Document:

rtk-ex1035_763.htm

 

Exhibit 10.35

CHANGE IN CONTROL SEVERANCE BENEFITS AGREEMENT

This CHANGE IN CONTROL SEVERANCE BENEFITS AGREEMENT (the “Agreement”) is effective as of March 16, 2017 (the “Commencement Date”), between Rentech, Inc., a Colorado corporation (the “Company”), and Nicole Sykes Powe (“Executive”).  

RECITALS:

A.Executive is currently employed by the Company in the position of Vice President and Assistant General Counsel.

B.The Company and Executive wish to set forth the compensation and benefits which Executive shall be entitled to receive in the event Executive’s employment with the Company is terminated under the circumstances described herein (the period from the Commencement Date to the date of termination of employment, the “Employment Period”).

AGREEMENT:

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

1.TERM OF AGREEMENT.  This Agreement shall commence on the Commencement Date and end on the date that Executive’s employment with the Company terminates for any reason, except that the provisions contained in Sections 3, 4, 7-16, and 18- 26 hereof shall survive the termination of Executive’s employment in accordance with their terms.   For the avoidance of doubt, in the event the Executive becomes employed by any subsidiary or affiliate of Company instead of by Company, (a) such subsidiary or affiliate will assume Company’s obligations under this Agreement and Executive’s employment with the Company shall be deemed to be terminated under this Section 1 and (b) no amounts will be due or payable under section 2(c) below. 

2.SEVERANCE.

(a)Termination Without Cause or for Good Reason Following a Change in Control.  In the event of Executive’s termination of employment with the Company (i) by the Company without Cause (as defined herein); or (ii) by Executive for Good Reason (as defined herein), in either case, during the period beginning one month before and ending one year after a Change in Control (as defined herein), the Company shall pay to Executive the amounts described in Section 2(c) as soon as practicable after the date of Executive’s termination or, in the case of benefits described in Section 2(c)(iv) below, as such benefits become due to Executive under the terms of the applicable plan(s), program(s) or agreement(s).  In addition, if a termination described in this Section 2(a) constitutes a “separation from service” (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended, and Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”) and Executive executes a general release of claims (the “Release”) substantially in the form attached hereto as Exhibit A 

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within forty-five (45) days after the date of such Separation from Service and does not revoke such Release (the date on which such Release ceases to be revocable by Executive, the “Release Date”), the Company shall (x) pay Executive an amount equal to one times Executive’s annual salary (as in effect on the date of Executive’s termination) (the “Annual Salary”) plus a target bonus of 30% of the Annual Salary (the “Target Bonus”) and (y) subject to Executive’s valid election under Internal Revenue Code Section 4980B (together with the regulations thereunder, “COBRA”) provide continued enrollment in the Company’s group health plans in which Executive and his dependents (if any) were enrolled immediately prior to the date of Executive’s Separation from Service (the “Termination Date”), from the Termination Date through the earliest to occur of (i) the expiration of the maximum coverage period permitted under COBRA, (ii) the date that is twelve (12) months from the Termination Date, or (iii) such time as Executive becomes eligible for coverage under a “group health plan” (within the meaning of COBRA) of another employer (in any case, the “Continuation Period”), at the same level of benefits as Executive and his dependents received immediately prior to the Termination Date (as may be adjusted in a manner applicable to plan participants generally), with such COBRA premiums paid solely by the Company during the Continuation Period; after the Continuation Period, any COBRA continuation (if available under applicable law) shall be at at Executive’s sole expense.  Subject to Section 16 below, the cash severance payments described in the previous sentence shall be paid over twelve months from and after the Termination Date in substantially equal installments on the Company’s generally applicable payroll dates (the payments and benefits described in Sections 2(a)(x) and 2(a)(y) hereof, the “Severance”), provided, however, that if the Termination Date precedes the consummation of a Change in Control, Severance benefits shall, subject to Section 16 below, be paid or provided for a period of twelve months from and after the consummation of such Change in Control.  For the avoidance of doubt, to the extent Executive is entitled to receive the severance payments under this Section 2(a), including the Annual Salary, Target Bonus and COBRA benefits, then such severance payments shall supersede and replace all prior and contemporaneous understandings, discussions, agreements, representations and warranties, both written and oral, with respect to any other severance agreement Executive may have with the Company.    

(b)Other Terminations.  In the event that Executive’s employment with the Company is terminated (i) by the Company for Cause, (ii) by Executive’s resignation from the Company for any reason other than Good Reason, (iii) due to Executive’s death or Disability (as defined below), or (iv) under any other circumstances not described in Section 2(a) above, subject to applicable law, the Company shall pay Executive the amounts described in Section 2(c) as soon as practicable after the date of termination or, in the case of benefits described in Section 2(c)(iv), as such benefits become due to Executive under the terms of the applicable plan(s), program(s) or agreement(s).  For purposes of this Agreement, Executive’s voluntary resignation or retirement shall be considered Executive’s resignation from the Company without Good Reason.

(c)Payments Upon Termination of Employment.  In the case of Executive’s termination of employment with the Company for any reason, Executive or Executive’s estate or legal representative (as applicable) shall be entitled to receive, to the extent permitted by applicable law, from the Company (i) Executive’s Annual Salary through the date of termination to the extent not previously paid; (ii) to the extent not previously paid, the amount of any bonus earned or accrued by Executive as of the date of termination under any compensation and benefit 

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plans, programs or arrangements maintained in force by the Company for any fiscal year of the Company ended prior to the date of termination that is then unpaid, subject to the terms and conditions of any such plan, program or arrangement; (iii) any vacation pay or expense reimbursements accrued by Executive, in accordance with Company policy for senior executives, as of the date of termination, to the extent not previously paid; and (iv) all benefits accrued by Executive under all benefit plans and qualified and nonqualified retirement, pension, 401(k) and similar plans and arrangements of the Company, including any severance arrangements provided to Executive by the Company outside of this Agreement (except to the extent such severance arrangements are prohibited under Section 2 (a) above), in such manner and at such times as are provided under the terms of such plans and arrangements.

(d)No Other Payments.  Except as expressly provided in Sections 2(a), (b) and(c)  above, upon Executive’s termination of employment with the Company, Executive shall have no rights to any payments or benefits in connection with Executive’s employment with the Company or the termination thereof, including without limitation, rights to any salary, bonuses, employee benefits or other compensation which would have accrued or become payable after the termination or expiration of the Employment Period, other than those expressly required under applicable law (e.g., COBRA).  In the event of a termination of Executive’s employment with the Company, Executive’s sole and exclusive remedy shall be to receive the payments and benefits described in this Section 2.

(e)Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

(i)“Cause” shall mean one or more of the following:

(A)any material failure by Executive to perform Executive’s duties and responsibilities reasonably assigned to Executive by the Company (other than due to Executive’s Disability);

(B)any act of fraud, embezzlement, theft or misappropriation by Executive relating to the Company or its business or assets;

(C)Executive’s commission of a felony or a crime involving moral turpitude;

(D)any gross negligence or intentional misconduct on the part of Executive in the conduct of Executive’s duties and responsibilities with the Company or which adversely affects the image, reputation or business of the Company or its affiliates; or

(E)any material breach by Executive of any agreement between the Company and Executive.

(ii)“Change in Control” shall mean the first to occur of any of the following events:

(A)A transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the Securities 

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and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or

(B)The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction. 

(iii)“Disability” shall mean Executive’s being unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment, as determined by the Company.

(iv)“Good Reason” shall mean Executive’s resignation from employment with the Company as a result of one or more of the following:

(A)a material reduction in Executive’s Annual Salary, unless such reduction in Annual Salary is part of a general decrease in the base salary of similarly affected employees as part of a general cost reduction exercise;

(B)a material reduction in Executive’s job duties and responsibilities or the assignment to Executive of any duties inconsistent in any material respect with Executive’s position with the Company; or

(C)a material change in the geographic location at which Executive must perform services to the Company, provided that in no event will a relocation to a location within a 50 mile radius of Los Angeles, CA be deemed material for purposes of this clause. 

Notwithstanding the above, no resignation for Good Reason shall be effective unless and until (i) Executive has first provided the Company with written notice specifically identifying the acts or omissions constituting the grounds for “Good Reason” within thirty (30) days after the occurrence thereof, (ii) the Company has not cured such acts or omissions within thirty (30) days of its actual receipt of such notice, and (iii) the effective date of Executive’s termination for 

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Good Reason occurs no later than ninety (90) days after the initial existence of the facts or circumstances constituting Good Reason.

3.Non-Solicitation and CONFIDENTIALITY. 

(a)During the Employment Period and for one year thereafter (the “Restricted Period”), Executive shall not directly or indirectly through another person or entity use the Company’s trade secrets or the Company’s confidential information to (i) induce, solicit, encourage or attempt to induce, solicit or encourage any employee of the Company to leave the employ of the Company, or in any way interfere with the relationship between the Company and any employee thereof; or (ii) induce, solicit, encourage or attempt to induce, solicit or encourage any customer, supplier, licensee, licensor, franchisee or other business relation of the Company to cease doing business with the Company, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation of the Company (including, without limitation, making any negative or disparaging statements or communications regarding the Company).  

