Document:

SECOND AMENDMENT TO SECURITY AGREEMENT

 
Exhibit 4.24B

 
SECOND AMENDMENT TO LOAN AND SECURITY
AGREEMENT 
 
This Second Amendment to Loan
and Security Agreement (the “Second Amendment”) is made as of May 20, 2003 by and between CONGRESS FINANCIAL CORPORATION (NEW ENGLAND), a Massachusetts corporation as agent for itself and the other Lenders (“Agent”), CLEAN
HARBORS, INC., a Massachusetts corporation (“Parent”), Clean Harbors Canada, Inc., a New Brunswick corporation, Clean Harbors Mercier, Inc., a Quebec corporation, Clean Harbors Quebec, Inc., a Quebec corporation and 510127 N.B. Inc., a New
Brunswick corporation (collectively, the “Canadian Borrowers”), the other Subsidiaries of the Parent from time to time a party to the Loan Agreement, as defined below (each together with Parent and Canadian Borrowers, a
“Borrower” and, collectively, “Borrowers”) and each of the Lenders listed on the signature page hereof (the “Lenders”). 
 
WHEREAS, the Agent, Lenders and Borrowers entered into that certain Loan and Security Agreement, dated as of September 6, 2002 as amended
by a First Amendment to Loan and Security Agreement dated as of January 22, 2003 (the “Loan Agreement”); 
 
WHEREAS, the Borrowers have advised the Agent that the Borrowers are in default of Sections 9.6 and 9.17 of the Loan Agreement for the
period ending March 31, 2003 and have requested that the Agent and Lenders waive such default; 
 
WHEREAS, the Agent, Lenders and Borrowers wish to amend the financial covenants set forth in Sections 9.17 and 9.18 of the Loan Agreement; 
 
WHEREAS, the Agent and Lenders have agreed to waive the default of Section 9.17 of the Loan Agreement and to
the amendments to Sections 9.17 and 9.18 as set forth in this Second Amendment subject to the execution and delivery of this Second Amendment by the Borrowers and to the other provision of this Second Amendment; 
 
NOW, THEREFORE, based on these premises, and in consideration
of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the Borrowers, the Agent and the Lenders hereby agree as follows: 
 
1. Capitalized Terms. All capitalized terms not
otherwise defined herein shall have the meanings given such terms in the Loan Agreement. 
 
2. Amendments to Loan Agreement. 
 
2.1. Definition of Interest Rate. Effective on April 1, 2003, the definition of “Interest Rate” set forth
in Section 1.83 to the Loan Agreement is deleted in its entirety and replaced with the following: 
 
“1.83 ‘Interest Rate’ shall mean, as to US Prime Rate Loans, a rate equal to one quarter of one
(.25%) percent per annum in excess of the US Prime Rate, as to Canadian Prime Rate Loans, a rate equal to one quarter of one (.25%) percent per annum in excess of the Canadian Prime Rate and as to Eurodollar 
 

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Rate Loans, a
rate of three and one quarter (3.25%) percent per annum in excess of the Adjusted Eurodollar Rate (based on the Eurodollar Rate applicable for the Interest Period selected by Borrowers as in effect three (3) Business Days after the date of receipt
by Agent of the request of Borrowers for such Eurodollar Rate Loans in accordance with the terms hereof, whether such rate is higher or lower than any rate previously quoted to Borrowers); provided, that, upon receipt by the Agent and Lenders of the
Borrowers’ financial statements complying with Section 9.6(a) hereof for the period ending September 30, 2003 demonstrating Borrowers’ compliance with Sections 9.17 and 9.18 hereof, the Interest Rate shall mean, as to US Prime Rate Loans,
a per annum rate equal to the US Prime Rate, as to Canadian Prime Rate Loans, a per annum rate equal to the Canadian Prime Rate and as to Eurodollar Rate Loans, a rate of three (3.00%) percent per annum in excess of the Adjusted Eurodollar Rate
(based on the Eurodollar Rate applicable for the Interest Period selected by Borrowers as in effect three (3) Business Days after the receipt by Agent of the request of Borrowers for such Eurodollar Rate Loans in accordance with the terms hereof,
whether such rate is higher or lower than any rate previously quoted to Borrowers); provided, further, that, notwithstanding anything to the contrary contained herein, the Interest Rate shall mean the rate of two and one half (2.50%) percent per
annum in excess of the rate then applicable as to Prime Rate Loans and the rate of five and one half (5.50%) percent per annum in excess of the rate then applicable as to Eurodollar Rate Loans, at Agent’s option (or as directed by the Majority
Lenders), without notice, (a) either (i) for the period on and after the date of termination or non-renewal hereof until such time as all Obligations are indefeasibly paid and satisfied in full in immediately available funds, or (ii) for the period
from and after the date of the occurrence of any Event of Default, and for so long as such Event of Default is continuing as determined by Agent and (b) on the Revolving Loans at any time outstanding in excess of the amounts available to Borrowers
under Section 2 (whether or not such excess(es) arise or are made with or without Agent’s knowledge or consent and whether made before or after an Event of Default).” 
 
