Document:

Exhibit 10.2

    
      

    

    Exhibit
      10.2

    
 

    MASTER
      GUARANTY

    

    

    This
      MASTER
      GUARANTY (“Guaranty”)
      dated as of
      February 17, 2006 is made by each of the entities from time to time party hereto
      (each in its capacity hereunder, a “Guarantor” and collectively the
“Guarantors”), jointly and severally, in favor of the Agent for the benefit of
      the Guarantied Parties (defined below) with reference to the
      following:

    

    RECITALS

    

    A. Pursuant
      to that
      certain Second Amended and Restated Credit Agreement dated as of February 17,
      2006, by and among Insituform Technologies, Inc., a Delaware corporation
      (“Borrower”), and Bank of America, N.A., as administrative agent (“Agent”) and
      as L/C Issuer, and the other Lenders from time to time party thereto
      (“Lenders”), as the same may be amended, restated, extended, supplemented or
      otherwise modified in writing from time to time (the “Credit Agreement”), the
      L/C Issuer and the Lenders are making certain credit facilities and other
      extensions of credit available to the Borrower.

    

    B.
 As
      a condition to
      the availability of such credit facilities, the Guarantors are required to
      enter
      into this Master Guaranty and to guaranty the obligations hereunder as
      hereinafter provided.

    

    C. The
      Guarantors
      expect to realize certain direct and indirect benefits as the result of the
      availability of the aforementioned credit facilities and extensions of credit
      to
      the Borrower, as the result of the financial or business support which will
      be
      provided to the Guarantors by the Borrower.

    

    1.
The
      Guaranty.
      For valuable
      consideration, each of the Guarantors hereby unconditionally guarantees and
      promises to pay promptly to Agent for the benefit of the Guarantied Parties
      in
      lawful money of the United States, any and all Obligations of the Borrower
      when
      due, whether at stated maturity, upon acceleration or otherwise, and at all
      times thereafter. The liability of each Guarantor under this Guaranty is not
      limited as to the principal amount of the Obligations guaranteed and includes,
      without limitation, liability for all interest, fees, indemnities (including,
      without limitation, hazardous waste indemnities), and other costs and expenses
      relating to or arising out of the Obligations and for all swap, option, or
      forward obligations now or hereafter owing from Borrower to Agent for the
      benefit of the Guarantied Parties. The liability of each Guarantor is continuing
      and relates to any Obligations, including those arising under successive
      transactions which shall either continue the Obligations or from time to time
      renew it after it has been satisfied. This Guaranty replaces and supersedes
      that
      certain Master Guaranty dated as of March 12, 2004, but is otherwise
      cumulative and does not supersede any other outstanding guaranties of the
      Guarantors related to the Obligations, and the liability of each Guarantor
      under
      this Guaranty is exclusive of such Guarantor's liability under any other
      guaranties signed by such Guarantor. Each Guarantor agrees that its obligations
      under this Guaranty shall be joint and several with those of all other
      Guarantors. Each Guarantor's liability hereunder shall not exceed at any one
      time the largest amount during the period commencing with Guarantor's execution
      of this Guaranty and thereafter that would not render such Guarantor's
      obligations hereunder subject to avoidance under Section 548 of the Bankruptcy
      Code (Title 11, United States Code) or any comparable provisions of any
      applicable state law.

     

    2.
Definitions.
      All capitalized
      terms not otherwise defined herein have the meanings given them in the Credit
      Agreement. As used herein, “Guarantied Parties” means the Agent, the L/C Issuer
      and the Lenders collectively or any of them individually.

     

    3.
Obligations
      Independent.
      The obligations
      hereunder are independent of the obligations of Borrower or any other guarantor,
      and a separate action or actions may be brought and prosecuted against each
      Guarantor individually or all Guarantors collectively whether action is brought
      against Borrower or any other guarantor or whether Borrower or any other
      guarantor be joined in any such action or actions. Each of the undersigned
      shall
      be bound by its terms without regard to execution by anyone else.