(b)Executive agrees that during the Employment Period and thereafter, Executive will not directly or indirectly disclose or appropriate to Executive’s own use, or the use of any third party, any trade secret or confidential information concerning the Company or its  subsidiaries or affiliates (collectively, the “Rentech Group”) or their businesses, whether or not developed by Executive, except as it is required in connection with Executive’s services rendered for the Company.  Executive further agrees that, upon termination of his or her employment, Executive will not receive or remove from the files or offices of the Rentech Group any originals or copies of documents or other materials maintained in the ordinary course of business of the Rentech Group, and that Executive will return any such documents or materials otherwise in Executive’s possession.  Executive further agrees that, upon termination of his or her employment, Executive will maintain in strict confidence the projects in which any member of the Rentech Group is involved or contemplating.

(c)If, at the time of enforcement of this Section 3, a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law.  Executive acknowledges that the restrictions contained in this Section 3 are reasonable and that Executive has reviewed the provisions of this Agreement with Executive’s legal counsel.

(d)Executive acknowledges that in the event of the breach or a threatened breach by Executive of any of the provisions of this Section 3, the Company would suffer irreparable harm, and, in addition and supplementary to other rights and remedies existing in its favor, the Company shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).  In addition, in the event of a breach or violation by Executive of Section 3(a), the Restricted Period shall be automatically extended 

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by the amount of time between the initial occurrence of the breach or violation and when such breach or violation has been duly cured.

4.Transitional Inquiries.  For a reasonable period of time following the date of termination, but in no event less than three months, Executive agrees to be available to the Company to answer telephone inquiries related to the transition of Executive’s duties without payment of additional compensation.  Executive’s obligations pursuant to this Section 4 are a material inducement to the Company’s entering into this Agreement with Executive. 

5.Executive’s Representations.  Executive represents and agrees that Executive fully understands Executive’s right to discuss all aspects of this Agreement with Executive’s private attorney, has been advised to do so by the Company, and that to the extent, if any, that Executive desired, Executive availed himself or herself of such right.  Executive further represents that Executive has carefully read and fully understands all of the provisions of this Agreement, that Executive is competent to execute this Agreement, that Executive’s agreement to execute this Agreement has not been obtained by any duress and that Executive freely and voluntarily enters into it, and that Executive has read this document in its entirety and fully understands the meaning, intent and consequences of this document.

6.Employment At-Will.  Subject to the termination obligations provided for in this Agreement, Executive hereby agrees that the Company may dismiss Executive  and terminate Executive’s employment with the Company, with or without advance notice and without regard to (i) any general or specific policies (whether written or oral) of the Company relating to the employment or termination of its employees, or (ii) any statements made to Executive, whether made orally or contained in any document, pertaining to Executive’s relationship with the Company, or (iii) the existence or non-existence of Cause.  Executive’s participation in any benefit plan or compensation arrangement will not give Executive any right or claim to any benefit hereunder except to the extent such right has become fixed under the express terms of this Agreement.

7.Notices.  All notices or communications hereunder shall be in writing, addressed as follows:

To the Company:

 

General Counsel

Rentech, Inc.

10880 Wilshire Blvd., Suite 1101

Los Angeles, CA  90024

 

To Executive:

 

Nicole Sykes Powe
Address on file with the Company

 

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Or to the address on file in the permanent records of the Company at the time of the notice.

 

In the event the Company shall relocate its executive offices, the then-effective address shall be substituted for that set forth above.  All notices hereunder shall be conclusively deemed to be received and shall be effective (i) if sent by hand delivery, upon receipt; or (ii) if sent by electronic mail or facsimile, upon confirmation of receipt by the sender of such transmission.

8.Severability.  In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.

9.ENFORCEMENT.  Without in any way limiting any right or remedy otherwise available to the Company, if Executive materially violates any provision of this Agreement or any other confidentiality, nondisclosure, noncompetition or similar agreement with the Company to which Executive is a party, and such violation, if unintentional on the part of Executive, continues for a period of ten (10) days following receipt of written notice from the Company, any Severance then or thereafter due from the Company to Executive may be terminated forthwith and upon such election by the Company, the Company’s obligation to pay and Executive’s right to receive such Severance shall terminate and be of no further force or effect.  Executive’s obligations under this Agreement shall not be limited or affected by, and such provisions shall remain in full force and effect notwithstanding, the termination of any Severance by the Company in accordance with this Section.  The exercise of the right to terminate such Severance shall not be deemed to be an election of remedies by the Company and shall not in any manner modify, limit or preclude the Company from exercising any other rights or seeking any other remedies available to it at law or in equity.

10.Complete Agreement.  This Agreement and those documents expressly referred to herein embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.  Except as expressly provided in this Agreement and any equity compensation agreements Executive may have with the Company or Rentech, Inc., Executive shall not be entitled to any severance, termination or other payments or benefits upon or in connection with Executive’s termination of employment with the Company and this Agreement expressly supersedes any other agreements, programs or policies providing for any such payments or benefits.  

11.No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

12.Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

13.Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the beneficiaries, heirs and representatives of Executive and the successors and assigns 

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of the Company (including without limitation, any successor due to reincorporation of the Company or formation of a holding company).  Executive may not assign Executive’s rights (except by will or the laws of descent and distribution) or delegate Executive’s duties or obligations hereunder.  Except as provided by this Section 13, this Agreement is not assignable by any party and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

14.CHOICE OF LAW.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of California regardless of the law that might be applied under principles of conflicts of laws, except where preemptive federal law governs.

15.Amendment and Waiver.  Except as provided in Section 16 below, the provisions of this Agreement may be amended, modified or waived only with the prior written consent of the Company and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company’s right to terminate Executive’s employment and the Employment Period for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

16.Internal Revenue Code Section 409A.  The compensation and benefits payable under this Agreement are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended and the Treasury Regulations thereunder.  However, notwithstanding any provision of this Agreement to the contrary, this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Section 409A and any payment or provision hereunder that would otherwise result in the application of taxes under Section 409A at any time may be modified in the sole discretion of the Company to the extent necessary for this Agreement and such payment to comply with and avoid taxation under Section 409A and the Treasury Regulations thereunder or an exemption therefrom, including any such modifications with retroactive effect, as necessary, provided, however, that nothing herein shall, or shall be construed so as to, obligate the Company to make any such modification or indemnify or hold harmless any party for any failure to do.  Without limiting the generality of the foregoing, no compensation or benefits payable under this Agreement, including without limitation any Severance, shall be paid to Executive during the 6-month period following Executive’s Separation from Service if the Company determines that paying such amounts at the time or times indicated herein would cause Executive to incur additional taxes under Section 409A.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A without being subject to such additional taxes), the Company shall pay to Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such 6-month period (without payment of interest thereon).

17.Insurance.  The Company may, at its discretion, apply for and procure in its own name and for its own benefit life and/or disability insurance on Executive in any amount or 

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amounts considered advisable.  Executive agrees to cooperate in any medical or other examination, supply any information and execute and deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance.  Executive hereby represents that Executive has no reason to believe that Executive’s life is not insurable at rates now prevailing for healthy individuals of Executive’s age and gender.

18.Withholding.  Any payments made or benefits provided to Executive under this Agreement shall be reduced by any applicable withholding taxes or other amounts required to be withheld by law or contract, except that to the extent that any such benefits are not paid to Executive in cash or concurrently with cash payment sufficient to satisfy applicable withholding obligations, Executive shall remit to the Company the amount of any applicable withholding taxes concurrently with the provision of such benefits.  To the extent that any taxes may be payable by Executive for the benefits provided to Executive by this Agreement beyond those required to be withheld by the Company, Executive agrees to pay them directly to the taxing authority and to indemnify and hold the Company and its affiliates harmless for any tax claims or penalties, and associated attorneys’ fees and costs, resulting from any failure by Executive to make required payments.

19.Arbitration.  Except as provided in Section 3(d), any dispute or controversy arising under or in connection with this Agreement or otherwise in connection with Executive’s employment by the Company or the termination thereof that cannot be mutually resolved by the parties to this Agreement and their respective advisors and representatives shall be settled exclusively by arbitration in the city and county of Los Angeles, California in accordance with the rules of the American Arbitration Association before one arbitrator of exemplary qualifications and stature, who shall be selected jointly by an individual to be designated by the Company and an individual to be selected by Executive, or if such parties cannot agree on the selection of the arbitrator, such arbitrator shall be selected by the American Arbitration Association.  The Company will pay the direct costs and expenses of any such arbitration, including the fees and costs of the arbitrator; provided, however, that the arbitrator may award attorneys’ fees to the prevailing party, if permitted by applicable law.

20.RESIGNATION AS OFFICER AND DIRECTOR.  Effective as of the date of termination of employment with the Company for any reason, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with the Company or any of its affiliates.  At the Company’s request, Executive shall execute and deliver such documentation as the Company may prescribe in order to effectuate such resignation.

21.Executive’s Cooperation.  During the Employment Period and thereafter, Executive shall cooperate with the Company and its affiliates, upon the Company’s reasonable request, with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters within the scope of Executive’s duties and responsibilities to the Company and its affiliates during the Employment Period (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may come into Executive’s possession during Executive’s employment with the Company); provided, however, that any such request by the 

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Company shall not be unduly burdensome or unreasonably interfere with Executive’s personal schedule or ability to engage in gainful employment.  In the event the Company requires Executive’s cooperation in accordance with this Section 21, the Company shall reimburse Executive for reasonable out-of-pocket expenses (including travel, lodging and meals) incurred by Executive in connection with such cooperation, subject to substantiation in accordance with applicable Company policy.  In the event that the obligations under this Section 21 require more than 20 hours of Executive’s time after the termination of the Employment Period, the Company shall thereafter pay to Executive compensation at an hourly rate equal to the quotient of (a) the Annual Salary applicable on the date of the termination of Executive’s employment, divided by (b) 1,750.

