Document:

Prepared by MERRILL CORPORATION

FIFTH AMENDMENT

 

 

THIS FIFTH

AMENDMENT dated as of June __, 2001 (this “Amendment”) amends the Second

Amended and Restated Credit Agreement dated as of February 3, 1999 (as

previously amended, the “Credit Agreement”) among U S Liquids Inc. (the

“Company”), various financial institutions (the “Banks”), Fleet National Bank,

as Syndication Agent, and Bank of America, N.A. (formerly known as Bank of

America National Trust and Savings Association), as administrative agent (in

such capacity, the “Administrative Agent”). 

Terms defined in the Credit Agreement are, unless otherwise defined

herein or the context otherwise requires, used herein as defined therein.

 

WHEREAS, the

Company, the Banks and the Administrative Agent have entered into the Credit

Agreement; and

 

WHEREAS, the

parties hereto desire to amend the Credit Agreement in certain respects as more

fully set forth herein;

 

NOW, THEREFORE,

the parties hereto agree as follows:

 

SECTION 1  Amendments.  Subject to the satisfaction of the conditions precedent set forth

in Section 3, the Credit Agreement shall be amended as follows.

 

1.1           Amendment to Section 10.7.  Section 10.7 is amended by (a) deleting the

word “and” at the end of clause (g); (b) substituting a semi–colon

followed by the word “and” at the end of clause (h); and (c) inserting the

following new clause (i):

 

(i)            Debt arising under letters of credit

issued for the account of the Company (excluding Letters of Credit); provided

that the aggregate face amount of all such letters of credit shall not at any

time exceed $275,000.

 

1.2           Amendment to Section 10.8.  Section 10.8 is amended by (a) deleting the

word “and” at the end of clause (g); (b) designating the existing clause

(h) as clause “(i)”; and (c) inserting the following new clause (h):

 

(h)           Liens securing Debt permitted by Section

10.7(i); and

 

SECTION 2    Representations

and Warranties.  The Company

represents and warrants to the Administrative Agent and the Banks that, after

giving effect to the effectiveness hereof, (a) each warranty set forth in

Section 9 (excluding Section 9.14 with respect to Re-Claim Louisiana L.L.C. and

Waste Research and Recovery, Inc.) of the Credit Agreement is true and correct

as of the date of the execution and delivery of this Amendment by the Company,

with the same effect as if made on such date, and (b) no Event of Default or

Unmatured Event of Default exists.

SECTION 3    Effectiveness.  The amendment set forth in Section 1

above shall become effective when the Administrative Agent shall have received

(i) counterparts of this Amendment executed by the Company and the Required

Banks and (ii) a Confirmation, substantially in the form of Exhibit A,

signed by the Company and each Subsidiary.

 

SECTION 4    Miscellaneous.

 

4.1           Continuing

Effectiveness, etc.  As herein amended,

the Credit Agreement shall remain in full force and effect and is hereby

ratified and confirmed in all respects. 

After the effectiveness of this Amendment, all references in the Credit

Agreement and the other Loan Documents to “Credit Agreement” or similar terms

shall refer to the Credit Agreement as amended hereby.

 

4.2           Counterparts.  This Amendment may be executed in any number

of counterparts and by the different parties on separate counterparts, and each

such counterpart shall be deemed to be an original but all such counterparts

shall together constitute one and the same Amendment.

 

4.3           Governing Law.  This Amendment shall be a contract made

under and governed by the laws of the State of Illinois applicable to contracts

made and to be performed entirely within such state.

 

4.4           Successors and Assigns.  This Amendment shall be binding upon the

Company, the Banks and the Administrative Agent and their respective successors

and assigns, and shall inure to the benefit of the Company, the Banks and the

Administrative Agent and the respective successors and assigns of the Banks and

the Administrative Agent.

 

Delivered at Chicago, Illinois, as of the day and year

first above written.

 

U S LIQUIDS INC.

