Document:

Exhibit 10.17

[ENGLISH TRANSLATION] 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS AGREEMENT AND THE SCHEDULES HERETO MARKED BY *** HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

Ciudad de Buenos Aires, 19 October 2016

To

 

María Marta Mac Mullen

 

Pedro Enrique Mac Mullen

 

International Property Services Corp.

Ref: Offer Number 4/5-C/2016

Dear Ladies and/or Gentlemen:

 

We are writing to you regarding the negotiations held this month regarding the call option of a part of your equity interest in Rizobacter Argentina S.A., a corporation duly incorporated under the laws of Argentina, having its principal place of business at Dr. Arturo Frondizi 1150 (Parque Industrial Pergamino, Pergamino, Provincia de Buenos Aires) (“RASA”) in order to present for your consideration (the “Selling Shareholders” and/ or “MMM” and/ or “PMM” and/ or “IPS”, as appropriate, and together with Bioceres S.A., the “Buyer” and/ or “Bioceres”, the “Parties” and/ or the “Party”, as appropriate) the following call option offer (the “Offer”).

 

The Offer shall be valid for three (3) working days and shall be considered taken if all Sellers send written notification to the Buyer informing their acceptance of the Offer.

 

Once this Offer is accepted, the relationship between the Parties shall be governed by the terms and conditions set out in Exhibit A herein (the “Agreement”).

 

Sincerely yours.

 

[this page intentionally left blank]

 

	
Bioceres S.A.

	
 

	/s/ Marcelo Carnique	
 

	Print name: Marcelo Carnique	
 

	
 

	
 

	
Acting as:

	
 

	
 

	
 

	Bioceres Inc.	
 

	/s/	
 

	
Print Name:

	
 

	
 

	
 

	
Acting as:

	
 

	
 

	
 

	
Indear S.A.

	
 

	
/s/Aimar Dimo

	
 

	
Print name: Aimar Dimo

	
 

	
 

	
 

	
Acting as: President

	
 

 

EXHIBIT A

 

TERMS AND CONDITIONS

OF THE CALL OPTION OFFER

 

RECITALS

 

WHEREAS (i) International Property Services Corp., a corporation duly incorporated and validly existing and in good standing to date in compliance with all the governing laws of the Republic of Panamá, having its head office at *** (“IPS”) holds 5.404.000 shares of stock representing 13,51% of the capital stock and votes of Rizobacter Argentina S.A. (“RASA” or the “Company”); (ii) MMM holds 3.256.000 shares of stock representing 8,24% of the capital stock and votes of RASA; and (iii) PMM holds 3.256.000 shares of stock representing 8,24% of the capital stock and votes of RASA;

 

WHEREAS,  pursuant to the terms and conditions of this Offer, (which, once accepted, shall be called the “Agreement”), the Selling Shareholders intend to grant the Buyer a call option on the Shares Subject to Option (as defined below);

 

NOW THEREFORE, pursuant to the valuable consideration agreed hereto, and on the basis of the representations and warranties made, once this Offer has been accepted, the Parties agree as follows.

 

ONE: DEFINITIONS

 

I.A.          Unless otherwise stipulated, words used here in capital letters shall have the meaning assigned to them below.

 

Shares Subject to Option: shall mean jointly IPS's Shares Subject to Option, MMM's Shares Subject to Option and PMM's Shares Subject to Option.

 

IPS's Shares Subject to Option: shall mean 1.404.000 shares, ordinary, registered, non-transferable, at a par value of $1, with five (5) votes per share representing 3,51% of the capital stock and votes of RASA owned by IPS.

 

MMM's Shares Subject to Option: shall mean 1,296,000 shares, ordinary, registered, non-transferable, at a par value of $1, with five (5) votes per share representing 3.24% of the capital stock and votes of RASA owned by MMM.

 

PMM's Shares Subject to Option: shall mean 1,296,000 shares, ordinary, registered, non-transferable, at a par value of $1, with five (5) votes per share representing 3.24% of the capital stock and votes of RASA owned by PMM.

 

Affiliate: shall mean, for a Party, any company or any other legal entity, controlling or controlled, now or in the future, directly or indirectly, by said Party or subject to common control with said Party. "Controlled" companies shall be those companies where another person or company, directly or through another controlled company: (a) has a participation by means of whatever instrument granting the necessary votes to form majority rule or (b) exercises a dominant influence given the special links between them.

