Document:

ABM.10.31.2014 Ex. 10.5

        

Exhibit 10.5
FOURTH AMENDMENT
THIS FOURTH AMENDMENT, dated as of December 5, 2014 (this “Amendment”), amends the Credit Agreement, dated as of November 30, 2010 (as previously amended, the “Credit Agreement”), among ABM Industries Incorporated (the “Company”), various financial institutions (the “Lenders”) and Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not otherwise defined herein have the respective meanings ascribed thereto in the Credit Agreement.
WHEREAS, the Company, the Lenders and the Administrative Agent have entered into the Credit Agreement; and
WHEREAS, the parties hereto desire to amend the Credit Agreement as more fully set forth herein;
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1 Amendments.  On and as of the Effective Date (as defined below), the Credit Agreement is amended as follows:
1.1    Definitions.  Section 1 is amended as follows:
(a)    The definition of “Adjusted Consolidated EBITDA” is amended by deleting the words “for aggregate consideration in excess of $15,000,000” in each of clause (a) and (b). 
(b)    The following definitions are added in proper alphabetical order:
“ESPC” means an Energy Savings Performance Contract between the Company or a Subsidiary, on the one hand, and a Governmental Authority, on the other hand, pursuant to which the Company or such Subsidiary will design, acquire, construct, install, arrange financing for, test, operate, maintain and/or repair one or more energy conservation projects.  
“Material Acquisition” means any Permitted Acquisition that involves the payment of consideration (including assumed liabilities) by the Company or any Subsidiary in excess of $50,000,000.
(c)    The definition of “Eurodollar Rate” is deleted in its entirety and replaced by the following:
“Eurodollar Rate” means for any Interest Period with respect to any Eurodollar Rate Loan, the rate per annum equal to the London interbank offered rate or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such commercially available source providing such quotations as may be 

711869589 02994368
    

designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent. Notwithstanding the foregoing or any other provisions of this Agreement, if the Eurodollar Rate as determined above shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 
(d)    The definition of “Federal Funds Rate” is deleted in its entirety and replaced by the following:
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent.  Notwithstanding the foregoing, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero.
(e)    The text of clause (v) of the definition of “Permitted Acquisition” is deleted in its entirety and replaced by the following:
(v) both before and after giving effect to such Acquisition on a pro forma basis, the Leverage Ratio shall not be greater than 3.25 to 1.0 (or, if the Company has made the election contemplated by Section 7.11(c) with respect to a Material Acquisition, 3.50 to 1.0), and 
1.2    Capital Requirements. Section 3.4(b) is deleted in its entirety and replaced by the following:
(b)    Capital Requirements.  If any Lender or the L/C Issuer determines that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s 

holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with respect to capital adequacy and liquidity), then from time to time the Company will pay (or cause the applicable Designated Borrower to pay) to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.
1.3    Certificates for Reimbursement.  Section 3.4(c) is amended by adding the following sentence at the end thereof:
Notwithstanding the foregoing, no Lender nor the L/C Issuer shall deliver a certificate requesting compensation under subsection (a) or (b) of this Section unless such Lender or the L/C Issuer is requesting compensation from similarly situated customers of such Lender or the L/C Issuer under agreements having provisions similar to such subsections (a) or (b), as applicable.
1.4    Liens.  Section 7.1 is amended by deleting the word “and” at the end of clause (k), adding the following new clause (l) in proper numerical order and re-lettering the existing clause (l) as clause (m):  
(l)    Liens securing Indebtedness permitted by Sections 7.5(k) and (l); and
1.5    Dispositions.  Section 7.2 is amended by deleting the word “and” at the end of clause (e), adding the following new clause (f) in proper numerical order and re-lettering the existing clause (f) as clause (g):  
(f)    Dispositions of accounts receivable owing to the Company or any Subsidiary pursuant to any ESPC; provided that the aggregate amount of all such accounts receivable sold or otherwise disposed of during the term of this Agreement shall not exceed $200,000,000; and
1.6    Indebtedness.  Section 7.5 is amended by deleting the word “and” at the end of clause (i) and inserting the following clauses (k) and (l) in proper numerical order:
(k)     secured Indebtedness (in addition to any secured Indebtedness described above) incurred to finance ESPCs; provided that (i) the aggregate 