 

 

By                                                                                                                 

Title                                                                                                              

 

 

BANK OF AMERICA, N.A., as Administrative Agent

 

 

By                                                                                                                 

Title                                                                                                              

 

 

BANK OF AMERICA, N.A., as a Bank

 

 

By                                                                                                                 

Title                                                                                                              

 

 

FLEET NATIONAL BANK, as Syndication Agent and as a Bank

 

 

By                                                                                                                 

Title                                                                                                              

 

 

BANK ONE TEXAS, N.A.

 

 

By                                                                                                                 

Title                                                                                                              

 

 

THE BANK OF NOVA SCOTIA

 

 

By                                                                                                                 

Title                                                                                                              

 

 

UNION BANK OF CALIFORNIA

 

 

By                                                                                                                 

Title                                                                                                              

 

 

COMERICA BANK

 

 

By                                                                                                                 

Title                                                                                                              

 

 

WELLS FARGO BANK, N.A.

 

 

By                                                                                                                 

Title                                                                                                              

 

 

BNP PARIBAS

 

 

By                                                                                                                 

Title                                                                                                              

 

 

By                                                                                                                 

Title                                                                                                              

                                                                                                                                                                                                      Exhibit A

 

 

CONFIRMATION

 

Dated as of June __, 2001

 

To:       Bank of America, N.A., individually and

as Agent, and the other financial institutions party to the Credit Agreement

referred to below

 

Please refer to (a) the Second Amended and Restated

Credit Agreement dated as of February 3, 1999 (as amended, the “Credit

Agreement”) among U S Liquids Inc., various financial institutions (the

“Banks”) and Bank of America, N.A. (formerly known as Bank of America National

Trust and Savings Association), as agent (the “Agent”); (b) the other “Loan

Documents” (as defined in the Credit Agreement), including the Guaranty and the

Security Agreement; and (c) the Fifth Amendment dated as of June __, 2001 to

the Credit Agreement (the “Fifth Amendment”).

 

Each of the undersigned hereby confirms to the Agent

and the Banks that, after giving effect to the Fifth Amendment and the

transactions contemplated thereby, each Loan Document to which such undersigned

is a party continues in full force and effect and is the legal, valid and

binding obligation of such undersigned, enforceable against such undersigned in

accordance with its terms.

 

U S LIQUIDS INC.

 

 

By:___________________________

Name

Printed:_________________

Title:________________________

 

DOMBROWSKI & HOLMES,

INC.

EARTH BLENDS, INC.

MBO, INC.

THE NATIONAL SOLVENT

EXCHANGE CORP.

NORTHERN A-1 SANITATION

SERVICES, INC.

PARALLEL PRODUCTS OF

FLORIDA, INC.

PARALLEL PRODUCTS OF

KENTUCKY, INC.

RE-CLAIM ENVIRONMENTAL

LOUISIANA, L.L.C.

ROMIC ENVIRONMENTAL

TECHNOLOGIES

  CORPORATION

STA DECANTING, INC.

USL FIRST SOURCE, INC.

U S LIQUIDS OF HOUSTON,

L.L.C.

U S LIQUIDS OF DALLAS,

L.L.C.

U S LIQUIDS OF CENTRAL

TEXAS, L.L.C.

U S LIQUIDS OF

CONNECTICUT, INC.

U S LIQUIDS OF ILLINOIS,

INC.

U S LIQUIDS OF

PENNSYLVANIA, INC.

U S LIQUIDS OF TEXAS,

INC.

U S LIQUIDS LP HOLDING

CO.

U S LIQUIDS NORTHEAST,

INC.

U S LIQUIDS TERMINAL

SERVICES, INC.

U S LIQUIDS OF DETROIT,

INC.

U S LIQUIDS OF FLORIDA,

INC.

USL ENVIRONMENTAL

SERVICES, INC.

USL GENERAL MANAGEMENT,

INC.

USL PARALLEL PRODUCTS OF

CALIFORNIA

WASTE RESEARCH AND

RECOVERY, INC.

WASTE STREAM

ENVIRONMENTAL, INC.

 

 

By:                                                                                                                             

Name:                                                                                                                        

Title:                                                                                                                          

 

 

U S LIQUIDS OF LA,

L.P.