 

*** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Call Option: shall mean the right to purchase the Shares Subject to Option granted in this Agreement by MMM, PMM and IPS in favor of Bioceres.

 

Purchase Price: shall mean the purchase price of the Shares Subject to Option which shall be equal to the purchase price per share of RASA paid today by RASA Holding LLC to MMM, PMM and IPS, applied proportionally to the number of Shares Subject to Option, that is to say, US$1.500.00 every one per cent (1%) of capital stock of RASA or its proportion if it is a fraction.

 

Mandatory Purchase Proposal: shall have the scope attributed in Clause Three herein.

 

I.B.           Interpretation.

 

(a)            The titles used in the Agreement herein are merely indicative and shall in no way affect the extent and scope of the provisions therein, nor the rights and obligations assumed by the Parties thereunder;

 

(b)            Except where the context otherwise requires, words denoting the singular include the plural and vice versa; words denoting any gender include all genders.

 

(c)            References to Sections, Articles and Exhibits included in this Agreement shall be construed (unless otherwise indicated) as references to the Sections, Articles and Attachments of this Agreement.

 

TWO: CALL OPTION

 

2.1            Once the Offer is accepted, the Selling Shareholders grant the Buyer a Call Option on the Shares Subject to Option.

 

2.2           The term of exercise of the Purchase Option by the Buyer shall be two (2) years counted from the acceptance of the Offer (the “Term of Exercise of the Call Option”).

 

2.3           The Purchase Option may only be exercised by the Buyer and on all of the Shares Subject to Option.

 

2.4           For the exercise of the Call Option, the Buyer shall reliably provide IPS, MMM and/ or PMM with a true written notice of its intention to exercise the option at the address constituted herein (the “Notification of Exercise of Call Option”), prior to the expiration of the Exercise Term of the Call Option.

 

2.5           Once the Buyer completed the Notice of Exercise of the Call Option within a period of no more than *** working days from the date of receipt of the relevant notification: (i) the Parties shall execute the purchase transaction of the Shares Subject to Option; (ii) the Selling Shareholders shall transfer to the Buyer the Shares Subject to Option and (iii) the Buyer shall pay to the Selling Shareholders the Purchase Price.

 

*** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

2.6            Payment of the Purchase Price will be made by deposit or bank transfer to the accounts that MMM, PMM and IPS duly indicate prior to the purchase of the Shares Subject to Option. The terms of the purchase of the Shares Subject to Option shall reflect the terms agreed herein and substantially the terms of the purchase which are attached as a model in Exhibit I herein.

 

THREE: MANDATORY PURCHASE PROPOSAL

 

3.1           The Call Option shall become a Mandatory Purchase Proposal in the event that: i) Bioceres and/ or its Affiliates and/ or controlling shareholders and/ or subsidiaries y/ o controlled companies and/ or assignees and/ or related companies in any way, acquire part or all of the ownership interest of ***, Miguel Harnan, Marcos Harnan and Martina Harnan in RASA. Bioceres undertakes not to constitute any vehicle directly or indirectly unaffiliated with Bioceres or to associate itself with any third party for the acquisition referred to above; or ii) *** years have passed since the acceptance of this Offer.

 

3.2           The Exercise Term of the Mandatory Purchase Proposal shall be the term from the date of total or partial acquisition of the RASA shares identified above or, where applicable, from the expiration of the *** years from the date of acceptance of the Offer until *** calendar days after the expiration of either of the two aforementioned dates (the "Exercise Term of the Mandatory Purchase Proposal").

 

3.3           During the Exercise Term of the Mandatory Purchase Proposal, Bioceres shall notify the Selling Shareholders its willingness to buy the Shares Subject to Option at the Purchase Price. The Mandatory Purchase Proposal may only be exercised in respect of all the Shares Subject to Option at one time.

 

3.4           Once Notice of Exercise of the Mandatory Purchase Proposal is received, the Selling Shareholders may refuse to sell the Shares Subject to Option without giving cause and without the right of Bioceres to claim compensation, compensation for expenses or any sum for such refusal. Rejection by a single Selling Shareholder shall result in rejection of the entire transaction and Buyer shall not be required to acquire the Shares Subject to Option in part.

