Document:

Unassociated Document

Exhibit 10.5

 

INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT

 

This Intercreditor and Collateral Agency Agreement (this “Agreement”), dated as of this 11th day of October 2012, is by and among Bank of America, N.A. (“Bank of America”), in its capacity as administrative agent and collateral agent under the Credit Agreement referenced below (in such capacity, together with any assignee, successor or replacement, the “Bank Agent”) and on behalf of the Secured Bank Creditors (as defined below), the Noteholders (as defined below) from time to time party hereto, Bank of America, in its capacity as collateral agent for the Secured Creditors (as defined below) (in such capacity, together with any successor or replacement agent which may be appointed pursuant to this Agreement, the “Collateral Agent”) and Granite Construction Incorporated (the “Company”) for itself and on behalf of the Loan Parties (as defined below).  All terms used herein which are defined in Section 1 hereof or in the text of any other Section hereof shall have the meanings given therein.

 

WITNESSETH:

 

WHEREAS, pursuant to the Credit Agreement the Banks are making on the date hereof and the Banks may from time to time hereafter make loans to the Company and the other Credit Agreement Borrowers and the L/C Issuer may issue Letters of Credit for the account of the Company and its subsidiaries; and

 

WHEREAS, certain additional extensions of credit may be made from time to time for the benefit of the Loan Parties pursuant to certain Secured Cash Management Agreements, Secured Hedge Agreements and Secured Card Related Products Agreements (each as defined in the Credit Agreement as in effect on the date hereof or any analogous term set forth in any Successor Credit Agreement and collectively referred to herein as the “Related Credit Arrangements”); and

 

WHEREAS, pursuant to the 2001 Note Agreement and the 2007 Note Agreement, respectively, the 2001 Noteholders and the 2007 Noteholders who are the initial signatories hereto are the owners and holders of the 2001 Notes and the 2007 Notes, respectively, of the Company; and

 

WHEREAS, the Company may, subject to the restrictions in the Applicable Credit Documents and Section 22 of this Agreement, from time to time issue Additional Notes (including 2007 NPA Additional Notes pursuant to the 2007 Note Agreement) and enter into Successor Credit Agreements; and

 

WHEREAS, pursuant to the Guaranty Agreements the Guarantors have guarantied the Secured Obligations; and

 

WHEREAS, pursuant to the Collateral Documents the Loan Parties are granting to the Collateral Agent liens upon and security interests in the Collateral to secure the Secured Obligations; and

 

  

  

  

 

WHEREAS, the Secured Bank Creditors and the Noteholders desire to appoint Bank of America as their agent with respect to the Collateral and the Collateral Documents; and

 

WHEREAS, the Secured Creditors desire to agree upon the priorities for the application of any proceeds from the Collateral and the Guaranty Agreements and to agree upon various other matters with respect to their respective agreements with the Loan Parties and their rights thereunder.

 

NOW, THEREFORE, for the above reasons, in consideration of the mutual covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Definitions.

 

For the purposes of this Agreement, the following terms shall have the meanings specified with respect thereto below.  Any plural term that is used herein in the singular shall be taken to mean each entity or item of the defined class and any singular term that is used herein in the plural shall be taken to mean all of the entities or items of the defined class, collectively.

 

“Additional Noteholders” shall mean each initial purchaser of the Additional Notes and each other holder from time to time of the Additional Notes that becomes a party hereto and each of their respective successors and assigns; provided in each case that the applicable holder of such Additional Note has executed a joinder agreement in compliance with Section 22 hereof and delivered a copy of the same to the Collateral Agent.

 

“Additional Notes” shall mean (a) 2007 NPA Additional Notes and (b) one or more new series of additional senior notes issued from time to time pursuant to one or more note purchase agreement or agreements with institutional investors in replacement or substitution for all or a portion of the 2001 Notes, the 2007 Notes or the 2007 NPA Additional Notes, if any, together with any notes issued in replacement or substitution therefor pursuant to the applicable note purchase agreement or agreements; provided in each case that the issuance of such Additional Note is in compliance with the Applicable Credit Documents then in effect and the requirements of Section 22 hereof.

 

“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such first Person.  A Person shall be deemed to control a corporation or other entity if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such corporation or entity, whether through the ownership of voting securities, by contract or otherwise.

 

“Applicable Credit Documents” shall mean (a) with respect to the Secured Bank Creditors, the Credit Agreement and the other Loan Documents and, as to each Secured Bank Creditor that is a party to any Related Credit Arrangement, the Secured Cash Management Agreements, Secured Hedge Agreements and Secured Card Related Products Agreements to which it is a party, as applicable, (b) with respect to the 2001 Noteholders, the 2001 Notes, the 2001 Note Agreement and all other Notes Documents evidencing or executed in connection with the 2001 Notes, (c) with respect to the 2007 Noteholders, the 2007 Notes, the 2007 Note Agreement and all other Notes Documents evidencing or executed in connection with the 2007 Notes and (d) with respect to any Additional Noteholder, the Additional Notes held by such Additional Noteholder and all other Notes Documents evidencing or executed in connection with the Additional Notes held by such Additional Noteholder.

 

  

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“Bank Agent” shall have the meaning set forth in the preamble to this Agreement.

 

“Bankruptcy Code” shall have the meaning set forth in Section 10 of this Agreement.

 

“Banks” shall mean the “Lenders” as defined in the Credit Agreement as in effect on the date hereof and, as the context may require, shall include any Successor Lenders.

 

“Card Related Products Banks” shall mean each Bank and each affiliate of a Bank that is a “Card Related Products Bank,” as defined in the Credit Agreement as in effect on the date hereof, and any analogous definition set forth in any Successor Credit Agreement; provided in the case of an affiliate of a Bank, such affiliate has executed a joinder agreement in compliance with Section 23 hereof and delivered a copy of the same to the Collateral Agent and Schiff Hardin LLP.

 

“Cash Management Banks” shall mean each Bank and each affiliate of a Bank that is a “Cash Management Bank,” as defined in the Credit Agreement as in effect on the date hereof, and any analogous definition set forth in any Successor Credit Agreement; provided in the case of an affiliate of a Bank, such affiliate has executed a joinder agreement in compliance with Section 23 hereof and delivered a copy of the same to the Collateral Agent and Schiff Hardin LLP.

 

“Collateral” shall mean all property and assets, and interests in property and assets, upon or in which any Loan Party has granted a lien or security interest to the Collateral Agent to secure the Secured Obligations and all balances held by the Collateral Agent or any other Secured Creditor for the account of any Loan Party or any other property held or owing by the Collateral Agent or any other Secured Creditor to or for the credit or for the account of any Loan Party with respect to which the Collateral Agent or any other Secured Creditor has rights to setoff or appropriate or a common law lien, but in each case excluding any cash collateral provided to the Bank Agent or the L/C Issuer pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender.”

 

“Collateral Agent” shall have the meaning set forth in the preamble to this Agreement.

 

“Collateral Agent Expenses” shall mean, without limitation, all costs and expenses incurred by the Collateral Agent in connection with the performance of its duties under this Agreement, including the realization upon or protection of the Collateral or enforcing or defending any lien upon or security interest in the Collateral or any other action taken in accordance with the provisions of this Agreement, expenses incurred for legal counsel in connection with the foregoing, and any other costs, expenses or liabilities incurred by the Collateral Agent for which the Collateral Agent is entitled to be reimbursed or indemnified by a Loan Party pursuant to this Agreement or any Collateral Document or by the Secured Creditors pursuant to this Agreement.

 

  

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“Collateral Agent Obligations” shall mean all obligations of any Loan Party to pay, reimburse or indemnify the Collateral Agent for any Collateral Agent Expenses.

 

“Collateral Documents” shall mean the agreements and instruments set forth on Schedule 1 hereto and any other agreement, document or instrument in effect on the date hereof or executed by any Loan Party after the date hereof under which such Loan Party has granted a lien upon or security interest in any property or assets to the Collateral Agent to secure all or any part of the Secured Obligations, all financing statements, certificates, documents and instruments relating thereto or executed or provided in connection therewith, each as amended, restated, supplemented or otherwise modified from time to time.

 

“Company” shall have the meaning set forth in the preamble to this Agreement, and shall include its successors and assigns.

 

“Credit Agreement” shall mean (a) the Amended and Restated Credit Agreement, dated as of the date hereof, among the Credit Agreement Borrowers, the Banks, and the Bank Agent, as amended, restated, supplemented or otherwise modified from time to time, and (b) any Successor Credit Agreement, as the context may require.

 

“Credit Agreement Borrowers” shall mean the Company, Granite Construction Company, a California corporation, and GILC Incorporated, a California corporation.

 

“Default” shall mean a “Default” as defined in the Credit Agreement, the 2001 Note Agreement or the 2007 Note Agreement and any analogous definition set forth in any Notes Documents pertaining to any Additional Notes or under any Successor Credit Agreement.

 

“Dollar Equivalent” shall mean the “Dollar Equivalent” as defined in the Credit Agreement as in effect on the date hereof and any analogous definition set forth in any Successor Credit Agreement.

 

  

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“Enforcement” shall mean (a) for any Secured Creditor to make demand for payment prior to the scheduled payment date of, or accelerate the time for payment of, any Secured Obligation or to make any claim under any Guaranty Agreement or to call for funding of or collateral for any Letter of Credit (other than a call for collateral as a result of a Bank that is a “Defaulting Lender” as provided for in the Credit Agreement, as a result of a termination of the commitments while no Event of Default exists, as a result of any refinancing of the Credit Agreement or as a result of Letters of Credit exceeding any applicable sublimits) prior to being presented with a draft drawn thereunder (or, in the event the draft is a time draft, prior to its due date), (b) for the Bank Agent or any Bank to terminate its commitment to make or refuse to make revolving loans or issue Letters of Credit pursuant to the Credit Agreement as a result of an existing Event of Default; provided, that if (i) the applicable Event of Default is waived in accordance with the terms of the Credit Agreement, (ii) no event described in any other clause of this definition has occurred prior to such waiver, (iii) since the time of such termination or such refusal, no reduction shall have occurred in the outstanding principal amount of any loan outstanding under the Credit Agreement or any other Loan Documents or the undrawn face amount of any outstanding Letter of Credit at such time (other than a reduction in the undrawn face amount of any outstanding Letter of Credit as a result of the expiration thereof), (iv) any loan that was refused shall have been made in the full principal amount thereof and (v) the commitments to make revolving loans have not been terminated or, if previously terminated, shall have been reinstated, then an Enforcement that has previously occurred solely under this clause (b) shall be deemed to no longer exist, (c) for any Secured Creditor to commence the judicial enforcement of any rights or remedies under any Applicable Credit Document or with respect to any Secured Obligation, or to setoff, freeze or otherwise appropriate any balances held by it for the account of any Loan Party or any other property at any time held or owing by it to or for the credit or for the account of any Loan Party (excluding the application of any cash collateral under the Credit Agreement provided to the Bank Agent or the L/C Issuer pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender”), (d) for the Collateral Agent to commence the judicial enforcement of any rights or remedies under any Collateral Document (other than an action solely for the purpose of establishing or defending the lien or security interest intended to be created by any Collateral Document upon or in any Collateral as against or from claims of third parties on or in such Collateral), to setoff, freeze or otherwise appropriate any balances held by it for the account of any Loan Party or any other property at any time held or owing by it to or for the credit or for the account of any Loan Party (excluding the application of any cash collateral under the Credit Agreement provided to the Bank Agent or the L/C Issuer pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender”) or to otherwise take any action (whether judicial or non-judicial) to realize upon the Collateral, or (e) the commencement by, against or with respect to any Loan Party of any proceeding under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law or for the appointment of a receiver for such Loan Party or its assets.

 

“Event of Default” shall mean an “Event of Default" as defined in the Credit Agreement, the 2001 Note Agreement or the 2007 Note Agreement and any analogous definition set forth in any Notes Documents pertaining to any Additional Notes or under any Successor Credit Agreement.

 

“Facility Termination Date” shall mean the “Facility Termination Date” as defined in the Credit Agreement as in effect on the date hereof, and any analogous definition set forth in any Successor Credit Agreement; provided, in each case that if a Letter of Credit is outstanding under a Credit Agreement and such Letter of Credit is not either being cancelled or deemed issued under a Successor Credit Agreement to which the issuer of such Letter of Credit is a party, the Credit Agreement Borrowers shall be required to obtain and deliver a backstop letter of credit in form and substance satisfactory to the issuer of such Letter of Credit (rather than cash collateral) in order for a Facility Termination Date to occur with respect the Credit Agreement under which such Letter of Credit is issued except to the extent otherwise expressly agreed in writing by such issuer.

 

“Guarantors” shall mean GILC Incorporated, a California corporation, Granite Construction Company, a California corporation, Granite Construction Northeast, Inc., a New York corporation, Intermountain Slurry Seal, Inc., a Wyoming corporation, and each other subsidiary of the Company that from time to time guarantees any of the Secured Obligations.

 

  

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“Guaranty Agreements” shall mean the Amended and Restated Guaranty Agreement, dated as of the date hereof made by each Guarantor in favor of the Bank Agent for the benefit of the Secured Bank Creditors, the Subsidiary Guaranty Agreement, dated as of May 1, 2001, made by each Guarantor in favor of the 2001 Noteholders, the Subsidiary Guaranty Agreement, dated as of December 12, 2007, made by each Guarantor in favor of the 2007 Noteholders, and any other guaranty hereafter made by a subsidiary of the Company in favor of any Secured Creditor in accordance with the provisions of the Applicable Credit Documents, each as amended, restated, supplemented or otherwise modified from time to time.

 

“Hedge Banks” shall mean each Bank and each affiliate of a Bank that is a “Hedge Bank,” as defined in the Credit Agreement as in effect on the date hereof, and any analogous definition set forth in any Successor Credit Agreement; provided in the case of an affiliate of a Bank, such affiliate has executed a joinder agreement in compliance with Section 23 hereof and delivered a copy of the same to the Collateral Agent and Schiff Hardin LLP.

 

“Indemnitees” shall have the meaning given in Section 2(j) hereof.

 

“L/C Issuer” shall mean any Bank that from time to time issues a Letter of Credit under the Credit Agreement.

 

“Letters of Credit” shall mean any letters of credit issued from time to time pursuant to the terms of the Credit Agreement.

 

“Letter of Credit Collateral Obligations” shall mean all of the obligations of the Credit Agreement Borrowers under the Credit Agreement to deposit cash with the Collateral Agent with respect to Outstanding Letter of Credit Exposure.

 

“Loan Document” shall mean the “Loan Documents” as defined in the Credit Agreement as in effect on the date hereof, together with any analogous definition set forth in any Successor Credit Agreement.

 

“Loan Parties” shall mean the Company, the other Credit Agreement Borrowers and the Guarantors.

 

“Make-Whole Amount” shall mean the “Make-Whole Amount” as defined in the 2001 Note Agreement as in effect on the date hereof or 2007 Note Agreement as in effect on the date hereof, as applicable, and any analogous definition set forth in any Notes Documents pertaining to any Additional Notes.

 

“Noteholders” shall mean the 2001 Noteholders, the 2007 Noteholders and any Additional Noteholders.

 

“Notes” shall mean the 2001 Notes, the 2007 Notes and any Additional Notes.

 

“Notes Documents” means the 2001 Notes, the 2001 Note Agreement, the 2007 Notes, the 2007 Note Agreement, any Additional Notes, and all note purchase agreements, promissory notes, guaranties and other documents evidencing or executed in connection with any series of Notes.

 

  

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“Outstanding Letter of Credit Exposure” at any time shall mean the undrawn face amount of all outstanding Letters of Credit at such time; provided, that the undrawn face amount of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the undrawn face amount of such Letter of Credit in effect at such time.

“Person” shall mean and include an individual, a partnership, a joint venture, a corporation, a trust, a limited liability company, an unincorporated organization, a government or any department or agency thereof or any other entity.

 

“Pro Rata Expenses Share” with respect to any Secured Creditor shall mean (a) at any time before the time the commitments of the Secured Bank Creditors to make additional loans under the Credit Agreement have been terminated, the ratio of (i) the sum of (w) the amount of such Secured Creditor’s commitment to make revolving credit loans under the Credit Agreement at such time, (x) if any term loans have been made pursuant to the Credit Agreement at such time, the aggregate outstanding principal amount of such term loans held by such Secured Creditor at such time, (y) the aggregate outstanding amount of any other Secured Obligations owed to such Secured Creditor under any Related Credit Arrangement at such time and (z) the aggregate outstanding principal amount of the Notes held by such Secured Creditor at such time, to (ii) the sum of (w) the total of the commitments of the Bank Lenders to make revolving credit loans under the Credit Agreement at such time, (x) if any term loans have been made pursuant to the Credit Agreement at such time, the aggregate outstanding principal amount of such term loans held by all Secured Creditors at such time, (y) the aggregate outstanding amount of any other Secured Obligations owed to all Secured Creditor under the Related Credit Arrangements at such time and (z) the aggregate outstanding principal amount of all of the Notes at such time or (b) at any time on and after the time the commitments of the Secured Bank Creditors to make additional loans under the Credit Agreement have been terminated, the ratio of (i) the sum of (w) the aggregate outstanding principal amount of such Secured Creditor’s outstanding revolving credit loans under the Credit Agreement at such time, (x) if any term loans have been made pursuant to the Credit Agreement at such time, the aggregate outstanding principal amount of such term loans held by such Secured Creditor at such time, (y) the aggregate outstanding amount of any other Secured Obligations owed to such Secured Creditor under any Related Credit Arrangement at such time and (z) the aggregate outstanding principal amount of the Notes held by such Secured Creditor at such time, to (ii) the sum of (w) the aggregate outstanding principal amount of all Secured Creditor’s outstanding revolving credit loans under the Credit Agreement at such time, (x) if any term loans have been made pursuant to the Credit Agreement at such time, the aggregate outstanding principal amount of such term loans held by all Secured Creditors at such time, (y) the aggregate outstanding amount of any other Secured Obligations owed to all Secured Creditor under the Related Credit Arrangements at such time and (z) the aggregate outstanding principal amount of all of the Notes at such time.