outstanding principal amount of all Indebtedness permitted solely by this clause (k) shall not at any time exceed $50,000,000; and (ii) at the time of the incurrence, assumption or creation of any such Indebtedness, no Default shall have occurred and be continuing or would result therefrom; and
(l)    to the extent constituting Indebtedness, customary recourse obligations in respect of any sale or other disposition of receivables pursuant to Section 7.2(f).
1.7    Financial Covenants.  Section 7.11(c) shall be amended in its entirety to read as follows:
(c)    Leverage Ratio.  Permit the Leverage Ratio as of the end of any fiscal quarter to be greater than 3.25 to 1.0; provided that if a Material Acquisition is completed in any fiscal quarter, then the Company may elect to increase the maximum ratio set forth above to 3.50 to 1.0 at of the end of such fiscal quarter and the three immediately following fiscal quarters; and provided, further, that the Company may not make such election more than once during the term of this Agreement.
SECTION 2    Representations and Warranties.  The Company represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment:
(a)    each representation and warranty set forth in Article V of the Credit Agreement, as amended hereby, is true and correct in all material respects as of the Effective Date (as defined below), except to the extent that any such representation and warranty specifically refers to an earlier date, in which case it shall be true and correct in all material respects as of such earlier date; and
(b)    no Default exists.  
SECTION 3    Effectiveness.  This Amendment shall become effective as of the date first written above (the “Effective Date”) when the Administrative Agent shall have received: 
(a)    counterparts of this Amendment executed by the Company, the Administrative Agent and the Required Lenders;
(b)    a Confirmation executed by the Subsidiary Guarantors, substantially in the form attached hereto as Exhibit A; and
(c)    the fees payable to the Lenders in connection with this Amendment. 
SECTION 4    Miscellaneous.
4.1    Continuing Effectiveness, etc.  As amended hereby, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  After the effectiveness of this Amendment, all references in the Credit Agreement and the other Loan Documents to “Credit Agreement” or similar terms shall refer to the Credit Agreement as amended hereby.

4.2    General.  The provisions of Sections 10.5 (Expenses; Indemnity; Damage Waiver), 10.7 (Successors and Assigns), 10.14 (Counterparts) and 10.17 (Governing Law) of the Credit Agreement are incorporated into this Amendment as if fully set forth herein, mutatis mutandis.
[Signature Pages Follow]
SECTION 5    
5.1    
Delivered as of the day and year first above written.
ABM INDUSTRIES INCORPORATED

By:  /s/  D. Anthony Scaglione    
Title:  SVP, TREASURER    

BANK OF AMERICA, N.A., as Administrative Agent

By:  /s/  Angela Larkin    
Title:  ASSISTANT VICE PRESIDENT    

BANK OF AMERICA, N.A.,  
as a Lender, as L/C Issuer 
and as Swing Line Lender

By:  /s/ Ronald J. Drobny    
Name:  Ronald J. Drobny    
Title:  SENIOR VICE PRESIDENT    

JPMORGAN CHASE BANK, N.A.,  
as a Lender 

By:  /s/  Devin Rocusano    
Name:  Devin Rocusano    
Title:   VICE PRESIDENT    

CITIZENS BANK, N.A., formerly known as RBS Citizens, N.A., as a Lender 

By:  /s/  Hassan Sayed    
Name:  Hassan Sayed    
Title:  VICE PRESIDENT    

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., 
as a Lender 

By:  /s/  Maria Iarriccio    
Name:  Maria Iarriccio    
Title:  DIRECTOR    

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as a Lender 

By:  /s/  Eric Frandson    
Name:  Eric Frandson    
Title:  MANAGING DIRECTOR    

U.S. BANK NATIONAL ASSOCIATION,  
as a Lender 

By:  /s/  Michael E. Temnick    
Name:  Michael E. Temnick    
Title:  VICE PRESIDENT    