 

3.5           Conversely, once the Selling Shareholders receive Notice of Exercise of the Mandatory Purchase Proposal, Buyer shall have the obligation to acquire all of the Shares Subject to Option under the terms hereof.

 

3.6           Within no more than *** business days from the date of receipt of the notification (unless refused by the seller(s): (i) the Parties shall execute the purchase transaction of the Shares Subject to Option; (ii) the Selling Shareholders shall transfer to the Buyer the Shares Subject to Option and (iii) the Buyer shall pay to the Selling Shareholders the Purchase Price.

 

3.7           Payment of the Purchase Price shall be made by deposit or bank transfer to the accounts that MMM, PMM and IPS duly indicate prior to the purchase of the Shares Subject to Option. The terms of the purchase of the Shares Subject to Option shall reflect the terms agreed herein and substantially the terms of the purchase which are attached as a model in Exhibit I herein.

 

3.8           If Bioceres fails in any way to comply with its obligation to acquire the Shares Subject to Option under the Mandatory Purchase Proposal, if any, or to pay the Purchase Price in the manner and time specified herein, Bioceres shall be subject to a total penalty of US$15.000.000 (US Dollars 15 million) in favor of IPS, MMM and PMM evenly.

 

*** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

FOUR: DEPOSIT

 

Once the Offer is accepted, Bioceres Inc. and Indear S.A. shall be constituted as co-debtors, plain and simple principal payers of the obligations assumed by the Buyer with express waiver of the benefits of division and excusion.

 

FIVE: MISCELLANEOUS

 

5.1           Notices

 

All notices among the Parties hereto shall be in writing, to the addresses listed hereunder:

 

To IPS:

 

***

With copy (which shall not imply notice) to:

 

***

 

To María Marta Mac Mullen:

 

***

To Pedro Enrique Mac Mullen:

***

 

With copy (which shall not imply notice) to:

 

***

 

To Buyer:

 

Ocampo 210 bis

Predio CCT, Rosario, Sta. Fe, ARG.

Tel.: ***

Attention: ***

 

*** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

With copy (which shall not imply notice) to:

 

Marval, O’Farrell & Mairal

***

Ciudad de Buenos Aires

Phone: ***

Fax: ***

Attention: ***

 

To Guarantors:

 

Ocampo 210 bis

Predio CCT, Rosario, Sta. Fe, ARG.

Tel.: ***

Attention: ***

 

With copy (which shall not imply notice) to:

 

Marval, O’Farrell & Mairal

***

Ciudad de Buenos Aires

Phone: ***

Fax: ***

Attention: ***

 

5.2           Severability

 

Any provision in the Agreement herein prohibited or declared non-applicable in any jurisdiction shall have no validity in said jurisdiction to the extent of said prohibition or declaration of non-applicability, without invalidating the other provisions of the Agreement herein. The prohibition or non-enforceability declared in any jurisdiction shall not render said provision inapplicable in any other jurisdiction. In the event the provisions of any law or regulation arising from said prohibition or non-enforceability may be waived, the Parties hereto hereby waive said provisions to the greatest extent permitted by law, so that this Agreement shall be construed as a valid and binding contract, enforceable in accordance with its terms and conditions.

 

5.3           Confidentiality

 

Any information exchanged among the Parties attributable to this Agreement is confidential, and shall be deemed so except for the information which may become public from a third party not bound by a confidentiality provision or by the Party who provided the confidential information and/ or when said information is required by duly entitled judicial or administrative authorities and/ or in the event of any dispute among the Parties arising from the interpretation, enforceability, compliance or non-compliance of this Agreement.

 

5.4           Assignment

 

In no event shall any of the Parties be entitled to assign the rights and/ or obligations arising hereunder without the express written consent of the other Party, except for the Buyer, who shall be entitled to assign its rights and obligations to an Affiliate.

 

*** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

5.5           Fees and Expenses

 

Each Party shall bear its own costs, including fees and expenses of any third party which may provide assistance to said Party, incurred in the preparation and endorsement of the Offer and the execution of the operations contemplated herein. The Parties declare that they have had the appropriate legal and accounting advice for the performance of the transactions contemplated in this Agreement.