 

“Related Credit Arrangement” shall have the meaning set forth in the recitals to this Agreement.

 

“Required Holders” at any time shall mean Noteholders holding more than 50% of the principal amount of the Notes at such time outstanding (exclusive of Notes then owned by the Company, any of its subsidiaries or any of its Affiliates or any Person that is not party hereto).

 

  

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“Required Lenders” shall mean the “Required Lenders” as defined in the Credit Agreement as in effect on the date hereof, and any analogous definition set forth in any Successor Credit Agreement.

 

“Required Secured Creditors” at any time shall mean both (a) the Required Lenders and (b) the Required Holders; provided that if at any time the Secured Obligations owing to the Secured Bank Creditors or the Noteholders, as the case may be, is less than 10% of the aggregate amount of all Secured Obligations at such time (the Secured Bank Creditors or the Noteholders, as the case may be, a “Deminimis Group”), then the Secured Creditors shall be determined without regard to clause (a) if the Deminimis Group is the Secured Bank Creditors, and clause (b) if the Deminimis Group is the Noteholders.  For the purpose of the foregoing calculation, the amount of Secured Obligations owing to the Secured Bank Creditors with respect to Letters of Credit shall be the sum of (i) the Outstanding Letter of Credit Exposure, plus, the (ii) the amount of all drawings under Letters of Credit that have not been either reimbursed by the Company or refinanced as loans under the Credit Agreement.

 

“Secured Bank Creditors” shall mean, collectively, the Bank Agent, the Banks, the L/C Issuer, the Hedge Banks, the Cash Management Banks, the Card Related Products Banks and each co-agent or sub-agent appointed by the Bank Agent from time to time pursuant to the Credit Agreement.

 

“Secured Creditors” shall mean the Collateral Agent and each co-agent or sub-agent appointed by the Collateral Agent from time to time pursuant to this Agreement, the Secured Bank Creditors and the Noteholders.

 

“Secured Obligations” shall mean (a) the Collateral Agent Obligations, (b) (i) all principal and interest on the loans advanced from time to time under the Credit Agreement and all other advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any loan or Letter of Credit made pursuant to any Loan Document and (ii) all obligations of any Loan Party arising under Related Credit Arrangements (c) (i) all principal, Make-Whole Amount, if any, and interest on the Notes and all other advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Notes Document or otherwise with respect to any Note issued pursuant to any Notes Document, (d) all of the other present or future indebtedness, liabilities and obligations of any Loan Party now or hereafter owed to any or all of the Collateral Agent, the Bank Agent, the Banks or the Noteholders, evidenced by or arising under, by virtue of or pursuant to this Agreement, any Applicable Credit Document, the Collateral Documents or the Guaranty Agreements, whether such indebtedness, liabilities and obligations are direct or indirect, joint, several or joint and several, and (e) all costs and expenses incurred in connection with enforcement and collection of any of the foregoing, including the fees, charges and disbursements of counsel, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof pursuant to any proceeding under the Bankruptcy Code or in a similar process in any proceeding under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law naming such Person as the debtor in such proceeding.  The term “Secured Obligations” shall include all of the foregoing indebtedness, liabilities and obligations whether or not allowed as a claim in any bankruptcy, insolvency, receivership or similar proceeding.

 

  

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“Successor Credit Agreement” shall mean any replacement, refinancing or restructuring of the Credit Agreement then in effect; provided that each Successor Lender thereunder or an agent duly authorized to act on behalf of all such Successor Lenders has executed a joinder to this Agreement and delivered same to the Collateral Agent in compliance with Section 22 hereof.

 

“Successor Lender” shall mean each financial institution or lender that has entered into one or more agreements with one or more of the Loan Parties from time to time either extending the maturity of or refinancing all or any portion of the Secured Obligations under the Credit Agreement then in effect or making additional extensions of credit under the Credit Agreement then in effect and is intended to be secured on a pari passu basis pursuant to the Collateral Documents.

 

“Termination Date” shall mean the earlier of (a) the first day on which (i) the Facility Termination Date shall have occurred and (ii) all of the principal, Make-Whole Amount, if any, and interest on the Notes and all other amounts due and owing the Noteholders under the Notes Documents shall have been paid in full; provided that a Facility Termination Date shall be deemed to have not occurred pursuant to clause (a)(i) of this definition to the extent an existing Credit Agreement is being substantially simultaneously replaced with a Successor Credit Agreement, and (b) the “Collateral Release Date” as defined in the Credit Agreement, the 2001 Note Agreement and the 2007 Note Agreement and any analogous definition set forth in any Successor Credit Agreement or in any other Notes Document shall have occurred.

 

“2001 Note Agreement” shall mean the Note Purchase Agreement, dated as of May 1, 2001, originally between the Company and the purchasers listed on Schedule A thereto, as amended by the First Amendment thereto dated as of June 15, 2003 and the Second Amendment thereto dated as of the date hereof, and as amended, restated, supplemented or otherwise modified from time to time.

 

“2001 Noteholders” shall mean holders of the 2001 Notes as set forth on Annex A hereto, together with each other holder from time to time of the 2001 Notes that becomes a party hereto and each of their respective successors and assigns.

 

“2001 Notes” shall mean the Company’s 6.96% Senior Notes due May 1, 2013 issued pursuant to the 2001 Note Agreement, together with any replacements therefor issued pursuant to the 2001 Note Agreement.

 

“2007 Note Agreement” shall mean the Note Purchase Agreement, dated as of December 12, 2007, originally between the Company and the purchasers listed on Schedule A thereto, as amended by the First Amendment thereto dated as of the date hereof, and as amended, restated, supplemented or otherwise modified from time to time.

 

“2007 Noteholders” shall mean holders of the 2007 Notes as set forth on Annex B hereto together with each other holder from time to time of the 2007 Notes that becomes a party hereto and each of their respective successors and assigns.

 

  

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“2007 Notes” shall mean the Company’s 6.11% Series 2007-A Senior Notes due December 12, 2019 issued pursuant to the 2007 Note Agreement, together with any replacements therefor issued pursuant to the 2007 Note Agreement.

 

“2007 NPA Additional Notes” shall mean any “Additional Notes” issued pursuant to the 2007 Note Agreement, together with any notes issued in replacement or substitution therefor pursuant to the 2007 Note Agreement.

 

2.    Collateral Agency Provisions.

 

(a)   Appointment of Collateral Agent.  Subject in all respects to the terms and provisions of this Agreement, the Secured Bank Creditors and the Noteholders hereby appoint Bank of America to act as agent for the benefit of the Secured Creditors with respect to the liens upon and the security interests in the Collateral and the rights and remedies granted under and pursuant to the Collateral Documents, and Bank of America hereby accepts such appointment and agrees to act as such agent.  The appointment of the Collateral Agent pursuant to this Agreement shall be effective with respect to all financing statements filed in any filing office with respect to any Loan Party prior to the date of this Agreement on and as of the date such financing statements were filed.  The agency created hereby shall in no way impair or affect any of the rights and powers of, or impart any duties or obligations upon, Bank of America in its individual capacity as a Secured Bank Creditor or as Bank Agent.  To the extent legally necessary to enable the Collateral Agent to enforce or otherwise foreclose and realize upon any of the liens or security interests in the Collateral in any legal proceeding which the Collateral Agent either commences or joins as a party in accordance with the terms hereof, each of the Secured Creditors agrees to join as a party in such proceeding and take such action therein concurrently to enforce and obtain a judgment for the payment of the Secured Obligations held by it.

 

(b)   Duties of Collateral Agent.  Subject to the Collateral Agent having been directed to take such action in accordance with the terms of this Agreement, each Secured Bank Creditor hereby and each Noteholder irrevocably authorizes the Collateral Agent to take such action on its behalf under the provisions of the Collateral Documents and any other instruments, documents and agreements referred to therein and to exercise such powers thereunder as are specifically delegated to the Collateral Agent by the terms thereof and such other powers as are reasonably incidental thereto.  Subject to the provisions of Section 11 hereof, the Collateral Agent is hereby irrevocably authorized to take all actions on behalf of the Secured Creditors to enforce the rights and remedies of the Collateral Agent and the other Secured Creditors provided for in the Collateral Documents or by applicable law with respect to the liens upon and security interests in the Collateral granted to secure the Secured Obligations; provided, however, that, notwithstanding any provision to the contrary in any Collateral Documents, (i) the Collateral Agent shall act solely at and in accordance with the written direction of the Required Secured Creditors, (ii) the Collateral Agent shall not, without the written consent of the Required Lenders and the Required Holders, release or terminate by affirmative action or consent to any lien upon or security interest in any Collateral granted under any Collateral Documents (except (x) upon dispositions of Collateral by a Loan Party as permitted in accordance with the terms of the Credit Agreement and the Note Agreements prior to the occurrence of an Event of Default, and (y) upon disposition of such Collateral after an Event of Default pursuant to direction given under clause (i) hereof), and (iii) the Collateral Agent shall not accept any Secured Obligations in whole or partial consideration for the disposition of any Collateral without the written consent of the Required Lenders and the Required Holders.  The Collateral Agent agrees to make such demands and give such notices under the Collateral Documents as may be requested by, and to take such action to enforce the Collateral Documents and to foreclose upon, collect and dispose of the Collateral or any portion thereof as may be directed by, the Required Secured Creditors; provided, however, that the Collateral Agent shall not be required to take any action that is determined by the Collateral Agent in good faith to be contrary to law or the terms of the Collateral Documents or this Agreement or not subject to a reasonably satisfactory indemnity hereunder.  Once a direction to take any action has been given by the Required Secured Creditors to the Collateral Agent, and subject to any other directions which may be given from time to time by the Required Secured Creditors, decisions regarding the manner in which any such action is to be implemented and conducted (with the exception of any decision to settle, compromise or dismiss any legal proceeding, with or without prejudice) shall be made by the Collateral Agent, with the assistance and upon the advice of its counsel.  Notwithstanding the provisions of the preceding sentence, any and all decisions to settle, compromise or dismiss any legal proceeding, with or without prejudice, which implements, approves or results in or has the effect of causing any release, change or occurrence, where such release, change or occurrence otherwise would require the approval of all of the Banks and Noteholders or both the Required Lenders and Required Holders pursuant to the terms of this Agreement, also shall require the approval of all of the Banks and Noteholders or the Required Lenders and Required Holders, as the case may be.

 

  

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(c)   Requesting Instructions.  The Collateral Agent may at any time request directions from the Secured Bank Creditors and the Noteholders as to any course of action or other matter relating to the performance of its duties under this Agreement and the Collateral Documents and the Secured Bank Creditors and the Noteholders shall respond to such request in a reasonably prompt manner.

 

(d)   Emergency Actions.  If the Collateral Agent has asked the Secured Bank Creditors and the Noteholders for instructions following the receipt of any notice of an Event of Default and if the Required Secured Creditors have not responded to such request within 30 days, the Collateral Agent shall be authorized to take such actions (which shall not be inconsistent with the provisions of the Credit Agreement, any Notes Document or any Collateral Document) with regard to such Event of Default which the Collateral Agent, in good faith, believes to be reasonably required to protect the Collateral from damage or destruction; provided, however, that once instructions have been received from the Required Secured Creditors, the actions of the Collateral Agent shall be governed thereby and the Collateral Agent shall not take any further action which would be contrary thereto.

 

(e)   Collateral Document Amendments.  An amendment, supplement, modification, restatement  or waiver of any provision of any Collateral Document, any consent to any departure by any Loan Party therefrom, or the execution or acceptance by the Collateral Agent of any Collateral Document not in effect on the date hereof shall be effective if, and only if, consented to in writing by the Required Secured Creditors; provided, however, that, (i) no such amendment, supplement, modification, restatement, waiver, consent or such Collateral Document not in effect on the date hereof which imposes any additional responsibilities upon the Collateral Agent shall be effective without the written consent of the Collateral Agent, (ii) no such amendment, supplement, modification, waiver or consent shall release any Collateral from the lien or security interest created by any Collateral Document not subject to the exception in clause (ii) of the proviso in Section 2(b) hereof or narrow the scope of the property or assets in which a lien or security interest is granted pursuant to any Collateral Document or change the description of the obligations secured thereby without the written consent of all of the Banks and the Noteholders, and (iii) no such consent of the Required Secured Creditors shall be required for the execution and acceptance of any additional Collateral Documents in accordance with the provisions of the Notes Documents and the Credit Agreement.

 

  

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(f)    Administrative Actions.  The Collateral Agent shall have the right to take such actions hereunder and under the Collateral Documents, not inconsistent with the instructions of the Required Secured Creditors or the terms of the Collateral Documents and this Agreement, as the Collateral Agent deems necessary or appropriate to perfect or continue the perfection of the liens on the Collateral for the benefit of the Secured Creditors.

 

(g)   Collateral Agent Acting Through Others.  The Collateral Agent may perform any of its duties under this Agreement and the Collateral Documents by or through attorneys (which attorneys may be the same attorneys who represent the Bank Agent or any other Secured Creditor), agents or other Persons reasonably deemed appropriate by the Collateral Agent.  In addition, the Collateral Agent may act in good faith reliance upon the opinion or advice of attorneys selected by the Collateral Agent.  In all cases the Collateral Agent may pay customary and reasonable compensation to all such attorneys, agents or other Persons as may be employed in connection with the performance of its duties under this Agreement and the Collateral Documents.  Without limitation of the foregoing, each of the Secured Creditors agrees that the Bank Agent is hereby appointed as the agent of the Collateral Agent with respect to any Collateral (or any account in which such Collateral is held) at any time in the possession or control of the Bank Agent for purpose of perfecting (to the extent not otherwise perfected and to the fullest extent permitted by applicable law) the Collateral Agent's lien and security interest in such Collateral; provided, that the Bank Agent hereby disclaims any representation as to the adequacy of any steps taken by it to perfect any lien or security interest on any such Collateral (or account) and shall have no responsibility, duty, obligation or liability for such perfection or failure to perfect, it being understood that the sole purpose of this appointment is to enable the Collateral Agent to obtain a perfected lien or security interest in such Collateral to the extent, if any, that such perfection results from the possession or control of such Collateral or any such account by the Bank Agent.  In furtherance of the foregoing, the Company and each other Loan Party (by its acknowledgment hereto) hereby grants a security interest securing the Secured Obligations in any such Collateral that the Bank Agent may now or from time to time hereafter control or possess for the benefit of all of the Secured Creditors.

 

(h)   Resignation and Removal of Collateral Agent.

 

(i)    The Collateral Agent (A) may resign at any time upon notice to the Secured Bank Creditors and Noteholders, and (B) may be removed at any time upon the written request of the Required Secured Creditors sent to the Collateral Agent and the other Secured Creditors.

 

  

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(ii)   If the Collateral Agent shall resign or be removed, the Required Secured Creditors shall have the right to select a replacement Collateral Agent by notice to the Collateral Agent and the other Secured Creditors.

 

(iii)   No resignation or removal of the Collateral Agent shall become effective until a replacement Collateral Agent shall have been selected as provided herein and shall have assumed in writing the obligations of the Collateral Agent hereunder and under the Collateral Documents.  In the event that a replacement Collateral Agent shall not have been selected as provided herein or shall not have assumed such obligations within 90 days after the resignation or removal of the Collateral Agent, then the Collateral Agent may, at its discretion, either appoint a replacement Collateral Agent that meets the qualifications of clause (v) below or apply to a court of competent jurisdiction to appoint a replacement Collateral Agent.

 

(iv)   Upon the acceptance of a successor’s appointment as Collateral Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the resigning or removed Collateral Agent (other any rights to indemnity payments or other amounts owed to the resigning or removed Collateral Agent as of the effective date of its replacement), and the resigning or removed Collateral Agent shall be discharged from all of its duties and obligations hereunder or under the other Collateral Documents.  The fees payable by the Credit Agreement Borrowers to a successor Collateral Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Credit Agreement Borrowers and such successor.  After the resigning or removed Collateral Agent’s resignation or removal hereunder and under the other Collateral Documents has become effective, the provisions of this Section 2 shall continue in effect for the benefit of such resigning or removed Collateral Agent, its sub-agents and the other Indemnitees in respect of any actions taken or omitted to be taken by any of them while the resigning or removed Collateral Agent was acting as Collateral Agent

 

(v)   Any replacement Collateral Agent shall be a bank, trust company, or insurance company having capital, surplus and undivided profits of at least $250,000,000.

 

(i)    Indemnification of Collateral Agent.  The Company and each other Loan Party (by its acknowledgment hereto) hereby jointly and severally agree to indemnify and hold the Collateral Agent, its officers, directors, employees and agents (including, but not limited to, any attorneys acting at the direction or on behalf of the Collateral Agent) harmless against any and all costs, claims, damages, penalties, liabilities, losses and expenses (including, but not limited to, court costs and attorneys’ fees and disbursements) which may be incurred by or asserted against the Collateral Agent or any such officers, directors, employees and agents by reason of its status as agent hereunder or which pertain, whether directly or indirectly, to this Agreement, the Collateral Documents or to any action or failure to act of the Collateral Agent as agent hereunder, except to the extent any such action or failure to act by the Collateral Agent is determined by a court of competent jurisdiction by final and nonappealable judgment to have constituted gross negligence or willful misconduct.  The obligations of the Loan Parties under this Section 2(i) shall survive the payment in full of the Secured Obligations and the termination of this Agreement.

