Document:

a50642956ex4_2.htm

EXHIBIT 4.2

 

 

LETTER AMENDMENT NO. 1

TO PRIVATE SHELF AGREEMENT

September 27, 2012

Prudential Investment Management, Inc. and

each other Prudential Affiliate party hereto

Ladies and Gentlemen:

We refer to the Private Shelf Agreement dated as of July 8, 2011 (as in effect immediately prior to the effectiveness hereof, the “Initial Agreement” and after giving effect hereto, the “Agreement”) between Layne Christensen Company, a Delaware corporation (the “Company”), Prudential Investment Management, Inc. (“Prudential”) and the Purchasers of the Notes (as defined therein) issued and sold by the Company from time to time.  Unless otherwise defined herein, the terms defined in the Agreement shall be used herein as therein defined.

The Company and  Prudential have agreed to amend certain of the terms and provisions contained in the Initial Agreement, all under the terms and conditions set forth in this Letter Amendment No. 1 to Private Shelf Agreement (this “Amendment”).

Therefore, for good and valuable consideration, it is hereby agreed by you and us as follows:

1.           Amendment to the Agreement.  Subject to satisfaction of the conditions set forth in Section 2 hereof and the accuracy of the representations and warranties set forth in Section 3 hereof, Prudential and the Noteholders hereby agree with the Company to amend, effective as of the date first above written, the Initial Agreement as follows:

a.           Section 10.3(a)(vii) of the Initial Agreement is hereby amended and restated in its entirety as follows:

(vii)           the Company and its Subsidiaries may sell all or any part of Layne Energy’s Equity Interests or assets so long as no Event of Default is then outstanding or would result from the applicable sale; provided, that any Guaranty by Layne Energy under the Subsidiary Guaranty shall be automatically released if Layne Energy is no longer a Subsidiary as a result of such a sale;

b.           The introduction to Section 10.4 of the Initial Agreement is hereby amended and restated in its entirety to read as follows:

 

  

  

  

 

The Company will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger or consolidation with any Person that was not a Wholly-Owned Subsidiary prior to such merger or consolidation) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guaranty any Indebtedness of, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any Person or any assets of any other Person constituting a business unit, except:

c.           Section 10.4(e) of the Initial Agreement is hereby amended and restated in its entirety as follows:

(e)           investments, loans or advances made by the Company in or to any Subsidiary, or any Guaranty of Indebtedness of such Subsidiary, and made by any Subsidiary in or to the Company or any other Subsidiary, including a Guaranty by such Subsidiary; provided, that (i) not more than an aggregate amount of $60,000,000 in investments, loans, advances, Guaranties or capital contributions subsequent to the date of this Agreement may be made and remain outstanding, at any time, by Note Parties to or in respect of Subsidiaries which are not Note Parties; (ii) investments in Layne Energy shall only be made by the Company, and such investments shall only take the form of loans and advances made by the Company to Layne Energy; and (iii) no such investment, loan, advance, capital contribution, in or to, or Guaranty of Indebtedness of, a Subsidiary that is not a Note Party, may be made at any time that a Default or an Event of Default exists or would result therefrom;

d.           Section 10.4(n) of the Initial Agreement is hereby renumbered as Section 10.4(o),  the word “and” occurring at the end of Section 10.4(m) is hereby removed,  and a new Section 10.4(n) is added as follows:

(n)           Investments in respect of amounts on deposit in deposit accounts maintained by Foreign Subsidiaries in the ordinary course of business; and

e.           Schedule B of the Initial Agreement is hereby amended by amending and restating the definition of “Priority Indebtedness” in its entirety as follows:

 “Priority Indebtedness” means, at any time, excluding the Indebtedness permitted by Section 10.1(i), the sum (without duplication) of (i) all Indebtedness of Company or any Subsidiary secured by a Lien (except Liens permitted by Sections 10.2(b), 10.2(e), and 10.2(f)), plus (ii) all Indebtedness (excluding trade payables) or Preferred Stock of Subsidiaries owed to (or, in the case of Preferred Stock, owned by) any Person other than the Company or a Subsidiary Guarantor; provided, that Priority Indebtedness shall not include (1) Indebtedness represented by Guaranties of the Obligations (as defined in the Senior Credit Agreement) (so long as a similar Guaranty is executed for the benefit of the holders) or Guaranties of the Indebtedness in respect of the obligations of the Company and the Subsidiaries under the Note Documents or (2) unsecured Indebtedness of any of the Loan Parties for so long as, in respect of Note Parties that are Subsidiaries, such Subsidiary is a Subsidiary Guarantor, plus (iii) all Preferred Stock of Company or other capital stock of the Company with any redemption rights.