22.NON-DISPARAGEMENT.  Executive agrees that during the Employment Period and thereafter, Executive will not make any statement, publicly or privately, to any individual or entity, including, without limitation, clients, customers, employees, financial or credit institutions, which could reasonably be expected to disparage the Company, any of its affiliates or any of their respective employees, officers or directors.

23.Headings.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

24.No Third-Party Beneficiaries.  Nothing in this Agreement, expressed or implied, is intended to or shall confer on any person, other than the parties and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement.

25.TRANSFER OF COMPANY PROPERTY.  All Company files, Company confidential or proprietary information (in any form contained, including any copies thereof), access keys, desk keys, ID badges, computers, electronic devices, telephones and credit cards, and such other property of the Company as the Company may reasonably request, in Executive’s possession must be returned no later than the date of Executive’s termination of employment with the Company.

26.CONFIDENTIALITY.  Executive  will not, directly or indirectly, provide to any person or entity any information that concerns or relates to the negotiation of or circumstances leading to the execution of this Agreement or to the terms and conditions hereof, provided that Executive may make disclosure of the foregoing: (a) to the extent that such disclosure is specifically required by law or legal process or as authorized in writing by the Company; (b) to his tax advisor(s) or accountant(s) as may be necessary for the preparation of tax returns or other reports required by law; (c) to his attorney(s); and/or (d) to members of his immediate family, provided, that prior to disclosing any such information (except disclosures required by law or legal process or as authorized in writing), Executive will inform the recipients that they are bound by the limitations of this Section 26.

27.EFFECTIVENESS.  This Agreement shall become effective upon the Commencement Date.  Notwithstanding anything contained herein, in the event that the Option and Merger Agreement is terminated in accordance with its terms or the Closing otherwise does not occur for any reason, this Agreement shall automatically, and without notice, terminate without any obligation due to the other party and the provisions of this Agreement shall be of no force or effect.

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IN WITNESS WHEREOF, the parties hereto have executed this Change in Control Severance Benefits Agreement as of the date first written above.

 

		
	
RENTECH, INC.

	
 

	
By:
	
/s/ Joseph Herold

	
 

	
Name:
	
Joseph Herold

	
 

	
Title:
	
SVP HR

	
 

	
/s/ Nicole Sykes Powe

	
Nicole Sykes Powe

 

 

 

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EXHIBIT A

 

FORM OF RELEASE

 

This General Release of all Claims (this “Agreement”) is entered into by _________ (“Executive”) and Rentech, Inc. (for itself and on behalf of its subsidiaries) (the “Company”), effective as of ___________.

 

In further consideration of the promises and mutual obligations set forth in the Severance Benefits Agreement between Executive and the Company, dated November 11, 2016 (the “Severance Agreement”), Executive and the Company agree as follows:

 

1.Return of Property.  All Company files, access keys, desk keys, ID badges, computers, electronic devices, telephones and credit cards, and such other property of the Company as the Company may reasonably request, in Executive’s possession must be returned no later than the date of Executive’s termination from the Company.

2.General Release and Waiver of Claims.

(a)Release.  In consideration of the payments and benefits provided to Executive under the Severance Agreement and after consultation with counsel, Executive, personally and on behalf of each of Executive’s respective heirs, executors, administrators, representatives, agents, successors and assigns (collectively, the “Releasors”) hereby irrevocably and unconditionally releases and forever discharges the Company and its subsidiaries and affiliates and each of their respective officers, employees, directors, and agents and all persons acting in concert with them or any of them (“Releasees”) from any and all claims, actions, causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character (collectively, “Claims”), including, without limitation, any Claims under any federal, state, local or foreign law, including without limitation, the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621, et seq.; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C.  § 2101 et seq. the Fair Labor Standards Act, 29 U.S.C. § 215 et seq., the Sarbanes-Oxley Act of 2002; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab. Code §§ 1197.5(a),1199.5; the Moore-Brown-Roberti Family Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102, 69 Ops. Cal. Atty. Gen. 80 (1986); California Labor Code §§ 1102.5(a), (b); the California WARN Act, Cal. Lab. Code § 1400 et seq.; the California False Claims Act, Cal. Gov’t Code § 12650 et seq.;  the California Corporate Criminal Liability Act, Cal. Penal Code § 387; and the California Labor Code, that the Releasors had, have, may have, or in the future may possess, arising out of (i) Executive’s employment relationship with and service as an employee, officer or director of the Company, and the termination of such relationship or service, and (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or prior to the date 

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hereof; provided, however, that Executive does not release, discharge or waive any rights to payments and benefits provided under the Severance Agreement that are contingent upon the execution by Executive of this Agreement, any vested benefits, any rights to indemnification, or any rights as a shareholder of the Company.

THE EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

BEING AWARE OF SAID CODE SECTION, THE EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

(b)Specific Release of ADEA Claims.  In further consideration of the payments and benefits provided to Executive under the Severance Agreement, the Releasors hereby unconditionally release and forever discharge the Releasees from any and all Claims that the Releasors may have as of the date Executive signs this Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated thereunder (“ADEA”).  By signing this Agreement, Executive hereby acknowledges and confirms the following:  (i) Executive was, and is hereby, advised by the Company in connection with Executive’s termination to consult with an attorney of Executive’s choice prior to signing this Agreement and to have such attorney explain to Executive the terms of this Agreement, including, without limitation, the terms relating to Executive’s release of claims arising under ADEA, and Executive has in fact consulted with an attorney; (ii) Executive was given a period of not fewer than twenty-one (21) days to consider the terms of this Agreement and to consult with an attorney of Executive’s choosing with respect thereto; (iii) Executive knowingly and voluntarily accepts the terms of this Agreement; (iv) the payments and benefits provided to Executive in consideration of this release are in addition to any amounts otherwise owed to Executive; and (v) this Agreement is written in a manner designed to be understood by Executive and Executive understands it.  Executive also understands that Executive has seven (7) days following the date on which Executive signs this Agreement within which to revoke the release contained in this paragraph, by providing the Company a written notice of Executive’s revocation of the release and waiver contained in this paragraph.

(c)No Assignment.  Executive represents and warrants that he has not assigned any of the Claims being released under this Agreement.

3.Proceedings.  Executive has not filed, and agrees not to initiate or cause to be initiated on his behalf, any complaint, charge, claim or proceeding against the Releasees before any local, state or federal agency, court or other body relating to his employment or the termination of his employment, other than with respect to the obligations of the Company to Executive under the 

A-2

 

 

Severance Agreement (each, individually, a “Proceeding”), and agrees not to participate voluntarily in any Proceeding.  Executive waives any right he may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding.

4.Remedies.  In the event Executive initiates or voluntarily participates in any Proceeding, or if Executive fails to abide by any of the terms of this Agreement or the post-termination obligations contained in the Severance Agreement, or if Executive revokes the ADEA release contained in Paragraph 2(b) of this Agreement within the seven-day period provided under Paragraph 2(b), the Company may, in addition to any other remedies it may have, reclaim any amounts paid to him under the severance provisions of the Severance Agreement or terminate any benefits or payments that are subsequently due under the Severance Agreement, without waiving the release granted herein.  The foregoing shall not apply to Executive’s bringing to the attention of the EEOC any claims of discrimination.  Executive acknowledges and agrees that the remedy at law available to the Company for breach of any of Executive’s post-termination obligations under the Severance Agreement or Executive’s obligations under Paragraphs 2 and 3 of this Agreement would be inadequate and that damages flowing from such a breach may not readily be susceptible to being measured in monetary terms.  Accordingly, Executive acknowledges, consents and agrees that, in addition to any other rights or remedies that the Company may have at law or in equity, the Company shall be entitled to seek a temporary restraining order or a preliminary or permanent injunction, or both, without bond or other security, restraining Executive from breaching Executive’s post-termination obligations under the Severance Agreement or Executive’s obligations under Paragraphs 2 and 3 of this Agreement.  Such injunctive relief in any court shall be available to the Company, in lieu of, or prior to or pending determination in, any arbitration proceeding.

Executive understands that by entering into this Agreement he will be limiting the availability of certain remedies that he may have against the Company and limiting also his ability to pursue certain claims against the Company.

5.Severability Clause.  In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.

6.Non-admission.  Nothing contained in this Agreement will be deemed or construed as an admission of wrongdoing or liability on the part of the Company.

7.Governing Law.  All matters affecting this Agreement, including the validity thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the State of California regardless of the law that might be applied under principles of conflicts of laws.

