 	
            Geovanni Barris
 
	
             
 	
            Title:
 	
            Vice President
 	
             

 

THE BANK OF NEW YORK (DELAWARE), as Delaware Trustee

 

By: /s/ Kristine Gullo

	
             
 	
            Name:
 	
            Kristine K. Gullo
 
	
             
 	
            Title:
 	
            Vice President
 	
             

 

 

 

	
             
 	
            5Exhibit 10.1 

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

This First Amendment to Employment Agreement (this "Amendment"), is made and entered into on September 22, 2005, between Inergy GP, LLC, a Delaware limited liability company (the "Company"), and John J. Sherman, an individual (the "Employee").

The Employee and Inergy Partners, LLC, a Delaware limited liability company, entered into an Employment Agreement, dated May 30, 2001 (the "Original Employment Agreement").  Inergy Partners, LLC subsequently assigned the Original Employment Agreement to the Company.  The Company and the Employee desire to amend the Original Employment Agreement to modify the Employee's compensation and bonus and to extend the term of the Employee's employment as provided herein.

The parties hereby agree as follows:

1.Compensation; Bonus.  Section 2 of the Original Employment Agreement is hereby amended to read in its entirety as follows:

2.Compensation; Bonus.  For all services rendered by the Employee to the Company, the Company shall pay the Employee a salary at the annual rate of Three Hundred Thousand Dollars ($300,000) (the "Salary"), payable in arrears in accordance with the Company's general payroll practices.  The Employee is eligible for annual bonuses at the discretion of the Board of Directors of the Company in an amount up to Three Hundred Thousand Dollars ($300,000) annually.  The Salary will be reviewed from time to time by the Company but no less often than annually.  All payments and benefits provided pursuant to this Agreement are subject to income tax withholding and other applicable tax and withholding requirements.

2.Covenant Not to Compete.  Section 8 of the Original Employment Agreement is hereby amended to read in its entirety as follows:

8.Covenant Not to Compete.  The Employee acknowledges that during his employment with the Company he, at the expense of the Company, has been and will continue to be specially trained in the business of the Company, has established and will continue to establish favorable relations with the customers, clients, accounts, lenders, investors, analysts and regulators of the Company or any subsidiary, parent or affiliate of the Company and has had and will continue to have access to the Intellectual Property, trade secrets and Confidential Information of the Company or any subsidiary, parent or affiliate of the Company.  Therefore, in consideration of such training and relations, and in consideration of his continued employment with the Company and the increase in compensation and additional benefits provided in this Agreement, and to further protect the Intellectual Property, trade secrets and Confidential Information of the Company or any subsidiary, parent or affiliate of the Company, the Employee agrees that during the term of his employment by the Company and for a period of two years from and after the voluntary or involuntary termination of such employment for any or no reason, he will not, directly or indirectly, without the express written consent of the Company, except when and as requested to do in and about the performing of his duties under this Agreement:

(a)own, manage, operate, control or participate in the ownership, management, operation or control of, or have any interest, financial or otherwise, in or act as an officer, director, partner, manager, member, principal, employee, agent, representative, consultant or independent contractor of, or in any way assist, any individual or entity in the conduct of any business in the United States that trades, markets, sells or distributes propane gas (at retail, wholesale or otherwise), gathers, processes, stores, transports, trades, markets or distributes natural gas or liquefied by-products of natural gas or petroleum (at retail, wholesale or otherwise) or sells, services and installs parts, appliances or supplies related thereto;

(b)divert or attempt to divert clients or customers (whether or not such persons have done business with the Company or any subsidiary, parent or affiliate of the Company once or more than once) or accounts of the Company or any subsidiary, parent or affiliate of the Company; or

(c)entice or induce or in any manner influence any person who is or becomes in the employ or service of the Company or any subsidiary, parent or affiliate of the Company to leave such employ or service for the purpose of engaging in a business that may be in competition with any business now or at any time during the period hereof engaged in by the Company or any subsidiary, parent or affiliate of the Company.

Notwithstanding the foregoing provisions, the Employee may (i) take action for, on behalf of, and at the direction of the Company pursuant to a written agreement with the Company or otherwise, and (ii) own up to 5% of the outstanding equity securities in any corporation or entity (including units in a master limited partnership) that is listed upon a national stock exchange or actively traded in the over-the-counter market.

3.Term and Termination.  

(a)Section 11(a) of the Original Employment Agreement is hereby amended to read in its entirety as follows:

(a)Subject to earlier termination as provided in Sections 11(b) and 11(c), the term of the Employee's employment under this Agreement will begin on May 30, 2001 and continue up to and including August 30, 2010.

(b)Section 11(e) of the Original Employment Agreement is hereby amended to read in its entirety as follows:
(e)If the Company elects to terminate the Employee's employment with the Company during the term of the Employee's employment under this Agreement referred to in Section 11(a) and such termination is without Cause, the Company shall pay to the Employee:
(i)the unpaid amount of the Employee's Salary for the remainder of the term of this Agreement, with such amount to be paid bi-monthly in arrears;

(ii)such earned but unpaid subordination bonus, if any, pursuant to Section 4(b); and

(iii)such other fringe benefits (other than any bonus, severance pay benefit or participation in the Company's 401(k) employee benefit plan) normally provided to employees of the Company as the Employee has earned up to the date of his termination.

4.Notice.  Section 17 of the Original Employment Agreement is hereby amended to read in its entirety as follows:
17.Notice.  Any notice, request, consent or communication under this Agreement is effective only if it is in writing and personally delivered or sent by certified mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service, with delivery confirmed, addressed as follows:

If to the Company:

	

Name:
	

With copy to:

	

Attn:  Board of Directors

Inergy GP, LLC

Two Brush Creek Blvd., Suite 200

Kansas City, Missouri 64112
	

Laura Ozenberger

Inergy GP, LLC

Two Brush Creek Blvd., Suite 200

Kansas City, Missouri 64112

If to Employee:
Name:

John J. Sherman

Two Brush Creek Blvd., Suite 200
Kansas City, Missouri 64112 

or such other persons or addresses as may be furnished in writing by any party to the other party, and will be deemed to have been given only upon its delivery in accordance with this Section 17.

5.Entire Agreement.  The Original Employment Agreement, as amended by this Amendment, embody the entire agreement and understanding between the parties and supersede all prior agreements and understandings between the parties relating to the subject matter hereof.

6.Governing Law.  This Amendment and all rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of Missouri applicable to agreements made and to be performed entirely within the State, including all matters of enforcement, validity and performance; provided, however, that to the extent any provision herein is deemed unenforceable in the State of Missouri, then this Amendment shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware.

The parties have executed this First Amendment to Employment Agreement on the date set forth in the introductory clause. 
INERGY GP, LLC

By: /s/_John J. Sherman____

Name:  John J. Sherman

Title:  President and CEO
___/s/_John J. Sherman

JOHN J. SHERMAN

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