Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 1 TO LOAN AGREEMENT

     This Amendment No. 1 (the “Amendment”) dated as of September 24, 2008, is between Bank of
America, N.A. (the “Bank”) and California Water Service Company (the “Borrower”).

RECITALS

     A. The Bank and the Borrower entered into a certain Loan Agreement dated as of May 30, 2007
(the “Agreement”).

     B. The Bank and the Borrower desire to amend the Agreement.

AGREEMENT

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meaning given to them in the Agreement.

     2. Amendments. The Agreement is hereby amended as follows:

     2.1 The second sentence of Paragraph 1.1(a) is hereby amended to read in its entirety
as follows:

The amount of the line of credit (the “Facility No. 1 Commitment”) is the amount indicated
for each period set forth below:

	 	 	 	 	 
	Period 	 	  Amount
	From the date of the Agreement
until September 29, 2008

	 	$	55,000,000.00	 
	 
	 	 	 	 
	From September 30, 2008
until March 31, 2009

	 	$	95,000,000.00	 
	 
	 	 	 	 
	From April 1, 2009 until the
Facility No. 1 Expiration Date

	 	$	55,000,000.00	 

     2.2 Paragraph 1.4(a) is hereby amended to read in its entirety as follows:

     (a) The interest rate is a rate per year equal to the Bank’s Prime Rate minus 1.5
percentage points. It is provided, however, that during any period when the principal amount
outstanding under the Facility No. 1 Commitment (calculated in accordance with Paragraph
1.6(c) below) exceeds Fifty-Five Million and 00/100 Dollars ($55,000,000.00), the entire
principal amount outstanding under the Facility No. 1 Commitment will bear interest at a
rate per year equal to the Bank’s Prime Rate minus 1.0 percentage point during such period.

     2.3 Paragraph 1.5(a) is hereby amended to read in its entirety as follows:

     (a) The LIBOR Rate plus 0.25 percentage point. It is provided, however, that

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during any period when the principal amount outstanding under the Facility No. 1
Commitment (calculated in accordance with Paragraph 1.6(c) below) exceeds Fifty-Five Million
and 00/100 Dollars ($55,000,000.00), the entire principal amount outstanding under the
Facility No. 1 Commitment will bear interest at a rate per year equal to the LIBOR Rate plus
0.75 percentage point.

     3. Representations and Warranties. When the Borrower signs this Amendment,
the Borrower represents and warrants to the Bank that: (a) there is no event which is, or with notice
or lapse of time or both would be, a default under the Agreement except those events, if any, that
have been disclosed in writing to the Bank or waived in writing by the Bank, (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if
made on the date of this Amendment, (c) this Amendment does not conflict with any law, agreement,
or obligation by which the Borrower is bound, and (d) if the Borrower is a business entity or a
trust, this Amendment is within the Borrower’s powers, has been duly authorized, and does not
conflict with any of the Borrower’s organizational papers.

     4. Conditions. This Amendment will be effective when the Bank receives the following
items, in form and content acceptable to the Bank:

     4.1 Consent and Reaffirmation of Guarantor signed by CWSG.

     4.2
Payment by the Borrower of an amendment fee in the amount of Three Hundred Thousand and 00/100 Dollars ($300,000.00).

     4.3 Payment by the Borrower of all costs, expenses and attorneys’ fees

(including allocated costs for in-house legal services) incurred by the Bank in connection
with this Amendment.

     5. Effect of Amendment. Except as provided in this Amendment, all of the terms and
conditions of the Agreement shall remain in full force and effect.

     6. Counterparts. This Amendment may be executed in counterparts, each of which when so
executed shall be deemed an original, but all such counterparts together shall constitute but one
and the same instrument.

     7. 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.

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This Amendment is executed as of the date stated at the beginning of this Amendment.

	 	 	 	 	 
	 	

Bank of America, N.A.

 	 
	 	By  	/s/ Thomas R. Sullivan 	 
	 	 	Thomas R. Sullivan, Senior Vice President 	 
	 	 	 	 
	 
	 	California Water Service Company

 	 
	 	By  	/s/ Martin Kropelnicki 	 
	 	 	Martin Kropelnicki, Chief Financial  	 
	 	 	Officer and Treasurer 	 
	 

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CONSENT AND REAFFIRMATION

OF GUARANTOR

     The undersigned, as guarantor of the Borrower’s obligations to the Bank under the Agreement,
hereby (i) acknowledges and consents to the foregoing Amendment, (ii) reaffirms its obligations
under its guaranty in favor of the Bank and under any agreement under which it has granted to the
Bank a lien or security interest in any of its real or personal property, and (iii) confirms that
such guaranty and other agreements (if any) remain in full force and effect, without defense,
offset, or counterclaim. (Capitalized terms used herein shall have the meanings specified in the
foregoing Amendment.)

     Although the undersigned has been informed of the terms of the Amendment, it understands and
agrees that the Bank has no duty to so notify it or any other guarantor or to seek this or any
future acknowledgment, consent or reaffirmation, and nothing contained herein shall create or imply
any such duty as to any transactions, past or future.

          Dated as of September 24, 2008.

	 	 	 	 	 
	 	California Water Service Group

 	 
	 	By:  	/s/ Martin Kropelnicki 	 
	 	 	Martin Kropelnicki, Vice President,  	 
	 	 	Chief Financial Officer and Treasurer 	 
	 

 - 4 -c55016_ex10-14.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.14

	 	 
	 	 
	February 5, 2008 

    

    

    

    

    Mr. Peter Call 

    

    7885 Lewiston Road 

    

    Batavia, New York 14020 
	99 GARNSEY ROAD

        PITTSFORD, NY
      14534  

      (585) 419-8800 

      

      DAVID M.
      MEHALICK 

      

      DIRECT: (585) 419-8657

      

FAX: (585) 419-8817

	

    DMEHALICK@HARRISBEACH.COM

Mr. Stephen R. Wright 

Pro-Fac Cooperative, Inc. 