    

    4.
Rights
      of
      Agent.
      Each Guarantor
      authorizes Agent for the benefit of the Guarantied Parties and each of the
      other
      Guarantied Parties individually, without notice or demand and without affecting
      its liability hereunder, from time to time to:

    

    (a)
      renew,
      compromise, extend, accelerate, or otherwise change the time for payment, or
      otherwise change the terms of the Obligations or any part thereof, including
      increase or decrease of the rate of interest

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    thereon,
      or
      otherwise change the terms of any Loan Documents;

    

    (b)
      receive and
      hold security for the payment of this Guaranty or any Obligations and exchange,
      enforce, waive, release, fail to perfect, sell, or otherwise dispose of any
      such
      security;

    

    (c)
      apply such
      security and direct the order or manner of sale thereof as each of Agent or
      any
      of the other Guarantied Parties may determine in its discretion; 

    

    (d)
      release or
      substitute any Guarantor or any one or more of any endorsers or other guarantors
      of any of the Obligations; and

    

    (e)
      permit the
      Obligations to exceed each Guarantor's liability under this Guaranty, and each
      Guarantor agrees that any amounts received, whether by Agent for the benefit
      of
      the Guarantied Parties, by any of the other Guarantied Parties individually,
      or
      by any group thereof, from any source other than such Guarantor shall be deemed
      to be applied first to any portion of the Obligations not guaranteed by
      Guarantor.

    

    5.
Guaranty
      to be
      Absolute.
      Each Guarantor
      agrees that until the Obligations have been paid in full and any commitments
      under the Credit Agreement with respect to the Obligations
      have
      been terminated, no Guarantor shall be released by or because of the taking,
      or
      failure to take, any action that might in any manner or to any extent vary
      the
      risks of any Guarantor under this Guaranty or that, but for this paragraph,
      might discharge or otherwise reduce, limit, or modify any Guarantor's
      obligations under this Guaranty. Each Guarantor waives and surrenders any
      defense to any liability under this Guaranty based upon any such action,
      including but not limited to any action of the Agent or any of the other
      Guarantied Parties described in this Guaranty. It is the express intent of
      each
      Guarantor that such Guarantor’s obligations under this Guaranty are and shall be
      absolute and unconditional.

    

    6.
Guarantor's
      Waivers of Certain Rights and Certain Defenses.
      Guarantor
      waives:

    

    (a)
      any right to
      require Agent or any of the other Guarantied Parties to proceed against
      Borrower, proceed against or exhaust any security for the Obligations, or pursue
      any other remedy in Agent's power whatsoever;

    

    (b)
      any defense
      arising by reason of any disability or other defense of Borrower, or the
      cessation from any cause whatsoever of the liability of Borrower;

    

    (c)
      any defense
      based on any claim that Guarantor's obligations exceed or are more burdensome
      than those of Borrower; and

    

    (d)
      the benefit of
      any statute of limitations affecting Guarantor's liability hereunder.

    

    No
      provision or waiver in this Guaranty shall be construed as limiting the
      generality of any other waiver contained in this Guaranty.

    

    7.
Waiver
      of
      Subrogation.
      Until the
      Obligations have been paid in full and any commitments, facilities or extensions
      of credit provided by any of the Guarantied Parties with respect to the
      Obligations have been terminated, even though the Obligations may be in excess
      of Guarantor’s liability hereunder, each Guarantor waives to the extent
      permitted by applicable law any right of subrogation, reimbursement,
      indemnification, and contribution (contractual, statutory, or otherwise)
      including, without limitation, any claim or right of subrogation under the
      Bankruptcy Code (Title 11, United States Code) or any successor statute, arising
      from the existence or performance of this Guaranty, and each Guarantor waives
      to
      the extent permitted by applicable law any
      right to
      enforce any remedy that Agent or any of the other Guarantied Parties now have
      or
      may hereafter have against Borrower, and waives any benefit of, and any right
      to
      participate in, any security now or hereafter held (i) by Agent for the benefit
      of the Guarantied Parties or (ii) by any of the Guarantied Parties individually
      or by any of the them. 

