Document:

EX-10.1 Amendment No. 3 to 3rd Amended and Restate

 

EXHIBIT 10.1

AMENDMENT NO. 3

     AMENDMENT NO. 3 dated effective as of May 2, 2007 among THE GEO GROUP, INC. (formerly known as
Wackenhut Corrections Corporation), a Florida corporation, as borrower (the “Borrower”),
certain of its Subsidiaries executing this Amendment No. 3 on the signature pages hereto, as
grantors (the “Grantors”), the Lenders executing this Amendment No. 3 on the signature
pages hereto and BNP PARIBAS, in its capacity as Administrative Agent under the Credit Agreement
referred to below (together with its permitted successors, the “Administrative Agent”).

     The Borrower, the lenders party thereto (including the Lenders executing this Amendment No. 3
on the signature pages hereto) and the Administrative Agent are parties to a Third Amended and
Restated Credit Agreement dated as of January 24, 2007 (as modified and supplemented and in effect
from time to time, the “Credit Agreement”), providing, subject to the terms and conditions
thereof, for extensions of credit (by means of loans and letters of credit) to be made by said
lenders to the Borrower in an aggregate principal or face amount not exceeding $515,000,000.

     The Borrower and the Lenders party hereto wish now to amend the Credit Agreement in certain
respects, and accordingly, the parties hereto hereby agree as follows:

     Section 1. Definitions. Except as otherwise defined in this Amendment No. 3, terms
defined in the Credit Agreement are used herein as defined therein.

     Section 2. Amendment. Subject to the satisfaction of the condition precedent
specified in Section 3 below, but effective as of the date hereof, the text of Section 9.17 of the
Credit Agreement shall be deleted in its entirety and replaced with the following:

“With respect to any borrowing under an Incremental Term Loan, the Borrower will
within 60 days of the date of such borrowing enter into, and thereafter maintain in
full force and effect, one or more Hedging Agreements with one or more of the
Lenders that effectively enables the Borrower (in a manner satisfactory to the
Administrative Agent) to be protected against increases in the three month London
interbank offered rate as to at least thirty-five percent (35%) of the sum of (a)
the outstanding Initial Term Loans, (b) the outstanding Incremental Term Loans
(after giving effect to such borrowing) and (c) the outstanding High-Yield Notes
for a period of at least 2 years measured from the date of such borrowing.”

     Section 3. Condition Precedent. The amendment set forth in Section 2 hereof shall
become effective, as of the date hereof, upon the receipt by the Administrative Agent of
counterparts of this Amendment No. 3 executed by the Borrower, the Grantors, the Administrative
Agent and the Required Lenders.

     Section 4. Security Documents. The Borrower and the Grantors hereby ratify and
confirm the respective Guaranty Obligations and Liens granted by them under the Security Documents
in favor of the Secured Parties.

     Section 5. Miscellaneous. Except as herein provided, the Credit Agreement shall
remain unchanged and in full force and effect. This Amendment No. 3 may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
amendatory instrument and any of the parties hereto may execute this Amendment No. 3 by
signing any such counterpart. This Amendment No. 3 shall be governed by, and construed in
accordance with, the law of the State of New York.

[Signature pages to follow]

-1-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to the Credit
Agreement to be duly executed and delivered as of the day and year first above written.

	 	 	 	 	 
	 	THE GEO GROUP, INC. (formerly known as Wackenhut

Corrections Corporation),
as Borrower

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Senior Vice President and Chief
Financial Officer

CORRECTIONAL SERVICES CORPORATION, as Grantor 	 
	 
	 	 	 
	 	By:  	                            /s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President, Finance 	 
	 
	 	GEO ACQUISITION II, INC., as Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President - Finance 	 
	 
	 	GEO CARE, INC. (formerly known as Atlantic Shores

Healthcare, Inc.), as Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Treasurer 	 
	 
	 	GEO RE HOLDINGS LLC (formerly known as WCC RE

Holdings LLC), as Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Senior Vice President, Treasurer 	 
	 

[Signature pages continue]