2.2. Amendment of Section 9.17. Section 9.17 of the Loan Agreement is deleted in its
entirety and replaced with the following: 
 
“9.17 Consolidated EBITDA. Borrowers shall not permit (i) for fiscal quarter ending on June 30, 2003, Consolidated Annualized EBITDA of the Parent and its Subsidiaries and (ii) for each fiscal quarter ending thereafter,
Consolidated EBITDA of the Parent and its Subsidiaries for the four fiscal quarters ending as of the end of the applicable fiscal quarter set forth below, to be less than the applicable amount set forth below: 
 

-2- 

 

	 Fiscal Quarter End

	    	 Consolidated EBITDA
 (annualized or trailing four
 quarters, as applicable)

	 
	 June 30, 2003
	    	 $
	 63,700,000
	  

	 September 30, 2003
	    	 $
	 76,200,000
	  

	 December 31, 2003
	    	 $
	 82,100,000
	  

	 March 31, 2004
	    	 $
	 90,000,000
	  

	 June 30, 2004
	    	 $
	 99,100,000
	  

	 September 30, 2004
	    	 $
	 108,000,000
	  

	 December 31, 2004
	    	 $
	 116,000,000
	  

	 March 31, 2005
	    	 $
	 125,000,000
	  

	 June 30, 2005
	    	 $
	 129,300,000
	  

	 September 30, 2005
	    	 $
	 134,000,000
	  

	 December 31, 2005
	    	 $
	 140,000,000
	  

	 March 31, 2006
	    	 $
	 145,000,000
	  

	 June 30, 2006
	    	 $
	 145,000,000
	  

	 September 30, 2006
	    	 $
	 150,000,000
	  

	 December 31, 2006
	    	 $
	 155,000,000
	  

	 March 31, 2007
	    	 $
	 160,000,000
	  

	 June 30, 2007
	    	 $
	 162,000,000
	  

	 September 30, 2007
	    	 $
	 165,000,000
	  

	 December 31, 2007
	    	 $
	 167,000,000
	 ”

 
2.3. Amendment of Section 9.18. Section 9.18 of the Loan Agreement is deleted in its entirety and replaced with the following: 
 
“9.18 Fixed Charge Coverage Ratio. Borrowers shall not permit the Fixed Charge Coverage Ratio of the Parent
and its Subsidiaries for each period of four (4) consecutive fiscal quarters, (or, in the case of the fiscal quarter ending on June 30, 2003, such lesser number of consecutive fiscal quarters as shall then have been completed since the fiscal
quarter commencing on October 1, 2002) of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below to be less than the amount set forth opposite such date. 
 

-3- 

 

	 Fiscal Quarter End

	  	 Ratio

	 
	 June 30, 2003
	  	 0.75:1
	  

	 September 30, 2003
	  	 0.85:1
	  

	 December 31, 2003
	  	 0.90:1
	  

	 March 31, 2004
	  	 1:1
	  

	 June 30, 2004
	  	 1.1:1
	  

	 September 30, 2004
	  	 1.2:1
	  

	 December 31, 2004
	  	 1.4:1
	  

	 For each fiscal quarter thereafter
	  	 1.45:1
	 ”

 
3.
Waiver. Pursuant to the request of the Borrowers, the Agent and Lenders hereby waive the Event of Default that would arise under Section 10.1(a) of the Loan Agreement as a result of (i) the Borrowers’ failure to deliver the financial
statements for the month and quarter ending March 31, 2003 within the time periods specified in Section 9.6 of the Loan Agreement and (ii) the Borrowers’ failure to satisfy the financial covenant set forth in Section 9.17 of the Loan Agreement
for the period ending March 31, 2003. This waiver of this Event of Default is and shall be effective solely for the specific instance and purpose described herein and is not and shall not be applicable to any other provision of the Loan Agreement
and other Financing Agreements. 
 
4. Amendment
Fee. Borrowers shall pay to the Agent, for the ratable benefit of the Lenders, a non-refundable amendment fee of $100,000, which amendment fee shall be fully earned and payable upon the execution of this Second Amendment by the Agent and
Majority Lenders. 
 
5. Representations and
Warranties. Each Borrower jointly and severally represents and warrants to Agent and Lenders the following: 
 
5.1. Organization and Qualification. Each of the Borrowers is duly incorporated or formed, validly existing, and in
good standing under the laws of their respective jurisdictions of incorporation or formation, as applicable. Each Borrower is duly qualified to do business and is in good standing as a foreign corporation or organization in all states and
jurisdictions in which the failure to be so qualified would have a material adverse effect on the financial condition, business or properties of such Borrower. 
 
5.2. Power and Authority. Each Borrower is duly authorized and empowered to enter
into, deliver, and perform this Second Amendment. The execution, delivery, and performance of this Second Amendment has been duly authorized by all necessary corporate or other action of each of the Borrowers. The execution, delivery and performance
of this Second Amendment (i) are within each Borrower’s corporate, limited 
 

-4- 

 
liability
company, partnership or trust powers; (ii) is not in contravention of law or the terms of the charter or by-laws or other organizational documents of any of the Borrowers or under any indenture, agreement or undertaking to which any Borrower is a
party or by which such Borrower’s properties may be bound or affected; and (iii) will not result in, or require, the creation or imposition of any lien (other than the liens set forth in Schedule 8.4 to the Loan Agreement) upon or with respect
to any of the properties now owned or hereafter acquired by any Borrower. 
 
5.3. Legally Enforceable Agreement. This Second Amendment is a legal, valid and binding obligation of each Borrower enforceable against each Borrower in accordance with its terms. 
 