    

    8.
Waiver
      of
      Notices.
      Each Guarantor
      waives all presentments, demands for performance, notices of nonperformance,
      protests, notices of protest, notices of dishonor, notices of intent to
      accelerate, notices of acceleration, notices of any suit or any other action
      against Borrower or any other person, any other notices to any party liable
      on
      any Loan Document (including any Guarantor), notices of acceptance of this
      Guaranty, notices of the existence, creation, or incurring of new or additional
      Obligations to which this Guaranty applies or any other Obligations of Borrower
      pursuant to the Credit Agreement, and
      notices of any
      fact that might increase any Guarantor’s risk.

    

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    9.
Subordination.
      Any obligations
      of Borrower to any Guarantor, now or hereafter existing, including but not
      limited to any obligations to any Guarantor as subrogee of Agent or any of
      the
      other Guarantied Parties resulting from any Guarantor's performance under this
      Guaranty, are hereby subordinated to the Obligations. In addition to each
      Guarantor's waiver of any right of subrogation as set forth in this Guaranty
      with no respect to any obligations of Borrower to any Guarantor as subrogee
      of
      Agent and the other Guarantied Parties, each Guarantor agrees that, if Agent
      or
      any of the other Guarantied Parties so request, Guarantor shall demand, take,
      or
      receive from Borrower, by setoff or in any other manner, payment of any other
      obligations of Borrower to any Guarantor until the Obligations have been paid
      in
      full and any commitments under the Credit Agreement have been terminated. If
      any
      payments are received by any Guarantor in violation of such waiver or agreement,
      such payments shall be received by such Guarantor as trustee for Agent and
      the
      other Guarantied Parties and shall be paid over to Agent for the benefit of
      the
      Guarantied Parties, on account of the Obligations, but without reducing or
      affecting in any manner the liability of such Guarantor under the other
      provisions of this Guaranty. Any security interest, lien, or other encumbrance
      that any Guarantor may now or hereafter have on any property of Borrower is
      hereby subordinated to any security interest, lien, or other encumbrance that
      Agent, the other Guarantied Parties or any of them may have on any such
      property.

    

    10.
Reinstatement
      of
      Guaranty.
      If this Guaranty
      is revoked, returned, or canceled, and subsequently any payment or transfer
      of
      any interest in property by Borrower to Agent or any of the other Guarantied
      Parties is rescinded or must be returned by Agent or any of the other Guarantied
      Parties to Borrower, this Guaranty shall be reinstated with respect to any
      such
      payment or transfer, regardless of any such prior revocation, return, or
      cancellation.

    

    11.
Stay
      of
      Acceleration.
      In the event that
      acceleration of the time for payment of any of the Obligations is stayed upon
      the insolvency, bankruptcy, or reorganization of Borrower or otherwise, all
      such
      Obligations guaranteed by each Guarantor shall nonetheless be payable by each
      Guarantor immediately if requested by Agent.

    

    12.
No
      Setoff or
      Deductions; Taxes.

    

    (a)
      Each Guarantor
      represents and warrants that it is organized and resident in the United States
      of America. All payments by each Guarantor hereunder shall be paid in full,
      without setoff or counterclaim or any deduction or withholding whatsoever,
      including, without limitation, for any and all present and future taxes. If
      any
      Guarantor must make a payment under this Guaranty, such Guarantor represents
      and
      warrants that it will make the payment from one of its U.S. resident offices
      to
      Agent so that no withholding tax is imposed on the payment. Notwithstanding
      the
      foregoing, if any Guarantor makes a payment under this Guaranty to which
      withholding tax applies or if any taxes are at any time imposed on any payments
      under or in respect of this Guaranty including, but not limited to, payments
      made pursuant to this paragraph, each Guarantor shall pay all such taxes to
      the
      relevant authority in accordance with applicable law such that each of the
      Guarantied Parties receives the sum it would have received had no such deduction
      or withholding been made (or, if any Guarantor cannot legally comply with the
      foregoing, such Guarantor shall pay to Agent for the benefit of the Guarantied
      Parties such additional amounts as will result in each of the Guarantied Parties
      receiving the sum it would have received had no such deduction or withholding
      been made). Further, each Guarantor shall also pay to Agent for the benefit
      of
      the Guarantied Parties, on demand, all additional amounts that Agent specifies
      as necessary to preserve the after-tax yield each of the Guarantied Parties
      would have received if such taxes had not been imposed.