 

5.6           Taxes

 

Each Party shall be responsible for the taxes applicable to it as a result of the transaction pursuant to this Agreement.

 

5.7           No waiver

 

Failure of any of the Parties to enforce strict compliance with the provisions in this Agreement, once accepted, shall not be construed as a waiver to the provisions or the right to enforce later compliance with any of the clauses herein.

 

ANNEX I

 

TERMS AND CONDITIONS OF THE PURCHASE OF SHARES SUBJECT TO OPTION

 

The provisions of the Shares Purchase Offer dated 18 October 2016 and duly accepted by the Selling Shareholders with respect to the transfer of part of their interest in RASA shall apply mutatis mutandi.

 

PURCHASE OF RASA SHARES OF STOCK

 

Purchase of RASA Shares.

 

The Selling Shareholders shall sell the RASA Shares to the Buyer free of any tax, together with all and no less than all the rights -current and future- to which they are entitled.

 

The RASA Shares shall be all the Shares Subject to Option.

Purchase Price.

Total Purchase Price of the RASA Shares shall be the Purchase Price defined in Offer Number 4/5-C/2016 dated 19 October 2016.

Notification and Effects of the CNDC (Argentine Committee for the Defense of Competition) Resolution.

If necessary, the parties shall submit the approval of the operation to the Argentine Ministry of Economy and Production – Secretariat of Trade (the “Secretariat of Trade”) and the enforcement agency of law 25.156, currently, the National Commission for the Defense of Competition (Comisión Nacional de Defensa de la Competencia) (said agency is hereinafter defined indistinctly as “CNDC”), or whichever agency replaces it in the future.

Closing

The Parties shall agree on the closing date and place.

On the closing date, the Parties shall take the following actions.

1. The Selling Shareholders shall make available to the Buyer:

	
(i)

	
The certificates representing the RASA Shares.

	
(ii)

	
Notice pursuant to Article 215 of Argentina ́s Corporate Law (Ley General de Sociedades) Number 19.550.

	
(iii)

	
Proof of spousal agreement to the transfer of the RASA Shares (as applicable to each of the Selling Shareholders).

 

	
(iv)

	
Receipt for payment of the Purchase Price.

	
(v)

	
The Board of Directors of RASA shall meet to: (a) acknowledge receipt of the share transfer notice; (b) provide for the cancellation of the securities representing the RASA Shares delivered by the Selling Shareholders; (c) provide for the subsequent issuance of new certificates in the name of the Buyer; and (d) provide for the registration of the transfer of such RASA Shares in the name of the Buyer in the appropriate ledger.

	
(vi)

	
The new securities representing the RASA Shares shall be issued in the name of the Buyer and shall be delivered to the Buyer, duly signed by the RASA Chairman; and

	
(vii)

	
The transfer of the RASA Shares shall be recorded in the corresponding company books.

 

REPRESENTATIONS AND WARRANTIES OF THE SELLING SHAREHOLDERS

Each Selling Shareholder shall jointly and severally make the following representations and warranties to the Buyer with respect to itself, to RASA and its Subsidiaries at the Closing Date.

 

	
(a)

	
Selling Shareholders' Capacity; Approvals and Consents.

 

	
(b)

	
Organization and Capacity of RASA and the RASA Subsidiaries.

 

	
(c)

	
Capital Stock and Shares.

 

	
(d)

	
No Unreported Liabilities.

	
(e)

	
Compliance with the Law.

	
(f)

	
Litigation.

	
(g)

	
Shareholders' Agreements.

	
(h)

	
Debts and Credits with Affiliates.

	
(i)

	
Statement of Truth.

	
(j)

	
No Intermediaries. Fees.

REPRESENTATIONS AND WARRANTIES OF THE BUYER

The Buyer shall represent and guarantee the Selling Shareholders:

 

	
(a)

	
Authorization.

 

	
(b)

	
Sufficient Powers.

	
(c)

	
Litigation and Obligations.