5.4. No Defaults. Except for the
specific defaults under Sections 9.6 and 9.17 of the Loan Agreement which has been waived with Section 3 of this Second Amendment, no Default or Event of Default exists or has occurred and is continuing. 
 
6. Conditions. This Second Amendment shall become
effective upon satisfaction in full, in a manner satisfactory to the Agent of each of the following conditions, provided that the amendment to Section 1.83 of the Loan Agreement set forth in Section 2 of this Second Amendment shall be effective as
of April 1, 2003 but shall not apply to periods prior to April 1, 2003: 
 
6.1. Documents. The Agent shall have received counterparts of this Second Amendment duly executed by the Borrowers and the Majority Lenders. 
 
6.2. Other Matters. All
representations and warranties of the Borrowers in the Loan Agreement and other Financing Agreements shall be true and correct as if made on the date hereof, and, except as waived under Section 3 of this Second Amendment, no Default or Event of
Default shall exist or shall have occurred and be continuing. 
 
6.3. Amendment Fee. Borrowers shall have paid the amendment fee to Agent. 
 
7. Miscellaneous. The Borrowers confirm that the Loan Agreement and other Financing Agreements remain in full force and effect
without amendment or modification of any kind, except for as set forth in this Second Amendment. This Second Amendment shall be deemed to be a Financing Agreement and, together with the other Financing Agreements, constitute the entire agreement
between the parties with respect to the subject matter hereof and supersede all prior dealings, correspondence, conversations or communications between the parties with respect to the subject matter hereof. 
 
[Remainder of page intentionally left blank.]

 
 

-5- 

 
Signature
page to Second Amendment to Loan Agreement 
 
IN WITNESS WHEREOF, the Borrowers, the Agent and the Lenders have executed this Second Amendment as of the date first above written, by their respective officers hereunto duly authorized, under seal. 
 

	 AGENT
	  	 BORROWERS

	
	 CONGRESS FINANCIAL
	  	 CLEAN HARBORS, INC.

	 CORPORATION (NEW ENGLAND)
	  	 ALTAIR DISPOSAL SERVICES, LLC

	 	  	 	  	 BATON ROUGE DISPOSAL, LLC

	 By:
	  	
	  	 BRIDGEPORT DISPOSAL, LLC

	 Title:
	  	
	  	 CLEAN HARBORS ANDOVER, LLC

	 	  	 	  	 CLEAN HARBORS ANTIOCH, LLC

	 	  	 	  	 CLEAN HARBORS ARAGONITE, LLC

	 	  	 	  	 CLEAN HARBORS ARIZONA, LLC

	 	  	 	  	 CLEAN HARBORS OF BALTIMORE, INC.

	 	  	 	  	 CLEAN HARBORS BATON ROUGE, LLC

	 	  	 	  	 CLEAN HARBORS BDT, LLC

	 	  	 	  	 CLEAN HARBORS BUTTONWILLOW, LLC

	 	  	 	  	 CLEAN HARBORS CHATTANOOGA, LLC

	 	  	 	  	 CHEMICAL SALES, LLC

	 	  	 	  	 CLEAN HARBORS COFFEYVILLE, LLC

	 	  	 	  	 CLEAN HARBORS COLFAX, LLC

	 	  	 	  	 CLEAN HARBORS DEER PARK, L.P.

	 	  	 	  	 CLEAN HARBORS DEER TRAIL, LLC

	 	  	 	  	 CLEAN HARBORS DISPOSAL SERVICES, INC.

	 	  	 	  	 CLEAN HARBORS FINANCIAL SERVICES COMPANY

	 	  	 	  	 CLEAN HARBORS FLORIDA, LLC

	 	  	 	  	 CLEAN HARBORS GRASSY MOUNTAIN, LLC

	 	  	 	  	 CLEAN HARBORS KANSAS, LLC

	 	  	 	  	 CLEAN HARBORS LAPORTE, L.P.

	 	  	 	  	 CLEAN HARBORS LAUREL, LLC

	 	  	 	  	 CLEAN HARBORS LONE MOUNTAIN, LLC

	 	  	 	  	 CLEAN HARBOR LOAN STAR CORP.

	 	  	 	  	 CLEAN HARBORS LOS ANGELES, LLC

	 	  	 	  	 CLEAN HARBORS OF TEXAS, LLC

	 	  	 	  	 CLEAN HARBORS PECATONICA, LLC

	 	  	 	  	 CLEAN HARBORS PLAQUEMINE, LLC

	 	  	 	  	 CLEAN HARBORS PPM, LLC

	 	  	 	  	 CLEAN HARBORS REIDSVILLE, LLC

	 	  	 	  	 CLEAN HARBORS SAN JOSE, LLC

	 	  	 	  	 CLEAN HARBORS TENNESSEE, LLC

	 	  	 	  	 CLEAN HARBORS WESTMORLAND, LLC

	 	  	 	  	 CLEAN HARBORS WHITE CASTLE, LLC

	 	  	 	  	 CROWLEY DISPOSAL, LLC

 