    

    (b)
      Each Guarantor
      shall promptly provide Agent for the benefit of the Guarantied Parties with
      an
      original receipt or certified copy issued by the relevant authority evidencing
      the payment of any such amount required to be deducted or withheld.

    

    13.
Information
      Relating to Borrower.
      Each Guarantor
      acknowledges and agrees that it shall have the sole responsibility for, and
      has
      adequate means of, obtaining from Borrower such information concerning
      Borrower's financial condition or business operations as such Guarantor may
      require, and that neither Agent nor any of the other Guarantied Parties has
      any
      duty, and no Guarantor is relying on Agent or any of the other Guarantied
      Parties, at any time to disclose to Guarantors any information relating to
      the
      business operations or financial condition of Borrower.

    

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    14.
Borrower's
      Authorization.
      Each Guarantor
      agrees that it is not necessary for Agent or any of the other Guarantied Parties
      to inquire into the powers of Borrower or of the officers, directors, partners,
      members, managers, or agents acting or purporting to act on its behalf, and
      any
      Obligations made or created in reliance upon the professed exercise of such
      powers shall be guaranteed hereunder.

    

    15.
Representations
      and Warranties.
      Each Guarantor
      represents and warrants to the Guarantied Parties as follows:

    

    (a)
Authorization.
      Each Guarantor is
      duly authorized to execute and perform this Guaranty, and this Guaranty has
      been
      properly authorized by all requisite corporate, membership, or partnership
      action (as the case may be) of such Guarantor. No consent, approval or
      authorization of, or declaration or filing with, any Governmental Authority
      or
      any other Person, is required in connection with such Guarantor’s execution,
      delivery or performance of this Guaranty, except for those already duly
      obtained.

    

    (b)
Due
      Execution.
      This Guaranty has
      been executed on behalf of each Guarantor by a legally competent Person duly
      authorized to do so.

    

    (c)
Enforceability.
      This Guaranty
      constitutes the legal, valid and binding obligation of each Guarantor,
      enforceable against such Guarantor in accordance with its terms, except to
      the
      extent that the enforceability thereof against such Guarantor may be limited
      by
      bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting
      creditor’s rights generally or by equitable principles of general
      application.

    

    (d)
Legal
      Restraints.
      The execution of
      this Guaranty by each Guarantor, and the performance by such Guarantor of its
      obligations under this Guaranty, will not violate or constitute a default under
      the Organization Documents of such Guarantor, any material agreement, or any
      material law, and will not, except as expressly contemplated or permitted in
      this Guaranty, result in any security interest being imposed on any of such
      Guarantor’s property.

    

    (e)
No
      Representation by the Guarantied Parties.
      No Guarantied
      Party has made any representation, warranty or statement to any Guarantor to
      induce such Guarantor to execute this Guaranty.

    

    All
      representations, warranties, and covenants of each Guarantor contained herein
      survive the execution and delivery of this Guaranty, and terminate only upon
      Final Payment.

    

    16.
Guarantor's
      Covenants.
      Until the
      Obligations guaranteed under this Guaranty have been paid in full and any
      commitments of Agent or any of the other Guarantied Parties with respect to
      such
      Obligations have been terminated and each and every term, covenant, and
      condition of this Guaranty is fully performed, each Guarantor covenants and
      agrees to perform and comply in all material respects with each covenant and
      other undertaking in the Credit Agreement that the Borrower undertakes to cause
      such Guarantor to perform, subject to any applicable grace periods, if any,
      for
      such performance provided for in the Credit Agreement.