 

  

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2.           Effectiveness.  This Amendment shall be effective on and as of the date first written above (the “Effective Date”), subject to the satisfaction of the conditions precedent that Prudential shall have received each of the following, in form, scope and substance satisfactory to Prudential:

(a)           the Company, the Subsidiary Guarantors and Prudential shall have duly executed and delivered this Amendment;

 (b)           a fully executed and effective copy of Amendment No. 1 to the Senior Credit Agreement, duly executed and delivered by each of the parties thereto;

(c)           (i) the Company shall be in full compliance with all of the terms and conditions of the Note Documents, and (ii) no Event of Default or Default shall have occurred and be continuing thereunder or shall result after giving effect to this Amendment; and

(d)           the Company shall have paid on or before the date hereof the reasonable fees, charges and disbursements of Baker Botts L.L.P. to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the date hereof.

3.           Representations and Warranties.  In order to induce Prudential to enter into this Amendment, the Company hereby represents and warrants as follows:

(a)           The execution, delivery and performance by the Company of this Amendment and all documents to be executed and delivered in connection herewith have been duly authorized by all necessary corporate action  and do not and will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, or any other agreement or instrument in an amount (whether constituting principal or otherwise) of at least $10,000,000 or corporate charter or by-laws to which the Company or any Subsidiary is bound, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

 

  

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(b)           Each of the representations and warranties contained in Section 5 of the Agreement is true and correct on and as of the date hereof, except to the extent that any such representation or warranty relates to a specific date, in which case such representation or warranty was true and correct as of such specified date.

(c)           No Default or Event of Default exists, either before or immediately after giving effect to this Amendment and the transactions contemplated hereby, under the Agreement or any other Note Document or any of the other documents executed in connection therewith.

4.           Miscellaneous.

(a)           Upon and after the date first above written, each reference to the Agreement in the Agreement and the other Note Documents shall mean and be a reference to the Initial Agreement as amended by this Amendment.

(b)           Except as specifically amended herein, the Agreement shall remain in full force and effect, and is hereby ratified and confirmed.

(c)           The Company confirms its agreement, pursuant to Section 15.1 of the Agreement, to pay promptly all reasonable expenses of Prudential related to this Amendment and all matters contemplated hereby, including, without limitation, all reasonable fees and expenses of Prudential's counsel as described in Section 2(d) above.

(d)           Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Prudential, nor constitute a waiver of any provision of the Agreement or any other document, instrument or agreement executed and delivered in connection with any of the foregoing.

(e)           This Amendment shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York.

(f)           This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original (whether such counterpart is originally executed or an electronic or facsimile copy of an executed original), but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  Delivery of this Amendment may be made by telecopy or electronic transmission of a duly executed counterpart copy hereof; provided that any such delivery by electronic transmission shall be effective only if transmitted in .pdf format, .tif format or other format in which the text is not readily modifiable by any recipient thereof.

 

  

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5.           Affirmation of Obligations.  Notwithstanding that such consent is not required under the Subsidiary Guaranty, each of the Subsidiary Guarantors consents to the execution and delivery of this Amendment by the parties hereto.  As a material inducement to the undersigned to amend the Agreement as set forth herein, each of the Subsidiary Guarantors (i) acknowledges and confirms the continuing existence, validity and effectiveness of the Subsidiary Guaranty, and (ii) agrees that the execution, delivery and performance of this Amendment shall not in any way release, diminish, impair, reduce or otherwise affect its obligations thereunder.

If you agree to the terms and provisions hereof, please evidence your agreement by executing and returning a counterpart of this Amendment (in a format acceptable in accordance with Section 4(f)) to Layne Christensen Company, 1900 Shawnee Mission Parkway, Mission Woods, KS 66205, Attention of Jerry Fanska, Senior Vice President Finance (Telecopy No. 913-362-8823; Telephone No. 913-677-6858), Email jerry.fanska@laynechristensen.com; with a copy to Layne Christensen Company, 1900 Shawnee Mission Parkway, Mission Woods, KS 66205, Attention of Steven Crooke, Senior Vice President and General Counsel, Email steve.crooke@layne.com.