 

By:  MBO, Inc., its General Partner

 

By:                                                                                                                             

Name:                                                                                                                        

Title:                                                                                                                          

 

 

USL MANAGEMENT LIMITED   PARTNERSHIP

 

By:          USL

General Management, Inc., its General Partner

 

By:                                                                                                                             

Name:                                                                                                                        

Title:                                                                                                                          

 

GEM MANAGEMENT, INC.

 

 

By:                                                                                                                             

Name:                                                                                                                        

Title:Prepared by MERRILL CORPORATION

                                                                                                                                         

EXHIBIT : A

 

 

UFP TECHNOLOGIES, INC.

1998

DIRECTOR STOCK OPTION INCENTIVE PLAN

(AS

AMENDED AS OF JULY 2, 2001)

 

1.  Statement of Purpose. This 1998

Non-employee Director Stock Option Plan (the "Plan") intended to

promote the interests of UFP Technologies, Inc., a Delaware corporation (the

"Company") by offering non-employee members of the Board of Directors

of the Company (individually a "Non-employee Director" and

collectively "Non-employee Directors") the opportunity to participate

in a special stock option program designed to provide them with significant

incentives to remain in the service of the Company.

 

2.  Administration.  The Plan shall be administered by the Board

of Directors of the Company or by any committee of the Board of Directors,

including the Compensation Committee (the "Committee").  The Committee shall have full and plenary

authority to interpret the terms and provisions of the Plan.

 

3.  Eligibility. Non-employee Directors

of the Company shall be eligible to receive grants of non-statutory options

under this Plan (individually an "Option" and collectively

"Options") pursuant to the provisions of Section 5 hereof.

 

4.  Stock Subject to Plan. The stock

issuable under this Plan shall be shares of the Company's Common Stock, par

value $.01 per share (the Common Stock). Such shares may be made available from

authorized but unissued shares of Common Stock or shares of Common Stock

reacquired by the Company. The aggregate number of shares of Common Stock

issuable upon exercise of Options under this Plan shall not exceed 175,000

shares, subject to adjustment from time to time in accordance with Section 9

hereof.

 

5.  Granting of Options.

 

a.  Automatic Granting of Options.

 

(i)  Commencing July 1, 1999, and continuing in

effect on July 1, in each subsequent calendar year, each individual who is at

the time serving as a Non-employee Director shall receive an automatic grant of

an Option to purchase 2,500 shares of Common Stock (subject to adjustment as

provided in Section 10 hereof).  Each

Option granted pursuant to this Section 5(a)(herein referred to individually as

an "Automatic Option" or collectively as "Automatic

Options") shall be for a term of ten (10) years.  Each Option shall become exercisable for any or all of the shares

covered by such Option on the later of the date on which this Plan is ratified

by the shareholders of the Company or on the date of automatic grant pursuant

to this Section 5(a).  The Automatic

Option shall thereafter remain so exercisable until the expiration or sooner

termination of the Option term.  The

foregoing automatic grant dates under this Section 5(a) are herein referred to

individually as an "Automatic Grant Date" and collectively as

"Automatic Grant Dates".

 

(ii)  Should an Optionee cease to be a member of

the Board of Directors of the Company for any reason other than death or

permanent disability, such Optionee's Automatic Options may be exercised (to

the extent they were exercisable on the date of such termination) by the

Optionee or, if he or she is not living, by his or her heirs, legatees or legal

representative, as the case may be, during their specified term but not later

than three (3) months after the date of such termination.

 

(iii)  Should an Optionee cease to be a member of

the Board of Directors of the Company because of death or permanent disability

(as that term is defined in Section 22(e)(3) of the Code, as now in effect or

as subsequently amended), such Automatic Options may be exercised in full, by

the Optionee or, if he or she is not living, by his or her heirs, legatees or

legal representatives, as the case may be, during their specified term but not

later than one (1) year after the date of death or permanent disability.

 

b.  Options in Lieu of Director Fees.