 

  

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(j)    Liability of Collateral Agent.  In the absence of the determination by a court of competent jurisdiction by final and nonappealable judgment that such action or failure to act has constituted gross negligence, willful misconduct or a breach of this Agreement, the Collateral Agent will not be liable to any Secured Creditor for any action or failure to act or any error of judgment, negligence, mistake or oversight on its part or on the part of any of its officers, directors, employees or agents.  To the extent not paid by the Loan Parties, each Secured Creditor hereby severally, and not jointly, agrees to indemnify and hold the Collateral Agent and each of its officers, directors, employees and agents (collectively, “Indemnitees”) harmless from and against any and all liabilities, costs, claims, damages, penalties, losses and actions of any kind or nature whatsoever (including, without limitation, the fees and disbursements of counsel for any Indemnitee) incurred by or asserted against any Indemnitee arising out of or in relation to this Agreement or the Collateral Documents or its status as agent hereunder or any action taken or omitted to be taken by any Indemnitee pursuant to and in accordance with any of the Collateral Documents and this Agreement, except to the extent determined by a court of competent jurisdiction by final and nonappealable judgment to have constituted the gross negligence or willful misconduct or breach of this Agreement by such Indemnitee, with each Secured Creditor being liable only for its Pro Rata Expenses Share, as of the date of the occurrence of the event giving rise to the claim for which indemnity is sought, of any such indemnification liability.  The obligations of the Secured Creditors under this Section 2(j) shall survive the payment in full of the Secured Obligations and the termination of this Agreement.

 

(k)   No Reliance on Collateral Agent.  Neither the Collateral Agent nor any of its officers, directors, employees or agents (including, but not limited to, any attorneys acting at the direction or on behalf of the Collateral Agent) shall be deemed to have made any representations or warranties, express or implied, with respect to, nor shall the Collateral Agent or any such officer, director, employee or agent be liable to any other Secured Creditor or responsible for (i) any warranties or recitals made by any Loan Party in the Collateral Documents or any other agreement, certificate, instrument or document executed by any Loan Party in connection therewith, (ii) the due or proper execution or authorization of this Agreement or any Collateral Documents by any party other than the Collateral Agent, or the effectiveness, enforceability, validity, genuineness or collectibility as against any Loan Party of any Collateral Document or any other agreement, certificate, instrument or document executed by any of the Loan Parties in connection therewith, (iii) the present or future solvency or financial worth of any Loan Party, or (iv) the value, condition, existence or ownership of any of the Collateral or the perfection of any lien upon or security interest in the Collateral (whether now or hereafter held or granted) or the sufficiency of any action, filing, notice or other procedure taken or to be taken to perfect, attach or vest any lien or security interest in the Collateral.  Except as may be required by Section 2(b) hereof, the Collateral Agent shall not be required, either initially or on a continuing basis, to (A) make any inquiry, investigation, evaluation or appraisal respecting, or enforce performance by any Loan Party of, any of the covenants, agreements or obligations of any Loan Party under any Collateral Document, or (B) undertake any other actions (other than actions expressly required to be taken by it under this Agreement).  Nothing in any of the Collateral Documents, expressed or implied, is intended to or shall be so construed as to impose upon the Collateral Agent any obligations, duties or responsibilities except as set forth in this Agreement and therein.  The Collateral Agent shall be protected in acting upon any notice, request, consent, certificate, order, affidavit, letter, telegram, telecopy or other paper or document given to it by any Person reasonably and in good faith believed by it to be genuine and correct and to have been signed or sent by such Person.  The Collateral Agent shall have no duty to inquire as to the performance or observance of any of the terms, covenants or conditions of any Applicable Credit Document.  Except upon the direction of the Required Secured Creditors pursuant to Section 2(b) of this Agreement, the Collateral Agent will not be required to inspect the properties or books and records of any Loan Party for any purpose, including to determine compliance by the Loan Parties with their respective covenants respecting the perfection of security interests.

 

  

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(l)    Limited Agency.  Each Secured Creditor agrees that it is the intent of such Secured Creditor to limit the scope of the powers of the Collateral Agent to the specific powers delegated hereunder, together with such powers as are reasonably incidental thereto, and the Collateral Agent does not and shall not have any right or authority to bind such Secured Creditor in any other manner or thing whatsoever.

 

3.    Lien Priorities.  Each Secured Creditor, the Company and each other Loan Party (by its acknowledgment hereto) agrees that the (i) Collateral Agent shall be the secured party or beneficiary, as applicable, under the Collateral Documents for the benefit of all of the Secured Creditors in accordance with this Agreement and (ii) notwithstanding the relative priority or the time of grant, creation, attachment or perfection under applicable law of any security interests and liens, if any, of any of the Collateral Agent or any other Secured Creditor upon or in any of the Collateral to secure any Secured Obligations, whether such security interests and liens are now existing or hereafter acquired or arising and whether such security interests and liens are in or upon now existing or hereafter arising Collateral, such security interests and liens shall be first and prior security interests and liens in favor of the Collateral Agent to secure the Secured Obligations on a pari passu basis for the benefit of the Secured Creditors in accordance with the terms of this Agreement.

 

4.    Certain Notices.  Each Secured Creditor that has actual knowledge of an Enforcement, or facts which indicate that an Enforcement has occurred, shall deliver to the Collateral Agent a written statement describing such Enforcement or facts, but the failure to give any of the foregoing notice shall not create a cause of action against or cause a forfeiture of any rights of the Secured Creditor failing to give such notice or create any claim or right on behalf of any third party.  The Collateral Agent agrees to deliver to each Noteholder and to the Bank Agent a copy of each notice described in this Section 4 as soon as practicable after receipt thereof.

 

5.    Distribution of Proceeds of Collateral After Enforcement.

 

(a) On and after the occurrence of an Enforcement, (i) all proceeds of Collateral held or received by the Collateral Agent or any other Secured Creditor (including, without limitation, any amount of any balances held by the Collateral Agent or any other Secured Creditor for the account of any Loan Party or any other property held or owing by it to or for the credit or for the account of any Loan Party setoff or appropriated by it, but excluding, (x) except as otherwise provided in Section 5(b), amounts on deposit in the Special Cash Collateral Account provided for in such Section 5(b), and (y) any cash collateral provided to the Bank Agent or the L/C Issuer pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender”) and (ii) any other payments received, directly or indirectly, by the Collateral Agent or any other Secured Creditor on or with respect to any Secured Obligation (including, without limitation, any payment under any Guaranty Agreement, any payment in an insolvency or reorganization proceeding and the proceeds from any sale of any Secured Obligations or any interest therein to any Loan Party or any affiliate of any Loan Party) shall be delivered to the Collateral Agent and distributed as follows:

 

  

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(i)    First, to the Collateral Agent in the amount of any unpaid Collateral Agent Obligations;

 

(ii)   Second, to the extent proceeds remain, to the Secured Creditors in the amount of any unreimbursed amounts paid by the Secured Creditors to any Indemnitee pursuant to Section 2(i) hereof, pro rata in proportion to the respective unreimbursed amounts thereof paid by each Secured Creditor;

 

(iii)   Third, to the extent proceeds remain, to the Secured Bank Creditors and the Noteholders in the amount of any reasonable out-of-pocket costs and expenses incurred after the occurrence of an Enforcement by the Secured Bank Creditors or the Noteholders in enforcing or defending any of its rights under the Applicable Credit Documents, in each case, to the extent such costs and expenses are required to be reimbursed under the Applicable Credit Documents;

 

(iv)   Fourth, to the extent proceeds remain, to the payment of any other Secured Obligations of the Secured Creditors pro rata in proportion to the respective amounts thereof owed to each Secured Creditor (and, for this purpose, Letter of Credit Collateral Obligations shall be considered to have been paid to the extent of any amount then on deposit in the Special Cash Collateral Account provided for in Section 5(b) below); and

 

(v)   Finally, after the Secured Obligations have been finally paid in full in cash, the balance of proceeds of the Collateral, if any, shall be paid to the Loan Parties, as applicable, or as otherwise required by law.

 

For the avoidance of doubt, prior to the occurrence of an Enforcement, subject to the terms of the Applicable Credit Documents, the Secured Creditors may accept and apply payments made from any source (including proceeds of Collateral) on or in respect of the Secured Obligations owing to such Secured Creditor without any obligation hereunder to turn over any such payments to the Collateral Agent or share any such payments with any other Secured Lender.

 

  

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(b)   Any payment pursuant to clause (iv) of Section 5(a) above with respect to Letter of Credit Collateral Obligations shall be paid to the Collateral Agent for deposit in an account with the Collateral Agent (the “Special Cash Collateral Account”) to be held as Collateral for the Secured Obligations and disposed of as provided herein.  On each date after the occurrence of an Enforcement on which a payment is made to a beneficiary pursuant to a draw on a Letter of Credit, the Collateral Agent shall, to the extent of funds available therefor, distribute to the Bank Agent from the Special Cash Collateral Account for application to the payment of the reimbursement obligation due to the Banks with respect to such draw an amount equal to the product of (1) the amount then on deposit in the Special Cash Collateral Account, and (2) a fraction, the numerator of which is the amount of such draw and the denominator of which is the amount of the Outstanding Letter of Credit Exposure immediately prior to such draw.  On each date after the occurrence of an Enforcement on which a reduction in the Outstanding Letter of Credit Exposure occurs other than on account of a payment made to a beneficiary pursuant to a draw on a Letter of Credit, then the Collateral Agent shall distribute from the Special Cash Collateral Account an amount equal to the product of (1) the amount then on deposit in the Special Cash Collateral Account and (2) a fraction the numerator of which is the amount of such reduction in the Outstanding Letters of Credit Exposure and the denominator of which is the amount of the Outstanding Letters of Credit Exposure immediately prior to such reduction, which amount shall be distributed as provided in clause (a)(iv) of Section 5(a), above.  At such time as the amount of the Outstanding Letter of Credit Exposure is reduced to zero, any amount remaining in the Special Cash Collateral Account, after the distribution therefrom as provided above, shall be distributed as provided in clause (iv) of Section 5(a) above.

 

(c)   The Company (and each other Loan Party, by its acknowledgment hereto) agrees that in the event any payment is made with respect to any Secured Obligations that is delivered to the Collateral Agent pursuant to this Section 5, (i) the Secured Obligations discharged by such payment shall be the amount or amounts of the Secured Obligations with respect to which such payment is distributed pursuant to this Section 5 notwithstanding that the payment may have initially been made by a Loan Party with respect to other Secured Obligations, and (ii) such payment shall be deemed to reduce the Secured Obligations of any Secured Creditors receiving any distributions from such payment under Section 5(a) or (b) in the amount of such distributions and shall be deemed to restore and reinstate the Secured Obligations of any Secured Creditor making any such payment under Section 5(a) in the amount of such payment; provided that if for any reason such restoration and reinstatement shall not be binding against any Loan Party, the Secured Creditors agree to take actions as shall have the effect as placing them in the same relative positions as they would have been if such restoration and reinstatement had been binding against the Loan Parties.

 

6.    Certain Credit Extensions and Amendments to Agreements by the Secured Creditors; Actions Related to Collateral and Guaranty Agreements; Other Liens and Security Interests.

 

(a)   Each Secured Bank Creditor agrees that, without the consent in writing by the Required Holders, it will not (i) except for the Guaranty Agreements, retain or obtain the primary or secondary obligations of any other obligor or obligors with respect to all or any part of the Secured Obligations, or (ii) from and after the institution of any bankruptcy or insolvency proceeding involving any Loan Party, as respects the Collateral enter into any agreement with such Loan Party with respect to post-petition usage of cash collateral, post-petition financing arrangements or adequate protection.  Each Noteholder agrees that, without the consent in writing by the Bank Agent or Required Lenders, it will not (1) except for the Guaranty Agreements, retain or obtain the primary or secondary obligations of any other obligor or obligors with respect to all or any part of the Secured Obligations, or (2) from and after the institution of any bankruptcy or insolvency proceeding involving any Loan Party, as respects the Collateral enter into any agreement with such Loan Party with respect to post-petition usage of cash collateral, post-petition financing arrangements or adequate protection.

 

  

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(b)   Each Secured Creditor agrees that it will have recourse to the Collateral only through the Collateral Agent, that it shall have no independent recourse thereto and that it shall refrain from exercising any rights or remedies under the Collateral Documents which have or may have arisen or which may arise as a result of an Event of Default or an acceleration of the maturities of the Secured Obligations, except that with the approval of the Collateral Agent (acting at the direction of the Required Secured Creditors), any Secured Creditor may setoff any amount of any balances held by it for the account of any Loan Party or any other property held or owing by it to or for the credit or for the account of any Loan Party provided that the amount setoff is delivered to the Collateral Agent for application pursuant to Section 5 hereof.  Without such approval and direction, no Secured Creditor shall setoff any such amount.  For the purposes of perfection any setoff rights which may be available under applicable law, any balances held by the Collateral Agent or any Secured Creditor for the account of any Loan Party or any other property held or owing by the Collateral Agent or any other Secured Creditor to or for the credit or account of any Loan Party shall be deemed to be held as agent for all Secured Creditors.

 

(c)   Neither the Collateral Agent nor any other Secured Creditor shall take or receive a security interest in or a lien upon any of the property or assets of any Loan Party as security for the payment of any Secured Obligations other than liens and security interests granted to the Collateral Agent in the Collateral pursuant to the Collateral Documents.  The existence of a common law lien and set off rights on deposit or securities accounts shall not be prohibited by the provisions of this Section 6(c) provided that any realization on such lien or set off rights and the application of the proceeds thereof shall be subject to the provisions of this Agreement.

 

(d)   Nothing contained in this Agreement shall (i) prevent any Secured Creditor from imposing a default rate of interest in accordance with the Applicable Credit Documents, or prevent a Secured Creditor from raising any defenses in any action in which it has been made a party defendant or has been joined as a third party, except that the Collateral Agent may direct and control any defense directly relating to the Collateral or any one or more of the Collateral Documents as directed by the Required Secured Creditors, which shall be governed by the provisions of this Agreement, (ii) affect or impair the right any Secured Creditor may have under the terms and conditions governing any Secured Obligation to accelerate and demand repayment of such Secured Obligation, (iii) prevent any Secured Creditor from agreeing to new or modified covenants and other terms under, or otherwise amending, any Applicable Credit Documents, or (iv) restrict the Bank Agent or the L/C Issuer in obtaining or applying cash collateral provided to the Bank Agent or the L/C Issuer pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender.”  Subject only to the express limitations set forth in this Agreement, each Secured Creditor retains the right to freely exercise its rights and remedies as a general creditor of the Loan Parties in accordance with applicable law and agreements with the Loan Parties, including without limitation the right to file a lawsuit and obtain a judgment therein against the Loan Parties and to enforce such judgment against any assets of the Loan Parties other than the Collateral.  Nothing contained in this Agreement shall be construed as an amendment of, or a waiver of or a consent to the departure by any Loan Party from, any provision of any Applicable Credit Document.

 

  

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(e)   Subject to the provisions set forth in this Agreement, each Secured Creditor and its affiliates may (without having to account therefor to any Secured Creditor) own, sell, acquire and hold equity and debt securities of the Loan Parties and lend money to and generally engage in any kind of business with the Loan Parties (as if, in the case of Bank of America, it was not acting as Collateral Agent), and, subject to the provisions of this Agreement, the Secured Creditors and their affiliates may accept dividends, interest, principal payments, fees and other consideration from the Loan Parties for services in connection with this Agreement or otherwise without having to account for the same to the other Secured Creditors, provided that any such amounts which constitute Secured Obligations are provided for in the Applicable Credit Documents.

 

7.    Accounting; Adjustments.

 

(a)   The Collateral Agent and each other Secured Creditor agrees to render an accounting to any of the others of the amounts of the outstanding Secured Obligations, receipts of payments from the Loan Parties or from the Collateral and of other items relevant to the provisions of this Agreement upon the reasonable request from one of the others as soon as reasonably practicable after such request, giving effect to the application of payments and the proceeds of Collateral as hereinbefore provided in this Agreement.

 

(b)   Each Secured Creditor agrees that (i) to the extent any amount distributed to it hereunder is in excess of the amount due to be distributed to it hereunder, it shall pay to the Collateral Agent for distribution to the other Secured Creditors such amounts so that, after giving effect to such payments, the amounts received by all Secured Creditors are equal to the amounts to be paid to them hereunder, and (ii) in the event any payment made to any Secured Creditor is subsequently invalidated, declared fraudulent or preferential, set aside or required to be paid to a trustee, receiver, or any other party under any bankruptcy act, state or federal law, common law or equitable cause, then each of the Secured Parties shall pay to the Collateral Agent for distribution to the Secured Creditors such amounts so that, after giving effect to the payments hereunder by all such Secured Creditors, the amounts received by all Secured Creditors are not in excess of the amounts to be paid to them hereunder as though any payment so invalidated, declared to be fraudulent or preferential, set aside or required to be repaid had not been made.

 

8.    Notices.  Except as otherwise expressly provided herein, any notice required or desired to be served, given or delivered hereunder shall be in writing, and shall be deemed to have been validly served, given or delivered three (3) business days after deposit in the United States mails, with proper postage prepaid, one business day after delivery to a courier for next day delivery, upon delivery by courier or upon transmission by telecopy or similar electronic medium (provided that a copy of any such notice sent by such transmission is also sent by one of the other means provided hereunder within one day after the date sent by such transmission) to the addresses set forth below the signatures hereto, with a copy to any person or persons set forth below such signature shown as to receive a copy, or to such other address as any party designates to the others in the manner herein prescribed.  Any notice required to be served, given or delivered to the Secured Bank Creditors hereunder may be satisfied by providing such notice to the Bank Agent in accordance with the terms of this Section 8.  Any party giving notice to any other party hereunder shall also use its best efforts to give copies of such notice to all other parties, but the failure to do so shall not create a cause of action against the Secured Party failing to give such notice or create any claim or right on behalf of any other Secured Party hereto and any third party.

 

  

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9.    Contesting Liens or Security Interests; No Partitioning or Marshalling of Collateral; Contesting Secured Obligations.