-6- 

Signature page to Second Amendment to Loan Agreement 
 
DISPOSAL PROPERTIES, LLC

GSX DISPOSAL, LLC 
HARBOR MANAGEMENT CONSULTANTS, INC. 
HARBOR INDUSTRIAL SERVICES
TEXAS, L.P. 
HILLIARD DISPOSAL, LLC 
ROEBUCK DISPOSAL, LLC 
SAWYER DISPOSAL SERVICES, LLC 
TULSA DISPOSAL, LLC 
CLEAN HARBORS ENVIRONMENTAL SERVICES, INC 
CLEAN
HARBORS OF BRAINTREE, INC. 
CLEAN HARBORS OF NATICK, INC. 
CLEAN HARBORS SERVICES, INC. 
MURPHY’S WASTE OIL SERVICE INC. 
CLEAN HARBORS KINGSTON FACILITY CORPORATION 
CLEAN HARBORS OF CONNECTICUT, INC. 
SPRING GROVE RESOURCE RECOVERY, INC. 
CLEAN
HARBORS CANADA, INC. 
CLEAN HARBORS QUEBEC, INC. 
CLEAN HARBORS MERCIER, INC. 
510127 N.B. INC. 
 

	
	 By:
	 	

	 Title:
	 	

 

-7- 

 
Signature
page to Second Amendment to Loan Agreement 
 

	 LENDERS

	
	 CONGRESS FINANCIAL CORPORATION
 (NEW ENGLAND)

	
	 By:
	 	

	 Title:
	 	

	
	 ORIX FINANCIAL SERVICES, INC.

	
	 By:
	 	

	 Title:
	 	

	
	 BANKNORTH, N.A.

	
	 By:
	 	

	 Title:
	 	

	
	 SOVEREIGN BANK

	
	 By:
	 	

	 Title:
	 	

	
	 FLEET CAPITAL CORPORATION

	
	 By:
	 	

	 Title:
	 	

	
	 CONGRESS FINANCIAL CORPORATION
 (CANADA)

	
	 By:
	 	

	 Title:
	 	

 

-8-FIRST AMENDMENT TO FINANCING AGREEMENT

 
Exhibit 4.25A

 
FIRST AMENDMENT TO 
FINANCING AGREEMENT 
 
THIS FIRST AMENDMENT TO FINANCING AGREEMENT (this “Amendment”) is entered into as of May 20, 2003, by and among Clean
Harbors, Inc., a Massachusetts corporation (the “Parent”), each subsidiary of the Parent listed as a “Borrower” on the signature pages to the Financing Agreement (together with the Parent, each a
“Borrower” and collectively, the “Borrowers”), each subsidiary of the Parent listed as a “Guarantor” on the signature pages to the Financing Agreement (each a “Guarantor” and
collectively, the “Guarantors”; together with the Borrowers, the “Loan Parties”), the financial institutions from time to time party to the Financing Agreement (each a “Lender” and collectively, the
“Lenders”), and Ableco Finance LLC, a Delaware limited liability company (“Ableco”), as agent for the Lenders (in such capacity, the “Agent”). 
 
W I T N E S S E T H 
 
WHEREAS, the Loan Parties, the Lenders and the Agent are
parties to a Financing Agreement, dated as of September 6, 2002 (as amended, modified or supplemented from time to time, the “Financing Agreement”), pursuant to which the Lenders have made certain terms loans to the Borrowers in an
aggregate principal amount at any time not to exceed the aggregate amount of the Commitments (as defined in the Financing Agreement) set forth therein; 
 
WHEREAS, the Loan Parties, the Lenders and the Agent desire to amend certain terms and provisions of the Financing Agreement to reflect,
among other things, a modification of (i) the financial covenants set forth in Section 7.03 thereof and (ii) the applicable interest rates set forth in Section 2.04 thereof. In addition, the Borrowers have advised the Agent that the Borrowers are in
default, among other things, under the financial covenants set forth in Section 7.03 of the Financing Agreement and have requested the Lenders to waive such defaults, and the Lenders have agreed to such waiver, subject to (i) the execution and
delivery of this Amendment by the Loan Parties, and (ii) the other terms and conditions set forth in this Amendment; and 
 
WHEREAS, the Agent and the Lenders are willing to amend the Financing Agreement to provide for such amendments, subject to the execution
and delivery of this Amendment by the Loan Parties; and. 
 
NOW, THEREFORE, in consideration of the premises and of the mutual covenants, agreements and conditions hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows: 
 
1. Capitalized Terms. All capitalized terms used in this Amendment and not otherwise defined shall have their respective meanings set forth in the Financing Agreement. 

 
2.
Consolidated Net Income. The definition of the term “Consolidated Net Income” set forth in Section 1.01 of the Financing Agreement is hereby amended by (i) deleting the word “and” at the end of clause (d) thereof, (ii)
deleting the period at the end of clause (e) thereof and inserting “,” at the end thereof and (iii) inserting new clauses (f), (g) and (h) therein to read as follows: 
 
“, (f) non-cash gains or losses reflecting the cumulative effect of adoption of changes in GAAP, (g)
accretion expense (provided that such expense is non-cash) applicable to environmental liabilities to the extent such expense would not have been recorded under GAAP as used in the preparation of the Financial Statements and (h) non-cash gains or
losses reflecting adjustments to the estimated value of the embedded derivative associated with the Parent’s outstanding Series C convertible preferred stock.” 
 