 

(i)  Each Non-Employee Director may elect to

receive any or all of his or her annual director fees or fees for serving as a

member of any committee of the Board of Directors earned during the second half

of 1998 and each subsequent calendar year in the form of Non-Qualified Stock

Options under this Section 5(b).  Each

Option granted pursuant to this Section 4(b) is herein referred to individually

as an "Elective Option" or collectively as "Elective

Options".  Each such election must

be irrevocable, and made in writing and filed with the Secretary of the Company

by June 30, 1998 (for fees earned in the second half of 1998) and (for fees

earned in subsequent calendar years) by December 31 of each year for fees to be

received in the following calendar year.

 

(ii)  A Non-Employee Director may file a new

election each calendar year applicable to fees earned in the immediately

succeeding calendar year.  If no new

election or revocation of a prior election is received by December 31 of any

calendar year, the election, if any in effect for such calendar year shall

continue in effect for the immediately succeeding calendar year.  If a director does not elect to receive his

or her fees in the form of Non-Qualified Stock Options, the fees otherwise due

such director shall be paid in accordance with the normal payment dates of

director fees, as the same may be amended from time to time by the Company.

 

(iii)  The number of common shares covered by each

Elective Option granted in any year under this Section 5(b) shall be determined

based on an independent appraisal for such year of the intrinsic value of

options granted hereunder and the amount of fees covered by the director's

election for such year.  The number of

common shares covered by options granted in 1998 and 1999 (as determined under

this procedure) shall be the number of whole shares equal to (A) the product of

three (3) times the amount of fees which the director has elected under

subsection (i) to receive in the form of Elective Options, divided by (B) One

Hundred percent (100%)  of the fair

market value of one common share on the grant date.  Any fraction of a share shall be disregarded, and the remaining

amount of the fees corresponding to such option shall be paid in cash.

 

(iv)  Each Elective Option due a director under

this Section 5(b) shall be issued as of the date of the Annual Meeting of

Stockholders of the Company held in the calendar year during which the

corresponding fees otherwise due the director would have been paid and at a

purchase price equal to One Hundred percent (100%) of the fair market value of

the common shares covered by such option on the grant date, provided, however,

that with respect to fees earned during the second half of 1998, the date of

grant shall be July 15, 1998.  Each

Elective Option shall have a term of ten (10) years and shall become

exercisable for any or all of the shares covered by such Elective Option on the

later of the date on which this plan is ratified by the shareholders of the

Company or on the date of grant pursuant to this Section 5(b).  The Elective Option shall thereafter remain

so exercisable until the expiration or sooner termination of the Option

term.  The foregoing elective grant

dates under this Section 5(b) are herein referred to individually as an

"Elective Grant Date" and collectively as "Elective Grant

Dates".

 

(v)  Each Elective Option shall remain in effect

for the remainder of the option term following the termination of the

Optionee's service on the Board of Directors of the Company.  In the event of the death or permanent

disability (as that term is defined in Section 22(e)(3) of the Code, as now in

effect or as subsequently amended) of the Optionee, such Elective Options may

be exercised in full, by the Optionee or, if he or she is not living, by his or

her heirs, legatees or legal representatives, as the case may be, during their

specified term.

 

c.  Discretionary Granting of Options.

 

(i)  In addition to the Automatic Options and

Elective Options, the Committee may grant non-qualified options to Non-Employee

Directors from time to time in the discretion of the Committee subject to the

provisions of this Section 5(c) and the other provisions of this Plan.  Each Option granted pursuant to this Section

5(c) is herein referred to individually as a "Discretionary Option"

or collectively as "Discretionary Options". The grant of a

Discretionary Option pursuant to this Section 5(c) shall be evidenced by a written

Non–Qualified Stock Option Agreement, executed by the Company and the

Non-Employee Director, stating the number of shares of Common Stock subject to

such Option evidenced thereby and in such form and with such restrictions and

subject to such conditions as the Committee may from time to time determine,

which need not be the same for each grant or for each participant.