 

(a)   Neither the Collateral Agent nor any other Secured Creditor shall contest the validity, perfection, priority or enforceability of or seek to avoid, have declared fraudulent or have put aside any lien or security interest granted to the Collateral Agent as contemplated hereby and each Secured Creditor hereby agrees to cooperate in the defense of any action contesting the validity, perfection, priority or enforceability of such liens or security interests.

 

(b)   Notwithstanding anything to the contrary in this Agreement or in any Collateral Document, no Secured Creditor (other than the Collateral Agent) shall have the right to have any of the Collateral, or any security interest or other property being held as security for all or any part of the Secured Obligations by the Collateral Agent, partitioned, or to file a complaint or institute any proceeding at law or in equity to have any of the Collateral or any such security interest or other property partitioned (excluding the application of any cash collateral pursuant to Section 2.16(a)(ii) of the Credit Agreement as in effect on the date hereof or any analogous provision set forth in any Successor Credit Agreement with respect to any Bank that is a “Defaulting Lender” as provided therein), and each Secured Creditor hereby waives any such right.  Each Secured Creditor hereby waives any and all rights to have the Collateral, or any part thereof, marshalled upon any foreclosure of any of the liens or security interests securing the Secured Obligations.

 

(c)   Neither the Collateral Agent nor any other Secured Creditor shall contest the validity or enforceability of or seek to avoid, have declared fraudulent or have set aside any Secured Obligations.  In the event any Secured Obligation is invalidated, avoided, declared fraudulent or set aside for the benefit of any Loan Party, the Collateral Agent and the other Secured Creditors agree that such Secured Obligation shall nevertheless be considered to be outstanding for all purposes of this Agreement.

 

10.   No Additional Rights for Loan Parties Hereunder; Secured  Obligations Held By the Company and its Affiliates; Credit Bidding.  The Company and each other Loan Party (by its acknowledgment hereto) acknowledges that it shall have no rights under this Agreement (other than the limited rights to (x) receive proceeds as set forth in clause (v) of Section 5(a) and (y) enforce the proviso to Section 16) and agrees that it shall not use any violation of the terms of this Agreement by any Secured Creditor as a defense to any enforcement by any Secured Creditor against any Loan Party nor assert such violation as a counterclaim or basis for setoff or recoupment against any Secured Creditor.   Each Secured Creditor, the Company and each other Loan Party (by its acknowledgment hereto), agrees that any Secured Obligations that may at any time be held by any Loan Party or any Affiliate of any Loan Party shall not be considered to be outstanding for any purpose under this Agreement, such Loan Party or Affiliate shall not be a “Secured Creditor”, “Secured Bank Creditor” or “Noteholder” under this Agreement and such Loan Party or Affiliate shall not be entitled to the benefit of any provision of this Agreement.  The Company and each other Loan Party (by its acknowledgment hereto) further agrees that it will not object to, contest or oppose (or cause any other Person to object to, contest or oppose or support any other Person in objecting to, contesting or opposing) in any manner any “credit bid” by the Collateral Agent or any other Secured Creditor of any of all the Secured Obligations in any sale of assets of any Loan Party pursuant to Section 363 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”), a plan of reorganization under the Bankruptcy Code or otherwise under any other provision of the Bankruptcy Code or in a similar process in any proceeding under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law.

 

  

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11.   Bankruptcy Proceedings.  Except as explicitly set forth herein or in the Applicable Credit Documents, each Secured Creditor shall have the right to initiate an action or actions in any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar proceeding in its individual capacity and to appear or be heard on any matter before the bankruptcy or other applicable court in any such proceeding, including, without limitation, with respect to any question concerning the post-petition usage of Collateral and post-petition financing arrangements.  The Collateral Agent, in its capacity as such, is not entitled to initiate such actions on behalf of any Secured Creditor or to appear and be heard on any matter before the bankruptcy or other applicable court in any such proceeding as the representative of any Secured Creditor.  The Collateral Agent, in its capacity as such, is not authorized in any such proceeding to enter into any agreement for, or give any authorization or consent with respect to, any determination of adequate protection with respect to the Secured Obligations or the post-petition usage of Collateral, unless such agreement, authorization or consent has been approved in writing by the Required Secured Creditors.  This Agreement shall survive the commencement of any such bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar proceeding.  All references in this Agreement to the Company or any other Loan Party shall be deemed to apply to such Company or Loan Party as debtor-in-possession.

 

12.   Independent Credit Investigation.  Neither the Collateral Agent nor any other Secured Creditor, nor any of their respective directors, officers, agents or employees shall be responsible to any of the others for the solvency or financial condition of any Loan Party or the ability of any Loan Party to repay any of the Secured Obligations, or for the value, sufficiency, existence or ownership of any of the Collateral, the perfection or vesting of any lien or security interest, or the statements of any Loan Party, oral or written, or for the validity, sufficiency or enforceability of any of the Secured Obligations, the Applicable Credit Documents, any Collateral Document, any document or agreement executed or delivered in connection with or pursuant to any of the foregoing, or the liens or security interests granted by the Loan Parties to the Collateral Agent in connection therewith.  Each of the Collateral Agent and each other Secured Creditor has entered into its respective financial agreements with the Loan Parties based upon its own independent investigation and, except as set forth in Section 13, below, makes no warranty or representation to the other, nor does it rely upon any representation by any of the others, with respect to the matters identified or referred to in this Section.

 

  

21

  

 

13.   Representations and Warranties.  The Bank Agent represents and warrants to the Noteholders that it has the requisite authorization from each of the Banks to enter into this Agreement on their behalf.

 

14.   Supervision of Obligations.  Except to the extent otherwise expressly provided herein, each Secured Creditor shall be entitled to manage and supervise the obligations of the Loan Parties to it in accordance with applicable law and such Secured Creditor’s practices in effect from time to time without regard to the existence of any other Secured Creditor.

 

15.   Turnover of Collateral.  If any Secured Creditor acquires custody, control or possession of any Collateral or any proceeds thereof other than in compliance with the terms of this Agreement, such Secured Creditor shall promptly cause such Collateral or the proceeds thereof to be delivered to or put in the custody, possession or control of the Collateral Agent to be held as Collateral or for disposition and distribution in accordance with the provisions of Section 5 of this Agreement.  Until such time as such Secured Creditor shall have complied with the provisions of the immediately preceding sentence, such Secured Creditor shall be deemed to hold such Collateral and the proceeds thereof in trust for the Secured Creditors entitled thereto under this Agreement.

 

16.   Amendment.  Subject to the provisions of Section 10 hereof, this Agreement and the provisions hereof may be amended, modified or waived only by a writing signed by the Collateral Agent, the Required Lenders (or the Bank Agent on their behalf), the Required Holders; provided, that without the written consent of the Company no such amendment or modification shall expressly (a) increase the obligations of the Company or any Loan Party under Section 2(i), (b) decrease the right of the Company to receive proceeds as set forth in clause (v) of Section 5(a), (c) amend Section 20 so that a law other than the laws of the State of New York governs the validity, interpretation, enforcement or effect of this Agreement, or (d) reduce the rights of the Company to enforce the restrictions set forth in this proviso.

 

17.   Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each of the parties hereto, including subsequent holders of the Secured Obligations and Persons subsequently becoming parties to any Applicable Credit Documents; provided that (a) neither the Collateral Agent nor any Secured Creditor shall assign or transfer any interest in any Secured Obligations or permit such Person to become such a party to the Applicable Credit Documents unless such transfer or assignment is made subject to this Agreement and such transferee, assignee or Person either is bound by the terms of this Agreement pursuant to the terms of the Applicable Credit Documents or executes and delivers to the Collateral Agent an assumption agreement in the form of Exhibit A hereto (or such other form as may be approved by the Collateral Agent) and (b) the appointment of any replacement Collateral Agent shall be subject to the provisions of Section 2(h) hereof.  In addition, by accepting any proceeds of Collateral under this Agreement or the benefits of any Collateral Document, each Secured Creditor and each successor, transferee or assignee of any Secured Creditor hereunder shall be deemed to be bound by the terms and conditions set forth herein as if such Secured Creditor and such successor, transferee or assignee shall have executed this Agreement.

 

  

22

  

 

18.   Limitation Relative to Other Agreements.  Nothing contained in this Agreement is intended to impair as between the Secured Creditors and the Loan Parties, the rights of such Secured Creditors and the obligations of the Loan Parties under the Applicable Credit Documents.

 

19.   Counterparts; Facsimile or Electronic Signatures.  This Agreement may be executed in several counterparts and by each party on a separate counterpart, each of which, when so executed and delivered, shall be an original, but all of which together shall constitute but one and the same instrument.  In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

20.   Governing Law.  THIS AGREEMENT SHALL BE GOVERNED AS TO VALIDITY, INTERPRETATION, ENFORCEMENT AND EFFECT BY THE LAWS OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS AGREEMENT TO BE GOVERNED BY THE LAWS OF ANY OTHER JURISDICTION).

 

21.   Construction; Inconsistencies.  Each party hereto acknowledges that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement with its legal counsel and that this Agreement shall be construed as if jointly drafted by the parties hereto.  Each party hereto expressly acknowledges that in the event of any inconsistencies between this Agreement and any Applicable Credit Document, the terms and conditions of this Agreement shall govern and control.

 

22.   Additional Parties.  Provided that is it permitted to do so by the terms of the Applicable Credit Documents then in effect, the Company may issue Additional Notes and enter into one or more Successor Credit Agreements.  The obligations outstanding under such Additional Notes and Successor Credit Agreements, as the case may be, shall be secured by the Collateral as provided herein and in the Collateral Documents; provided that at the time the Company issues such Additional Notes or enters into such Successor Credit Agreement, each purchaser of such Additional Notes or each Successor Lender party to such Successor Credit Agreement (or agent on behalf thereof), as the case may be, in each case to the extent not already a party hereto, shall execute and deliver to the Collateral Agent a joinder agreement in the form of Exhibit A hereto (or such other form as may be approved by the Collateral Agent), as applicable, by which such Person agrees to be bound by the terms of this Agreement, and by delivering a written acknowledgement from the Loan Parties to the Collateral Agent (in the form set forth in such joinder or as otherwise acceptable to the Collateral Agent) that the Loan Parties intend such additional debt to benefit from this Agreement and the Collateral Documents and certify that the incurrence of such additional debt complies with the terms of the Applicable Credit Documents then in effect and complies with the following proviso; and provided further that on the date of the issuance of such Additional  Notes or execution and delivery of such Successor Credit Agreement, the incurrence by the Company of $1.00 of additional indebtedness would not constitute an Event of Default under any Applicable Credit Documents then in effect.  By their execution of this Agreement, the Secured Creditors authorize and direct the Collateral Agent to execute any such joinder agreement on its and their behalf.

 

  

23

  

 

23.   Card Related Products Banks, Cash Management Banks and Hedge Banks.  Anything herein or in any other Applicable Credit Document or Collateral Document to the contrary notwithstanding, no affiliate of any Bank shall be a Card Related Products Bank, a Cash Management Bank or Hedge Bank hereunder or be entitled to any of the benefits of a Secured Bank Creditor hereunder or under any other Collateral Document or have any of the obligations of any Loan Party owed to it be treated as Secured Obligations hereunder or under any other Collateral Document unless, (a) in the case of an affiliate party to a Card Related Products Agreement, a Cash Management Agreement or a Swap Contract that is in effect on the date of this Agreement (as to such existing Card Related Products Agreements, Cash Management Agreements or Swap Contracts), such affiliate shall have delivered to the Collateral Agent and Schiff Hardin LLP (at the address set forth below), within 60 days of date of this Agreement, a joinder agreement in the form of Exhibit A hereto, (b) in the case of an affiliate that enters into a Card Related Products Agreement, a Cash Management Agreement or a Swap Contract after the date of this Agreement, such affiliate shall have delivered to the Collateral Agent and Schiff Hardin LLP, within 60 days after the date on which such affiliate entered into such Card Related Products Agreement, Cash Management Agreement or Swap Contract, a joinder agreement in the form of Exhibit A; provided that once any such affiliate is party to this Agreement it need not execute further joinder agreements with respect to additional Card Related Products Agreements, Cash Management Agreements or Swap Contracts and (c) in the case of an affiliate party to a Card Related Products Agreement, a Cash Management Agreement or a Swap Contract prior to the date on which such affiliate’s related Bank became a party to the Credit Agreement (as to such existing Card Related Products Agreements, Cash Management Agreements or Swap Contracts), such affiliate shall have delivered to the Collateral Agent and Schiff Hardin LLP, within 60 days of the date such related Bank became a party to the Credit Agreement, a joinder agreement in the form of Exhibit A hereto.  For purposes of this Section 23, the terms “Card Related Product Agreement,” “Cash Management Agreement,” and “Swap Contract” shall have the meanings set forth in the Credit Agreement as in effect on the date hereof.  Any delivery to Schiff Hardin LLP pursuant to this Section 23 shall be effective if sent by federal express (or equivalent overnight mail) to Schiff Hardin LLP, 233 S. Wacker Drive, Suite 6600, Chicago, Illinois, 60606, Attention: Mark A. Sternberg.  The Collateral Agent hereby agrees to provide to each Secured Creditor, promptly upon request by any Secured Creditor, a complete list of the Secured Creditors under this Agreement including any that have joined this Agreement in accordance with this Section 23, along with a copy of each such joinder.

 

24.   Termination.  This Agreement shall terminate upon the occurrence of the Termination Date.

 

[Remainder of page is intentionally left blank; signature pages follow]

 

 

  

24

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.

 

 

	 	BANK OF AMERICA, N.A., in its capacities as 	 
	 	Bank Agent, as Collateral Agent and on behalf of	 
	 	the Secured Bank Creditors	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Bridgett J. Manduk	 
	 	 	
Bridgett J. Manduk

	 
	 	 	Title: Assistant Vice President	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	1455 Market Street, 5th Floor	 
	 	Mail Code: CA5-701-05-19	 
	 	San Francisco, CA 94013	 
	 	 	 
	 	Attn: Bridgett J. Manduk	 
	 	Facsimile:415-503-5011	 

 

 

  

25

  

 

 

	 	

THE PRUDENTIAL INSURANCE COMPANY 

	 
	 	OF AMERICA	 
	 	 	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Iris Krause 	 
	 	 	Vice President	 
	 	 	 	 
	 	 	 
	 	 	 
	 	

Address for notices:

	 
	 	 	 
	 	

c/o Prudential Capital Group

	 
	 	

Four Embarcadero Center, Suite 2700

	 
	 	

San Francisco, California  94111

	 
	 	Attn: Managing Director	 
	 	

Facsimile: (415) 421-6233

	 
	 	 	 

 

	 	

PRUDENTIAL RETIREMENT INSURANCE AND 

	 
	 	ANNUITY COMPANY	 
	 	 	 
	 	By:	Prudential Investment Management, Inc.,	 
	 	 	as investment manager	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Iris Krause	 
	 	 	Vice President	 
	 	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	c/o Prudential Capital Group	 
	 	

Four Embarcadero Center, Suite 2700

	 
	 	
San Francisco, California  94111

	 
	 	
Attn: Managing Director

	 
	 	Facsimile: (415) 421-6233	 

 

  

  

  

 

	 	
UNIVERSAL PRUDENTIAL ARIZONA 

	 
	 	REINSURANCE COMPANY	 
	 	 	 
	 	By:	Prudential Investment Management, Inc.	 
	 	 	as investment manager	 
	 	 	 	 
	
 

	
By: 

	/s/ Mitchell W. Reed	 
	 	 	Vice President	 
	 	 	 	 
	 	 	 
	 	 	 
	 	

Address for notices:

	 
	 	 	 
	 	

c/o Prudential Capital Group

	 
	 	

Four Embarcadero Center, Suite 2700

	 
	 	

San Francisco, California  94111

	 
	 	Attn: Managing Director	 
	 	

Facsimile: (415) 421-6233

	 
	 	 	 

 

	 	
ZURICH AMERICAN INSURANCE COMPANY

	 
	 	 	 
	 	 	 
	 	By:	Prudential Private Placement Investors, L.P.	 
	 	 	(as Investment Advisor)	 
	 	 	 	 
	 	By:	Prudential Private Placement Investors, Inc.	 
	 	 	(as its General Partner)	 
	 	 	 	 
	
 

	
By: 

	/s/ Mitchell W. Reed	 
	 	 	Vice President	 
	 	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	c/o Prudential Capital Group	 
	 	

Four Embarcadero Center, Suite 2700

	 
	 	
San Francisco, California  94111

	 
	 	
Attn: Managing Director

	 
	 	Facsimile: (415) 421-6233

  

  

  

	 	

AMERICAN INTERNATIONAL GROUP, INC.