3. Term Loan A Interest. Section 2.04(a) of the Financing Agreement is hereby amended in its entirety
to read as follows: 
 
“(a)
The Term Loan A shall be a LIBOR Loan, except as otherwise provided in Section 2.09. The portion of the Term Loan A that is a LIBOR Loan shall bear interest on the principal amount thereof from time to time outstanding, from the date of the Term
Loan A until such principal amount becomes due, at a rate per annum equal to the LIBOR Rate for the Interest Period in effect for such portion of the Term Loan A plus 7.75%, provided, however, that if the Consolidated EBITDA of the
Parent and its Subsidiaries for the Fiscal Year ending on December 31, 2003 is equal to or exceeds $90,000,000, such percentage shall be 7.25% effective upon the Agent’s receipt of the audited financial statements of the Parent and its
Subsidiaries delivered to the Agent in accordance with Section 7.01(a)(ii) hereof. The portion of the Term Loan A that is a Reference Rate Loan shall bear interest on the principal amount thereof from time to time outstanding, from the date of the
Term Loan A until such principal amount becomes due, at a rate per annum equal to the Reference Rate plus 5.00%; provided, however, that if the Consolidated EBITDA of the Parent and its Subsidiaries for the Fiscal Year ending on
December 31, 2003 is equal to or exceeds $90,000,000, such percentage shall be 4.50% effective upon the Agent’s receipt of the audited financial statements of the Parent and its Subsidiaries delivered to the Agent in accordance with Section
7.01(a)(ii) hereof.” 
 
4. Term Loan B
Interest. Section 2.04(b) of the Financing Agreement is hereby amended in its entirety to read as follows: 
 
“(b) Term Loan B. The Term Loan B shall bear interest on the principal amount thereof from time to time
outstanding, from the date of the Term Loan B until such principal amount becomes due, at a rate per annum equal to 22.50%; provided, however, that, (i) if the Consolidated EBITDA of the Parent and its Subsidiaries for the Fiscal Year
ending on December 31, 2003 is equal to or exceeds $90,000,000, such rate shall be 22% effective upon the Agent’s receipt of the audited financial statements of the Parent and its Subsidiaries delivered to the 
 

2 

 
Agent in
accordance with Section 7.01(a)(ii) hereof and (ii) so long as no Event of Default has occurred and is continuing, interest on the outstanding principal amount of the Term Loan B at a per annum rate equal to 11% shall, in the absence of an election
by the Administrative Borrower to pay such interest in cash, be paid by capitalizing such interest and adding such capitalized interest to the then outstanding principal amount of the Term Loan B. Any interest to be capitalized shall be capitalized
on the date such interest is to be paid pursuant to Section 2.04(d) and added to the then outstanding principal amount of the Term Loan B and thereafter shall bear interest as provided hereunder as if it had originally been part of the outstanding
principal of the Term Loan B.” 
 
5. Hiring
of Consultant. Section 7.01 of the Financing Agreement is hereby amended by inserting a new Section 7.01(q) therein immediately after Section 7.01(p) to read as follows: 
 
“(q) Hiring of Consultant. At the written request of the Required Lenders, the
Borrowers shall, at Borrowers’ expense, promptly (but in any event within fifteen (15) days of such request) engage a financial consultant reasonably acceptable to the Required Lenders pursuant to terms and with a scope of duties and
responsibilities reasonably acceptable to the Required Lenders.” 
 
6. Restricted Payments. Section 7.02(h) of the Financing Agreement is hereby amended in its entirety to read as follows: 
 
“(h) Restricted Payments. (i) Declare or pay any dividend or other distribution, direct or indirect, on
account of any Capital Stock of any Loan Party or any of its Subsidiaries, now or hereafter outstanding, (ii) make any repurchase, redemption, retirement, defeasance, sinking fund or similar payment, purchase or other acquisition for value, direct
or indirect, of any Capital Stock of any Loan Party or any direct or indirect parent of any Loan Party, now or hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender of, any outstanding warrants, options or other rights
for the purchase or acquisition of shares of any class of Capital Stock of any Loan Party, now or hereafter outstanding, (iv) return any Capital Stock to any shareholders or other equity holders of any Loan Party or any of its Subsidiaries, or make
any other distribution of property, assets, shares of Capital Stock, warrants, rights, options, obligations or securities thereto as such or (v) pay any management fees or any other fees or expenses (including the reimbursement thereof by any Loan
Party or any of its Subsidiaries) pursuant to any management, consulting or other services agreement to any of the shareholders or other equityholders of any Loan Party or any of its Subsidiaries or other Affiliates, or to any other Subsidiaries or
Affiliates of any Loan Party; provided, however, (A) any Loan Party may pay dividends to the Parent, (B) any Subsidiary of any Borrower may pay dividends to such Borrower and (C) the Parent may pay dividends in the form of common
Capital Stock, provided that in each case of clauses (A) through (C) above, at the election of the Agent, which the Agent may and, upon the direction of the Required Lenders, shall make by notice to the Administrative Borrower, no such
payment shall be made if 
 

3 

 
an Event of
Default shall have occurred and be continuing or would result from the making of any such payment.” 
 