8.Arbitration.  Any dispute or controversy arising under or in connection with this Agreement or otherwise in connection with Executive’s employment by the Company that cannot be mutually resolved by the parties to this Agreement and their respective advisors and representatives shall be settled exclusively by arbitration in Los Angeles, California in accordance with the rules of the American Arbitration Association before one arbitrator of exemplary qualifications and stature, who shall be selected jointly by an individual to be designated by the Company and an individual to be selected by Executive or, if such two 

A-3

 

 

individuals cannot agree on the selection of the arbitrator, who shall be selected by the American Arbitration Association.  The Company will pay the direct costs and expenses of any such arbitration, including the fees and costs of the arbitrator; provided, however, that the arbitrator may, at his or her election, award attorneys’ fees to the prevailing party, if permitted by applicable law.

9.Notices.  All notices or communications hereunder shall be in writing, addressed as follows:

To the Company:

 

General Counsel

Rentech, Inc.

10880 Wilshire Blvd., Suite 1101 

Los Angeles, CA  90024

 

To Executive:

 

Nicole Sykes Powe
_____________________
_____________________

 

Or to the address on file in the permanent records of the Company at the time of the notice. 

All such notices shall be conclusively deemed to be received and shall be effective (i) if sent by hand delivery, upon receipt or (ii) if sent by electronic mail or facsimile, upon confirmation of receipt by the sender of such transmission.

EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE WILL.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

 

		
	
RENTECH, INC.

	
 

	
By:
	
 

	
 

	
Name:
	
 

	
 

	
Title:
	
 

	
 

	
 

	
Nicole Sykes Powe

 

A-5EXHIBIT 10.6

THIRD AMENDMENT TO CREDIT AGREEMENT

THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”), dated as of April 7, 2017, by and among SPECTRUM BRANDS, INC., a Delaware corporation (the “Lead Borrower”), SB/RH HOLDINGS LLC, a Delaware limited liability company (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as administrative agent (in such capacity, the “Administrative Agent”), each of the Persons party hereto as 2017 Replacement USD Term Loan Lenders (as defined below) and Royal Bank of Canada (“Royal Bank”), as an arranger of this Third Amendment (in such capacity, the “Third Amendment Arranger”). Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings provided such terms in the Credit Agreement referred to below (as amended by this Third Amendment).

W I T N E S S E T H:

WHEREAS, the Lead Borrower, Holdings, DBNY as administrative agent and collateral agent, each lender from time to time party thereto (the “Lenders”) and the other parties thereto have entered into the Credit Agreement dated as of June 23, 2015 (as the same has been amended, restated, supplemented and/or otherwise modified from time to time prior to the Third Amendment Effective Date referred to below, the “Credit Agreement”);

WHEREAS, on the date hereof (but prior to giving effect to this Third Amendment), there are outstanding USD Term Loans under the Credit Agreement (for purposes of this Third Amendment, herein called the “2017 Refinanced USD Term Loans”) in an aggregate principal amount of $1,000,427,631.49;

WHEREAS, in accordance with the provisions of Section 9.02(c) of the Credit Agreement, the Lead Borrower wishes to amend the Credit Agreement to enable the Lead Borrower to refinance in full the outstanding 2017 Refinanced USD Term Loans with the proceeds of 2017 Replacement USD Term Loans (as defined below), as more fully provided herein;

WHEREAS, the Lead Borrower, the Administrative Agent, the Third Amendment Arranger and the 2017 Replacement USD Term Loan Lenders wish to amend the Credit Agreement to provide for the refinancing in full of all outstanding 2017 Refinanced USD Term Loans with the 2017 Replacement USD Term Loans on the terms and subject to the conditions set forth herein; and

WHEREAS, pursuant to that certain engagement letter, dated as of March 15, 2017, among the Lead Borrower and Royal Bank (the “Third Amendment Engagement Letter”), RBC Capital Markets* and Deutsche Bank Securities, Inc. shall act as joint lead arrangers and joint bookrunners with respect to this Third Amendment and the 2017 Replacement USD Term Loans provided for hereunder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:

SECTION 1.               Amendments to Credit Agreement.

(a)                (i)        Subject to the satisfaction of the conditions set forth in Section 2 hereof, the 2017 Replacement USD Term Loan Lenders hereby severally agree to make 2017 Replacement USD Term Loans to the Lead Borrower on the Third Amendment Effective Date (as 

* RBC Capital Markets is a marketing name for the investment banking activities of Royal Bank of Canada and its affiliates.

 

defined below) in the aggregate principal amount of $1,000,427,631.49 to refinance all outstanding 2017 Refinanced USD Term Loans in accordance with the relevant requirements of the Credit Agreement (as modified hereby) and this Third Amendment. It is understood and agreed that the 2017 Replacement USD Term Loans being made pursuant to this Third Amendment and the Credit Agreement (as modified hereby) shall constitute “Replacement Term Loans” as defined in, and pursuant to, Section 9.02(c) of the Credit Agreement and the 2017 Refinanced USD Term Loans being refinanced shall constitute “Replaced Term Loans” as defined in, and pursuant to, Section 9.02(c) of the Credit Agreement. Except as expressly provided in this Third Amendment (including as to the Applicable Rate) and the Credit Agreement (as modified hereby), the 2017 Replacement USD Term Loans shall be on terms identical to the 2017 Refinanced USD Term Loans (including as to maturity, Guarantors, Collateral (and ranking) and payment priority).

(ii)        On the Third Amendment Effective Date, all then outstanding 2017 Refinanced USD Term Loans shall be refinanced in full as follows:

(1)            the outstanding principal amount of the 2017 Refinanced USD Term Loan of each Lender which (i) is an existing USD Term Lender under the Credit Agreement prior to giving effect to this Third Amendment (each, an “Existing USD Lender”) and (ii) is not party hereto as a 2017 Replacement USD Term Loan Lender (a Lender meeting the requirements of clauses (i) and (ii), each, a “Non-Converting Lender”) shall be repaid in full in cash;

(2)            to the extent any Existing USD Lender has a 2017 Replacement USD Term Loan Conversion Amount (as defined in the Credit Agreement, as amended hereby) that is less than the full outstanding principal amount of the 2017 Refinanced USD Term Loan of such Existing USD Lender, such Existing USD Lender shall be repaid in cash in an amount equal to the difference between the outstanding principal amount of the 2017 Refinanced USD Term Loan of such Existing USD Lender and such Existing USD Lender’s 2017 Replacement USD Term Loan Conversion Amount (the “Non-Converting Portion”);

(3)            the outstanding principal amount of the 2017 Refinanced USD Term Loan of each Existing USD Lender which has executed this Third Amendment as a “2017 Converting Lender” (each, a “2017 Converting Lender”) shall automatically be converted into a term loan (each, a “Converted 2017 Replacement USD Term Loan”) in a principal amount equal to such 2017 Converting Lender’s 2017 Replacement USD Term Loan Conversion Amount (each such conversion, a “2017 USD Term Loan Conversion”); and

(4)            (1) each Person that has executed this Third Amendment as a “New 2017 Replacement USD Term Loan Lender” (each, a “New 2017 Replacement USD Term Loan Lender” and, together with the 2017 Converting Lenders, collectively, the “2017 Replacement USD Term Loan Lenders”) severally agrees to make a new term loan to the Lead Borrower on the Third Amendment Effective Date (each such new term loan, a “New 2017 Replacement USD Term Loan” and, collectively, the “New 2017 Replacement USD Term Loans” and, together with the Converted 2017 Replacement USD Term Loans, the “2017 Replacement USD Term Loans”) in U.S. Dollars in a principal amount equal to the amount opposite such New 2017 Replacement USD Term Loan 

 

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Lender’s name on Schedule I hereto (as to any New 2017 Replacement USD Term Loan Lender, its “2017 Replacement USD Term Loan Commitment”).

(iii)        Each 2017 Replacement USD Term Loan Lender hereby agrees to “fund” its 2017 Replacement USD Term Loan as follows: (x) each 2017 Converting Lender shall “fund” its 2017 Replacement USD Term Loan to the Lead Borrower by converting all or a portion of its then outstanding principal amount of 2017 Refinanced USD Term Loan into a 2017 Replacement USD Term Loan in a principal amount equal to such 2017 Converting Lender’s 2017 Replacement USD Term Loan Conversion Amount as provided in clause (ii)(y) above and (y) each New 2017 Replacement USD Term Loan Lender shall fund in cash to the Lead Borrower an amount equal to such New 2017 Replacement USD Term Loan Lender’s 2017 Replacement USD Term Loan Commitment.