-2-

 

	 	 	 	 	 
	 	CPT OPERATING PARTNERSHIP, L.P., as Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President - Finance 	 
	 
	 	CPT LIMITED PARTNER, LLC, as Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President - Finance 	 
	 
	 	CORRECTIONAL PROPERTIES PRISON
FINANCE LLC, as
Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President - Finance 	 
	 
	 	PUBLIC PROPERTIES DEVELOPMENT AND
LEASING LLC, as
Grantor

 	 
	 	By:  	/s/  John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Vice President - Finance 	 
	 

[Signature pages continue]

-3-

 

	 	 	 	 	 
	 	BNP PARIBAS,

as Lender

 	 
	 	By:  	/s/
Shayn P. March
 	 
	 	 	Name:  	Shayn P. March 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                              /s/ Duane Helkowski
 	 
	 	 	Name:  	Duane Helkowski 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BNP PARIBAS,

as Administrative Agent

 	 
	 	By:  	/s/ Shayn P. March
 	 
	 	 	Name:  	Shayn P. March 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                              /s/ Duane Helkowski
 	 
	 	 	Name:  	Duane Helkowski 	 
	 	 	Title:  	Managing Director 	 

-4-EX-10.A Letter Agreement

 

Exhibit
10(a)

HARRIS CORPORATION

			
	 	 	 
	HOWARD L. LANCE

Chairman, President and 

Chief Executive Officer
	 	1025 West NASA Boulevard

Melbourne, FL USA 32919

phone 1-321-724-3900

www.harris.com

Private and Confidential

January 23, 2007

Mr. Timothy Thorsteinson

59 Farnham Avenue West

Toronto, Ontario M4V1 H6

Canada

Re:      Letter of Agreement

Dear Tim:

     We are pleased with your recent appointment as an Executive Officer of Harris Corporation and
as President of Harris’ Broadcast Communications Division (“BCD”). This Letter Agreement will
confirm your acceptance of your appointment as BCD’s President and will set forth the initial
terms and conditions of your new position. In this regard, this will confirm that we have agreed
to the following:

	 	•	 	Position: You remain employed by Leitch Technology International, Incorporated
(“Leitch”). You will be President of BCD reporting directly to Howard Lance, CEO of
Harris Corporation.
	 
	 	•	 	Effect of Prior Employment Agreement: You acknowledge and agree that all
employment agreements you had with Leitch including, but not limited to, those of
November 17, 2003 (the “Original Agreement”, which term includes amendments to the
Original Agreement including the compensation letter agreement dated June 9, 2005)
and June 9, 2005 and August 31, 2005 are null and void and no longer in effect and
are superseded in all respects by this Letter Agreement, except that any obligations
regarding confidentiality, non-disclosure and ownership of inventions which you had
pursuant to any agreement with Leitch and with Harris will continue in full force and
effect.
	 
	 	•	 	Base Salary: Your base salary of $425,000USD will be converted to CAD based
on a conversion rate CAD$ 1.33 v. $1.00USD, which is your current rate. Your salary
will be reviewed annually and the conversion rate will be adjusted to the prevailing
rate effective January 1, 2008 at the discretion of Harris, based upon your CAD
salary. This will be based upon the average daily exchange rate for calendar year
2007.

	 	•	 	Bonus: You will participate in the Harris Annual Incentive Plan (AIP). You
will be provided with specified target performance criteria and the AIP payment of
$285,000USD will be converted to CAD$319,961 using the above-referenced exchange
rate. Your AIP payment will be subject to the terms of the Plan and its related
documents.

assuredcommunicationsTM

 

 

	 	•	 	Long-Term Compensation: Your previous stock options, restricted unit and performance units
will continue as awarded per their Terms and Conditions. Additional long-term compensation
will be considered on an annual basis by the Harris Management Development and Compensation
Committee.
	 
	 	•	 	Benefits: You will continue to participate in the Leitch RRSP, DPSP and health and welfare
benefits. Due to your U.S. citizenship and your job duties, you, your wife and children will
be covered by Leitch U.S. health and welfare benefits while you/they are in the U.S.
	 