7. Financial Covenants. Section 7.03 of the Financing Agreement is hereby amended in its entirety to read as follows: 
 
“Section 7.03 Financial Covenants
.. So long as any principal of or interest on any Loan or any other Obligation (whether or not due) shall remain unpaid or any Lender shall have any Commitment hereunder, each Loan Party shall not, unless the Required Lenders shall otherwise consent
in writing: 
 
(a) Leverage
Ratio . Permit the ratio of Consolidated Funded Indebtedness to (i) for any fiscal quarter ending on June 30, 2003, Consolidated Annualized EBITDA of the Parent and its Subsidiaries and (ii) for each fiscal quarter ending thereafter,
Consolidated EBITDA of the Parent and its Subsidiaries as of the end of each period of four (4) consecutive fiscal quarters of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below, to be greater than the
applicable ratio set forth below: 
 

	 Fiscal Quarter End

	    	 Leverage Ratio

	 June 30, 2003
	    	 3.75:1

	 September 30, 2003
	    	 3.15:1

	 December 31, 2003
	    	 3.0:1

	 March 31, 2004
	    	 2.5:1

	 June 30, 2004
	    	 2.1:1

	 September 30, 2004
	    	 1.9:1

	 December 31, 2004 and for each fiscal quarter thereafter
	    	 1.6:1

 
(b) Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio of the Parent and its Subsidiaries for each period of four (4) consecutive fiscal quarters (or, in the case of each fiscal quarter ending on June 30,
2003, such lesser number of consecutive fiscal quarters as shall then have been completed since the fiscal quarter commencing on October 1, 2002) of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below to be less
than the amount set forth opposite such date: 
 

	 Fiscal Quarter End

	    	 Fixed Charge Coverage Ratio

	 June 30, 2003
	    	 0.75:1

	 September 30, 2003
	    	 0.85:1

	 December 31, 2003
	    	 0.90:1

	 March 31, 2004
	    	 1:1

	 June 30, 2004
	    	 1.1:1

	 September 30, 2004
	    	 1.2:1

	 December 31, 2004
	    	 1.4:1

	 For each fiscal quarter thereafter
	    	 1.45:1

 

4 

 
(c) Consolidated EBITDA. Permit (i) for any fiscal quarter ending on June 30, 2003, Consolidated Annualized EBITDA of the Parent and its Subsidiaries and (ii) for each fiscal quarter ending thereafter, Consolidated EBITDA of
the Parent and its Subsidiaries for the four fiscal quarters ending as of the end of the applicable fiscal quarter set forth below, to be less than the applicable amount set forth below: 
 

	 Fiscal Quarter End

	    	 Consolidated EBITDA (annualized or trailing four
 quarters, as applicable)

	 June 30, 2003
	    	 $  63,700,000

	 September 30, 2003
	    	 $  76,200,000

	 December 31, 2003
	    	 $  82,100,000

	 March 31, 2004
	    	 $  90,000,000

	 June 30, 2004
	    	 $  99,100,000

	 September 30, 2004
	    	 $108,000,000

	 December 31, 2004
	    	 $116,000,000

	 March 31, 2005
	    	 $125,000,000

	 June 30, 2005
	    	 $129,300,000

	 September 30, 2005
	    	 $134,000,000

	 December 31, 2005
	    	 $140,000,000

	 March 31, 2006
	    	 $145,000,000

	 June 30, 2006
	    	 $145,000,000

	 September 30, 2006
	    	 $150,000,000

	 December 31, 2006
	    	 $155,000,000

	 March 31, 2007
	    	 $160,000,000

	 June 30, 2007
	    	 $162,000,000

	 September 30, 2007
	    	 $165,000,000

	 December 31, 2007
	    	 $167,000,000

 
8.
Amendment Fee. The Borrowers hereby agree that, in consideration of the Lenders’ willingness to enter into this Amendment, the Borrowers shall pay to the Agent, for the ratable benefit of the Lenders, in immediately available funds, a
nonrefundable amendment fee (the “Amendment Fee”) equal to $400,000, which Amendment Fee shall be fully earned on the Amendment Effective Date (as defined herein) and payable on the first day of each month following the Amendment
Effective Date in increments of $100,000 until such Amendment Fee is paid in full. 
 
9. Conditions to Effectiveness. This Amendment shall become effective only upon satisfaction in full, in a manner satisfactory to the Agent, of the following conditions precedent (the first date
upon which all such conditions shall have been satisfied being herein called the “Amendment Effective Date”), provided that the amendments set forth in Sections 3 and 4 of this Amendment shall be deemed effective as of April 1, 2003
but shall not apply to periods prior to April 1, 2003: 
 

5 

 
(a) The
representations and warranties contained in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered on or on behalf of any Loan Party to the Agent or any Lender pursuant to the Financing
Agreement or any other Loan Document on or prior to the Amendment Effective Date are true and correct on and as of such date as though made on and as of such date, and, subject to Section 11 hereof, no Default or Event of Default has occurred and is
continuing on the Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms. 
 
(b) Delivery of Documents. The Agent shall have received on or before the Amendment Effective Date counterparts to this Amendment
signed by each of the Loan Parties, the Lenders and the Agent, in form and substance satisfactory to the Agent and dated the Amendment Effective Date. 
 
(c) All legal matters incident to this Amendment shall be satisfactory to the Agent and its counsel. 
 
10. Representations and Warranties. Each Loan Party
that is a party to the Financing Agreement hereby represents and warrants to the Agent and the Lenders as follows: 
 
(a) Representations and Warranties; No Event of Default. The representations and warranties herein, in Article VI of the Financing
Agreement and in each other Loan Document, certificate or other writing delivered on or on behalf of any Loan Party to the Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the Amendment Effective Date
are true and correct on and as of such date as though made on and as of such date, and, subject to Section 11 hereof, no Default or Event of Default has occurred and is continuing as of the Amendment Effective Date or would result from this
Amendment becoming effective in accordance with its terms. 
 