    

    17.
Remedies.
      If Guarantor
      fails to fulfill its duty to pay all Obligations guaranteed hereunder, Agent
      and
      each of the other Guarantied Parties shall have all of the remedies of a
      creditor and, to the extent applicable, of a secured party, under all applicable
      law. Without limiting the foregoing, each of Agent or any of the other
      Guarantied Parties may, at its option and without notice or demand:

    

    (a)
      declare any
      Obligations due and payable at once;

    

    (b)
      take possession
      of any collateral pledged by Borrower or Guarantor, wherever located, and sell,
      resell, assign, transfer, and deliver all or any part of the collateral at
      any
      public or private sale or otherwise dispose of any or all of the collateral
      in
      its then condition, for cash or on credit or for future delivery, and in
      connection therewith Agent or any of the other Guarantied Parties may impose
      reasonable conditions upon any such sale. Further, unless prohibited by law
      the
      provisions of which cannot be waived, the Agent (for the benefit of the
      Guarantied Parties) or any of the other Guarantied Parties may purchase all
      or
      any part of the collateral to be sold, free from and discharged of all trusts,
      claims, rights of redemption and equities of Borrower or any Guarantor
      whatsoever. Each Guarantor acknowledges and agrees that the sale of any
      collateral through any nationally recognized broker-dealer,
      investment

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    banker,
      or any
      other method common in the securities industry shall be deemed a commercially
      reasonable sale under the Uniform Commercial Code or any other equivalent
      statute or federal law, and expressly waives notice thereof except as provided
      herein; and 

    

    (c)
      set off against
      any or all liabilities of any Guarantor all money owed by the Agent or any
      of
      the other Guarantied Parties or any agents or affiliates of any of them, whether
      or not due, and also set off against all other liabilities of any Guarantor
      to
      Agent or any of the other Guarantied Parties all money owed by Agent or any
      of
      the other Guarantied Parties in any capacity to a Guarantor. If exercised by
      Agent, Agent shall be deemed to have exercised such right of setoff and to
      have
      made a charge against any such money immediately upon the occurrence of such
      default although made or entered on the books subsequent thereto. 

    

    18.
Notices.
      All notices
      required under this Guaranty shall be personally delivered or sent by first
      class mail, postage prepaid, or by overnight courier, to the addresses set
      forth
      for such purposes in the Credit Agreement, or sent by facsimile to the fax
      numbers listed on the signature page, or to such other addresses as Agent and
      Guarantor may specify from time to time in writing. Notices sent by (a) first
      class mail shall be deemed delivered on the earlier of actual receipt or on
      the
      fourth business day after deposit in the U.S. mail, postage prepaid,
      (b) overnight courier shall be deemed delivered on the next business day,
      and (c) telecopy shall be deemed delivered when transmitted.

    

    19.
Successors
      and
      Assigns.
      This Guaranty (a)
      binds each Guarantor and such Guarantor's executors, administrators, successors,
      and assigns, provided that such Guarantor may not assign its rights or
      obligations under this Guaranty without the prior written consent of Agent,
      and
      (b) inures to the benefit of Agent for the benefit of the Guarantied Parties,
      and to each of the other Guarantied Parties individually, and the indorsees,
      successors, and assigns of each. Agent or any of the other Guarantied Parties
      may, without notice to any Guarantor and without affecting any Guarantor's
      obligations hereunder, sell, assign, grant participations in, or otherwise
      transfer to any other person, firm, or corporation the Obligations and this
      Guaranty, in whole or in part. Guarantor agrees that Agent or any of the other
      Guarantied Parties may disclose to any assignee or purchaser, or any prospective
      assignee or purchaser, of all or part of the Obligations any and all information
      in Agent's possession concerning any Guarantor, this Guaranty, and any security
      for this Guaranty.

    

    20.
Amendments,
      Waivers, and Severability.
      No provision of
      this Guaranty may be amended or waived except in writing. No failure by Agent
      to
      exercise, and no delay in exercising, any of its rights, remedies, or powers
      shall operate as a waiver thereof, and no single or partial exercise of any
      such
      right, remedy, or power shall preclude any other or further exercise thereof
      or
      the exercise of any other right, remedy, or power. The unenforceability or
      invalidity of any provision of this Guaranty shall not affect the enforceability
      or validity of any other provision of this Guaranty.