KEYBANK NATIONAL ASSOCIATION,  
as a Lender 

By:  /s/  Geoff Smith    
Name:  Geoff Smith    
Title:  SENIOR VICE PRESIDENT    

SANTANDER BANK, N.A.,  
as a Lender 

By:  /s/  Scott Wollard    
Name:  Scott Wollard    
Title:  MANAGING DIRECTOR    

BANK OF THE WEST,  
as a Lender 

By:  /s/  Robert Kido    
Name:  Robert Kido    
Title:  VICE PRESIDENT    

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,  
as a Lender 

By:      
Name:      
Title:      

By:      
Name:      
Title:      

FIFTH THIRD BANK,  
as a Lender 

By:  /s/  Jordan Fragiacomo    
Name:  Jordan Fragiacomo    
Title:  MANAGING DIRECTOR    

PNC BANK, National Association,  
as a Lender 

By:  /s/  Amishi Patel    
Name:  Amishi Patel    
Title:  VICE PRESIDENT    

HSBC BANK USA, NATIONAL ASSOCIATION,  
as a Lender 

By:  /s/  Aidan R. Spoto    
Name:  Aidan R. Spoto    
Title:  VICE PRESIDENT    

THE NORTHERN TRUST COMPANY,  
as a Lender 

By:  /s/  Tyson Banbury    
Name:  Tyson Banbury    
Title:  OFFICER    

NEW LENDER:

CAPITAL ONE, NATIONAL ASSOCIATION,  
as a Lender 

By:  /s/  Paul Darrigo    
Name:  Paul Darrigo    
Title:  SENIOR VICE PRESIDENT    

NEW LENDER:

BRANCH BANKING AND TRUST COMPANY,  
as a Lender 

By:  /s/  Jim Wiegand    
Name:  Jim Wiegand    
Title:  VICE PRESIDENT    

EXHIBIT A
CONFIRMATION

Dated as of December 5, 2014

To:    Bank of America, N.A., individually and as Administrative Agent, and the other financial institutions party to the Credit Agreement referred to below

Please refer to (a) the Credit Agreement, dated as of November 30, 2010 (as previously amended, the “Credit Agreement”), among ABM Industries Incorporated (the “Company”), various financial institutions (the “Lenders”) and Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”); (b) the Subsidiary Guaranty (as defined in the Credit Agreement) and (c) the Fourth Amendment to the Credit Agreement dated as of the date hereof (the “Fourth Amendment”). Capitalized terms used but not otherwise defined herein have the respective meanings ascribed thereto in the Subsidiary Guaranty.
    
Each of the undersigned confirms to the Administrative Agent and the Lender Parties that, after giving effect to the Fourth Amendment and the transactions contemplated thereby (including this Confirmation), the Subsidiary Guaranty continues in full force and effect and is the legal, valid and binding obligation of such undersigned, enforceable against such undersigned in accordance with its terms.

[Signatures begin on next page]

ABM Janitorial Services, Inc.
ABM Janitorial Services – Mid-Atlantic, Inc.
ABM Janitorial Services – North Central, Inc.
ABM Janitorial Services – Northeast, Inc.
ABM Janitorial Services – Northwest, Inc.
ABM Janitorial Services – South Central, Inc.
ABM Janitorial Services – Southeast, LLC
ABM Healthcare Support Services, Inc. (FKA HHA Services)
ABM Industrial Services, Inc.
ABM Parking Services, Inc. (FKA Ampco System Parking)
ABM Security Services, Inc.
ABM Services, Inc.
ABM Shared Services, Inc.
Air Serv Corporation
Air Serv Facility Services, Inc.
Diversco, Inc.
OneSource Facility Services, Inc. (converted from OneSource Facility Services LLC to a corporation)
OneSource Holdings, LLC
Servall Services Inc.
Southern Management ABM, LLC 
ABM Facility Solutions Group, LLC (FKA The Linc Group, LLC)
GreenHomes America, LLC
REEP, Inc.
ABM Government Services, LLC (FKA Linc Government Services, LLC)
ABM Government Services Afghanistan Branch, LLC (FKA Linc Government Services Afghanistan Branch)
Ferguson-Williams LLC
ABM Facility Services, Inc.
Linc International, Inc.
Linc Facility Services UAE, LLC
Linc Facility Services Iraq LLC
Linc Facility Services ME, LLC
ABM Franchising Group, LLC (FKA Linc Network LLC)
ABM Building & Energy Solutions, Inc. (FKA Linc Building & Energy Solutions Inc.)
ABM Building Solutions, LLC (FKA Linc Mechanical)
ABM Building Services, LLC (FKA Linc Services LLC)
ABM Electrical Power Solutions, LLC (FKA MET Electrical Testing)
ABM Electrical Power Services, LLC (FKA CET Electrical Testing)
ABM Health, Inc. (FKA Linc Health, Inc.)
ABM Electrical Network, Inc. 
ABM Electrical & Lighting Solutions, Inc. (FKA ABM Electrical Inc.)