(b) Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of
its organization, (ii) has all requisite power and authority to conduct its business as now conducted and as presently contemplated, and to execute and deliver this Amendment, and to consummate the transactions contemplated hereby and by the
Financing Agreement, as amended hereby, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such
qualification necessary, except where the failure to be so qualified and in good standing could not reasonably be expected to have a Material Adverse Effect. 
 
(c) Authorization, Etc. The execution, delivery and performance of this Amendment and each other Loan Document being executed in
connection with this Amendment by each Loan Party that is a party thereto, and the performance of the Financing Agreement as amended hereby (i) have been duly authorized by all necessary action, (ii) do not and will not contravene such Loan
Party’s charter or by-laws, its limited liability company or operating agreement or its certificate of partnership or partnership agreement, as applicable, or any applicable law or any Transaction Document, any Material Contract or any other
contractual restriction binding on or otherwise affecting it or any of its properties, (iii) do not and will not 
 

6 

 
result in or require the
creation of any Lien (other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
permit, license, authorization or approval applicable to its operations or any of its properties. 
 
(d) Governmental Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is a party being executed in connection with this Amendment, or for the performance of
the Financing Agreement, as amended hereby. 
 
(e)
Enforceability of Loan Documents. Each of this Amendment, the Financing Agreement, as amended hereby, and each other Loan Document to which such Loan Party is a party is a legal, valid and binding obligation of such Loan Party, enforceable
against such Loan Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws. 
 
11. Waiver and Consent. 
 
(a) Pursuant to the request of the Borrowers, the Lenders hereby consent to and waive any Event of Default
that would arise under Section 9.01(c) or 9.01(d) of the Financing Agreement as a result of (i) the Borrowers’ failure to deliver the financial statements for the fiscal month and quarter ending March 31, 2003 in accordance with Section
7.01(a)(i) and (iii) of the Financing Agreement and (ii) the Borrowers’ failure to satisfy each of the financial covenants set forth in Section 7.03 of the Financing Agreement for the fiscal quarter ended March 31, 2003. 
 
(b) The Lenders’ consent and waiver of any Event of
Default relating to the events set forth in paragraph (a) above: 
 
i. shall be effective only in this specific instance and for the specific purposes set forth herein, and 
 
ii. does not allow for any other or further departure from the terms and conditions of the Financing Agreement or any
other Loan Documents, which terms and conditions shall continue in full force and effect. 
 
12. Continued Effectiveness of Financing Agreement. Each Loan Party hereby (i) confirms and agrees that each Loan Document to which it is a party is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects except that on and after the Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, “thereto”, “thereof”,
“thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended by this Amendment, and (ii) confirms and agrees that to the extent that any such Loan Document purports to assign or
pledge to the Agent, or to grant to the Agent, a Lien on any collateral as security for the Obligations of the Borrowers from time to time existing in respect of the Financing Agreement and the Loan Documents, such pledge, assignment and/or grant of
a Lien is hereby ratified and confirmed in all respects. 
 

7 

 
13.
Miscellaneous. 
 
(a) This Amendment may be
executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. 
 
(b) Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
 
(c) This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York. 
 
(d) Each Loan Party hereby acknowledges and agrees that this
Amendment constitutes a “Loan Document” under the Financing Agreement. Accordingly, it shall be an Event of Default under the Financing Agreement if (i) any representation or warranty made by a Loan Party under or in connection with this
Amendment shall have been untrue, false or misleading in any material respect when made, or (ii) a Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Amendment. 
 
(e) Notwithstanding anything to the contrary, except as
specifically provided herein, this Amendment is not, and shall not be deemed to be, a waiver of, or a consent to any Event of Default, event with which the giving of notice or lapse of time or both may result in an Event of Default, or other
noncompliance now existing or hereafter arising under the Financing Agreement and the other Loan Documents. 
 
14. The Borrowers will pay on demand all reasonable out-of-pocket costs and expenses of the Agent and the Lenders in connection with the
preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees, disbursements and other charges of Schulte Roth & Zabel LLP, counsel to the Agent. 
 
15. THE LOAN PARTIES, THE AGENT AND THE LENDERS EACH HEREBY
IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE ACTIONS OF THE AGENT OR THE LENDERS IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF. 
 
[Remainder of this page intentionally left blank] 
 

8 

 
IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 
 
    BORROWERS: 
 
    CLEAN HARBORS, INC.