	 	•	 	Vacation: You continue to be eligible for four (4) weeks of vacation annually. Use and
accumulation of time is governed by Harris’ vacation policy contained in its Summary Plan
Description.
	 
	 	•	 	Other Benefits: Financial estate planning assistance, subject to a CAD$5,613 cap, for any
three calendar year period; tax planning assistance, subject to a CAD$5,613 annual cap; and
initiation fee and monthly dues for one family golf or social club membership. For calendar
year 2006 and 2007 Harris will pay for the preparation of your U.S. and Canadian tax returns
and will reimburse you for the “excess taxes” as provided for in Sections 9 and 12 of your
November 17, 2003 Agreement with Leitch. Payment or reimbursement for the benefits described
in this paragraph will occur as soon as administratively practicable following the date the
expenses are incurred, but no later than the March 15 following the calendar year in which
such expenses are incurred.
	 
	 	•	 	Severance: In the event you are involuntarily terminated without cause you will receive a
lump sum severance payment equal to your then current Base Salary plus the AIP payment that
you were actually paid in the prior fiscal year by Harris. This lump sum severance payment
will be paid to you within 30 days after your termination date. The severance payments will
be in lieu of your entitlements to notice, termination pay and severance under applicable
statutory and common law requirements and/or severance plan provisions (U.S. and/or
Canadian). You acknowledge and agree that these severance payments are fair and reasonable
and are the results of negotiation between the parties.
	 
	 	•	 	Change in Control: Pursuant to the attached Executive Severance Agreement (as may be amended
by Harris at its discretion to reflect the requirements of final regulations to be issued
under Section 409A of the Internal Revenue Code), you are entitled to two (2) years of base
salary and incentive compensation in the event of a qualifying termination of employment
following a change in control. You are not eligible to receive severance payments under this
Letter Agreement or pursuant to any severance plan or policy maintained by Harris or its
affiliates if you receive a change in control severance payment pursuant to the Executive
Severance Agreement.
	 
	 	•	 	Location and Relocation: Currently, your Position will be located in Toronto, Ontario,
Canada. However, you acknowledge and agree that you may be required by Harris to relocate to a
location anywhere within the U.S. or Canada. In that event, Harris will provide you with
relocation assistance (travel reimbursement; moving expenses; house hunting expenses; closing
cost reimbursement for home sale and purchase; etc.) commensurate with your position of BCD
President. Payment or reimbursement for such expenses will occur as soon as administratively

 

 

	 	 	 	practicable following the date such expenses are incurred, but no later than the March
15 following the calendar year in which such expenses are incurred.

     Please note that, in addition to the above, your appointment and also your relocation, if
that occurs, are contingent upon the following (if they are applicable under the
circumstances):

	 	•	 	You will be required to sign the Harris Employment Agreement Form before
beginning your new assignment.
	 
	 	•	 	You must execute and return all forms and other documents required for Harris
to complete the U.S. employment process including the enclosed acknowledgement and
acceptance.
	 
	 	•	 	You must provide information and documentation sufficient to complete the
required 1-9 form and demonstrate that you are authorized to work for Harris in the
U.S.

     Tim, I am excited about your new appointment within the Harris BCD Team and look forward to
continuing our working relationship as we grow the Company. If you have any questions, please do
not hesitate to call me or Jeff Shuman.

	 	 	 
	 

	 	Sincerely,
	 

	 	/s/ H.L. Lance                    
	 

	 	Howard L. Lance
	 

	 	Chairman, President and
	 

	 	Chief Executive Officer

Acknowledgement and Acceptance

     To acknowledge your acceptance of your appointment and of the terms of this
Agreement, please sign and return the copy provided.

     I understand that this Agreement is not an employment contract nor is it a guarantee of
employment for any particular period of time.

	 	 	 	 	 
	/s/ Timothy Thorsteinson

	 	 	 	1/29/07
	 
 
Timothy Thorsteinson

	 	 
	 	 

Date

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