	 
	 	 	 
	 	 	 
	 	By:	AIG Asset Management (U.S.), LLC,	 
	 	 	Investment Adviser	 
	 	 	 	 
	
 

	 	

By: /s/ David C. Patch

	 
	 	 	Name:  David C. Patch 	 
	 	 	Title:    Vice President 	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	AIG, Inc. – Matched Investment Program (260765)	 
	 	c/o AIG Asset Management	 
	 	2929 Allen Parkway, A36-04	 
	 	Houston, Texas 77019-21255	 
	 	Attn:  Private Placements – Portfolio Operations	 
	 	Facsimile: (713) 831-1072 / email: david.patch@aig.com or	 
	 	Email: AIGGIGPVTPLACEMENTOPERATIONS@AIG.COM	 

 

  

  

  

 

 

	 	
ING LIFE INSURANCE AND ANNUITY COMPANY

	 
	 	ING USA ANNUITY AND LIFE INSURANCE COMPANY	 
	 	RELIASTAR LIFE INSURANCE COMPANY	 
	 	RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK	 
	 	SECURITY LIFE OF DENVER INSURANCE COMPANY	 
	 	 	 
	 	 	 
	 	By:	ING Investment Management LLC,	 
	 	 	as Agent	 
	 	 	 	 
	
 

	 	

By: /s/ Gregory R. Addicks

	 
	 	 	Gregory R. Addicks  	 
	 	 	Senior Vice President	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
ING Investment Management LLC

	 
	 	
5780 Powers Ferry Road NW, Suite 300

	 
	 	
Atlanta, GA 30327-4347

	 
	 	
Attn: Gregory R. Addicks

	 
	 	
Facsimile: (770) 690-4886

	 
	 	 	 

 

  

  

  

            

	 	

THE GUARDIAN LIFE INSURANCE COMPANY 

	 
	 	OF AMERICA	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Gwendolyn S. Foster	 
	 	 	Name:  Gwendolyn S. Foster 	 
	 	 	Title:    Senior Director 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	7 Hanover Square	 
	 	Investment Department 9-A	 
	 	New York, NY  10004-2616	 
	 	Attn:      Gwen Foster	 
	 	Fax #:    212-919-2658	 
	 	Email:   gwen.foster@glic.com	 

  

  

  

            

	 	PRINCIPAL LIFE INSURANCE COMPANY	 
	 	 	 	 
	 	By: 	Principal Global Investors, LLC,	 
	 	 	Delaware limited liability company,	 
	 	 	 its authorized signatory	 
	 	 	 	 
	
 

	 	

By: /s/ Alan P. Kress

	 
	 	 	Its: Counsel	 
	 	 	 	 
	 	 	By: /s/ Clint Woods	 
	 	 	Its: Assistant General Counsel	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	

Principal Global Investors, LLC

	 
	 	

ATTN:  Fixed Income Private Placements

	 
	 	

711 High Street, G-26

	 
	 	

Des Moines, IA 50392-0800

	 
	 	 	 
	 	and via Email: 	 
	 	

Privateplacements2@exchange.principal.com

  

  

  

	 	

UNITED OF OMAHA LIFE INSURANCE 

	 
	 	COMPANY	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Curtis R. Caldwell	 
	 	Name: Curtis R. Caldwell 	 
	 	Title:  Senior Vice President 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	4 - Investment Accounting	 
	 	United of Omaha Life Insurance Company	 
	 	Mutual of Omaha Plaza	 
	 	Omaha,  NE  68175-1011	 
	 	Email: privateplacements@mutualofomaha.com	 

 

  

  

  

 

	 	
ALLIANZ LIFE INSURANCE COMPANY OF 

	 
	 	NORTH AMERICA	 
	 	 	 	 
	
 

	
By: 

	/s/ Brian Landry 	 
	 	Name: Brian Landry	 
	 	Title:  Assistant Treasurer	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	

Allianz Life Insurance Company of North America

	 
	 	
c/o Allianz of America, Inc.

	 
	 	
Attn:  Private Placements

	 
	 	
55 Greens Farms Road

	 
	 	
P.O. Box 5160

	 
	 	Westport, Connecticut  06881-5160	 
	 	Phone:      203-221-8580	 
	 	Fax:           203-221-8539	 
	 	Email: PrivatePlacements@azoa.com	 

 

  

  

  

 

	 	
AMERICAN UNITED LIFE INSURANCE 

	 
	 	COMPANY	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael I. Bullock 	 
	 	 	Michael I. Bullock	 
	 	 	Its: Vice President, Private Placements	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
American United Life Insurance Company

	 
	 	

One American Square, Suite 305W

	 
	 	
Post Office Box 368

	 
	 	
Indianapolis, IN 46206

	 
	 	
Attn: Mike Bullock, Securities Department

	 
	 	
Facsimile: 317-285-1225

	 
	 	 	 

 

  

  

  

 

	 	
THE STATE LIFE INSURANCE COMPANY

	 
	 	 	 
	 	By: 	American United Life Insurance Company,	 
	 	 	its agent	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael I. Bullock 	 
	 	 	Michael I. Bullock	 
	 	 	Its: Vice President, Private Placements	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
American United Life Insurance Company

	 
	 	

One American Square, Suite 305W

	 
	 	
Post Office Box 368

	 
	 	
Indianapolis, IN 46206

	 
	 	
Attn: Mike Bullock, Securities Department

	 
	 	
Facsimile: 317-285-1225

	 
	 	 	 

 

  

  

  

 

	 	

LAFAYETTE LIFE INSURANCE COMPANY

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ James J. Vance	 
	 	Name     James J. Vance	 
	 	Its          Vice President	 
	 	 	 	 

	
 

	
By: 

	/s/ Kevin L. Howard 	 
	 	Name     Kevin L. Howard	 
	 	Its          Vice President	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	The Lafayette Life Insurance Company	 
	 	400 Broadway, Mail Station 80	 
	 	Cincinnati, Ohio 45202-3341	 
	 	 	 
	 	Email: invacctg@wslife.com	 

 

  

  

  

 

	 	
FARM BUREAU LIFE INSURANCE COMPANY 

	 
	 	OF MICHIGAN	 
	 	 	 
	 	By: 	American United Life Insurance Company,	 
	 	 	its agent	 
	 	 	 	 
	
 

	 	By: /s/ Michael I. Bullock 	 
	 	 	Michael I. Bullock	 
	 	 	Its: Vice President, Private Placements	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
American United Life Insurance Company

	 
	 	

One American Square, Suite 305W

	 
	 	
Post Office Box 368

	 
	 	
Indianapolis, IN 46206

	 
	 	
Attn: Mike Bullock, Securities Department

	 
	 	
Facsimile: 317-285-1225

	 
	 	 	 

 

  

  

  

 

	 	

AMERICAN FAMILY LIFE INSURANCE COMPANY

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ David Voge 	 
	 	 	David Voge	 
	 	 	Senior Fixed Income Analyst	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	6000 American Parkway  Q210	 
	 	Madison, WI  53783	 
	 	 	 
	 	Attn: David Voge	 
	 	Email:  dvoge@amfam.com	 

  

  

  

 

	 	

ASSURITY LIFE INSURANCE COMPANY

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Victor Weber 	 
	 	Name:  Victor Weber	 
	 	Title:  Senior Director – Investments	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	

Assurity Life Insurance Company

	 
	 	
2000 Q Street

	 
	 	Lincoln, NE  68503	 
	 	Attn:  Investment Division	 
	 	Fax:  402-458-2170	 
	 

 

  

  

  

            

	 	

CONNECTICUT GENERAL LIFE INSURANCE 

	 
	 	COMPANY	 
	 	 	 
	 	By: 	Cigna Investments, Inc.	 
	 	 	(authorized agent)	 
	 	 	 	 
	 	 	 	 
	
 

	 	

By: /s/Leonard Mazlish 

	 
	 	 	Name:  Leonard Mazlish	 
	 	 	Title:    Managing Director	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
c/o Cigna Investments, Inc.

	 
	 	
Attention:  Fixed Income Securities

	 
	 	
Wilde Building, A5PRI

	 
	 	
900 Cottage Grove Rd

	 
	 	Bloomfield, Connecticut 06002	 
	 	
E-Mail:  CIMFixedIncomeSecurities@Cigna.com

	 
	 	 

 

  

  

  

 

	 	 
NATIONWIDE LIFE INSURANCE COMPANY

	 
	 	NATIONWIDE INDEMNITY COMPANY	 
	 	NATIONWIDE MUTUAL FIRE INSURANCE   COMPANY	 
	 	NATIONWIDE MUTUAL INSURANCE COMPANY	 
	 	 	 	 
	
 

	
By: 

	/s/ Thomas A. Gleason 	 
	 	 	Name:  Thomas A. Gleason	 
	 	 	Title:     Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	Nationwide Investments – Private Placements	 
	 	
One Nationwide Plaza

	 
	 	Mail Code 1-05-801	 
	 	Columbus, Ohio 43215-2220	 
	 	E-mail: ooinwpp@nationwide.com	 
	 	 	 
	 	Attn: Stephen M. Jordan	 
	 	Desktop Facsimile: 1-855-876-9877 or	 
	 	1-614-249-4553	 

 

  

  

  

	 	 
ALLSTATE LIFE INSURANCE COMPANY OF 

	 
	 	NEW YORK	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Mark W. (Sam) Davis	 
	 	Name: Mark W. (Sam) Davis	 
	 	 	 	 

	
 

	
By: 

	/s/ Allen Dick 	 
	 	Name: Allen Dick	 
	 	Authorized Signatories	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	Allstate Investments	 
	 	3075 Sanders Road, Suite G5D	 
	 	Northbrook, IL 60062	 
	 	 	 
	 	Attn: Allen Dick	 
	 	Facsimile: (847) 326-7032	 
	 	 	 

 

  

  

  

	 	
COMPANION LIFE INSURANCE COMPANY

	 
	 	 	 
	 	 	 
	
 

	
By: 

	/s/ Curtis R. Caldwell	 
	 	Name: Curtis R. Caldwell 	 
	 	Title:  Authorized Signer	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	4 - Investment Accounting	 
	 	United of Omaha Life Insurance Company	 
	 	Mutual of Omaha Plaza	 
	 	Omaha,  NE  68175-1011	 
	 	 	 
	 	Email: privateplacements@mutualofomaha.com	 

  

  

  

 

	 	

THRIVENT FINANCIAL FOR LUTHERANS,

	 
	 	
successor by merger to Lutheran Brotherhood

	 
	 	 	 
	 	By: 	/s/ Alan D. Onstad 	 
	 	 	Name:  Alan D. Onstad	 
	 	 	Title:     Senior Director	 
	 	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	
625 Fourth Avenue South

	 
	 	

Minneapolis, MN 55415

	 
	 	 	 
	 	
Attn: Investment Division-Private Placements

	 
	 	
Facsimile:612.844.4027

	 
	 	
Email: privateinvestments@thrivent.com

	 
	 	 	 

 

  

  

  

      

	 	 
SECURITY BENEFIT LIFE INSURANCE

	 
	 	COMPANY, INC.	 
	 	 	 	 
	 	By: 	Prudential Private Placement Investors,	 
	 	 	L.P. (as Investment Advisor)	 
	 	 	 	 
	
 

	By: 	
Prudential Private Placement Investors, Inc.

	 
	 	 	(as its General Partner)	 
	 	 	 	 
	 	By:	By: /s/ Mitchell W. Reed 	 
	 	 	Vice President	 
	 	 	 	 
	 	 	 	 
	 	Address for notices:	 
	 	 	 
	 	 	 
	 	
c/o Prudential Capital Group

	 
	 	
Four Embarcadero Center, Suite 2700

	 
	 	
San Francisco, California  94111

	 
	 	Attn: Managing Director	 
	 	
Facsimile: (415) 421-6233

	 

 

  

  

  

	 	 
 
GRANITE CONSTRUCTION INCORPORATED,

	 
	 	For itself and on behalf of the Loan Parties whose	 
	 	acknowledgment and consent appears below	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Laurel J. Krzeminski	 
	 	 	 Laurel J. Krzeminski	 
	 	 	 Its VP and CFO	 
	 	 	 	 

	
 

	
By: 

	/s/ Jigisha Desai	 
	 	 	Jigisha Desai	 
	 	 	 Its VP Treasurer	 
	 	 	 
	 	 	 
	 	Address for notices:	 
	 	 	 
	 	 
Box 50085

	 
	 	
585 West Beach Street

	 
	 	
Watsonville, CA 95076

	 
	 	 	 
	 	
Attn: Jigisha Desai

	 
	 	
Facsimile: 831-768-4055

	 
	 

  

  

  

EXHIBIT A

 

FORM OF [ASSUMPTION] [JOINDER] AGREEMENT

 

[Assumption] [Joinder] Agreement

 

Reference is made to the Intercreditor and Collateral Agency Agreement, dated October 11, 2012, by and among the Bank of America, N.A., in its capacity as Collateral Agent (as amended, restated, supplemented or otherwise modified in accordance with the terms thereof, the “Intercreditor Agreement”) and the other Secured Creditors (as defined therein) party thereto.  Terms used in this Agreement and not otherwise defined herein shall have the meanings given in the Intercreditor Agreement.

 

The undersigned hereby advises the Collateral Agent and the other Secured Creditors that as of the date set forth below the undersigned [is the assignee or transferee of [describe Secured Obligations assigned or transferred] from [name of assigning or transferring Secured Creditor]] [became a party to the Credit Agreement as “Secured Bank Creditor” thereunder] [[became a party to a Notes Document as a “holder” thereunder][is a [“Successor Lender”][“Additional Noteholder” as defined in the Intercreditor Agreement] [is a “Card Related Products Bank,” a “Cash Management Bank” or “Hedge Bank” as defined in the Intercreditor Agreement] and, pursuant to the provisions of Section [17][22][23] of the Intercreditor Agreement, the undersigned hereby assumes the obligations of [[name of assigning or transferring Secured Creditor] with respect to [describe Secured Obligations assigned or transferred]] [a Secured Bank Creditor] [a Noteholder] [a Card Related Products Bank, a Cash Management Bank or Hedge Bank] under the Intercreditor Agreement from and after the date hereof.

 

Please be advised that for the purposes of Section 8 of the Intercreditor Agreement the address for notices to the undersigned is as follows:

 

	 	 	 Name:__________________________________	 
	 	 	Address:  _______________________________	 
	 	 	 ______________________________________	 
	 	 	Attention: ______________________________	 
	 	 	 Facsimile:_______________________________	 

 

 

                      

 

IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed as of ___________, __________.

 

	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	 	 
	 	 	Title 	 
	 	 	 	 

 

  

  

  

 

ANNEX A

 

2001 NOTEHOLDERS as of October 11, 2012

 

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

 

NATIONWIDE LIFE INSURANCE COMPANY

 

NATIONWIDE INDEMNITY COMPANY

 

NATIONWIDE MUTUAL FIRE INSURANCE COMPANY

 

NATIONWIDE MUTUAL INSURANCE COMPANY

 

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK

 

UNITED OF OMAHA LIFE INSURANCE COMPANY

 

COMPANION LIFE INSURANCE COMPANY

 

THRIVENT FINANCIAL FOR LUTHERANS

 

PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

 

SECURITY BENEFIT LIFE INSURANCE COMPANY, INC.

 

  

  

  

 

ANNEX B

 

2007 NOTEHOLDERS as of October 11, 2012

 

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

 

PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

 

UNIVERSAL PRUDENTIAL ARIZONA REINSURANCE COMPANY

 

ZURICH AMERICAN INSURANCE COMPANY

 

AMERICAN INTERNATIONAL GROUP, INC.

 

ING LIFE INSURANCE AND ANNUITY COMPANY

 

ING USA ANNUITY AND LIFE INSURANCE COMPANY

 

RELIASTAR LIFE INSURANCE COMPANY

 

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

 

SECURITY LIFE OF DENVER INSURANCE COMPANY

 

THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA

 

PRINCIPAL LIFE INSURANCE COMPANY

 

UNITED OF OMAHA LIFE INSURANCE COMPANY

 

ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA

 

AMERICA UNITED LIFE INSURANCE COMPANY

 

THE STATE LIFE INSURANCE COMPANY

 

LAFAYETTE LIFE INSURANCE COMPANY

 

FARM BUREAU LIFE INSURANCE COMPANY OF MICHIGAN

 

AMERICAN FAMILY LIFE INSURANCE COMPANY

 

ASSURITY LIFE INSURANCE COMPANY

 

  

  

  

 

ANNEX C

 

ACKNOWLEDGMENT OF AND CONSENT AND AGREEMENT

 

TO INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT

 

The undersigned, the Loan Parties described in the Intercreditor and Collateral Agency Agreement, dated as of October 11, 2012, among the Collateral Agent, the Secured Creditors (as defined therein) and the Company (as defined therein) acknowledge and, to the extent required, consent to the terms and conditions thereof.  The undersigned Loan Parties do hereby further acknowledge and agree to their joint and several agreements under Sections 2(i) and 5(c) of the Intercreditor and Collateral Agency Agreement.  The undersigned hereby further agree that any proceeds or any payment made by any Loan Party to any Secured Creditor which is required to be delivered to the Collateral Agent and distributed in accordance with the provisions of Section 5(a) of the Intercreditor and Collateral Agency Agreement shall be deemed to have been delivered by the Loan Parties to pay the Secured Obligations in the amounts in which any such proceeds or payments are allocated under such Section 5(c) notwithstanding the amount initially paid to or received by any particular Secured Creditor or Lender which such Secured Creditor or Lender delivered to the Collateral Agent.

 

This Acknowledgment of and Consent and Agreement to Intercreditor and Collateral Agency Agreement and any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each of which, when so executed and delivered, shall be an original, but all of which together shall constitute but one of the same instrument.  In proving this Acknowledgment of and Consent and Agreement to Intercreditor and Collateral Agency Agreement it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.  Delivery of an executed counterpart of a signature page to this Acknowledgment of and Consent and Agreement to Intercreditor and Collateral Agency Agreement by facsimile or electronic transmission shall be effective as a delivery of a manually executed counterpart of this Acknowledgment of and Consent and Agreement to Intercreditor and Collateral Agency Agreement.

 

IN WITNESS WHEREOF, the parties below have caused this Acknowledgment of and Consent and Agreement to Intercreditor and Collateral Agency Agreement to be executed by their respective duly authorized officers as of October 11, 2012.