    ALTAIR DISPOSAL SERVICES, LLC 
    BATON ROUGE DISPOSAL, LLC 
    BRIDGEPORT DISPOSAL, LLC 
    CLEAN HARBORS ANDOVER, LLC 
    CLEAN HARBORS ANTIOCH, LLC 
    CLEAN HARBORS ARAGONITE, LLC 
    CLEAN HARBORS ARIZONA, LLC 
    CLEAN HARBORS BATON ROUGE, LLC 
    CLEAN HARBORS BDT, LLC 
    CLEAN HARBORS BUTTONWILLOW, LLC 
    CLEAN HARBORS CHATTANOOGA, LLC 
    CHEMICAL SALES, LLC 
    CLEAN HARBORS COFFEYVILLE, LLC 
    CLEAN HARBORS COLFAX, LLC 
    CLEAN HARBORS DEER PARK, L.P. 
    CLEAN HARBORS DEER TRAIL, LLC 
    CLEAN HARBORS DISPOSAL SERVICES, INC. 
    CLEAN HARBORS FINANCIAL SERVICES 
        COMPANY 
    CLEAN HARBORS FLORIDA, LLC 
    CLEAN HARBORS GRASSY MOUNTAIN, LLC 
    CLEAN HARBORS KANSAS, LLC 
    CLEAN HARBORS LAPORTE, L.P. 
    CLEAN HARBORS LAUREL, LLC 
    CLEAN HARBORS LONE MOUNTAIN, LLC 
    CLEAN HARBORS LONE STAR CORP. 
    CLEAN HARBORS LOS ANGELES, LLC 
    CLEAN HARBORS OF TEXAS, LLC 
    CLEAN HARBORS PECATONICA, LLC 
    CLEAN HARBORS PLAQUEMINE, LLC 
    CLEAN HARBORS PPM, LLC 
    CLEAN HARBORS REIDSVILLE, LLC 
    CLEAN HARBORS SAN JOSE, LLC 
    CLEAN HARBORS TENNESSEE, LLC 
    CLEAN HARBORS WESTMORLAND, LLC 
    CLEAN HARBORS WHITE CASTLE, LLC 
    CROWLEY DISPOSAL, LLC 
    DISPOSAL PROPERTIES, LLC 
    GSX DISPOSAL, LLC 

 

	
	 HARBOR INDUSTRIAL SERVICES TEXAS,
     L.P.
 HILLIARD DISPOSAL, LLC
 ROEBUCK DISPOSAL, LLC
 SAWYER DISPOSAL
SERVICES, LLC
 TULSA DISPOSAL, LLC
 CLEAN HARBORS ENVIRONMENTAL
     SERVICES, INC.
 CLEAN HARBORS OF BRAINTREE, INC.
 CLEAN
HARBORS OF NATICK, INC.
 CLEAN HARBORS SERVICES, INC.
 MURPHY’S WASTE OIL SERVICE, INC.
 CLEAN HARBORS KINGSTON FACILITY
     CORPORATION
 CLEAN
HARBORS OF CONNECTICUT, INC.
 HARBOR MANAGEMENT CONSULTANTS,
     INC.
 SPRING GROVE RESOURCE RECOVERY, INC.

	
	 By:
	 	

	 Name:
	 	 Stephen H. Moynihan

	 Title:
	 	 Senior Vice President

 

	
	 GUARANTOR:
  
 CLEAN HARBORS OF BALTIMORE, INC.

	
	 By:
	 	

	 Name:
	 	 Stephen H. Moynihan

	 Title:
	 	 Senior Vice President

 

 

	 AGENT AND LENDER: 

	
	 ABLECO FINANCE LLC (on behalf of itself and its affiliate
assigns)

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	
	 LENDERS: 

	
	 OAK HILL SECURITIES FUND, L.P.

	
	 By:
	 	 Oak Hill Securities GenPar, L.P., its general
 partner

	
	 By:
	 	 Oak Hill Securities MGP, Inc., its general
 partner

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 
 

	
	 OAK HILL SECURITIES FUND II, L.P.

	
	 By:
	 	 Oak Hill Securities GenPar II, L.P., its general
 partner

	
	 By:
	 	 Oak Hill Securities MGP II, Inc., its general
 partner

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	
	 LERNER ENTERPRISES, L.P.:

	
	 By:
	 	 Oak Hill Asset Management, Inc., as advisor
 and attorney-in-fact to Lerner Enterprises, L.P.

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	
	 P&PK FAMILY LTD. PARTNERSHIP:

	
	 By:
	 	 Oak Hill Asset Management, Inc., as advisor
 advisor and attorney-in-fact to P&PK Family Ltd. Partnership

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

 

	 CARDINAL INVESTMENT PARTNERS I, L.P.:

	
	 By:
	 	 Oak Hill Advisors, L.P., as advisor
 and attorney-in-fact to Cardinal Investment
 Partners I, L.P.         

	 	 	 

 

	 By:
	 	 Oak Hill Advisors MGP, Inc., its general partner
        

 

	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	 DENALI CAPITAL II CLO, LTD.

	
	 By:
	 	 Denali Capital LLC,
 Managing Member Of DC Funding Partners LLC, Portfolio Manager For Denali Capital II CLO, Ltd.         

 

	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	 DENALI CAPITAL I CLO, LTD.

	
	 By:
	 	 Denali Capital LLC,
 Managing Member of DC Funding Partners
 LLC, portfolio manager for Denali Capital I CLO, Ltd.

 

	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	 GLENEAGLES TRADING LLC

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 
	
	 KZH HIGHLAND-2 LLC

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 
	
	 CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT
SYSTEM

	
	 By:
	 	 Highland Capital Management, L.P.
 as Authorized Representatives of the Board

	
	 By:
	 	

	 Name:
	 	 
	 Title:
	 	 

 

	 REGIMENT CAPITAL II, L.P.

	
	 By:
	 	 Regiment Capital Management, L.L.C., its general partner

	
	 By:
	 	 Regiment Capital Advisors, L.L.C., its manager

	
	 By:
	 	

	 Name:
	 	 
	 Title:

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