[Remainder of this page intentionally left blank]

 

  

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Very truly yours,

	  	
LAYNE CHRISTENSEN COMPANY

	  	  	  
	  	
By

	
/s/ Jerry W. Fanska

	  	
 

	
Name: Jerry W. Fanska

	  	  	
Title:  Senior Vice President Finance -

	  	  	
   Treasurer

 

  

SIGNATURE PAGE LETTER AMENDMENT NO. 1

  

 

For purposes of Section 5:

 

	  	
BOYLES BROS. DRILLING COMPANY;

	  	
CHRISTENSEN BOYLES CORPORATION;

	  	
INTERNATIONAL DIRECTIONAL SERVICES, L.L.C.;

	  	
LAYNE TEXAS, INCORPORATED;

	  	
MID-CONTINENT DRILLING COMPANY;

	  	
SHAWNEE OIL & GAS, L.L.C.;

	  	
STAMM-SCHEELE INCORPORATED;

	  	
VIBRATION TECHNOLOGY, INC.;

	  	
LAYNE ENERGY, INC.;

	  	
LAYNE ENERGY CHERRYVALE, LLC;

	  	
LAYNE ENERGY CHERRYVALE PIPELINE, LLC;

	  	
LAYNE ENERGY DAWSON, LLC;

	  	
LAYNE INTERNATIONAL, LLC;

	  	
WINDSOR RESOURCES, LLC;

	  	
WINDSOR RESOURCES PIPELINE, LLC;

	  	
LAYNE ENERGY HOLDING, LLC;

	  	
LAYNE ENERGY OPERATING, LLC;

	  	
LAYNE ENERGY OSAGE, LLC;

	  	
LAYNE ENERGY PIPELINE, LLC;

	  	
LAYNE ENERGY PRODUCTION, LLC;

	  	
LAYNE ENERGY RESOURCES, INC.;

	  	
LAYNE ENERGY SYCAMORE, LLC;

	  	
LAYNE ENERGY SYCAMORE PIPELINE, LLC;

	  	
LAYNE WATER DEVELOPMENT AND STORAGE, LLC;

	  	
CHERRYVALE PIPELINE, LLC;

	  	
LAYNE HEAVY CIVIL, INC.;

	  	
INLINER TECHNOLOGIES, LLC;

	  	
LINER PRODUCTS, LLC;

	  	
LAYNE INLINER, LLC;

	  	
LAYNE TRANSPORT CO.;

	  	
COLLECTOR WELLS INTERNATIONAL, INC.;

	  	
INTERNATIONAL WATER CONSULTANTS, INC.;

	  	
INLINER AMERICAN, INC.;

	  	
MAG CON, INC;

	  	
MEADORS CONSTRUCTION CO., INC.;

	  	
W.L. HAILEY & COMPANY, INC.;

	  	
BENCOR CORPORATION OF AMERICA—FOUNDATION    SPECIALIST; AND

	  	
LAYNE SOUTHWEST, INC.

 

	  	
By

	
/s/ Jerry W. Fanska

	  	
 

	
Name: Jerry W. Fanska

	  	  	
Title:  Vice President of each of the above entities

 

  

SIGNATURE PAGE LETTER AMENDMENT NO. 1

  

 

This Amendment is hereby

accepted and agreed to as

of the date hereof.

 

PRUDENTIAL INVESTMENT

 MANAGEMENT, INC.

 

	
By:

	
/s/ William Bulmer

	  
	  	
Vice President

	  

 

SIGNATURE PAGE LETTER AMENDMENT NO. 1a50642956ex10_1.htm

Exhibit 10.1

Form of Performance Shares Agreement for LTI Plan Awards

June 2013

 

 

LAYNE CHRISTENSEN COMPANY

2006 EQUITY  INCENTIVE PLAN

 

Performance Shares Agreement 

 

 

	 	Date of Grant: 	 	 ________________	 
	 	 	 	 	 
	 	Number of Performance Shares Granted:	 	 ________________	 

 

This Award Agreement dated _____________________, is made by and between Layne Christensen Company, a Delaware corporation (the “Company”), and ____________________ ("Participant").