 

  

  

  

 

	 	GILC INCORPORATED	 
	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	Its	 
	 	 	 	 
	 	By	 	 
	 	 	Its	 

 

	 	GRANITE CONSTRUCTION COMPANY	 
	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	Its	 
	 	 	 	 
	 	By	 	 
	 	 	Its	 
	 

 

	 	GRANITE CONSTRUCTION NORTHEAST, INC.	 
	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	Its	 
	 	 	 	 
	 	By	 	 
	 	 	 Its	 
	 

 

	 	INTERMOUNTAIN SLURRY SEAL, INC.	 
	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	Its	 
	 	 	 	 
	 	By	 	 
	 	 	Its	 
	 

 

  

  

  

 

SCHEDULE 1

COLLATERAL DOCUMENTS

Amended and Restated Security Agreement dated as of October 11, 2012, among the Loan Parties, the Collateral Agent and the Bank Agent

Amended and Restated Securities Pledge Agreement dated as of October 11, 2012, among the Loan Parties, the Collateral Agent and the Bank Agent

Aircraft Security Agreement dated as of May 18, 2011, between GILC Incorporated and the Bank Agent and recorded by the Federal Aviation Administration on June 28, 2011 and assigned conveyance number PH005602, as amended by Assignment, Assumption and Amendment Agreement dated as of October 11, 2012, among GILC Incorporated, the Bank Agent and the Collateral Agent

 

Qualifying Control Agreements with respect to the Investment Property:

 

	
(a)  

	
Securities Account Control Agreement dated as of March 21, 2011, among the Company, Compass Bank and Bank of America, N.A.

 

	
(b)  

	
Securities Account Control Agreement dated as of February 3, 2011, among the Company, Union Bank, N.A. and Bank of America, N.A.

 

Qualifying Control Agreements with respect to the Deposit Accounts:

 

	
(a)  

	
Deposit Account Control Agreement dated as of October 3, 2012, among the Company, Bank of America, N.A. and Bank of America, N.A.

 

	
(b)  

	
Deposit Account Control Agreement dated as of October 11, 2012, among the Company, Compass Bank and Bank of America, N.A.

 

	
(c)  

	
Deposit Account Control Agreement dated as of March 14, 2011, among the Company, Bank of the West and Bank of America, N.A.

 

	
(d)  

	
Deposit Account Control Agreement dated as of March 31, 2011, among the Granite Construction Company, Wells Fargo Bank, National Association and Bank of America, N.A.

 

	
(e)  

	
Deposit Account Control Agreement dated as of February 1, 2011, among the Company, U.S. Bank National Association and Bank of America, N.A.

 

	
(f)  

	
Deposit Account Control Agreement dated as of January 18, 2012, among the Company, Comerica Bank and Bank of America, N.A.

  

  

  

 

Amended and Restated Mortgages for each of the following properties:

	  	
Project #

	
Address

	
City

	
County

	
State

	
1

	
L05008

	
Elder Creek Road

	
Sacramento

	
Sacramento

	
CA

	
2

	
L07004

	
999 Mission Rock Road

	
Santa Paula

	
Ventura

	
CA

	
3

	
L08001/ 

L08002

	  	
Oroville

	
Butte

	
CA

	
4

	
L06003

	
Fulton & Frank Road

	
Esparto

	
Yolo

	
CA

	
5

	
L14003

	
Highway 33

	
Coalinga

	
Fresno

	
CA

	
6

	
L26004

	
7131 N. Railroad Avenue

	
Pasco

	
Franklin

	
WA

	
7

	
L32009

	
E. Selah Rd

	
Yakima

	
Yakima

	
WA

	
8

	
L26002

	
W. Gill Station Rd

	
Coso Junction

	
Inyo

	
WA

	
9

	
L32011

	
Nelpar Drive

	
East Wenatchee

	
Douglas

	
WA

	
10

	
L07003

	
400 S. Hwy 101

	
Buellton

	
Santa Barbara

	
CA

	
11

	
L03002

	
Hwy 175

	
Lakeport

	
Lake

	
CA

	
12

	
L16010

	
10600 I-80 East

	
Lockwood

	
Washoe

	
NV

	
13

	
L16001

	
1900 Glendale Avenue

	
Sparks

	
Washoe

	
NV

	
14

	
L93005

	
701 East Main Street

	
Lewisville

	
Denton

	
TX

	
15

	
L03001

	
825 W. Warm Springs Road

	
Salt Lake City

	
Salt Lake

	
UT

	
16

	
L30012

	
South 1900 West

	
West Haven

	
Weber

	
UT

	
17

	
L12001

	
3001 James Road

	
Bakersfield

	
Kern

	
CA

	
18

	
L14008

	
Hildreth Quarry

	
Tracy

	
Madera

	
CA

	
19

	
L15002

	
South Bird Road

	
Modesto

	
San Joaquin

	
CA

	
20

	
L15006

	
Blewett Road

	
Modesto

	
San Joaquin

	
CA

	
21

	
L15001

	
Harlan Road

	
Stockton

	
San Joaquin

	
CA

	
22

	
L21901

	
715 Comstock Street

	
Santa Clara

	
Santa Clara

	
CA

	
23

	
L02004

	
580/582/680 West Beach Street

	
Watsonville

	
Santa Cruz

	
CA

	
24

	
L05024A

	
Bradshaw Road

	
Sacramento

	
Sacramento

	
CA

	
25

	
L17007

	
(7 parcels)

	
Marana

	
Pima

	
AZ

	
26

	
L11003

	
Hwy 138

	
Black Butte

	
Los Angeles

	
CA

	
27

	
L11004

	
Pearblossom Hwy

	
Little Rock

	
Los Angeles

	
CA

	
28

	
L25016

	
4 Parcels/ Monroe Street

	
Indio

	
Riverside

	
CA

	
29

	
L91001 / L91005

	
585 W. Beach Street

	
Watsonville

	
Santa Cruz

	
CAa50442053_ex106.htm

Exhibit 10.6

 

 

	 

 

Granite Construction Incorporated

 

Second Amendment

Dated as of October 11, 2012

to

Note Purchase Agreement

Dated as of May 1, 2001

 

Re:           $75,000,000 6.96% Senior Notes due May 1, 2013

 

	 

 

  

  

  

 

Second Amendment to Note Purchase Agreement

This Second Amendment dated as of October 11, 2012 (the or this “Second Amendment”) to that certain Note Purchase Agreement dated as of May 1, 2001 is between Granite Construction Incorporated, a Delaware corporation (the “Company”), and each of the institutional investors listed on the signature pages hereto (collectively, the “Noteholders”).

 

Recitals:

A.           The Company and each of the Noteholders have heretofore entered into that certain Note Purchase Agreement dated as of May 1, 2001, as amended by that the First Amendment thereto dated June 15, 2003 (as amended, the “Note Purchase Agreement”).  The Company has heretofore issued $75,000,000 aggregate principal amount of its 6.96% Senior Notes due May 1, 2013 (the “Notes”) pursuant to the Note Purchase Agreement.  The Noteholders are the holders of 100% of the outstanding principal amount of the Notes.

 

B.           The Company and the Noteholders now desire to amend the Note Purchase Agreement in the respects, but only in the respects, hereinafter set forth.

 

C.           Capitalized terms used herein shall have the respective meanings ascribed thereto in the Note Purchase Agreement unless herein defined or the context shall otherwise require.

 

D.           All requirements of law have been fully complied with and all other acts and things necessary to make this Second Amendment a valid, legal and binding instrument according to its terms for the purposes herein expressed have been done or performed.

 

Now, therefore, upon the full and complete satisfaction of the conditions precedent to the effectiveness of this Second Amendment set forth in Section 3.1 hereof, and in consideration of good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Company and the Noteholders do hereby agree as follows:

 

SECTION 1. Amendments.

 

1.1.                  Section 7.1(a) of the Note Purchase Agreement shall be and is hereby amended by replacing the reference to “60 days” set forth therein with “45 days”.

 

1.2.                  Section 7.1(b) of the Note Purchase Agreement shall be and is hereby amended by replacing the reference to “105 days” set forth therein with “90 days”.

 

1.3.                  Section 7.1(h) of the Note Purchase Agreement shall be and is hereby amended and restated in its entirety to read as follows:

 

  

  

  

 

(h)           Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Quarterly Report on Form 10-Q and Annual Report on Form 10-K) or relating to the ability of the Company to perform its obligations hereunder and under the Notes or the ability of the Company or any Subsidiary to perform its obligations under the Guaranty Agreement or any Security Document to which it is a party, as from time to time as from time to time may be reasonably requested by any such holder of Notes.”

1.4.                  Section 7.2 of the Note Purchase Agreement shall be and is hereby amended and restated in its entirety to read as follows:

 

Section 7.2.           Officer’s Certificate.  Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer, such certificate to be provided in the manner specified in Section 18 or, if the holder shall have previously provided the Company with an electronic mail address for such purpose, by electronic mail (which, in the case of Electronic Delivery of any such financial statements, shall be by separate delivery of such certificate to each such holder of Notes no later than the earlier of the third Business Day following such Electronic Delivery and the last day upon which the Company is required to deliver the corresponding financial statements pursuant to Section 7.1(a) or Section 7.1(b), as applicable):

(a)           Covenant Compliance — setting forth (1) the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 10.2 through Section 10.5, inclusive, Section 10.8 and Section 10.10 during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section and covenant, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections and covenants, and the calculation of the amount, ratio or percentage then in existence), and (2) the information (including detailed calculations) required in order to determine the Consolidated Fixed Charge Coverage Ratio for the Subject Period ending on the last day of the quarterly or annual period covered by the statements then being furnished;

(b)           Event of Default — certifying that such Senior Financial Officer has reviewed the relevant terms hereof, of the Security Documents and of the other Transaction Documents and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

  

- 2 -

  

 

1.5.                  Section 9.2 of the Note Purchase Agreement shall be and is hereby amended to add the following sentence at the end of said Section:

 

Without limiting the foregoing, at all times other than during a Collateral Release Period, the Company will, and will cause each of its Subsidiaries to, (a) maintain, if available, fully paid flood hazard insurance with respect to each Mortgaged Property containing a Building (as defined in Section 208.25 of Regulation H of the Board of Governors of the Federal Reserve System) that is located in a special flood hazard area, as designated by the Federal Emergency Management Agency of the United States Department of Homeland Security (“FEMA”), on such terms and in such amounts as required by The National Flood Insurance Reform Act of 1994, as amended, or as otherwise reasonably required by the Required Holders, (b) upon request, furnish to the holders of the Notes evidence of the renewal of all such policies, and (c) furnish to the holders of the Notes written notice of any redesignation by FEMA of any such Building into or out of a special flood hazard area promptly upon obtaining knowledge of such redesignation.

 

1.6.                  Section 9.6 of the Note Purchase Agreement shall be and is hereby amended to:

 

(i)             add the words “; Collateral and Appraisals” to the end of the title of said Section,

 

(ii)             add the following words to the end of paragraph (a) of said Section:

 

Notwithstanding the foregoing, any Subsidiary formed under the laws of a jurisdiction other than the United States, any State thereof or the District of Columbia shall not be required to execute a supplement to the Guaranty Agreement or otherwise Guaranty the Notes if doing so would result in adverse tax consequences to the Company, unless such Subsidiary is or shall become an obligor or guarantor of any Debt existing under the Bank Credit Agreement.

(iii)             amend and restate paragraph (c) of said Section to read as follows;

 

  

- 3 -

  

 

(c)            If at any time, pursuant to the terms and conditions of the Bank Credit Agreement, any Guarantor is released from its liability under the Bank Guaranty and (1) such Guarantor is not a co-obligor in respect of any Debt existing under the Bank Credit Agreement or a guarantor or co-obligor in respect of any Debt existing under the Existing Note Agreements, (2) such Guarantor does not qualify as a Material Subsidiary under clause (a) or (b) of the definition thereof, (3) such Guarantor is not required to be designated as a Material Subsidiary for purposes of satisfying the 80% Threshold and (4) the Company shall have delivered to each holder of Notes an Officer’s Certificate certifying that (i) the conditions specified in clauses (1), (2) and (3) above have been satisfied and (ii) immediately preceding the release of such Guarantor from the Guaranty Agreement and after giving effect thereto, no Default or Event of Default shall have existed or would exist, then, upon receipt by the holders of Notes of such Officer’s Certificate, such Guarantor shall be discharged from its obligations under the Guaranty Agreement.

 

(iv)          add the following new paragraphs (d), (e), (f) and (g) at the end of said Section:

 

(d)           At all times other than during a Collateral Release Period, the Company shall cause each Material Subsidiary required to execute and deliver a supplement to the Guaranty Agreement pursuant to Section 9.6(a) to promptly (and in any event, with respect to Domestic Subsidiaries, within 45 days of such Material Subsidiary being required to execute and deliver such supplement, with respect to Foreign Subsidiaries, within 75 days of such date, and solely with respect to Section 9.6(d)(3), within 60 days of such date, or in any case, such longer period requested by the Company and approved by the Required Holders) deliver to the Collateral Agent, with a copy to each holder of the Notes:

 

(1)           a Security Joinder Agreement by such Material Subsidiary, together with such Uniform Commercial Code financing statements naming such Material Subsidiary as “Debtor” and naming the Collateral Agent for the benefit of the Secured Creditors as “Secured Party,” in form, substance and number sufficient in the reasonable opinion of the Required Holders and their special counsel to be filed in all Uniform Commercial Code filing offices in all jurisdictions in which filing is necessary or advisable to perfect in favor of the Collateral Agent for the benefit of the Secured Creditors the Lien on the Collateral conferred under such Security Document to the extent such Lien may be perfected by Uniform Commercial Code filing;

 

  

- 4 -

  

 

(2)           documents of the types referred to in Section 9.6(b)(i) through (iv), inclusive, with respect to such Material Subsidiary and any pledgor and the agreements and instruments being delivered by such Person pursuant to this Section 9.6(d);

 

(3)           Mortgages, title insurance, appraisals and such other real property support documentation with respect to all real property (and related improvements) with a Fair Market Value in excess of $1,000,000 owned by such Material Subsidiary;

 

(4)           if the Subsidiary Securities issued by such Material Subsidiary that are, or are required to become, Pledged Interests are owned by a Subsidiary who has not then executed and delivered to the Collateral Agent a Pledge Agreement granting a Lien to the Collateral Agent, for the benefit of the Secured Creditors, in such equity interests, a Pledge Joinder Agreement executed by the Subsidiary that directly owns such Subsidiary Securities (or, as to the Pledged Interests issued by any Direct Foreign Subsidiary, in a form acceptable to the Required Holders), and if such Subsidiary Securities shall be owned by the Company or a Subsidiary who has previously executed a Pledge Agreement, a Pledge Agreement Supplement in the form required by such Pledge Agreement pertaining to such Subsidiary Securities;

 

(5)           if the Pledged Interests issued by such Material Subsidiary constitute securities under Article 8 of the Uniform Commercial Code, (i) the certificates representing 100% of such Subsidiary Securities and (ii) duly executed, undated stock powers or other appropriate powers of assignment in blank affixed thereto;

 

(6)           Uniform Commercial Code financing statements naming the pledgor as “Debtor” and naming the Collateral Agent for the benefit of the Secured Parties as “Secured Party,” in form, substance and number sufficient in the reasonable opinion of the Required Holders and their special counsel to be filed in all Uniform Commercial Code filing offices and in all jurisdictions in which filing is necessary or advisable to perfect in favor of the Collateral Agent for the benefit of the Secured Creditors the Lien on such Subsidiary Securities;

 

(7)           a supplement to the appropriate schedule attached to the appropriate Security Documents listing the additional Collateral, certified as true, correct and complete by the Responsible Officer (provided that the failure to deliver such supplement shall not impair the rights conferred under the Security Documents in after acquired Collateral); and

 

  

- 5 -

  

 

(8)           such other assurances, certificates, documents, consents or opinions as the Required Holders reasonably may require.

 

(e)           At all times other than during a Collateral Release Period, the Company shall cause to be delivered to the Collateral Agent upon the Required Holders’ reasonable request, as soon as practicable and in any event within 30 days of the acquisition thereof, a Mortgage on any fee owned real property (and related improvements) with a Fair Market Value in excess of $1,000,000 acquired by the Company or any Guarantor after the Second Amendment Effective Date as security for the Secured Obligations, together with the Uniform Commercial Code financing statements covering fixtures, mortgage policies of title insurance, surveys, opinions, evidence of flood insurance coverage and other documents in connection with such Mortgage as the Required Holders may reasonably request.

 

(f)           Notwithstanding any other provision of this Agreement, any Lien on the Collateral of the Company or any Guarantor granted to or held by the Collateral Agent (on behalf of the Secured Creditors) under any Security Document shall be released and the Company and any Guarantor that is a party to any Security Document shall be released from its respective obligations thereunder (collectively, the “Release”), including after any re-pledge of the Collateral pursuant to the second proviso of this Section 9.6(f) upon the written request of the Company delivered to the holders of the Notes at any time on or after June 30, 2013, provided that (1) no Default or Event of Default shall have occurred and be continuing at such time or would occur immediately after giving effect to such Release, (2) the Consolidated Fixed Charge Coverage Ratio (calculated as of the last day of each of the four most recently ended fiscal quarters of the Company) is greater than or equal to 1.25 to 1.00 for each of such four most recently ended fiscal quarters, (3) the Consolidated Leverage Ratio (calculated as of the last day of the most recently ended fiscal quarter of the Company) is equal to or less than 2.50 to 1.00, (4) immediately after giving effect to such Release, no Secured Creditor shall have any Liens on any property of the Company or any Guarantor securing any Secured Obligations then owing to such Secured Creditor and (5) the Company and the Guarantors bear the cost of the Release; provided further, that if any Release has occurred and subsequent to the date on which such Release occurred the Company delivers a certificate pursuant to Section 7.2(a) demonstrating that (i) the Consolidated Fixed Charge Coverage Ratio (calculated as of the last day of the most recently ended fiscal quarter of the Company) is less than 1.25 to 1.00 or (ii) the Consolidated Leverage Ratio (calculated as of the last day of the most recently ended fiscal quarter of the Company) is greater than 2.50 to 1.00, then promptly (and in any event within 30 days or such longer period of time as the Required Holders determine in their reasonable discretion) after such certificate is delivered, or sooner if the Company shall otherwise elect to do so, the Company and each Guarantor shall at their sole cost, (A) take action (including the filing of Uniform Commercial Code and other financing statements) that may be necessary or advisable in the reasonable opinion of the Required Holders to vest in a collateral agent (which collateral agent shall be, if the Bank Credit Agreement is then in effect, the bank agent under the Bank Credit Agreement pursuant to an intercreditor and collateral agency agreement on the same terms as those contained in the Intercreditor Agreement as in effect prior to such Release or on other terms acceptable to the holders of the Notes) for the benefit of the holders of the Notes and, if the Bank Credit Agreement is then in effect, the lenders party thereto valid and subsisting Liens on the Collateral other than real property consistent in all material respects in scope, perfection and priority as those in effect prior to such Release and pursuant to documentation substantially similar to such documentation in place on or after the Second Amendment Effective Date in accordance with this Section 9.6 and, in the case of any real property previously pledged pursuant to a Mortgage or real property acquired on or after the Collateral Release Date as to which a Lien would have been required to have been granted pursuant to Section 9.6 had it not been acquired during the Collateral Release Period, Liens of record consistent with the requirements of this Section 9.6, and (B) upon the Required Holders’ request, deliver to the collateral agent described above and the holders of the Notes customary opinions of counsel in connection therewith.  Other than during a Collateral Release Period, all or substantially all of the Collateral may not be released from the Liens of the Security Documents without the written consent of the holder of each Note at the time outstanding.