 

(ii)  Each Discretionary Option shall be for a

term of not more than ten years.  Each

Discretionary Option shall become exercisable in such installments as may be

determined from time to time by the Committee but not earlier than the date on

which this Plan is ratified by the shareholders of the Company.  In addition, subject to such shareholders

ratification, the Committee may, in its discretion (i) accelerate the

exercisability of such option subject to such terms as the Committee deems

necessary and appropriate to effectuate the purpose of the Plan; or (ii) at any

time prior to the expiration or termination of any Option previously granted,

extend the term of any such option for such period as the Committee in its

discretion shall determine.  In no

event, however, shall the aggregate option period with respect to any option,

including the original term of the option and any extensions thereof, exceed

ten years.  Subject to the foregoing,

all or any part of the shares to which the right to purchase has accrued may be

purchased at the time of such accrual or at any time or times thereafter during

the option period.

 

(d)  The Non-employee Directors receiving Options

are herein referred to individually as an "Optionee" and collectively

as "Optionees."  Options

granted under this Plan are not intended to be treated as incentive stock

options as defined in Section 422 of the Internal Revenue Code of 1986, as

amended (the "Code").

 

(e)  In the event that an Option expires or is

terminated or canceled unexercised as to any shares of Common Stock, the shares

subject to the Option, or portion thereof not so exercised, shall be available

for subsequent grants of Automatic Options, Elective Options or Discretionary

Options under this Plan.

 

(f)  Should the total number of shares of Common

Stock at the time available under this Plan not be sufficient for the automatic

or elective grants to be made at that particular time, the available shares

shall be allocated proportionately among all Automatic and Elective Option

grants to be made at that time.

 

6.  Exercise Price. The exercise price of

a Discretionary Option shall be determined by the Committee in its discretion,

and may be greater than, but not less than the fair market value, at the time

the option is granted, of the shares of Common Stock subject to the

option.  The exercise price of an

Automatic Option or an Elective Option shall be 100% of the fair market value

of Common Stock as of the applicable Automatic Grant Date or Elective Grant

Date.  Such fair market value shall be

deemed to be the last trading price of the Common Stock on the trading day next

preceding the date of the grant of the option except that if the Common Stock

is then listed on any national exchange, fair market value shall be the mean

between the high and low sales price on the trading day next preceding the date

of grant of the option.  If shares of

the Common Stock shall not have been traded on any national exchange or

interdealer quotation system for more than 10 days immediately preceding the

date of grant of such option or if deemed appropriate by the Committee for any

other reason, the fair market value of shares of Common Stock shall be

determined by the Committee in such manner as it may deem appropriate.  In no event shall the exercise price of any

share of Common Stock be less than its par value.

 

7.   Exercise of Option.

 

a.  A Discretionary Option may be exercised in

such manner as may be provided in the applicable Non-Qualified Stock Option

Agreement referred to in Section 5(c)(i) hereof.  An Automatic Option or an Elective Option may be exercised by

giving written notice to the Company, attention of the Secretary, specifying

the number of shares to be purchased, accompanied by the full purchase price

for the shares to be purchased either in cash, or its equivalent, or by

tendering previously owned shares of the Common Stock of the Company, or by a

combination of these methods.  Payment

may also be made by delivery (including delivery by facsimile transmission) to

the Company or its designated agent of an executed irrevocable option exercise

form together with irrevocable instructions to a broker-dealer to sell a sufficient

portion of the shares and deliver the sale proceeds directly to the Company to

pay for the exercise price, or by any other means which the Committee, in its

discretion, determines to be consistent with the Plan’s purpose and applicable

law.  For the purpose of this Section 7,

the per share value of the Common Stock of the Company shall be the fair market

value determined in accordance with Section 6 hereof, except using the trading

day next preceding the date of exercise. 

Any Optionee holding two or more options that are partially or wholly

exercisable at the same time may exercise said options (to the extent they are

then exercisable) in any order the Optionee chooses, regardless of the order in

which said options were granted.

 

b.  In connection with the exercise of options

granted under the Plan, the Company may make loans to the Optionees as the

Committee, in its discretion, may determine. 