    

    21.
Costs
      and
      Expenses.
      Each Guarantor
      agrees to pay all reasonable attorneys' fees, including allocated costs of
      Agent's or any of the other Guarantied Parties’ in-house counsel to the extent
      permitted by applicable law, and all other costs and expenses that may be
      incurred by Agent or any of the other Guarantied Parties (a) in the enforcement
      of this Guaranty or (b) in the preservation, protection, or enforcement of
      any
      rights of Agent or any of the other Guarantied Parties in any case commenced
      by
      or against any Guarantor or Borrower under the Bankruptcy Code (Title 11, United
      States Code) or any similar or successor statute. 

    

    22.
Governing
      Law
      and Jurisdiction.
      This Guaranty
      shall be governed by and construed and enforced in accordance with federal
      law
      and the law of the State of Missouri. Jurisdiction and venue for any action
      or
      proceeding to enforce this Guaranty shall be the forum appropriate for such
      action or proceeding against Borrower, to which jurisdiction each Guarantor
      irrevocably submits and to which venue each Guarantor waives to the fullest
      extent permitted by law any defense asserting an inconvenient forum in
      connection therewith. It is provided, however, that if any Guarantor owns
      property in another state, notwithstanding that the forum for enforcement action
      is elsewhere, Agent or any of the other Guarantied Parties may commence a
      collection proceeding in any state in which any Guarantor owns property for
      the
      purpose of enforcing provisional remedies against such property. Service of
      process by Agent in connection with such action or proceeding shall be binding
      on each Guarantor if sent to Guarantor by registered or certified mail at its
      address specified below.

    

    23.
Waiver
      of Jury
      Trial.
      The parties to
      this agreement waive trial by jury in any action or proceeding to which they
      may
      be parties, arising out of, in connection with or in any way pertaining to,
      this
      agreement. It is agreed and understood that this waiver constitutes a waiver
      of
      trial by jury of all claims against all parties to such action or proceedings,
      including claims against parties who are not parties to this agreement. This
      waiver is knowingly, willingly and voluntarily made.

    

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    Regulation
      U of the
      Board of Governors of the Federal Reserve System places certain restrictions
      on
      loans secured by margin stock (as defined in the Regulation). Bank and Borrower
      shall comply with Regulation U. If any of the collateral is margin stock, the
      Borrower and Guarantor shall provide to the Bank a Form U-1 Purpose
      Statement.

    

    24.
      FINAL
      AGREEMENT.
      BY SIGNING
      THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT
      REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT
      MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET,
      OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER
      HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET, OR OTHER WRITTEN OUTLINE
      OF
      TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO
      UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT
      BE
      CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
      AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES. 

    

    25.
      ORAL
      AGREEMENTS. ORAL
      AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
      ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
      ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED
      THAT
      IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S))
      AND
      US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
      COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE
      AND
      EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE
      IN
      WRITING TO MODIFY IT.

    

    

    

    

    [Remainder
      of page intentionally left blank; signature page follows]

    

    

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

    The
      parties hereto
      have executed this Master Guaranty as of the date first written
      above.

     

     

    
      	
              GUARANTORS:

            	 
	 	 
	INA
              ACQUISITION CORP.	INSITUFORM
              TECHNOLOGIES USA, INC.
	 	 
	 	 
	By:
/s/
              David
              A. Martin	By:
/s/
              David A. Martin
	Name:
David
              A.
              Martin	Name:
David
              A.
              Martin
	Title:
Vice
              President and Controller	Title:
Vice
              President and Controller
	 	 
	 	 
	AFFHOLDER,
              INC.	MISSISSIPPI
              TEXTILES CORPORATION
	 	 
	 	 
	By:
/s/
              David
              A. Martin	By:
              /s/
              David A. Martin
	Name:
              David A. Martin	Name:
              David A. Martin
	Title:
              Vice President and Controller	Title:
              Vice President and Controller
	 	 
	 	 
	KINSEL
              INDUSTRIES, INC.	 
	 	 
	 	 
	By:
/s/
              David
              A. Martin	 
	Name:
David
              A.
              Martin	 
	Title:
Vice
              President and Controller	 
	 	 
	 	 
	
              Acknowledged:

            	 
	 	 
	 	 
	BANK
              OF
              AMERICA, N.A.,	 
	 	 
	 	 
	By:
/s/
              Jason
              R. Hickey	 
	Name: Jason
              R.
              Hickey	 
	Title: Senior
              Vice President	 

    

    
 

    
      
        
        

      

      
        -
          7
          -OCTILLION CORP

EXHIBIT 10.5

OCTILLION CORP.