 

  

- 6 -

  

 

(g)           The holders of the Notes may obtain from time to time an appraisal of all or any part of any Collateral, prepared in accordance with written instructions from the Required Holders, from a third-party appraiser satisfactory to, and engaged directly by, the Required Holders.  The cost of any appraisal after the occurrence and during the continuance of an Event of Default shall be borne by the Company and such cost shall be payable by the Company to the holders of the Notes on demand (which obligation the Company hereby promises to pay); provided that the cost of any appraisal obtained by the holders of the Notes at any time other than after the occurrence and during the continuance of an Event of Default shall not be required to be reimbursed by the Company.

 

1.7.                  Sections 10.2, 10.3 and 10.4 of the Note Purchase Agreement shall be and are hereby amended and restated in their entirety to read as follows:

 

Section 10.2.         Consolidated Tangible Net Worth.  The Company will not, at any time, permit Consolidated Tangible Net Worth to be less than the sum of 85% of the Consolidated Tangible Net Worth as of December 31, 2011, plus (a) an amount equal to 50% of the Consolidated Net Income earned in each fiscal quarter ending after December 31, 2011 (with no deduction for a net loss in any such fiscal quarter) plus (b) an amount equal to 50% of the aggregate increases in Consolidated Stockholders’ Equity after the Second Amendment Effective Date by reason of the issuance and sale of capital stock of the Company.

  

- 7 -

  

 

Section 10.3.         Leverage Ratio; Project Debt and Interest Coverage Ratio.

(a)           Consolidated Leverage Ratio.  The Company will not, at any time, permit the Consolidated Leverage Ratio to exceed:

	
Period

	
Ratio

	
For the period beginning on the

Second Amendment Effective Date

through and including

September 30, 2013

	
 

3.50 to 1.00

	
For the period from and

after October 1, 2013

	
3.25 to 1.00

; provided that during any Collateral Release Period, the Company will not, at any time, permit the Consolidated Leverage Ratio to exceed 2.50 to 1.00.

Notwithstanding the foregoing, if at any time the “Maximum Consolidated Leverage Ratio” permitted by the Bank Credit Agreement for any period is increased or decreased, then, upon receipt of evidence thereof satisfactory to the Required Holders and, in the case of any such increase, so long as no Default or Event of Default shall have occurred and be continuing, (1) the maximum Consolidated Leverage Ratio permitted by this Agreement for such period shall be deemed to be increased or decreased by the same incremental amount as the increase or decrease in the “Maximum Consolidated Leverage Ratio” permitted by the Bank Credit Facility for such period and (2) any changes to the defined terms used in the calculation of the “Consolidated Leverage Ratio” under the Bank Credit Agreement shall be deemed to have been made to the defined terms used in the calculation of the Consolidated Leverage Ratio under this Agreement; provided, however, that in no event shall the maximum Consolidated Leverage Ratio permitted by this Agreement for any period ever exceed the maximum Consolidated Leverage Ratio (utilizing all relevant definitions appearing herein as of the Second Amendment Effective Date) for such period as set forth in this Agreement as of the Second Amendment Effective Date.  The Company will promptly, and in any event within five days of the occurrence thereof, give each of the holders of the Notes notice of any increase or decrease in the “Maximum Consolidated Leverage Ratio” permitted by the Bank Credit Agreement for any period.  If any party to the Bank Credit Agreement shall receive or become entitled to any fee or other consideration in connection with its agreement to increase or decrease the “Maximum Consolidated Leverage Ratio” permitted by the Bank Credit Agreement for any period, the holders of the Notes shall receive fees or other consideration in a proportionate amount based upon the relative outstanding principal amount of the Notes and of the Debt outstanding under such Bank Credit Agreement.  For the avoidance of doubt, if at any time there shall be no Bank Credit Agreement in existence, the maximum Consolidated Leverage Ratio (utilizing all relevant definitions appearing herein as of the Second Amendment Effective Date) permitted by this Agreement for any period shall be that set forth herein as of the Second Amendment Effective Date for such period.

  

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(b)           Limitation on Project Debt.  The Company will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any Project Debt other than (1) Project Debt outstanding on the Second Amendment Effective Date as set forth on Schedule 5 and (2) in addition thereto, an additional amount of Project Debt not to exceed $10,000,000 at any time outstanding.

(c)           Consolidated Interest Coverage Ratio.  The Company will not, as of the last day of any fiscal quarter of the Company, permit the Consolidated Interest Coverage Ratio to be less than 4.00 to 1.00.

Section 10.4.        Priority Debt.  The Company will not (a) at any time other than during a Collateral Release Period, permit the aggregate amount of all Priority Debt to exceed $15,000,000 and (b) at any time during a Collateral Release Period, permit the aggregate amount of all Priority Debt to exceed an amount equal to 20% of Consolidated Tangible Net Worth determined as of the end of the then most recently ended fiscal quarter of the Company.

1.8.                   Section 10.5 of the Note Purchase Agreement shall be and is hereby is amended and restated in its entirety to read as follows:

 

  

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Section 10.5.        Liens.  The Company will not, and will not permit any Subsidiary to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts receivable) of the Company or such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except:

 

(a)           Liens for taxes, assessments or other governmental charges which are not yet due and payable or the payment of which is not at the time required by Section 9.4;

 

(b)           carriers’, landlords’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the Ordinary Course of Business in respect of the Company and its Subsidiaries, which are not overdue for a period of more than 45 days or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

 

(c)           Liens (other than any Lien imposed by ERISA) incurred or deposits made in the Ordinary Course of Business (1) in connection with workers’ compensation, unemployment insurance and other types of social security or retirement benefits, or (2) to secure (or to obtain letters of credit that secure) the performance of tenders, statutory obligations, surety bonds, appeal bonds, bids, leases (other than Capital Leases), performance bonds, purchase, construction or sales contracts and other similar obligations, in each case not incurred or made in connection with the borrowing of money, the obtaining of advances or credit or the payment of the deferred purchase price of property;

 

(d)           any attachment or judgment Lien, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay;

 

  

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(e)           leases or subleases granted to others, easements, rights-of-way, restrictions and other similar charges or encumbrances, in each case incidental to, and not interfering with, the ordinary conduct of the business of the Company or any of its Subsidiaries, provided that such Liens do not, in the aggregate, materially detract from the value of such property;

 

(f)           Liens on property or assets of the Company or any of its Subsidiaries securing Debt owing to the Company or to a Wholly-Owned Subsidiary;

 

(g)           Liens existing on the date of the Closing and securing the Debt of the Company and its Subsidiaries referred to on Schedule 5.15;

 

(h)           any Lien created to secure all or any part of the purchase price, or to secure Debt incurred or assumed to pay all or any part of the purchase price or cost of construction, of property acquired or constructed by the Company or a Subsidiary after the date of the Closing, provided that

 

(1)           any such Lien shall extend solely to the item or items of such property so acquired or constructed,

 

(2)           the principal amount of the Debt secured by any such Lien shall at no time exceed an amount equal to the lesser of (i) the cost to the Company or such Subsidiary of the property so acquired or constructed and (ii) the Fair Market Value (as determined in good faith by the Board of Directors of the Company) of such property at the time of such acquisition or construction,

 

(3)           any such Lien shall be created contemporaneously with, or within 180 days after, the acquisition or construction of such property,

 

(4)           immediately after giving effect the creation of such Lien and giving effect thereto, no Default or Event of Default would exist, and

 

(5)           if such Lien is created at any time other than during a Collateral Release Period, the principal amount of the Debt secured by such Liens shall be permitted by clause (b) or (d) of the definition of Specified Debt or Section 10.4(a);

 

  

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(i)           any Lien existing on property of a Person immediately prior to its being consolidated with or merged into the Company or a Subsidiary, or any Lien existing on any property acquired by the Company or any Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed), provided that (1) no such Lien shall have been created or assumed in contemplation of such consolidation or merger or such acquisition of property, (2) each such Lien shall extend solely to the item or items of property so acquired, (3) immediately after giving effect to the acquisition of the property subject to such Lien and giving effect thereto, no Default or Event of Default would exist and (4) if such merger or consolidation or acquisition occurs at any time other than during a Collateral Release Period, the principal amount of the Debt secured by such Liens shall be permitted by clause (b) or (d) of the definition of Specified Debt or Section 10.4(a);

 

(j)           any Lien renewing, extending or refunding any Lien permitted by paragraphs (g), (h) or (i) of this Section 10.5, provided that (1) the principal amount of Debt secured by such Lien immediately prior to such extension, renewal or refunding is not increased or the maturity thereof reduced, (2) such Lien is not extended to any other property and (3) immediately after such extension, renewal or refunding no Default or Event of Default would exist;

 

(k)           Liens in favor of the Collateral Agent securing Secured Obligations and subject to the Intercreditor Agreement;

 

(l)           rights of set off in favor of the administrative agent, letter of credit issuer and/or lenders under the Bank Credit Agreement;

 

(m)           Liens encumbering cash collateral (1) required to be posted in respect of letter of credit and other obligations of “defaulting lenders” under the Bank Credit Agreement and (2) at any time other than during a Collateral Release Period, required to be posted in respect of letter of credit obligations of the Company or any Subsidiary Guarantor under the Bank Credit Agreement other than any such requirement arising as a result of a default or event of default under the Bank Credit Agreement;

 

(n)           Liens on insurance policies and proceeds securing the payment of financed insurance premiums not in excess of $25,000,000 at any time;

 

(o)           Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods by the Company or any of its Subsidiaries;

 

  

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(p)           Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution, provided that (1) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Company or any of its Subsidiaries in excess of those set forth by regulations promulgated by the Board of Governors of the Federal Reserve System, and (2) such deposit account is not intended by the Company or any of its Subsidiaries to provide collateral to the depository institution;

 

(q)           Liens of lessors in any property subject to any operating lease, including Liens arising from precautionary UCC financing statements or similar filings made in respect of such leases;

 

(r)           Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the Company or any of its Subsidiaries in the Ordinary Course of Business;

 

(s)           any encumbrance or restriction (including put and call arrangements) with respect to capital stock of any Joint Venture or similar arrangement pursuant to any joint venture or similar agreement; provided that such encumbrance or restriction does not prohibit the granting of a Lien by a the Company or any of its Subsidiaries on any Collateral and any entity formed as part of such Joint Venture remains subject to the provisions of this Agreement to the extent provided herein;

 

(t)           Liens solely on cash earnest money deposits in an aggregate amount not to exceed $10,000,000 at any time, made in connection with any letter of intent or purchase agreement in connection with an Investment; and

 

(u)           other Liens not otherwise permitted by paragraphs (a) through (t) of this Section 10.5, so long as the aggregate principal amount of all Debt secured by such Liens is permitted by Section 10.4; provided, that notwithstanding the foregoing, the Company will not, and will not permit any of its Subsidiaries to, secure any Debt outstanding under the Bank Credit Agreement (or any guaranty thereof) pursuant to this Section 10.4(u) unless and until the Notes and the Guaranty shall be concurrently secured equally and ratably with such Debt pursuant to documentation reasonably acceptable to the Required Holders in substance and form, including without limitation, an intercreditor agreement and opinions of counsel to the Company from attorneys that are reasonably acceptable to the Required Holders.

 

  

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1.9.                   Section 10.6 of the Note Purchase Agreement shall be and is hereby amended and restated in its entirety to read as follows:

 

Section 10.6.        Restrictions on Dividends of Subsidiaries, Etc.  The Company will not, and will not permit any Subsidiary to, enter into, assume or suffer to exist any agreement that limits the ability of any Subsidiary to make Restricted Payments to the Company (or if such Subsidiary is not directly owned by the Company, the “parent” Subsidiary of such Subsidiary) or to otherwise transfer property to the Company (or if such Subsidiary is not directly owned by the Company, the “parent” Subsidiary of such Subsidiary) other than (a) provisions contained in the agreements set forth on Schedule 10.6(a) and provisions set forth in any other agreements pursuant to which Debt may be incurred by the Company or any Subsidiary, provided that such provisions are no more restrictive than those contained in the agreements set forth on Schedule 10.6(a), (b) provisions contained in the terms of any agreement governing Liens permitted under Section 10.5 that impose restrictions only on the property subject to such Liens, and (c) agreements restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the Ordinary Course of Business, in each case relating solely to the assets subject to such lease or license or assets relating solely to such joint venture agreement.

1.10.                 Sections 10.7(d)(2)  and 10.7(d)(3) of the Note Purchase Agreement shall be and are hereby amended and restated in their entirety to read as follows:

 

(2)            if the Company is not the Successor Corporation, (i) such corporation shall have executed and delivered to each holder of the Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement, the Notes and the Security Documents and the Transaction Documents to which the Company is a party (pursuant to such agreements and instruments as shall be reasonably satisfactory to the Required Holders), (ii) the Company shall have caused to be delivered to each holder of the Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof and (iii) each Guarantor shall have delivered to each holder of the Notes a certificate whereby such Guarantor shall have reaffirmed its obligations under the Guaranty Agreement and each of the Security Documents to which it is a party; and

 

(3)            immediately after giving effect to such transaction, no Default or Event of Default would exist.

  

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1.11.                 Section 10.8 of the Note Purchase Agreement shall be and is hereby amended by (a) amending and restating clause (c) in its entirety to read as follows:

 

(c)           immediately after giving effect to the Asset Disposition, the Disposition Value of all property that was the subject of any Asset Disposition occurring during the immediately preceding 12 consecutive calendar month period would not exceed (1) at any time other than during a Collateral Release Period, 5% of Consolidated Total Assets and (2) at any time during a Collateral Release Period, 15% of Consolidated Total Assets, in each case determined as of the end of the then most recently ended fiscal year of the Company.

and (b) adding the following new sentence at the end of said Section 10.8:

 

Notwithstanding the foregoing, this Section 10.8 shall not restrict the Transfer of equity interests in, or assets of, any GLC Venture or any Project Debt Entity.

1.12.                 Section 10.9 of the Note Purchase Agreement shall be and is hereby amended by (a) deleting the word “and” at the end of clause (b), deleting the period “.” and replacing it with “; and” at the end of clause (c) and (c) adding a new clause (d) as follows:

 

(d)           the Transfer of equity interests in any GLC Venture or any Project Debt Entity.

1.13.                 Section 10.11 of the Note Purchase Agreement shall be and is hereby amended and restated in its entirety to read as follows:

 

Section 10.11.      Transactions with Affiliates.  The Company will not, and will not permit any Subsidiary to, enter into any transaction of any kind with any Affiliate of the Company (other than between or among the Company and the Guarantors, in each case to the extent not prohibited under the Transaction Documents), whether or not in the Ordinary Course of Business, other than (a) payment of customary directors’ fees and indemnities (including equity compensation arrangements), (b) arm’s length transactions with Affiliates that were consummated prior to the Second Amendment Effective Date and set forth on Schedule 10.11, (c) transactions with Affiliates upon fair and reasonable terms that are substantially as favorable to the Company or such Subsidiary than the Company or such Subsidiary would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate of the Company and (d) any employment agreement entered into by the Company or any of its Subsidiaries in the Ordinary Course of Business and consistent with the past practices of the Company and its Subsidiaries.

  

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1.14.                 Section 10 of the Note Purchase Agreement shall be and is hereby amended to add at the end thereof the following new Section 10.12:

 

Section 10.12.      Terrorism Sanctions Regulations.  The Company will not, and will not permit any Controlled Entity to, (a) become a Blocked Person or (b) have any investments in or engage in any dealings or transactions with any Blocked Person if such investments, dealings or transactions would cause any holder of a Note to be in violation of any laws or regulations that are applicable to such holder.

 

1.15.                 Section 10 of the Note Purchase Agreement shall be and is hereby amended to add at the end thereof the following new Section 10.13:

 

Section 10.13.       Limitation on Restrictive Agreements.  The Company will not, and will not permit any of its Subsidiaries or Affiliates to, enter into any agreement or instrument that expressly prohibits (a) the Company from entering into any amendment, supplement, modification or restatement of this Agreement or of the Notes or (b) the making of any prepayment required to be made pursuant to Section 8.