 

SURVIVAL OF THE REPRESENTATIONS AND WARRANTIES - INDEMNITIES

The Selling Shareholders shall jointly and severally undertake to defend and hold harmless the Buyer, its Affiliates, its successors and assigns, RASA and the RASA Subsidiaries, officers, directors, managers and employees of the Buyer, RASA and the RASA Subsidiaries, from all liabilities, claims, contingencies, lawsuits, demands, obligations, actions, damages, losses, fines, penalties, or expenses (including without limitation interest and penalty, reasonable attorneys' fees and expenses) (the “Damages”) incurred or paid as a result of, or arising from:

	
(a)

	
Unrecorded and/or undeclared liabilities of RASA and/or the RASA Subsidiaries, and/ or

	
(b)

	
breach of the Selling Shareholders’ obligations under the Agreement or its Exhibits.

Indemnity of the Selling Shareholders.

The Buyer undertakes to defend and hold the Selling Shareholders harmless from any Damage suffered or paid as a result of, or arising from:

	
(a)

	
the inaccuracy of the Representations and Warranties; and/ or

	
(b)

	
breach of the Buyer's obligations under the Agreement.

Claims Filing and Defense

 

Usual provisions shall apply.

The indemnity obligation shall continue from the Closing Date (and provided that the complaining Party has not filed the respective claim prior to the expiration of such periods) until the expiry of the limitation period applicable to the claim in question.

 

GOVERNING LAW AND DISPUTE SETTLEMENT

Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the Argentine Republic.

Dispute Settlement.

 

In the event of disagreement, disputes or conflict regarding the validity, interpretation, enforceability or termination of this Agreement, the Parties herein expressly agree to use an initial process of mediation for a period of 30 days, using the Mediation and the Rules of Procedure and Ethics Code of the Corporation Center of Mediation and Arbitration (Civil Association), based in the city of Buenos Aires, Argentine Republic. The Parties may extend said period. In the event of disagreement, the dispute or the unresolved partial aspects of the dispute shall be submitted to arbitration in accordance with said Civil Association's rules and regulations. For the execution of the award and any other non-arbitration presumption, the Parties hereto agree to submit to the jurisdiction and competence of the Courts of Common Pleas of the City of Buenos Aires. The award shall be final and non-appealable for the Parties hereto, who expressly agree that this arbitration clause shall be construed as a self-contained agreement and notwithstanding the other provisions herein. In the event the award herein is declared invalid, the arbitration clause shall not be deemed invalid, and the arbitrators appointed shall be entitled to decide on their own competence and on the existence or validity of the arbitration clause.Exhibit 4(b)(1)

 

FORM OF 5.625% SENIOR NOTE DUE 2025

 

[Face of Note]

 

	
 
    	
 
    	
 
    	
CUSIP/ISIN [          ]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.625% Senior Notes due   2025
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
No. 
    	
 [         ]
    	
 
    	
$ [          ]
    

 

TENNANT COMPANY

 

promises to pay to Cede & Co. or registered assigns, the principal sum of [                                              ] DOLLARS (or, in the event of adjustment in accordance with the within-mentioned Indenture, such other amount as may be stated from time to time on the “Schedule of Exchanges of Interests in the Global Note” attached hereto) on May 1, 2025.

 

Interest Payment Dates: May 1 and November 1

 

Record Dates: April 15 and October 15

 

	
Dated:
    	
 
    	
 
    

 

 

	
 
    	
TENNANT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
This is one of the Notes referred to
    
	
in the within-mentioned Indenture:
    

 

	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    	
 
    
	
 
    	
as Trustee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    
				

 

 

[Back of Note]

 

5.625% Senior Notes due 2025

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.  OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1)INTEREST. Tennant Company, a Minnesota corporation (the “Company”), promises to pay or cause to be paid interest on the principal amount of this Note at 5.625% per annum from April 18, 2017 until maturity.  The Company will pay interest, if any, semi-annually in arrears on May 1 and November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that, if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest Payment Date shall be November 1, 2017.  The Company will pay interest (including post-petition interest in any case or proceeding under any Bankruptcy Law) on overdue principal at the interest rate on the Notes to the extent lawful; it will pay interest (including post-petition interest in any case or proceeding under any Bankruptcy Law) on overdue installments of interest, if any (without regard to any applicable grace period), at the same rate to the extent lawful.