Such loans shall be subject to the following terms and conditions and

such other terms and conditions as the Committee shall determine not

inconsistent with the Plan.  Such loans

shall bear interest at such rates as the Committee shall determine from time to

time, which rates may be below then current market rates or may be made without

interest.  In no event may any such loan

exceed the fair market value, at the date of exercise, of the shares covered by

the Option, or portion thereof, exercised by the Optionee.  No loan shall have an initial term exceeding

two years, but any such loan may be renewable at the discretion of the

Committee.  When a loan shall have been

made, shares of the Common Stock having a fair market value at least equal to

150 percent of the principal amount of the loan shall be pledged by the

Optionee to the Company as security for payment of the unpaid balance of the

loan.

 

c.  At the time of exercise of any Option, the

Company may, if it shall determine it necessary or desirable for any reason,

require the Optionee (or his heirs, legatees or legal representative, as the

case may be) as a condition upon the exercise thereof, to deliver to the

Company a written representation of present intention to purchase the shares

for investment and not for distribution. In the event such representation is

required to be delivered, an appropriate legend may be placed upon each

certificate delivered to the Optionee (or his or her heirs, legatees or legal

representative, as the case may be) upon his or her exercise of part or all of

the Option and a stop transfer order may be placed with the transfer agent.  Each Option shall also be subject to the

requirement that, if at any time the Company determines, in its discretion,

that the listing, registration or qualification of the shares subject to the

Option upon any securities exchange or under any state or federal law or the

consent or approval of any governmental regulatory body is necessary or

desirable as a condition of or in connection with the issue or purchase of

shares thereunder, the Option may not be exercised in whole or in part unless

such listing, registration, qualification, consent or approval shall have been

effected or obtained free of any conditions not acceptable to the Company.

 

8.  Non-Transferability. Except as

otherwise provided in an Optionee’s option agreement, or as otherwise permitted

by the Committee in its discretion, Options shall not be assignable or

transferable by the Optionee otherwise than by will or by the laws of descent

and distribution, or pursuant to a qualified domestic relations order as

defined by the Code, or Title I of the Employee Retirement Income Security Act

of 1974, as amended ("ERISA"), or the rules thereunder. Subject to

the foregoing, during the lifetime of the Optionee, Options shall be

exercisable only by the Optionee.

 

9.  Adjustments. The number of shares subject

to this Plan and to Options granted under this Plan shall be adjusted as

follows: (a) in the event that the number of outstanding shares of Common Stock

is changed by any stock dividend, stock split or combination of shares, the

number of shares subject to this Plan and to Options granted hereunder shall be

proportionately adjusted; (b) in the event of any merger, consolidation or

reorganization of the Company with any other corporation or corporations, there

shall be substituted, on an equitable basis for each share of Common Stock then

subject to this Plan, whether or not at the time subject to outstanding

Options, the number and kind of shares of stock or other securities to which

the holders of shares of Common Stock will be entitled pursuant to the

transaction; and (c) in the event of any other relevant change in the

capitalization of the Company, an equitable adjustment shall be made in the

number of shares of Common Stock then subject to this Plan, whether or not then

subject to outstanding Options. In the event of any such adjustment the

exercise price per share shall be proportionately adjusted.

 

10.  Amendment or Discontinuance of Plan.

This Plan may from time to time be amended or discontinued by action of the

Board of Directors or by the stockholders of the Company; provided that no such

amendment or discontinuance shall change or impair any Options previously

granted without the consent of the Optionee.

 

11.  No Impairment of Rights. Nothing in

this Plan or any Automatic Grant or Elective Grant made pursuant to this Plan

shall be construed or interpreted so as to affect adversely or otherwise impair

the Company's right to remove any Optionee from service on the Board of

Directors of the Company at any time in accordance with the provisions of the

Company's By-laws and applicable law.

 

12.  Effective Date. This Plan was adopted

and authorized by the Board of Directors of the Company on June 3, 1998 and

became effective on July 15, 1998. The Plan was amended on February 24, 1999,

and on July 2, 2001.

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