590 Willow Brook Office Park 

Fairport, New York 14450 

	 	
Re:		
Employment Agreement	
	 	 		
Extension		 

Dear Pete and Steve: 

          In my capacity as counsel to Pro-Fac Cooperative, Inc., I have been asked to prepare this letter setting out the terms and conditions under which Steve’s employment with Cooperative will
be extended beyond the expiration of his current employment agreement, dated July 30, 2004 as previously extended by a letter amendment dated March 23, 2006 (the “Agreement”). The Agreement otherwise expires on August 19, 2008. 

          The parties have agreed that the terms and conditions set out in the current employment agreement will be continued in full force and effect except for the following changes. 

          1.      The address of the Cooperative is hereby changed to 590 Willow Brook Office Park, Fairport, New York 14450 in the introductory paragraph of the Agreement. 

          2.      The term of the Agreement as set forth in Section 4 is extended from August 19, 2008, and shall be terminable by either party providing at least six (6) months written notice in advance of a
termination date. 

          3.      Section 5.b. of the Agreement is revised so that subparagraph (i) reads as follows and to delete all of subparagraph (ii) except the first sentence, and to delete the first sentence of
subparagraph (iii). 

  (i)      The Company may terminate this Agreement and Wright’s employment without cause by giving Wright six (6) months’ notice of termination.  In such event, the Company shall continue to pay Wright’s regular
    compensation and benefits until the expiration of the notice period. If the Company terminates this Agreement without cause, it shall continue Wright’s regular salary and health insurance benefits for the remainder of the month in which such
  termination becomes effective and for a period of six (6) months thereafter. 

1

	 	 	 	 	
	 	 	 	 	 
	 	 	 

     
	 	99 GARNSEY ROAD

        PITTSFORD, NY
      14534  

      (585) 419-8800 

      

      DAVID M.
      MEHALICK 

      

      DIRECT: (585) 419-8657

      

FAX: (585) 419-8817

	

    DMEHALICK@HARRISBEACH.COM

	4.	Section 10 of the Agreement is amended to
          read as follows: 

         Effective July 1, 2008, the Company shall
            pay Wright an annualized salary of $200,000, and effective July 1,
            2009, the Company shall pay Wright an annualized salary of $210,000,
            and effective July 1, 2010, the Company shall pay Wright an annualized
            salary of $220,000. Such salary shall be payable in bi-weekly installments,
            subject to withholding for tax purposes and for other deductions
    required by law.

	 	 	 	 	 
	 	
5.       	
Section 11 of the Agreement is amended to add the following provisions at the end thereof:	
	 	 	 	 	 
	 	 	
For each fiscal year of the Company beginning with the 2009 fiscal year for which Wright remains employed by the Company, the Company shall pay Wright a bonus equal to the ten percent (10%) of the increase, if any, in the
net income of the Company over the net income of the Company for the 2008 fiscal year. For purposes of this Section 11, the term “net income” shall mean the Company’s margin income less the Company’s operating expenses, but
disregarding interest income and interest expense. The net income for fiscal year 2008 shall be determined by the Executive Committee of the Board of Directors after the completion of the fiscal year and shall be communicated to Wright. The amount
of any bonus under this Section 11 shall be determined by the Executive Committee and shall be paid by the Company by September 15 following the end of the fiscal year to which it relates; provided, however, that such payment may be delayed in the
event the determination of net income for a fiscal year is not available as of such date.	

          6.     The parties agree that Mr. Wright may continue to perform his services for the Cooperative at the Cooperative’s offices or at such other ancillary office as Mr. Wright shall establish provided the quality of such services shall be consistent with services as provided at the Cooperative’s
offices. 

          If this letter sets forth your understanding of the terms and conditions under which Cooperative is extending the employment agreement with Steve, each of you should sign and date in triplicate
this signature page to the letter in the spaces provided below. Please return two of the executed signature pages to me. I will provide each of you with a counterpart signature so that your extension letter is complete. I will retain the third
original of the extension letter in the Cooperative’s legal files. 

Sincerely yours, 

/s/ David M. Mehalick

David M. Mehalick 

For good and valuable consideration, the receipt of which is hereby acknowledged, I agree to the terms of this letter extending the employment of Stephen R. Wright on behalf of Pro-Fac Cooperative, Inc. by executing this
signature page this 14 day of February, 2008. 

PRO-FAC COOPERATIVE, INC.

	
By:		
/s/ Peter Call	
	
Name:  		
Peter Call	
	
Title:		
President	

2

	 	 	
	 	 	 
	For good and valuable consideration, the receipt
        of which is hereby acknowledged, I agree to the terms and conditions
        set out in this letter extending my employment agreement with Pro-Fac
        Cooperative, Inc., on this 11 day
        of February,
    2008. 
        /s/ Stephen R. Wright 

            Name: Stephen R. Wright 

     191968 49381.4
	 	99 GARNSEY ROAD

        PITTSFORD, NY
      14534  

      (585) 419-8800 

      

      DAVID M.
      MEHALICK 

      

      DIRECT: (585) 419-8657

      

FAX: (585) 419-8817

	

    DMEHALICK@HARRISBEACH.COM
 

     

 

 

 

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