 

(2)METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest), if any, to the Persons who are registered Holders at the close of business on the April 15 or October 15 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest.  The Notes will be payable as to principal, premium, if any, and interest, if any, at the office or agency of the Paying Agent and Registrar within the continental United States, or, at the option of the Company, payment of interest, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of, premium on, if any, and interest, if any, on, all

 

 

Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent; provided, further, that the Company will pay all principal, interest and premium, if any, on any Global Notes registered in the name of DTC or its nominee in immediately available funds to DTC or such nominee, as the case may be, as the registered holder of such Global Notes.  Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

(3)PAYING AGENT AND REGISTRAR. Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar.  The Company may change the Paying Agent or Registrar without prior notice to the Holders of the Notes.  The Company or any of its Subsidiaries may act as Paying Agent or Registrar.

 

(4)INDENTURE. The Company issued the Notes under an Indenture dated as of April 18, 2017 (the “Indenture”) among the Company, the Guarantors and the Trustee.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the TIA.  The Notes are subject to all such terms, and Holders are referred to the Indenture for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Indenture does not limit the aggregate principal amount of Notes that may be issued thereunder.

 

(5)OPTIONAL REDEMPTION.

 

(a)At any time prior to May 1, 2020, the Notes will be redeemable, at the Company’s option, in whole or in part from time to time, upon not less than 30 nor more than 60 days’ written notice, at a price equal to 100% of the principal amount thereof plus the Applicable Premium and accrued and unpaid interest, if any, to, but excluding, the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date).

 

(b)In addition, the Company may redeem the Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ written notice, at the following redemption prices (expressed as percentages of the principal amount thereof) plus accrued and unpaid interest, if any, to, but excluding, the redemption date if redeemed during the 12-month period commencing on May 1 of the year set forth below:

 

	
Year
    	
 
    	
Percentage
    	
 
    
	
2020
    	
 
    	
104.219
    	
%
    
	
2021
    	
 
    	
102.813
    	
%
    
	
2022
    	
 
    	
101.406
    	
%
    
	
2023 and   thereafter
    	
 
    	
100.000
    	
%
    

 

In addition, the Company must pay accrued and unpaid interest on the Notes redeemed to, but excluding, the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date).

 

(c)At any time, or from time to time, on or prior to  May 1 , 2020 the Company may, at its option, use an amount of cash up to the Net Cash Proceeds of one or more Equity Offerings to redeem, upon not less than 30 nor more than 60 days’ written notice up to 35% of the principal amount of the Notes (including any Additional Notes) outstanding under the Indenture at a redemption price of 105.625% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date); provided that:

 

(1)at least 65% of the principal amount of Notes (including any Additional Notes) outstanding under the Indenture remains outstanding immediately after any such redemption; and

 

(2)the Company makes such redemption not more than 90 days after the consummation of any such Equity Offering.

 

 

(d)Any redemption pursuant to this paragraph 5 shall be made pursuant to the provisions of Sections 3.01 through 3.06 of the Indenture.

 

(6)MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

(7)REPURCHASE AT THE OPTION OF HOLDER.

 

(a)Upon the occurrence of a Change of Control, each Holder will have the right to require that the Company purchase all or a portion of such Holder’s Notes pursuant to the offer described in Section 4.15 of the Indenture (a “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but excluding, the date of purchase.

 

Within 30 days following the date upon which the Change of Control occurred, the Company shall send a written notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer.

 

(b)Subject to Section 4.10(a) of the Indenture, if any Net Cash Proceeds have not been applied as provided in clauses (3)(A), (3)(B) and (3)(C) thereof (the “Net Proceeds Offer Amount”) within the applicable time period or the last provision of this sentence, such Net Cash Proceeds shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase (the “Net Proceeds Offer”) to all Holders and, to the extent required by the terms of any Pari Passu Indebtedness, to holders of such Pari Passu Indebtedness, on a date not less than 30 nor more than 45 days following the date that triggered the Company’s obligation to make such Net Proceeds Offer, from all Holders (and holders of any such Pari Passu Indebtedness) on a pro rata basis based upon the respective outstanding aggregate principal amounts (or accreted value, as applicable) of the Notes and Pari Passu Indebtedness on the date the Net Proceeds Offer is made, the maximum amount (or accreted value, as applicable) of Notes and Pari Passu Indebtedness that may be purchased with the Net Proceeds Offer Amount at a price equal to 100% of the principal amount (or accreted value, as applicable) of the Notes and Pari Passu Indebtedness to be purchased, plus accrued and unpaid interest thereon, if any, to the date of purchase; provided, however, that if at any time any non-cash consideration received by the Company or any Restricted Subsidiary of the Company, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash (other than interest received with respect to any such non-cash consideration), then such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with Section 4.10 of the Indenture.

