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CONSENT AND AMENDMENT PERTAINING TO SUBORDINATED NOTE PURCHASE AGREEMENT

Note Purchase Agreement

CONSENT AND AMENDMENT PERTAINING TO  SUBORDINATED NOTE PURCHASE AGREEMENT | Document Parties: CLAYTON HOLDINGS INC | CLAYTON SERVICES, INC. | TA Subordinated Debt Fund, L.P. | Clayton GRP, Inc. | TA Associates SDF LLC | TA Associates, Inc. You are currently viewing:
This Note Purchase Agreement involves

CLAYTON HOLDINGS INC | CLAYTON SERVICES, INC. | TA Subordinated Debt Fund, L.P. | Clayton GRP, Inc. | TA Associates SDF LLC | TA Associates, Inc.

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Title: CONSENT AND AMENDMENT PERTAINING TO SUBORDINATED NOTE PURCHASE AGREEMENT
Date: 11/7/2005

CONSENT AND AMENDMENT PERTAINING TO  SUBORDINATED NOTE PURCHASE AGREEMENT, Parties: clayton holdings inc , clayton services  inc. , ta subordinated debt fund  l.p. , clayton grp  inc. , ta associates sdf llc , ta associates  inc.
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                                                                   Exhibit 10.35

 

                       CONSENT AND AMENDMENT PERTAINING TO

                      SUBORDINATED NOTE PURCHASE AGREEMENT

 

     This CONSENT AND AMENDMENT PERTAINING TO SUBORDINATED NOTE PURCHASE

AGREEMENT ("CONSENT") is dated as of November 2, 2005, and is entered into by

and among CLAYTON SERVICES, INC., a Delaware corporation formerly known as

Clayton GRP, Inc. ("BORROWER"), and TA Subordinated Debt Fund, L.P., a Delaware

limited partnership ("TA DEBT FUND").

 

                              W I T N E S S E T H:

 

          WHEREAS, Borrower and TA Debt Fund are parties to that certain

Subordinated Note Purchase Agreement, dated as of August 2, 2004, by and among

Borrower and the Noteholders and Guarantors named therein (as the same may be

from time to time amended, supplemented or otherwise modified, the "AGREEMENT";

capitalized terms not otherwise defined herein have the definitions provided

therefor in the Agreement);

 

           WHEREAS, Borrower is in breach of Section 7.14.6 of the Agreement as

Borrower has made Capital Expenditures in excess of $5,000,000 during Fiscal

Year 2005, and such breach constitutes an Event of Default under Section 8.1.4

of the Agreement (the "CAPITAL EXPENDITURE EVENT OF DEFAULT");

 

          WHEREAS, Borrower, Agent, and Senior Lenders are parties to the Senior

Credit Agreement;

 

          WHEREAS, Borrower is in breach of Section 7.14.4 of the Senior Credit

Agreement as Borrower has made Capital Expenditures in excess of $3,900,000

during Fiscal Year 2005, and such breach constitutes an Event of Default under

Section 8.1.1 of the Senior Credit Agreement (the "SENIOR CAPITAL EXPENDITURE

EVENT OF DEFAULT");

 

          WHEREAS, Borrower is in breach of Section 2.10.2(a)(iii) of the Senior

Credit Agreement as the Borrower has failed to make its scheduled mandatory

prepayment with respect to Excess Cash Flow for the Fiscal Year ending December

31, 2004, and such breach constitutes an Event of Default under Section 8.1.1 of

the Senior Credit Agreement (the "SENIOR PREPAYMENT EVENT OF DEFAULT");

 

          WHEREAS, the occurrence of the Senior Capital Expenditure Event of

Default and the Senior Prepayment Event of Default each constitute an Event of

Default under Section 8.1.2 of the Agreement (collectively, the "EXISTING SENIOR

EVENTS OF DEFAULT");

 

          WHEREAS, Borrower has requested that Agent and Senior Lenders waive

the Existing Senior Events of Default;

 

          WHEREAS, Borrower has requested that TA Debt Fund waive the Capital

Expenditure Event of Default and the Existing Senior Events of Default

(collectively, the "EXISTING EVENTS OF DEFAULT");

 

                                       -1-

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          WHEREAS, Borrower has requested that Agent and Senior Lenders amend

and restate Section 7.14.4 of the Senior Credit Agreement to increase the

Capital Expenditures limitation for each Fiscal Year through December 31, 2009;

 

          WHEREAS, Borrower has requested that TA Debt Fund amend and restate

Section 7.14.6 of the Agreement to provide a corresponding increase in the

Capital Expenditures limitation for each Fiscal Year through December 31, 2009

so as to preserve any "cushion" between the covenant levels contained in the

Senior Credit Agreement and the Agreement;

 

          WHEREAS, TA Debt Fund holds greater than fifty percent (50%) in

principal amount of all Notes currently outstanding, thereby allowing TA Debt

Fund to consent to a waiver of an Event of Default pursuant to Section 8.2 of

the Agreement and an amendment of the Agreement pursuant to Section 9.2 thereof;

 

          NOW THEREFORE, in consideration of the mutual conditions and

agreements set forth in the Agreement and this Consent, and other good and

valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, the parties hereto hereby agree as follows:

 

          1.   WAIVER. Subj


 
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