(iv)        The Converted 2017 Replacement USD Term Loans subject to the 2017 USD Term Loan Conversion shall be allocated ratably to the outstanding Borrowings of 2017 Refinanced USD Term Loans (based upon the relative principal amounts of Borrowings of 2017 Refinanced USD Term Loans and, in the case of Eurocurrency Rate 2017 Refinanced USD Term Loans, subject to different Interest Periods immediately prior to giving effect thereto). Each resulting “borrowing” of Converted 2017 Replacement USD Term Loans shall constitute a new “Borrowing” under the Credit Agreement and shall (x) with respect to Eurocurrency Rate Converted 2017 Replacement USD Term Loans, be subject to the same Interest Period (and the same LIBO Rate) applicable to the Borrowing of Eurocurrency Rate 2017 Refinanced USD Term Loans to which it relates, which Interest Period shall continue in effect until such Interest Period expires and a new type of Borrowing is selected in accordance with the provisions of Section 2.08 of the Credit Agreement or (y) with respect to ABR Converted 2017 Replacement USD Term Loans, continue as ABR Loans until a new type of Borrowing is selected in accordance with the provisions of Section 2.08 of the Credit Agreement. New 2017 Replacement USD Term Loans shall be allocated ratably to repay outstanding Borrowings of 2017 Refinanced USD Term Loans that are not subject to a 2017 USD Term Loan Conversion (based upon the relative principal amounts of Borrowings of such 2017 Refinanced USD Term Loans and, in the case of Eurocurrency Rate 2017 Refinanced USD Term Loans, subject to different Interest Periods immediately prior to giving effect thereto) and shall be (x) with respect such Eurocurrency Rate 2017 Refinanced USD Term Loans, initially incurred as Eurocurrency Rate Borrowings which shall be allocated ratably to such outstanding “deemed” Borrowings of Eurocurrency Rate Converted 2017 Replacement USD Term Loans on the Third Amendment Effective Date (based upon the relative principal amounts of such deemed Borrowings of Eurocurrency Rate Converted 2017 Replacement USD Term Loans subject to different Interest Periods on the Third Amendment Effective Date after giving effect to the foregoing provisions of this clause (iv) and (y) with respect to such ABR 2017 Refinanced USD Term Loans, initially incurred as ABR Loans which shall be allocated to such outstanding “deemed” Borrowings of ABR Converted 2017 Replacement Term Loans on the Third Amendment Effective Date. Each such “borrowing” of Eurocurrency Rate New 2017 Replacement USD Term Loans shall (A) be added to (and made a part of) the related deemed Borrowing of Eurocurrency Rate Converted 2017 Replacement USD Term Loans and (B) be subject to (x) an Interest Period which commences on the Third Amendment Effective Date and ends on the last day of the Interest Period applicable to the related deemed Borrowing of Eurocurrency Rate Converted 2017 Replacement USD Term Loans to which it is added and (y) the same LIBO Rate 

 

 

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applicable to such deemed Borrowing of Eurocurrency Rate Converted 2017 Replacement USD Term Loans.

(v)        On the Third Amendment Effective Date, the Borrowers shall pay in cash (a) all accrued and unpaid interest on the 2017 Refinanced USD Term Loans through the Third Amendment Effective Date and (b) to each Non-Converting Lender and each 2017 Converting Lender with a Non-Converting Portion (solely with respect to such Non-Converting Portion), any breakage loss or expenses due under Section 2.16 of the Credit Agreement (it being understood that existing Interest Periods of the 2017 Refinanced USD Term Loans held by 2017 Replacement USD Term Loan Lenders prior to the Third Amendment Effective Date shall continue on and after the Third Amendment Effective Date pursuant to preceding clause (iv) and shall accrue interest in accordance with Section 2.13 of the Credit Agreement on and after the Third Amendment Effective Date as if the Third Amendment Effective Date were a new Borrowing date). Notwithstanding anything to the contrary herein or in the Credit Agreement, each 2017 Converting Lender agrees to waive any entitlement to any breakage loss or expenses due under Section 2.16 of the Credit Agreement with respect to the repayment of any of its 2017 Refinanced USD Term Loans by way of the 2017 USD Term Loan Conversion on the Third Amendment Effective Date.

(vi)        Promptly following the Third Amendment Effective Date, all Notes, if any, evidencing the 2017 Refinanced USD Term Loans shall be cancelled, and any 2017 Replacement USD Term Loan Lender may request that its 2017 Replacement USD Term Loan be evidenced by a Note pursuant to Section 2.10(f) of the Credit Agreement.

(vii)        Notwithstanding anything to the contrary contained in the Credit Agreement, all proceeds of the New 2017 Replacement USD Term Loans (if any) will be used solely to repay outstanding 2017 Refinanced USD Term Loans of Non-Converting Lenders (if any) and outstanding 2017 Refinanced USD Term Loans of 2017 Converting Lenders in an amount equal to the Non-Converting Portion (if any) of such 2017 Converting Lenders’ 2017 Refinanced USD Term Loans, in each case, on the Third Amendment Effective Date.

(b)                Subject to the satisfaction of the conditions set forth in Section 2 hereof, upon the making of the 2017 Replacement USD Term Loans, the Credit Agreement is hereby amended as follows:

(i)        The definition of “Alternate Base Rate” in Section 1.1 of the Credit Agreement is hereby amended by deleting “; provided that solely in the case of Term Loans, the Alternate Base Rate shall not be less than 1.75% per annum”.

(ii)        The definition of “Applicable Rate” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating clause (a) thereof in its entirety as follows:

“(a) with respect to Initial Term Loans, the rate per annum applicable to the relevant Class of Loans set forth below under the caption “ABR Spread”, “LIBO Rate Spread”, “BA Rate Spread” or “EURIBOR Rate Spread” as the case may be:

 

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ABR Spread for USD Term Loans

	
LIBO Rate Spread for USD Term 

Loans denominated in US Dollars

	
1.00%

	
2.00%

	
ABR Spread for CAD Term Loans

	
BA Rate Spread for CAD Term Loans

	
2.50%

	
3.50 %

	
EURIBOR Rate Spread for Euro Term Loans

	
2.75%

(iii)        The definition of “Arrangers” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating it in its entirety as follows:

““Arrangers” means, (w) with respect to the Initial Term Loans (other than the 2016 Replacement USD Term Loans and the 2017 Replacement USD Term Loans) and the Initial Revolving Credit Commitments, each of Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, (x) with respect to the 2016 Replacement USD Term Loans, Deutsche Bank Securities Inc. in its capacity as sole bookrunner and sole lead arranger, (y) with respect to the Second Amendment, (i) each of Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank N.A. and RBC Capital Markets1, as joint bookrunners and joint lead arrangers and (ii) each of Royal Bank of Canada, Credit Suisse Securities (USA) LLC and JPMorgan Chase Bank N.A. as co-documentation agents and (z) with respect to the 2017 Replacement USD Term Loans, RBC Capital Markets and Deutsche Bank Securities Inc., as joint bookrunners and joint lead arrangers.”

(iv)        The definition of “Available Amount” in Section 1.1 of the Credit Agreement is hereby amended by replacing references to “the Closing Date” in clauses (iii) and (iv) thereof with “December 4, 2014”.

(v)        The definition of “Credit Facilities” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating it as follows:

““Credit Facilities” means the Term Loan Facility (which for the avoidance of doubt shall include the 2017 Replacement USD Term Loan) and the Revolving Facility.”

(vi)        The definition of “Initial Term Loans” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating it as follows:

““Initial Term Loans” means (i) prior to the First Amendment Effective Date and the incurrences of the 2016 Replacement USD Term Loans, the USD Term Loans, Euro Term Loans and CAD Term Loans made by the Term Lenders on the Closing Date to the Lead Borrower pursuant to Section 2.01(a), (ii) on or after the First 

1 RBC Capital Markets is a brand name for the capital markets businesses of Royal Bank of Canada and its affiliates.

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Amendment Effective Date and upon the making of the 2016 Replacement USD Term Loans pursuant to the First Amendment Effective Date but prior to the Third Amendment Effective date, (x) the Euro Term Loans and CAD Term Loans made by the Term Lenders to the Lead Borrower on the Closing Date and (y) the 2016 Replacement USD Term Loans made on the First Amendment Effective Date pursuant to the First Amendment and Section 2.01 (including by way of the 2016 USD Term Loan Conversion) and (iii) on or after the Third Amendment Effective Date and upon the making of the 2017 Replacement USD Term Loans pursuant to the Third Amendment Effective Date, (x) the Euro Term Loans and CAD Term Loans made by the Term Lenders to the Lead Borrower on the Closing Date and (y) the 2017 Replacement USD Term Loans made on the Third Amendment Effective Date pursuant to the Third Amendment and Section 2.01 (including by way of the 2017 USD Term Loan Conversion)”

(vii)        The definition of “Initial Term Loan Commitment” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating it as follows:

““Initial Term Loan Commitment” means, with respect to each Term Lender, (i) such Lender’s USD Term Commitment, CAD Term Commitment and/or Euro Term Commitment or (ii) an Additional Term Commitment.”

(viii)        The definition of “LIBO Rate” in Section 1.1 of the Credit Agreement is hereby amended by deleting “; provided that, in the case of the Initial Term Loans, in no event shall the LIBO Rate be less than 0.75% per annum.”

(ix)        The definition of “Loan Documents” in Section 1.1 of the Credit Agreement is hereby amended by inserting the text, “the Third Amendment,” immediately prior to the text “any Borrowing Joinder Agreement”.

(x)        The definition of “Repricing Transaction” in Section 1.1 of the Credit Agreement is hereby amended by deleting all references to the text “2016 Replacement USD Term Loans” and inserting the text “2017 Replacement USD Term Loans” in lieu thereof.