RECITALS:

 

A.           Effective June 8, 2006, the Company's stockholders initially approved the Layne Christensen Company 2006 Equity Incentive Plan (the "Plan") pursuant to which the Company may, from time to time, grant Performance Shares to eligible Service Providers of the Company.

 

B.           The Plan has been amended and restated several times and was most recently restated effective June 7, 2012.

 

C.           Participant is a Service Provider of the Company or one of its Affiliates and the Company desires to encourage him/her to own Shares and to give him/her added incentive to advance the interests of the Company, and desires to grant Participant Performance Shares under the terms and conditions established by the Committee.

 

AGREEMENT:

 

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

 

1.           Incorporation of Plan.  All provisions of this Award Agreement and the rights of Participant hereunder are subject in all respects to the provisions of the Plan and the powers of the Committee therein provided.  Capitalized terms used in this Award Agreement but not defined shall have the meaning set forth in the Plan.

 

2.           Grant of Performance Shares.  Subject to the conditions and restrictions set forth in this Award Agreement and in the Plan, the Company hereby grants to Participant and credits to a separate account maintained on the books of the Company ("Account") that number of Performance Shares identified above opposite the heading "Number of Performance Shares Granted" (the "Performance Shares").  Each Performance Share shall represent Participant's conditional right to receive a percentage of a Share (the "Payout Percentage," which may be less than, equal to, or greater than 100%) on the Performance Shares' "Settlement Date" if the applicable performance and time-vesting requirements set forth in this Award Agreement are satisfied.  Participant's interest in the Account shall make him or her only a general, unsecured creditor of the Company.  Neither the Performance Shares nor Participant's rights thereto may be sold, transferred, gifted, bequeathed, pledged, assigned, or otherwise alienated or hypothecated, voluntarily or involuntarily.  The rights of Participant with respect to each Performance Share shall remain forfeitable at all times prior to the Settlement Date of such Performance Share.

 

  

  

  

 

3.           Settlement of Performance Shares.  Following the end of the Performance Period (described below) and after the Committee has determined and certified the actual level of goal achievement of the performance goals, the Performance Shares shall be settled by delivering to Participant or his or her beneficiary, as applicable, a number of Shares equal to the achieved Payout Percentage multiplied by the Performance Shares then held by Participant which are vested in accordance with this Section 3.  Except as specifically provided elsewhere under the Plan, the Performance Shares subject to this Award Agreement shall become vested and be settled on (or within the 30-day period following) the date of such Committee determination and certification (each a "Settlement Date") as described below and based on the level of goal achievement during the performance period from __________ to __________ (the "Performance Period"):

 

[**Insert applicable vesting and performance conditions/goals**]

 

 

4.           Cancellation of Performance Shares; Delayed Vesting on Account of Retirement.  Unless otherwise provided in this Section 4 or in the Plan, if, prior to the Settlement Date, Participant's position as a Service Provider to the Company or any of its Affiliates is terminated, Participant shall thereupon immediately forfeit any and all unsettled Performance Shares and Participant shall have no further rights under this Award Agreement.  For purposes of this Award Agreement, the transfer of employment between the Company and any of its Affiliates (or between Affiliates) shall not constitute a termination of Participant's position as a Service Provider.

 

Notwithstanding the foregoing, if before the Settlement Date the Participant's position as a Service Provider with the Company or any Affiliate terminates on account of Participant's Retirement, then none of the Performance Shares shall be forfeited at the time of such Retirement and, provided that one or more of the above performance conditions are satisfied, on the Settlement Date, a number of Performance Shares equal to the Vesting Fraction (as defined below) multiplied by the number of Performance Shares that ultimately would have been settled on the Settlement Date if, but for the Retirement, Participant had remained employed through the Settlement Date (rounded up to the nearest whole share) shall be settled and the remaining Performance Shares will be forfeited.  The “Vesting Fraction” shall be a fraction, the numerator of which shall be the number of days from the Date of Grant to the date of Participant's Retirement and the denominator of which shall be the number of days during the applicable Performance Period.  For purposes of this Agreement, "Retirement" means the Participant's termination from all employment after attaining the age of 60 and after having been employed by the Company or one of its Affiliates for five years or more.