By:     /s/  D. Anthony Scaglione     
Name:Anthony Scaglione    
Title:   SVP, TREASURERGCEAR - Exhibit 4.1 Second A&R DRP

GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.
DISTRIBUTION REINVESTMENT PLAN
Amended and Restated As of December 27, 2014 
Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the “Company”), has adopted a distribution reinvestment plan (the “DRP”), the terms and conditions of which are set forth below.  
1.Distribution Reinvestment.  As agent for the stockholders of the Company (“Stockholders”) who purchased shares of the Company’s Common Stock (the “Shares”) through any offering of the Company (“Offering”) and who elect to participate in the DRP (the “Participants”), the Company will apply all distributions declared and paid in respect of the Shares held by each participating Stockholder (the “Distributions”), including Distributions paid with respect to any full or fractional Shares acquired under the DRP, to the purchase of the Shares for such participating Stockholders directly, if permitted under state securities laws and, if not, through the dealer manager or participating dealers registered in the participating Stockholder’s state of residence (“Participating Dealers”).
2.Effective Date.  The DRP became effective on February 20, 2009.  The board of directors of the Company amended and restated the DRP on January 31, 2013 effective February 25, 2013. The board of directors further amended and restated the DRP on December 15, 2014 effective December 27, 2014.  Any amendment or amendment and restatement to the DRP shall be effective as provided in Section 12.
3.Eligibility and Procedure for Participation.  Any Stockholder who purchased Shares pursuant to any Offering, and who has received a memorandum in a private offering or a prospectus, as contained in a registration statement for the Company filed with the Securities and Exchange Commission (the “SEC”), may elect to become a Participant by completing and executing the subscription agreement, an enrollment form or any other appropriate authorization form as may be available from the Company, the dealer manager or participating dealer.  The Company may elect to deny a Stockholder participation in the DRP if the Stockholder resides in a jurisdiction or foreign country where, in the Company’s judgment, the burden or expense of compliance with applicable securities laws makes the Stockholder’s participation impracticable or inadvisable.  Participation in the DRP will begin with the next Distribution payable after receipt of a Participant’s accepted subscription, enrollment or authorization.  
Once enrolled, a Participant may continue to purchase stock under the DRP until all of the shares of stock registered have been sold, the Company has terminated a current offering, or the Company has terminated the DRP.  A Participant can choose to have all or a portion of distributions reinvested through the DRP.  A Participant may also change the percentage of distributions that will be reinvested at any time by completing a new enrollment form or other form provided for that purpose.  Any election to increase a Participant’s level of participation must be made through a participating dealer or, if purchased other than through a participating dealer, through the Company’s dealer manager.  Shares will be purchased under the DRP on the date that Distributions are paid by the Company.  
Each Participant agrees that if, at any time prior to the listing of the Shares on a national securities exchange, he or she fails to meet the suitability requirements for making an investment in the Company or cannot make the other representations or warranties set forth in the Subscription Agreement, he or she will promptly so notify the Company in writing.
4.Purchase of Shares.  Participants may acquire DRP Shares from the Company at a price equal to $10.40 per share, until the earliest of (A) the date that all of the DRP Shares registered have been issued or (B) all offerings terminate and the Company elects to deregister with the SEC the unsold DRP Shares, if any.  The DRP Share price was determined by the Company’s board of directors in its business judgment.  The Company’s board of directors may set or change the DRP Share price for the purchase of DRP Shares at any time in its sole and absolute discretion based upon such factors as it deems appropriate.  Participants in the DRP may also purchase fractional Shares so that 100% of the Distributions will be used to acquire Shares; however, a Participant will not be able to acquire DRP Shares to the extent that any such purchase would cause such Participant to exceed the ownership limit as set forth in the Company’s charter or otherwise would cause a violation of the share ownership restrictions set forth in the Company’s charter.