(xi)        The definition of “USD Term Commitment” in Section 1.1 of the Credit Agreement is hereby amended by amending and restating it in its entirety as follows:

““USD Term Commitment” means, with respect to (i) any USD Term Lender on the Closing Date, the commitment, if any, of such Lender to make a USD Term Loan on the Closing Date, expressed as an amount representing the maximum principal amount of the USD Term Loan to be made by such Lender as set forth on Schedule 1.01(a), (ii) with respect to the 2016 Replacement USD Term Loan Lenders on the First Amendment Effective Date, (x) with respect to each New 2016 Replacement USD Term Loan Lenders, the amount set forth opposite such Lender’s name on Schedule I to the First Amendment under the caption “Amount of 2016 Replacement USD Term Commitments” and (y) with respect to each 2016 Converting Lender, such 2016 Converting Lender’s 2016 USD Term Loan Conversion Amount, in each case, as the same may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.05 and (iii) with respect to the 2017 Replacement USD Term Loan Lenders on 

 

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the Third Amendment Effective Date, (x) with respect to each New 2017 Replacement USD Term Loan Lenders, the amount set forth opposite such Lender’s name on Schedule I to the Third Amendment under the caption “Amount of 2017 Replacement USD Term Commitments” and (y) with respect to each 2017 Converting Lender, such 2017 Converting Lender’s 2017 USD Term Loan Conversion Amount, in each case, as the same may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.05.  The initial amount of each Lender’s USD Term Commitment is (i) set forth on Schedule 1.01(a) with respect to USD Term Loans made on the Closing Date, (ii) set forth on Schedule I to the First Amendment with respect to the USD Term Loans made on the First Amendment Effective Date by the New 2016 Replacement USD Term Loans Lenders, (iii) the 2016 Replacement USD Term Loan Conversion Amount of such Lender (in the case such Lender is a 2016 Converting Lender) with respect to the USD Term Loans made by such Lender by way of the 2016 USD Term Loan Conversion, (iv) set forth on Schedule I to the Third Amendment with respect to the USD Term Loans made on the Third Amendment Effective Date by the New 2017 Replacement USD Term Loans Lenders, (v) the 2017 Replacement USD Term Loan Conversion Amount of such Lender (in the case such Lender is a 2017 Converting Lender) with respect to the USD Term Loans made by such Lender by way of the 2017 USD Term Loan Conversion, (vi) in the Assignment and Assumption pursuant to which such Lender shall have assumed its USD Term Commitment, or (vii) in the amendment or agreement relating to the respective Incremental Commitment or commitments to make Replacement Term Loans pursuant to which such Lender shall have assumed its USD Term Commitment, as the case may be, as such amounts may be adjusted from time to time in accordance with this Agreement. The aggregate amount of USD Term Commitments (x) on the Closing Date was $1,450,000,000, (y) on the First Amendment Effective Date is $1,005,518,866.25 and (z) on the Third Amendment Effective Date is $1,000,427,631.49.

(xii)        Section 1.1 of the Credit Agreement is hereby further amended by adding the following definitions in appropriate alphabetical order as follows:

“2017 Converting Lender” has the meaning assigned to such term in the Third Amendment.

“2017 New USD Term Loans” has the meaning assigned to such term in Section 2.01(a).

“2017 Refinanced USD Term Loans” has the meaning assigned to such term in the Third Amendment.

“2017 Replacement USD Term Commitment” has the meaning assigned to such term in the Third Amendment.

“2017 Replacement USD Term Loan” has the meaning assigned to such term in the Third Amendment.

“2017 Replacement USD Term Loan Lender” has the meaning assigned to such term in the Third Amendment.

“2017 Replacement USD Term Loan Conversion Amount” shall mean, as to any 2017 Converting Lender, the amount determined by the Third 

 

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Amendment Arranger and the Lead Borrower as the final amount of such 2017 Converting Lender’s 2017 Replacement USD Term Loan Conversion on the Third Amendment Effective Date and notified to each such 2017 Converting Lender by the Third Amendment Arranger on or prior to the Third Amendment Effective Date. The “2017 Replacement USD Term Loan Conversion Amount” of any 2017 Converting Lender shall not exceed (but may be less than) the principal amount of such 2017 Converting Lender’s 2017 Refinanced USD Term Loans. All such determinations made by the Third Amendment Arranger and the Lead Borrower shall, absent manifest error, be final, conclusive and binding on the Administrative Agent, the Lead Borrower and the Lenders, and the Administrative Agent, the Third Amendment Arranger and the Borrowers shall have no liability to any Person with respect to such determination absent gross negligence or willful misconduct (in each case, as determined by a court of competent jurisdiction in a final and non-appealable judgment).

“2017 USD Term Loan Conversion” has the meaning assigned to such term in the Third Amendment.

“New 2017 Replacement USD Term Loan” has the meaning assigned to such term in the Third Amendment.

“New 2017 Replacement USD Term Loan Lender” has the meaning assigned to such term in the Third Amendment.

“Third Amendment” shall mean the Third Amendment to Credit Agreement, dated as of April 7, 2017, by and among the Lead Borrower, the Administrative Agent, the Third Amendment Arranger and the 2017 Replacement USD Term Loan Lenders.

“Third Amendment Arranger” has the meaning assigned to such term in the Third Amendment.

“Third Amendment Effective Date” has the meaning assigned to such term in the Third Amendment.

(xiii)        Section 2.01(a) of the Credit Agreement is hereby amended by amending and restating Section 2.01(a) in its entirety as follows:

“(a) (i)(a)(1) Subject to the terms and conditions set forth herein, each USD Term Lender on the Closing Date severally, and not jointly, agreed to make term loans to the Lead Borrower on the Closing Date in U.S. Dollars in a principal amount not to exceed (x) its USD Term Commitment on the Closing Date minus (y) the amount of term loans made to the Lead Borrower on the Closing Date in U.S. Dollars by certain Existing Term Loan Lenders pursuant to the Cashless Settlement Letter (such term loans made by such USD Term Lender and such Existing Term Loan Lenders, the “Original USD Term Loans”), (2) on the First Amendment Effective Date, (x) each New 2016 Replacement USD Term Loan Lender severally, and not jointly, agrees to make, on the terms and conditions set forth in the First Amendment and in reliance upon the representations and warranties set forth in the First Amendment, New 2016 Replacement USD Term Loans on the First Amendment Effective Date to the Lead Borrower in an amount equal to the 2016 Replacement USD Term Commitment of such New 2016 Replacement USD Term Loan Lender (and the Lead Borrower hereby agrees to apply the

 

8

proceeds of such New 2016 Replacement USD Term Loans to refinance the Original Refinanced USD Term Loans in accordance with the First Amendment) and (y) each 2016 Converting Lender agrees severally, and not jointly, that, pursuant to the 2016 USD Term Loan Conversion as set forth in the First Amendment, without any further action by any party to this Agreement, a portion of such 2016 Converting Lender’s Original Refinanced USD Term Loans equal to such 2016 Converting Lender’s 2016 Replacement USD Term Loan Conversion Amount shall automatically be converted into 2016 Replacement USD Term Loans in a like principal amount in accordance with the terms and conditions of the First Amendment (such term loans made on the First Amendment Effective Date by the New 2016 Replacement USD Term Loan Lenders and the 2016 Converting Lenders, the “New USD Term Loans”) and (3) on the Third Amendment Effective Date, (x) each New 2017 Replacement USD Term Loan Lender severally, and not jointly, agrees to make, on the terms and conditions set forth in the Third Amendment and in reliance upon the representations and warranties set forth in the Third Amendment, New 2017 Replacement USD Term Loans on the Third Amendment Effective Date to the Lead Borrower in an amount equal to the 2017 Replacement USD Term Commitment of such New 2017 Replacement USD Term Loan Lender (and the Lead Borrower hereby agrees to apply the proceeds of such New 2017 Replacement USD Term Loans to refinance the 2017 Refinanced USD Term Loans in accordance with the Third Amendment) and (y) each 2017 Converting Lender agrees severally, and not jointly, that, pursuant to the 2017 USD Term Loan Conversion as set forth in the Third Amendment, without any further action by any party to this Agreement, a portion of such 2017 Converting Lender’s 2017 Refinanced USD Term Loans equal to such 2017 Converting Lender’s 2017 Replacement USD Term Loan Conversion Amount shall automatically be converted into 2017 Replacement USD Term Loans in a like principal amount in accordance with the terms and conditions of the Third Amendment (such term loans made on the Third Amendment Effective Date by the New 2017 Replacement USD Term Loan Lenders and the 2017 Converting Lenders, the “2017 New USD Term Loans” and, together with the Original USD Term Loans and the New USD Term Loans, the “USD Term Loans”), (b) subject to the terms and conditions set forth herein, each Euro Term Lender on the Closing Date severally, and not jointly, agreed to make term loans to the Lead Borrower on the Closing Date in Euros in a principal amount not to exceed its Euro Term Commitment on the Closing Date (such term loans made by the Euro Term Lender, the “Euro Term Loans”), and (c) subject to the terms and conditions set forth herein, each CAD Term Lender on the Closing Date severally, and not jointly, agreed to make term loans to the Lead Borrower on the Closing Date in Canadian Dollars in a principal amount not to exceed its CAD Term Commitment on the Closing Date (the “CAD Term Loans”) and (ii) subject to the terms and conditions set forth herein, (x) each Dollar Revolving Lender severally, and not jointly, agrees to make Dollar Revolving Loans denominated in U.S. Dollars to the Revolving Facility Borrowers in U.S. Dollars at any time and from time to time on and after the Closing Date, and until the earlier of the Dollar Revolving Credit Maturity Date and the termination of the Dollar Revolving Credit Commitment of such Dollar Revolving Lender in accordance with the terms hereof; provided that after giving effect to any Borrowing of Dollar Revolving Loans, the Outstanding Amount of such Lender’s Dollar Revolving Credit Exposure shall not exceed such Lender’s Dollar Revolving Credit Commitment and (y) each Multicurrency Revolving Lender severally, and not jointly, agrees to make Multicurrency Revolving Loans denominated in U.S. Dollars or Alternative Currencies to the Revolving Facility Borrowers in U.S. Dollars or Alternative Currencies at any time and from time to time on and after the Closing Date, and until the earlier of the Multicurrency Revolving Credit Maturity Date and the termination of the Multicurrency Revolving Credit Commitment of 

 

9

such Multicurrency Revolving Lender in accordance with the terms hereof; provided that after giving effect to any Borrowing of Multicurrency Revolving Loans, the Dollar Equivalent of the Outstanding Amount of such Lender’s Multicurrency Revolving Credit Exposure shall not exceed the Dollar Equivalent of such Lender’s Multicurrency Revolving Credit Commitment. Within the foregoing limits and subject to the terms, conditions and limitations set forth herein, the Revolving Facility Borrowers may borrow, pay or prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of the Term Loans may not be reborrowed. Subject to the terms of this Agreement and the Ancillary Documents, an Ancillary Lender may make available an Ancillary Facility to any Revolving Facility Borrower in place of all or part of its Multicurrency Revolving Credit Commitment.”