 

5.           Dividends and Voting.  Before any Performance Shares' Settlement Date, Participant shall be entitled to receive dividend equivalent payments for any dividends paid by the Company on Shares, whether payable in stock, in cash or in kind, or other distributions, declared as of a record date that occurs on or after the Date of Grant hereunder and prior to any cancellation or settlement of such Performance Shares, provided, however, that any such dividend equivalent payments shall be held in escrow by the Company and, be subject to the same rights, restrictions on transfer, and conditions applicable to the underlying Performance Shares.  Participant shall only be entitled to receive a payment of any accrued dividend equivalent payments on that number of Performance Shares that ultimately vests on the Settlement Date and, in the event of cancellation of any or all of the Performance Shares due to either Participant's termination of employment before the Settlement Date (other than a Retirement) or the above-described performance conditions not having been met, Participant will forfeit all dividend equivalent payments held in escrow and relating to the underlying forfeited Performance Shares.  Participant will have no voting rights with respect to any of the Performance Shares.  Any payment relating to accrued dividend equivalent payments will be paid within 30 days of the Settlement Date.

 

  

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6.           Withholding with Stock.  Unless specifically denied by the Committee, Participant may elect to pay all minimum required amounts of tax withholding, or any part thereof, by electing that the Company withhold from the settlement of Shares otherwise eligible to be issued pursuant to this Award Agreement, Shares having a value equal to the minimum amount required to be withheld under federal, state or local law or such lesser amount as may be elected by Participant. The value of Shares to be withheld by the Company shall be based on the Fair Market Value of the Stock on the date that the amount of tax to be withheld is to be determined (the “Tax Date”), as determined by the Committee. Any such elections by Participant to have Shares withheld for this purpose will be subject to the following restrictions:

 

(a)           All elections must be made prior to the Tax Date;

 

(b)           All elections shall be irrevocable; and

 

(c)           If Participant is an officer or director of the Company within the meaning of Section 16 of the 1934 Act (“Section 16”), Participant must satisfy the requirements of such Section 16 and any applicable rules thereunder with respect to the use of Stock to satisfy such tax withholding obligation.

 

7.           Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Award Agreement.

 

8.           Amendment.  Subject to Section 10, this Award Agreement may be amended only by a writing executed by the parties hereto which specifically states that it is amending this Award Agreement.

 

9.           Governing Law.  The laws of the State of Delaware will govern the interpretation, validity and performance of this Award Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

10.           Section 409A Compliance.   It is the intent of the Company that all payments made under this Award Agreement will either be exempt from Section 409A of the Code and the Treasury regulations and guidance issued thereunder ("Section 409A") pursuant to the “short-term deferral” exemption or compliant with Section 409A.   Notwithstanding any provision of the Plan or this Award Agreement to the contrary, (i) this Award Agreement shall not be amended in any manner that would cause any amounts payable hereunder that are not subject to Section 409A to become subject thereto (unless they also are in compliance therewith), and the provisions of any purported amendment that may reasonably be expected to result in such non-compliance shall be of no force or effect with respect to this Award Agreement and (ii) the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Award Agreement to reflect the intention that all payments pursuant hereto qualify for exemption from or complies with Section 409A in a manner that as closely as practicable achieves the original intent of this Award Agreement and with the least reduction, if any, in overall benefit to a Participant to comply with Section 409A on a timely basis, which may be made on a retroactive basis, in accordance with regulations and other guidance issued under Section 409A.  Neither the Company nor the Board makes any representation that this Award Agreement shall be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to this Award Agreement.

11.           Binding Effect.  Except as expressly stated herein to the contrary, this Award Agreement will be binding upon and inure to the benefit of the respective heirs, legal representatives, successors and assigns of the parties hereto.

 

This Award Agreement has been executed and delivered by the parties hereto.

 

 

	The Company: 	 Participant:	 
	 	 	 	 
	

Layne Christensen Company

	 	 
	 	 	 	 
	 	 	 	 
	 By:___________________________	 _________________________________ 	 
	 	 Name:	 Name:	 
	 	 Title:	 Address of Participant:	 

 

 

 

 

                                                                                    

                                                                                      

                                                                                                                                                                                              

 

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