 

(8)NOTICE OF REDEMPTION. Notice of redemption will be sent electronically or mailed by first-class mail at least 30 but not more than 60 days before the redemption date to each Holder at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Indenture pursuant to Articles 8 or 11 of the Indenture.  Notes and portions of Notes selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased.

 

Notice of any redemption of the Notes in connection with a corporate transaction (including an Equity Offering, an incurrence of Indebtedness, a consolidation or merger or a Change of Control) may, at the Company’s discretion, be given prior to the completion thereof and any such redemption or notice may, at the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of the related transaction.  If such redemption or purchase is so subject to satisfaction of one or more conditions precedent, such notice shall describe each such condition, and if applicable, shall state that, in the Company’s discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied or waived by the Company (in its sole discretion), or such redemption or purchase may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied or waived by the redemption date, or by the redemption date as so delayed.  In addition, the Company may provide in such notice that payment of the

 

 

redemption price and performance of the Company’s obligations with respect to such redemption may be performed by another Person.

 

(9)DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in registered form in 
 denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture.  The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part.  Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a record date and the next succeeding Interest Payment Date.

 

(10) PERSONS DEEMED OWNERS.  The registered Holder of a Note may be treated as the owner of it for all purposes.  Only registered Holders have rights under the Indenture.

 

(11) AMENDMENT, SUPPLEMENT AND WAIVER.  The Indenture, the Notes or the Note Guarantees may be amended or supplemented in accordance with Article 9 of the Indenture.

 

(12) DEFAULTS AND REMEDIES.  The Notes are subject to the Events of Default and remedies set forth in Article 6 of the Indenture.  The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required, upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

 

(13) TRUSTEE DEALINGS WITH COMPANY.  Subject to the TIA, the Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

 

(14) NO RECOURSE AGAINST OTHERS.  No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees, or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

 

(15) AUTHENTICATION.  This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

(16) ABBREVIATIONS.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(17) GUARANTEES.  This Note is guaranteed as set forth in the Indenture.

 

(18) CUSIP/ISIN NUMBERS.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP/ ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP/ ISIN numbers in notices (including notices of redemption) as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice, and reliance may be placed only on the other identification numbers placed thereon.

 

(19) GOVERNING LAW.  THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE

 

 

GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Company will furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:

 

Tennant Company
 701 North Lilac Drive, P.O. Box 1452
 Minneapolis, Minnesota 55440
 Attention:  Thomas Stueve, Vice President and Treasurer

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
(I) or (we) assign   and transfer this Note to:
    	
 
    
	
(Insert assignee’s legal name)
    
	
 
    
	
 
    
	
(Insert   assignee’s soc. sec. or tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type   assignee’s name, address and zip code)
    
	
 
    

 

	
and irrevocably appoint
    	
 
    
	
to transfer this Note   on the books of the Company. The agent may substitute another to act for him.
    

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Your 

Signature:
    	
 
    
	
 
    	
(Sign   exactly as your name appears on the face of this Note)
    
	
 
    	
 
    
	
Signature Guarantee:*
    	
 
    

 

*Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

Option to Holder to Elect Purchase

 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

 

o Section 4.10                     o Section 4.15

 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

 

$

 

	
Date:
    	
 
    	
 
    

 

	
 
    	
Your
   Signature:
    	
 
    
	
 
    	
(Sign exactly as   your name appears on the face of this Note)
    

 

Tax Identification No.:

 

Signature Guarantee:*

 

*Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	
Date of Exchange
    	
 
    	
Amount of
   decrease in
   Principal Amount
   of
   this Global Note
    	
 
    	
Amount of
   increase in
   Principal Amount
   of
   this Global Note
    	
 
    	
Principal Amount
   of this Global Note
   following such
   decrease
   (or increase)
    	
 
    	
Signature
   of authorized officer
   of Trustee or
   Custodian

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