(xiv)        Section 2.09(a) of the Credit Agreement is hereby amended by (x) replacing the parenthetical immediately after the reference to “Initial Term Commitments appearing in clause (i) thereof with “(other than the 2016 Replacement USD Term Commitments which shall terminate as provided in clause (iii) below and the 2017 Replacement USD Term Commitments which shall terminate as provided in clause (iv) below)”, (y) deleting the text “and (iii)” appearing therein and inserting the text “, (iii)” in lieu thereof and (z) by deleting the text “.” appearing at the end of such section and inserting in lieu thereof the following new clause (iv):

“and (iv) the 2017 Replacement USD Term Commitments shall automatically terminate on the Third Amendment Effective Date upon the making of the 2017 Replacement USD Term Loans on the Third Amendment Effective Date.”

(xv)        Section 2.10(a) of the Credit Agreement is hereby amended by amending and restating Section 2.10(a) in its entirety as follows:

“(a)            The Lead Borrower hereby unconditionally promises to repay Initial Term Loans to the Administrative Agent for the account of each Term Lender (i) commencing September 30, 2015 (or, (x) with respect to the USD Term Loans made on the First Amendment Effective Date, September 30, 2016 and (y) with respect to the USD Term Loans made on the Third Amendment Effective Date, June 30, 2017) on the last Business Day of each March, June, September and December prior to the Initial Term Loan Maturity Date (each such date being referred to as a “Loan Installment Date”), in each case, in an amount equal to 0.25% of the original principal amount of the Initial Term Loans (which, for the avoidance of doubt, with respect to (x) the USD Term Loans made on the First Amendment Effective Date, shall be based on the original principal amount of 2016 Replacement USD Term Loans and (y) the USD Term Loans made on the Third Amendment Effective Date, shall be based on the original principal amount of 2017 Replacement USD Term Loans) (as such payment installment amounts may be reduced from time to time as a result of the application of prepayments in accordance with Section 2.11 and repurchases in accordance with Section 9.05(g) or increased as a result of any increase in the amount of such Initial Term Loans pursuant to Section 2.22(a)), and (ii) on the Initial Term Loan Maturity Date, in an amount equal to the remainder of the principal amount of the Initial Term Loans, outstanding on such date, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.”

(xvi)        The last sentence of Section 2.11(b)(vi) of the Credit Agreement is hereby amended by (x) deleting the text “2016 Replacement USD Term Loans” and 

 

10

inserting the text “2017 Replacement USD Term Loans” in lieu thereof and (y) deleting the text “First Amendment Effective Date” and inserting the text “Third Amendment Effective Date” in lieu thereof.

(xvii)                      Section 2.12(f) of the Credit Agreement is hereby amended by (x) deleting all references to the text “First Amendment Effective Date” and inserting the text “Third Amendment Effective Date” in lieu thereof and (y) deleting all references to the text “2016 Replacement USD Term Loans” and inserting the text “2017 Replacement USD Term Loans” in lieu thereof.

(c)                The Lead Borrower hereby consents, for purposes of Section 9.05(b) of the Credit Agreement, to the assignment of any 2017 Replacement USD Term Loans by any 2017 Replacement USD Term Loan Lender to (i) any Person that was an Existing Lender (as defined in the Third Amendment) on the Third Amendment Effective Date (immediately prior to giving effect thereto) or any other Person notified in writing by the Third Amendment Arranger to the Borrower as part of the syndication process for the New 2017 Replacement USD Term Loans (so long as the Lead Borrower has not objected thereto at least three Business Days’ prior to the Third Amendment Effective Date).

SECTION 2.              Conditions of Effectiveness of this Third Amendment. This Third Amendment shall become effective on the date when the following conditions shall have been satisfied (such date, the “Third Amendment Effective Date”):

(a)                The Lead Borrower, the Administrative Agent, the Third Amendment Arranger, the 2017 Replacement USD Term Loan Lenders and Lenders (after giving effect to the 2017 Replacement USD Loans and the repayment of the 2016 Replacement USD Term Loans) constituting Required Lenders shall have signed a counterpart hereof (whether the same or different counter-parts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to the Administrative Agent and Third Amendment Arranger;

(b)                the Lead Borrower shall have paid (or shall pay substantially concurrently with the effectiveness of this Third Amendment), by wire transfer of immediately available funds, (i) to Third Amendment Arranger, all fees payable pursuant to the Third Amendment Engagement Letter, (ii) to the Administrative Agent, for the ratable account of each Existing Lender, all accrued but unpaid interest on the 2017 Refinanced USD Term Loans through the Third Amendment Effective Date;

(c)                the Administrative Agent and the Third Amendment Arranger shall have received from the Lead Borrower a Borrowing Request, such Borrowing Request to be delivered not later than 12:00pm New York City Time at least one Business Day prior to the requested date of the borrowing (notwithstanding any contrary requirements in Section 2.03 of the Credit Agreement), and otherwise delivered in accordance with Section 2.03 of the Credit Agreement;

(d)                on the Third Amendment Effective Date immediately prior to giving effect to the Third Amendment and after giving effect to this Third Amendment, (i) no Default under Section 7.01(a), 7.01(f) or 7.01(g) of the Credit Agreement or Event of Default shall exist and (ii) each of the representations and warranties set forth in the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the Third Amendment Effective Date (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as 

 

11

to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date);

(e)                the Administrative Agent and the Third Amendment Arranger shall have received from the Lead Borrower a certificate executed by a Responsible Officer of the Lead Borrower, certifying compliance with the requirements of preceding clause (d);

(f)                the Administrative Agent and the Third Amendment Arranger shall have received the Acknowledgment and Confirmation, substantially in the form of Exhibit A hereto, executed and delivered by a Responsible Officer of each of Holdings, the Lead Borrower and each Subsidiary Guarantor;

(g)                the Administrative Agent and the Third Amendment Arranger shall have received from the Lead Borrower a solvency certificate from the chief financial officer (or other officer with reasonably equivalent responsibilities) of the Lead Borrower (after giving effect to the incurrence of the 2017 Replacement USD Term Loans on the Third Amendment Effective Date and the application of the proceeds thereof) substantially in the form of Exhibit M to the Credit Agreement;

(h)                the Administrative Agent and the Third Amendment Arranger shall have received (i) either (x) a copy of the certificate or articles of incorporation or equivalent organizational document, including all amendments thereto, of each Loan Party, certified as of a recent date by the Secretary of State of the state of its organization or (y) confirmation from such Loan Party that there has been no change to such organizational documents since last delivered to the Administrative Agent, (ii) a certificate of the secretary or assistant secretary of each Loan Party dated the Third Amendment Effective Date and certifying (A) that (x) attached thereto is a true and complete copy of the by-laws or operating, management, partnership or similar agreement of such Loan Party as in effect on the Third Amendment Effective Date and at all times since a date prior to the date of the resolutions described in clause (B) below or (y) there has been no change to such governing documents since last delivered to the Administrative Agent, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors or other equivalent governing body of such Loan Party authorizing the execution, delivery and performance of this Third Amendment and/or the Acknowledgement and Confirmation delivered pursuant to clause (e) above and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that any attached certificate or articles of incorporation, equivalent organizational document, by-laws, operating, management, partnership or similar agreement of such Loan Party has not been amended (in the case of the articles of incorporation of each such Loan Party, since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (E) below), (D) to the extent not previously delivered to the Administrative Agent, as to the incumbency and specimen signature of each officer executing this Third Amendment or any other document delivered in connection herewith on behalf of such Loan Party and (E) good standing certificates for each Loan Party from the jurisdiction in which it is organized, each dated a recent date prior to the Third Amendment Effective Date; and (iii) a certificate of another officer as to the incumbency and specimen signature of the secretary or assistant secretary executing the certificate delivered pursuant to clause (ii) above; and

(i)                The Administrative Agent shall have received a Promissory Note executed by the Lead Borrower in favor of each 2017 Replacement USD Term Loan Lender requesting a Promissory Note.