Shares to be distributed by the Company in connection with the DRP may (but are not required to) be supplied from: (A) Shares registered, or to be registered, with the SEC in a public offering for use in the DRP (a “Registration”), or (B) Shares of the Company’s common stock purchased by the Company for the DRP in a secondary market (if available) or on a national securities exchange (collectively, the “Secondary Market”).
Shares purchased in any Secondary Market will be purchased at the then-prevailing market price, which price will be used for purposes of issuing Shares in the DRP.  Shares acquired by the Company in any Secondary Market or registered in a Registration for use in the DRP may be at prices lower or higher than the Share price which will be paid for the DRP Shares pursuant to an Offering.
If the Company acquires Shares in any Secondary Market for use in the DRP, the Company shall use its reasonable efforts to acquire Shares at the lowest price then reasonably available.  However, the Company does not in any respect guarantee or warrant that the Shares so acquired and purchased by the Participant in the DRP will be at the lowest possible price.  Further, irrespective of the Company’s ability to acquire Shares in any Secondary Market or to make an offering for Shares to be used in the DRP, the Company is in no way obligated to do either, in its sole discretion.
5.No Commissions or Other Charges.  No dealer manager fee and no commissions will be paid with respect to the DRP Shares.
6.Exclusion of Certain Distributions.  The board of directors of the Company reserves the right to designate that certain cash or other distributions attributable to net sale proceeds will be excluded from Distributions that may be reinvested in shares under the DRP.  
7.Taxation of Distributions.  The reinvestment of Distributions in the DRP does not relieve Participants of any taxes which may be payable as a result of those Distributions and their reinvestment pursuant to the terms of this Plan.
8.Stock Certificates.  The ownership of the Shares purchased through the DRP will be in book-entry form unless and until the Company issues certificates for its outstanding common stock.
9.Voting.    A Participant may vote all shares acquired through the DRP.    
10.Reports.  Within 90 days after the end of the Company’s fiscal year, the Company shall provide each Stockholder with an individualized report on his or her investment, including the purchase date(s), purchase price and number of Shares owned, as well as the dates of Distribution payments and amounts of Distributions paid during the prior fiscal year.
11.Termination by Participant.  A Participant may terminate participation in the DRP at any time, without penalty by delivering to the Company a written notice.  Prior to listing of the Shares on a national securities exchange, any transfer of Shares by a Participant to a non-Participant will terminate participation in the DRP with respect to the transferred Shares.  Upon termination of DRP participation for any reason, Distributions paid subsequent to termination will be distributed to the Stockholder in cash.
12.Amendment or Termination of DRP by the Company.  The board of directors of the Company may by majority vote (including a majority of the independent directors) amend, modify, suspend or terminate the DRP for any reason upon 10 days’ written notice to the Participants; provided, however, no such amendment shall add compensation to the DRP or remove the opportunity for a Participant to terminate participation in the DRP, as specified above.
13.    Liability of the Company.  The Company shall not be liable for any act done in good faith, or for any good faith omission to act, including, without limitation, any claims or liability (A) arising out of failure to terminate a Participant’s account upon such Participant’s death prior to receipt of notice in writing of such death, or (B) with respect to the time and the prices at which Shares are purchased or sold for a Participant’s account.  Any limitation of the Company’s liability under this Section 13 may be further limited by Section II.G. of the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association, as applicable.  To the extent that indemnification may apply to liabilities arising under the Securities Act of 1933, as amended, or the securities laws of a particular state, the Company has been advised that, in the opinion of the SEC and certain state securities commissioners, such indemnification is contrary to public policy and, therefore, unenforceable.

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