PROMISSORY NOTE

$50,000.00

              

January 23, 2006

     Octillion Corp., a Nevada corporation (the "Company"), for value received, hereby promises to pay to Harmel S. Rayat ("Holder") or order, the principal sum of fifty thousand dollars ($50,000.00) with interest as provided below.

     1.   Payment.

     (a) Payment. Subject to the provisions of Section 3 hereof relating to the revision of this Note, principal and accrued interest hereof shall be payable on April 23, 2006 (the "Maturity Date"). Payment hereunder shall be made by the Company to the Holder, at the address as provided to the Company by the Holder in writing, in lawful money of the United States of America. Interest shall accrue with respect to the unpaid principal amount of the loan from the date of this Note until such principal is paid at a rate of eight and three-quarters percent (8.75%) per annum (computed on the basis of a 365-day year).

     (b) Prepayment. The Company shall have the right at any time and without penalty to prepay, in whole or in part, the principal outstanding and/or the interest accrued hereunder.

2.   Events of Default. 

The occurrence of any of the following shall constitute an "Event of Default" under this Note:

 

    (a) Failure to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii) any interest or other payment required under the terms of this Note on the date due and such payment shall not have been made within fifteen (15) days of Company's receipt of Holder's written notice to the Company of such failure to pay; or

     (b) Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidate or custodian of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iii) be dissolved or liquidated in full or in part, (iv) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (v) take any action for the purpose of effecting any of the foregoing; or

     (c) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the 

property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency or other similar law or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement.

3.   Rights of Holder Upon Default. 

Upon the occurrence or existence of any Event of Default (other than an Event of Default referred to in Paragraphs 2(b) and 4(c)) and at any time thereafter during the continuance of such Event of Default, Holder may declare all outstanding Obligations payable by Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived. Upon the occurrence or existence of any Event of Default described in Paragraphs 2(b) and 4(c), immediately and without notice, all outstanding Obligations payable by Company hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived.

     4.   Miscellaneous.

     (a) Amendment Provisions. Any provision of this Note other than the principal amount and identity of the Holder may be amended, waived or modified upon the written consent of the Company and the Holder.

     (b) Severability. If any provision of this Note is determined to be invalid, illegal or unenforceable, in whole or in part, the validity, legality and enforceability of any of the remaining provisions or portions of this Note shall not in any way be affected or impaired thereby and this Note shall nevertheless be binding between the Company and the Holder.

     (c) Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada.

     (d) Binding Effect. This Note shall be binding upon, and shall inure to the benefit of, the Company and the Holder and their respective successors and assigns; provided, however, that the Company may not assign its obligations hereunder without the Holder's prior written consent.

     (e) Enforcement Costs. The Company agrees to pay all costs and expenses, including, without limitation, reasonable attorneys' fees and expenses, the Holder expends or incurs in connection with the enforcement of this Note, the collection of any sums due hereunder, any actions for declaratory relief in any way related to this Note, or the protection or preservation of any rights of the Holder hereunder.

     (f) Notices. Any notice, request or other communication required or permitted hereunder shall be in writing and shall be duly given upon receipt if personally delivered or mailed by registered or certified mail, postage prepaid, or by recognized overnight courier or personal delivery, addressed (i) if to Holder, at the address or facsimile number of such Holder, or at such other address or number as such Holder shall have furnished to the Company in writing, or (ii) if to Company, at Suite 123, 1628 West 1st Avenue, Vancouver, BC, Canada, V6J 1G1, Attention: Chief Financial Officer or at such other address as Company shall furnish to the Holder in writing.

     (g) Payment. Payment shall be made in lawful tender of the United States.

     (h) Headings. Section headings used in this Note have been set forth herein for convenience of reference only. Unless the contrary is compelled by the context, everything contained in each section hereof applies equally to this entire Note.

     IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first written above.

Octillion Corp.

/s/ Terri DuMoulin

Name: Terri DuMoulin

Title: President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]