 

12

SECTION 3.               Costs and Expenses. The Lead Borrower hereby reconfirms its obligations pursuant to Section 9.03(a) of the Credit Agreement to pay and reimburse the Administrative Agent and their respective Affiliates for all reasonable and documented out-of-pocket costs and expenses (including, without limitation, reasonable fees and out-of-pocket expenses of counsel) incurred in connection with the negotiation, preparation, execution and delivery of this Third Amendment and all other documents and instruments delivered in connection herewith.

SECTION 4.               Remedies. This Third Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

SECTION 5.              Representations and Warranties. To induce the Administrative Agent, the Third Amendment Arranger and the 2017 Replacement USD Term Loan Lenders to enter into this Third Amendment, each Loan Party party hereto hereby represents and warrants that, immediately prior to and immediately after giving effect to this Amendment:

(a)                the execution, delivery and performance by it of this Third Amendment does not (i) violate any provision of law applicable to it, its Organization Documents, or any order, judgment or decree of any court or other agency of government binding on it, (ii) conflict with, result in a material breach of or constitute (with due notice or lapse of time or both) a material default under any of its Contractual Obligations, (iii) result in or require the creation or imposition of any Lien (other than Liens in favor of the Collateral Agent) upon any of its properties or assets or (iv) require any approval of stockholders or any approval or consent of any Person under any of its material Contractual Obligations, other than those approvals and consents which have been obtained;

(b)                it has all requisite organizational power and authority to enter into this Third Amendment and the execution, delivery and performance by it of this Third Amendment has been duly authorized by all necessary organizational action by it. Each Loan Party party hereto has duly executed and delivered this Third Amendment, and this Third Amendment, the Credit Agreement as amended hereby and each other Loan Document to which it is a party constitutes the legally valid and binding obligations of it, enforceable against it in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability;

(c)                each of the representations and warranties set forth in the Credit Agreement and in the other Loan Documents is true and correct in all material respects on and as of the Third Amendment Effective Date (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date);

(d)                no Default under Section 7.01(a), 7.01(f) or 7.01(g) of the Credit Agreement or Event of Default shall have occurred and be continuing; and

(e)                the 2017 Replacement USD Term Loans have been incurred in compliance with the requirements of Section 9.02(c) of the Credit Agreement.

SECTION 6.               Reference to and Effect on the Credit Agreement and the Loan Documents.

 

13

(a)                On and after the Third Amendment Effective Date, (i) each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended by this Third Amendment; (ii) the 2017 Replacement USD Term Loans shall constitute “USD Term Loans” and “Term Loans” for all purposes under the Credit Agreement; and (iii) each 2017 Replacement USD Term Loan Lender shall constitute a “Lender”, a “Term Lender” and a “USD Term Loan Lender” as defined in the Credit Agreement.

(b)                The Credit Agreement and each of the other Loan Documents, as specifically amended by this Third Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the applicable Loan Parties under the Loan Documents, in each case, as amended by this Third Amendment.

(c)                The execution, delivery and effectiveness of this Third Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

SECTION 7.               Governing Law. THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 8.               Counterparts. This Third Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this Third Amendment shall be effective as delivery of an original executed counterpart of this Third Amendment.

[The remainder of this page is intentionally left blank.]

 

14

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Third Amendment as of the date first above written.

	SPECTRUM BRANDS, INC., as the Lead Borrower

SB/RH HOLDINGS, LLC, as Holdings	 	 
	 	 	 
	 	 	 	 
	
By: 

	/s/ Joanne P. Chomiak	 	 
	Name: 	Joanne P. Chomiak	 	 
	Title: 	Senior Vice President and Treasurer	 	 
	 	 	 	 

 

 

 

[SIGNATURE PAGE TO SPECTRUM THIRD AMENDMENT TO CREDIT AGREEMENT (REPRICING)]

 

	 	DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Peter Cucchiara	 
	 	Name: 	Peter Cucchiara	 
	 	Title: 	Vice President	 
	 	 	 	 
	 	By: 	/s/ Dusan Lazarov 	 
	 	Name: 	Dusan Lazarov 	 
	 	Title:  	Director 	 

 

 

[SIGNATURE PAGE TO SPECTRUM THIRD AMENDMENT TO CREDIT AGREEMENT (REPRICING)]

 

	 	ROYAL BANK OF CANADA, as a New 2017 Replacement USD Term Loan Lender	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ James S. Wolfe	 
	 	Name: 	James S. Wolfe	 
	 	Title: 	Managing Director

Head of Global Leveraged Finance	 
	 	 	 	 
	 	 	 	 
	 	ROYAL BANK OF CANADA, as the Third Amendment Arranger 	 
	 	 	 	 
	 	By: 	/s/ James S. Wolfe	 
	 	Name: 	James S. Wolfe	 
	 	Title:  	Managing Director

Head of Global Leveraged Finance	 

 

 

[SIGNATURE PAGE TO SPECTRUM THIRD AMENDMENT TO CREDIT AGREEMENT (REPRICING)]

 

BY ITS EXECUTION OF THIS SIGNATURE PAGE, THE UNDERSIGNED HEREBY (I) REQUESTS TO CONVERT THE FULL PRINCIPAL AMOUNT OF ITS 2017 REFINANCED USD TERM LOANS INTO CONVERTED 2017 REPLACEMENT USD TERM LOANS PURSUANT TO, AND ON THE TERMS AND CONDITIONS SET FORTH IN, THIS FIRST AMENDMENT TO THE CREDIT AGREEMENT AND (II) ACKNOWLEDGES AND AGREES THAT ITS 2017 REPLACEMENT USD TERM LOAN CONVERSION AMOUNT MAY BE LESS THAN THE FULL PRINCIPAL AMOUNT OF ITS 2017 REFINANCED USD TERM LOANS WHICH IT REQUESTS TO CONVERT HEREUNDER.

	 	NAME OF INSTITUTION 	 
	 	 	 
	 	    	, as a 
	 	      2017 Converting Lender	 
	 	 	 	 
	
 

	
By: 

	  	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

	 	For institutions requiring a second signature line:	 
	 	 	 	 
	
 

	
By: 

	   	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

[SIGNATURE PAGE TO SPECTRUM THIRD AMENDMENT TO CREDIT AGREEMENT (REPRICING)]

 

SCHEDULE I

	
New 2017 Replacement USD Term Loan Lender

	
Amount of 2017 Replacement USD 

Term Loan Commitments

 

	
Royal Bank of Canada

	
$11,364,656.28

 

	
TOTAL

	
$11,364,656.28

 

 

 

 

EXHIBIT A

FORM OF ACKNOWLEDGMENT AND CONFIRMATION

1.        Reference is made to the Third Amendment, dated as of April 7, 2017 (the “Third Amendment”), to the Credit Agreement dated as of June 23, 2015 (the “Credit Agreement”), among SPECTRUM BRANDS, INC., a Delaware corporation (the “Lead Borrower”), SB/RH HOLDINGS LLC, a Delaware limited liability company (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as administrative agent (in such capacity, the “Administrative Agent”) and each of the Persons party thereto as 2017 Replacement USD Term Loan Lenders (as defined therein). Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Credit Agreement or Third Amendment, as applicable.

2.        Certain provisions of the Credit Agreement are being amended and/or modified pursuant to the Third Amendment. Each of the parties hereto hereby agrees that, with respect to each Loan Document to which it is a party, after giving effect to the Third Amendment:

(a)                all of its obligations, liabilities and indebtedness under such Loan Document, including guarantee obligations, shall remain in full force and effect on a continuous basis (including with respect to the 2017 Replacement USD Term Loans); and

(b)                all of the Liens and security interests created and arising under such Loan Document remain in full force and effect on a continuous basis, and the perfected status and priority to the extent provided for in Section 3.14 of the Credit Agreement of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged as collateral security for the applicable Obligations (including with respect to the 2017 Replacement USD Term Loans), to the extent provided in such Loan Documents.

3.              THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4.          This Acknowledgment and Confirmation may be executed by one or more of the parties hereto on any number of separate counterparts (including by telecopy or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

[rest of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgment and Confirmation to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

	
SPECTRUM BRANDS, INC.,

as the Lead Borrower

	 	 
	 	 	 
	 	 	 	 
	
By: 

	  	 	 
	Name: 	  	 	 
	Title: 	   	 	 
	 	 	 	 

 

	SB/RH HOLDINGS, LLC, as Holdings	 	 
	 	 	 
	 	 	 	 
	
By: 

	  	 	 
	Name: 	  	 	 
	Title: 	   	 	 
	 	 	 	 

 

	UNITED INDUSTRIES CORPORATION ROV HOLDING, INC.	 	 
	 	 	 
	 	 	 	 
	
By: 

	  	 	 
	Name: 	  	 	 
	Title: 	   	 	 
	 	 	 	 

 

	ARMORED AUTOGROUP, INC.

THE ARMOR ALL/STP PRODUCTS COMPANY

STP PRODUCTS MANUFACTURING COMPANY

ARMORED AUTOGROUP SALES, INC.	 	 
	 	 	 
	 	 	 	 
	
By: 

	   	 	 
	Name: 	  	 	 
	Title: 	   	 	 
	 	 	 	 

 

 

[SIGNATURE PAGE TO SPECTRUM ACKNOWLEDGMENT AND CONFIRMATION - THIRD AMENDMENT TO CREDIT AGREEMENT]

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