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Letter Agreement Re: Note Purchase Agreement

 

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Title:

Letter Agreement Re: Note Purchase Agreement

Entities:

Corrpro Companies, Inc.; Prudential Insurance Co. of America; Joseph W. Rog

Date:

2004

Size:

Preview shows 3KB of 21KB total

Price:

$39

ID:

#252540

 

 

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                                January 31, 2004


Corrpro Companies, Inc.
1090 Enterprise Drive
Medina, Ohio 44256

Attention: Joseph W. Rog, CEO

Re: Note Purchase Agreement, dated as of January 21, 1998, between Corrpro
Companies, Inc. and The Prudential Insurance Company of America.

Ladies and Gentlemen:

Reference is made to (i) that certain Note Purchase Agreement, dated as
of January 21, 1998 (as amended from time to time, the "Note Agreement"),
between Corrpro Companies, Inc., an Ohio corporation (the "Company"), and The
Prudential Insurance Company of America ("Prudential"), pursuant to which the
Company issued and Prudential now holds the Company's Third Amended and Restated
Senior Notes due January 15, 2008 in an aggregate principal amount of
$25,352,573.00 (the "Notes"), and (ii) that certain Forbearance Agreement, dated
July 31, 2003 (as amended from time to time, the "Forbearance Agreement" and
together with the Note Agreement, the "Agreements") between the Company and
Prudential. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Agreements.

Consistent with the provisions of the Forbearance Agreement, the
Company, with the consent of the holders of the Notes, has entered into a
Securities Purchase Agreement in order to complete the Refinance Transaction (as
hereinafter defined). The Securities Purchase Agreement is under review by the
United States Securities and Exchange Commission, and in connection with such
Refinance Transaction, the Company is not in compliance with the deadlines set
forth in Section 1.2(v) of the Forbearance Agreement (the "Milestone Defaults").

The Company has requested that Prudential agree to forbear from
exercising its rights and remedies under the Agreements arising as a result of
the occurrence and continuation of the Existing Events of Default and the
Milestone Defaults (collectively, the "Existing Defaults") and agree to certain
other changes to the Note Agreement, including to defer the date of certain
required payments of principal on the Notes, as more particularly set forth
herein. Subject to the terms and conditions hereof, and effective upon the
satisfaction of the conditions set forth herein, and provided that the Company
agrees to the modifications of the Agreements and the Notes set forth below,
Prudential is willing to agree to such request. Accordingly, and in accordance
with the provisions of paragraph 11C of the Note Agreement, the parties hereto
agree as follows:

AMENDMENTS TO FORBEARANCE AGREEMENT
-----------------------------------

1. SECTION 1.1. Prudential hereby agrees that the Forbearance Period (the
expiration date of which is currently January 31, 2004) set forth in Section 1.1
of the Forbearance Agreement shall be extended until March 31, 2004.

2. SECTION 1.2(f). Section 1.2(f) of the Forbearance Agreement shall be amended
by deleting the word "or" contained directly after the date "September 30, 2003"
and inserting a comma in its place, and

 

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