1.16.                 Paragraphs (c), (e), (f), (g), (h), (i) and (k) of Section 11 of the Note Purchase Agreement shall be and are hereby amended and restated in their entirety to read as follows:

 

(c)           the Company defaults in the performance of or compliance with any term contained in Sections 10.2, 10.3(a) (for the avoidance of doubt, the failure to comply with the proviso in first paragraph thereof shall not result in an Event of Default under Section 10.3(a) but instead shall be governed by Section 9.6), 10.3(b), 10.4, or Sections 10.6 through 10.10, inclusive, or Section 10.12; or

 

(e)           any representation or warranty made in writing by or on behalf of the Company or any Guarantor or by any officer of the Company or any Guarantor in this Agreement or in the Guaranty Agreement, in any Security Document or in any other Transaction Document or in any writing furnished in connection with the transactions contemplated hereby or thereby proves to have been false or incorrect in any material respect on the date as of which made; or

 

  

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(f)           (1) the Company or any Subsidiary (other than a Project Debt Entity that is not a Material Subsidiary) is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Debt (other than Project Debt) that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (2) the Company or any Subsidiary (other than a Project Debt Entity that is not a Material Subsidiary) is in default in the performance of or compliance with any term of any evidence of any Debt (other than Project Debt) in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared (or one or more Persons are entitled to declare such Debt to be) due and payable before its stated maturity or before its regularly scheduled dates of payment (excluding prepayments required upon the refinancing of such Debt or the Transfer of an asset other than as a result of the existence of a default) or (3) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Debt to convert such Debt into equity interests), (x) the Company or any Subsidiary (other than a Project Debt Entity that is not a Material Subsidiary) has become obligated to purchase or repay Debt (other than (i) Project Debt and (ii) prepayments required upon the refinancing of such Debt or the Transfer of an asset other than as a result of the existence of a default) before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $10,000,000) or (y) one or more Persons have the right to require the Company or any Subsidiary (other than a Project Debt Entity that is not a Material Subsidiary) to purchase or repay such Debt; or

 

(g)           the Company or any Subsidiary (other than a Project Debt Entity that is not a Material Subsidiary) (1) is generally not paying, or admits in writing its inability to pay, its debts as they become due (other than the failure of any Project Debt Entity to pay any Project Debt), (2) files, or consents by answer or otherwise to the filing against it of a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (3) makes an assignment for the benefit of its creditors, (4) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (5) is adjudicated as insolvent or to be liquidated or (6) takes corporate action for the purpose of any of the foregoing; or

 

(h)           a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries (other than Project Debt Entities that are not Material Subsidiaries), a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries (other than Project Debt Entities that are not Material Subsidiaries), or any such petition shall be filed against the Company or any of its Subsidiaries (other than Project Debt Entities that are not Material Subsidiaries) and such petition shall not be dismissed within 60 days; or

 

  

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(i)           a final judgment or judgments for the payment of money aggregating in excess of $10,000,000 are rendered against one or more of the Company and its Subsidiaries (other than Project Debt Entities that are not Material Subsidiaries) and which judgments are not fully covered by insurance or, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or

 

(k)           (1) default shall occur under the Guaranty Agreement or any Security Document and such default shall continue beyond the period of grace, if any, allowed with respect thereto, (2) the Guaranty Agreement or, other than during any Collateral Release Period, any Security Document shall cease to be in full force and effect with respect to the Company or any Guarantor party thereto for any reason whatsoever, including, without limitation, a determination by any Governmental Authority or court that such agreement is invalid, void or unenforceable or the Company or any Guarantor shall contest or deny in writing the validity or enforceability of any of its obligations under the Guaranty Agreement or any Security Document to which it is a party, or (3) other than during any Collateral Release Period, any Security Document shall for any reason fail to create a valid and perfected first priority security interest in any Collateral purported to be covered thereby, subject to the Liens permitted by Section 10.5.

 

1.17.                 Section 22.3 of the Note Purchase Agreement shall be and is hereby amended by adding the following sentence to the end thereof to read as follows:

 

For purposes of determining compliance with the financial covenants contained in this Agreement, any election by the Company to measure any financial liability using fair value (as permitted by Accounting Standard Codification Topic No. 825-10-25 – Fair Value Option or similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

 

1.18.                 Section 22 of the Note Purchase Agreement shall be and is hereby amended by adding the following new Section 22.7 at the end of said Section:

 

Section 22.7.       Environmental Indemnity.

 

The Company agrees to indemnify and hold harmless the Collateral Agent and each holder of the Notes, each Person claiming by, through, under or on account of any of the foregoing and the respective directors, officers, counsel and employees of each of the foregoing Persons (the “Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and costs and expenses (herein, “Claims”) incurred in connection therewith (including but not limited to reasonable attorneys’ and/or paralegals’ fees and expenses and costs incurred in connection with any investigation or monitoring of conditions or any clean-up, remedial, removal or restoration work with respect to the Collateral undertaken or required by any Governmental Authority) to which any such Indemnified Party may become subject under any Environmental Laws applicable to the Company or any Guarantor or any of the Collateral, including without limitation the treatment, storage or disposal of Hazardous Materials on any of the Collateral, or as a result of the breach or non-compliance by the Company or any Guarantor with any Environmental Laws applicable to the Company or any of the Collateral; provided that the Company shall not be required to indemnify any Indemnified Party pursuant to this Section 22.7 for any claim resulting solely from the gross negligence, willful misconduct or fraud of such Indemnified Party.  The provisions of this Section 22.7 shall survive the termination of this Agreement by payment in full of all of the Notes issued hereunder, by the foreclosure by the Collateral Agent on any or all of the Collateral under the Security Documents or otherwise, and shall survive the transfer of any Note or Notes issued hereunder.

 

  

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1.19.                 Schedule B to the Note Purchase Agreement shall be and is hereby amended by adding, or amending and restating, the following definitions, and inserting them in the proper alphabetical order:

 

“Asset Disposition” shall mean any Transfer except:

 

(a)           any

 

(1)           Transfer from a Subsidiary to the Company or to a Wholly-Owned Subsidiary (other than any GLC Venture or any Project Debt Entity);

 

(2)           Transfer from the Company to a Wholly-Owned Subsidiary (other than any GLC Venture or any Project Debt Entity); and

 

(3)           Transfer from any GLC Venture or Project Debt Entity to a GLC Venture or Project Debt Entity

 

so long as immediately before and immediately after the consummation of any such Transfer and after giving effect thereto, no Default or Event of Default would exist;

 

(b)           any Transfer made in the Ordinary Course of Business and involving only property that is either (1) inventory held for sale or (2) equipment, fixtures, supplies or materials no longer required in the operation of the business of the Company or any of its Subsidiaries or that is obsolete; and

 

  

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(c)           any Transfer in one lot of all of the voting Securities of TIC, directly or indirectly, owned or held by the Company to TIC pursuant to that certain Stock Purchase Agreement dated as of December 23, 1996 between the Company and TIC, as amended, supplemented, restated or otherwise modified from time to time.

 

“Attributable Debt” shall mean, on any date, (a) in respect of any Capital Lease of the Company or any Subsidiary, the capitalized amount thereof that would appear as a liability on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation of the Company or any Subsidiary, the capitalized amount of the remaining lease payments under the relevant lease that would appear as a liability on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease and (c) in respect of any Long-Term Lease relating to a Sale-and-Leaseback Transaction of the Company or any Subsidiary, the present value of all Lease Rentals required to be paid by such Person under such lease during the remaining term thereof (determined in accordance with generally accepted financial practice using a discount factor equal to the interest rate implicit in such lease if known or, if not known, of 12% per annum).

 

“Bank Credit Agreement” shall mean that certain Amended and Restated Credit Agreement dated as of October 11, 2012 among the Company, Granite Construction Company and GILC Incorporated, as borrowers, Bank of America, as administrative agent, collateral agent thereunder, swing line lender and L/C issuer, BBVA Compass and Bank of the West, as co-syndication agents, and the other lenders party thereto, as the same may be amended, supplemented, restated, refinanced or otherwise modified from time to time, and any credit agreement or other like agreement entered into by the Company which is substantially similar to or replaces the Bank Credit Agreement.

 

“Blocked Person” shall mean (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC (an “OFAC Listed Person”) or (b) a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, (1) any OFAC Listed Person or (2) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program.

 

  

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“Collateral” shall mean, collectively, all property of the Company, each Guarantor or any other Person in which the Collateral Agent or any other Secured Party is granted a Lien under any Security Document as security for all or any portion of the Secured Obligations, including, without limitation, obligations of the Company hereunder and under the Notes and/or the obligations of the Guarantors under the Guaranty Agreement.  Notwithstanding anything to the contrary contained herein or in any other Security Document, the Collateral shall not include any property that would otherwise constitute a general intangible to the extent that the grant of a security interest in such property is prohibited by any requirement of law of a Governmental Authority, requires a consent not obtained from any Governmental Authority pursuant to such requirement of law or is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, permit, agreement, instrument or other document evidencing or giving rise to such property or, in the case of any investment property, any applicable shareholder, joint venture or similar agreement, except in each case to the extent that such requirement of law or the term in such contract, license, agreement, instrument or other document or shareholder, joint venture or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law; provided that this exclusion shall not apply to capital stock in Joint Ventures or Subsidiaries acquired or created after the Second Amendment Effective Date unless, after reasonable best efforts, the Company or the relevant Guarantor is unable either to avoid the conditions set forth in this exclusion or to obtain consents, waivers or approvals thereof.

 

“Collateral Agent” shall mean Bank of America, N.A. in its capacity as collateral agent under the Intercreditor Agreement and the Security Documents, and its successor and assigns in that capacity.

 

“Collateral Release Date” shall mean the date on which the Collateral has been released pursuant to Section 9.6(f).

 

“Collateral Release Period” shall mean any period of time during which the Collateral Agent is not required to have a Lien (other than set off rights) on any Collateral pursuant to the Security Documents.

 

“Collateral Re-Pledge Date” shall mean the date on which the Company and the Guarantors are required to pledge and grant Liens on the Collateral pursuant to Section 9.6(f).

 

“Consolidated Cash Taxes” shall mean, for any Subject Period, for the Company and its Subsidiaries on a consolidated basis (excluding, however, any Project Debt Entity), the aggregate of all taxes actually paid by such Persons in cash during such period.

 

  

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“Consolidated EBITDA” shall mean, for any Subject Period, for the Company and its Subsidiaries on a consolidated basis (excluding, however, any Project Debt Entity), an amount equal to Consolidated Net Income for such period plus Consolidated Cash Taxes for such period and the following to the extent deducted in calculating such Consolidated Net Income: (a) Consolidated Interest Expense for such period, (b) depreciation and amortization expense for such period, and (c) any non-cash charges for such period (excluding any such non-cash charges that represent the accrual of, or reserve for, anticipated cash charges in any future period); provided that all components of Consolidated EBITDA for such period shall include or exclude, as the case may be, without duplication, such components of Consolidated EBITDA attributable to any Investment other than Construction JV Investments arising in the Ordinary Course of Business consummated during such period or any business or assets that have been Transferred after the first day of such period and prior to the end of such period, in each case as determined on a pro forma basis, in accordance with Regulation S-X promulgated by the SEC.

 

“Consolidated Fixed Charge Coverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated EBITDA, measured for the Subject Period ending on such date, to (b) Consolidated Fixed Charges, measured for the Subject Period ending on such date.

 

“Consolidated Fixed Charges” shall mean, for any Subject Period, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) Consolidated Interest Expenses paid in cash, plus (b) the aggregate amount of Federal, state, local and foreign taxes paid in cash, plus (c) the aggregate principal amount of all regularly scheduled principal payments of Consolidated Funded Indebtedness (for the avoidance of doubt, excluding all payments in respect of revolving Debt and prepayments in respect of all Debt), plus (d) the lesser amount of (1) the aggregate amount of all capital expenditures and (2) $37,500,000, plus (e) the aggregate amount of all Restricted Payments made in cash.

 

“Consolidated Funded Indebtedness” shall mean, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including the Notes) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments, with or without recourse, but not including Project Debt, plus (b) Attributable Debt (excluding Attributable Debt of the type described in clause (c) of the definition thereof and Project Debt), plus (c) without duplication, all Guaranties with respect to Debt of the types specified in clauses (a) and (b) above of Persons other than the Company or any Subsidiary.

 

  

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“Consolidated Interest Coverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated EBITDA, measured for the Subject Period ending on such date, to (b) Consolidated Interest Expense, measured for the Subject Period ending on such date.

 

“Consolidated Interest Expense” shall mean, for any Subject Period, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, plus (b) the portion of rent expense of the Company and its Subsidiaries with respect to such period under Capital Leases that is treated as interest in accordance with GAAP and the portion of Synthetic Lease Obligations payable by the Company and its Subsidiaries with respect to such period that would be treated as interest in accordance with GAAP if such lease were treated as a capital lease under GAAP; excluding for purposes of clause (a) and (b) hereof, such amounts in respect of Project Debt.

 

“Consolidated Leverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA, measured for the Subject Period ending on or most recently ended prior to such date.

 

“Consolidated Net Income” shall mean, for any Subject Period, for the Company and its Subsidiaries on a consolidated basis, the net income of the Company and its Subsidiaries from continuing operations, excluding extraordinary items and excluding gains and losses from Transfers for that period; not including, however, net income in respect of or attributable to any Project Debt Entity unless and until such net income has been received by the Company or a Subsidiary (other than a Project Debt Entity) in the form of dividends or similar distributions.

 

“Consolidated Stockholders’ Equity” shall mean, as of any date of determination for the Company and its Subsidiaries (excluding Project Debt Entities) on a consolidated basis, stockholders’ equity as of that date, determined in accordance with GAAP.

 

“Consolidated Tangible Net Worth” shall mean, as of any date of determination, the amount equal to Consolidated Stockholders’ Equity on that date minus the Intangible Assets of the Company and its Subsidiaries (excluding Project Debt Entities) (determined on a consolidated basis in accordance with GAAP) on that date.

 

  

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“Construction JV” shall mean any Joint Venture entered into by the Company or any of its Subsidiaries, initially, with any one or more other Persons in the Ordinary Course of Business solely for purposes of undertaking or completing a construction project; provided that a Construction JV shall not be deemed to cease being a Construction JV after the withdrawal or buy-out of such other Person(s) from the Joint Venture or the purchase, acquisition or redemption of such other Person’s interest in such Joint Venture.

 

“Construction JV Investments” shall mean Investments in any Construction JV arising upon any initial capital contribution to or subsequent capital contribution in such Construction JV, and participated in ratably by all then existing co-joint venturers having an interest in such Construction JV, solely for purposes of undertaking or completing a construction project and Investments arising in connection with the purchase, acquisition, redemption or buy-out of another co-joint venturer’s interest in such Construction JV; provided Construction JV Investments shall not include the incurrence, directly or indirectly, of any Guaranty by the Company or any of its Subsidiaries.

 

“Contingent Acquisition Obligation” shall mean those contingent obligations (including, without limitation, purchase price adjustments, indemnification obligations and “earnouts”) of the Company or any of its Subsidiaries incurred in favor of a seller (or other third party entitled thereto) under or with respect to any acquisition or Investment.

 

“Controlled Entity” shall mean any of the Subsidiaries of Company and any of their respective Controlled Affiliates.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Debt” shall mean, as to any Person at a particular time, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)           all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), reimbursement agreements, bankers’ acceptances, bank guaranties, surety bonds and similar instruments (in each case, whether or not such obligations are contingent or absolute); provided that the amount of any such contingent obligation permitted under this clause (b) shall be deemed to be equal to the maximum reasonably anticipated liability in respect thereof;

 

  

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(c)           net obligations under any Swap Contract in an amount equal to the Swap Termination Value thereof;

 

(d)           all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the Ordinary Course of Business);

 

(e)           indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)           Capital Leases and Synthetic Lease Obligations; and

 

(g)           all Guaranties of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Debt of any Person shall include the Debt of any Joint Venture (other than a Joint Venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, unless such Debt is (1) expressly made non-recourse to such Person and to such Person’s assets (subject only to customary exceptions acceptable to the Required Holders) or (2) Project Debt.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of any Capital Lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable Debt in respect thereof as of such date.

 

“Direct Foreign Subsidiary” shall mean a Foreign Subsidiary a majority of whose Voting Securities, or a majority of whose Subsidiary Securities, are owned by the Company or a Domestic Subsidiary.

 

“Domestic Subsidiary” shall mean any Subsidiary that is organized under the laws of any political subdivision of the United States, other than any such Subsidiary that is treated as a disregarded entity for U.S. federal income tax purposes if substantially all of the assets of such Subsidiary consist of capital stock of one or more direct or indirect Subsidiaries organized under the laws of any jurisdiction other than the United States or any political subdivision thereof.

 

  

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“Foreign Subsidiary” shall mean any Subsidiary other than a Domestic Subsidiary.

 

“GLC Venture” shall mean any Joint Venture, now or hereafter formed by the Company or any of its Subsidiaries with any other Person in the Ordinary Course of Business of the Company or such Subsidiary for the purpose of engaging in the business of real estate development and/or Transfer of real estate or interests in real estate or entities owning real estate; provided that a GLC Venture shall not be deemed to cease being a GLC Venture after the withdrawal or buy-out of such other Person(s) from the Joint Venture or the purchase, acquisition or redemption of such other Person’s interest in such Joint Venture.

 

“Intangible Assets” shall mean assets that are considered to be intangible assets under GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and capitalized research and development costs.

 

“Intercreditor Agreement” shall mean the Collateral Agency and Intercreditor Agreement among the Collateral Agent, the Secured Parties and the Company, dated as of October 11, 2012, as amended, restated, supplemented or modified from time to time in accordance with the terms thereof.

 

“Investment” shall mean, as to any Person, any acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other Securities of another Person, (b) a loan, advance or capital contribution to, guaranty of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in or with such other Person, (c) the provision of goods or services to another Person for consideration other than cash payable in full upon the delivery or provision of such goods or services (other than trade accounts payable in the Ordinary Course of Business), or (d) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit of that Person.

 

“Joint Venture” shall mean a single-purpose corporation, partnership, limited liability company, joint venture or other similar legal arrangement (whether created by contract or conducted through a separate legal entity) now or hereafter formed by one Person with another Person in order to conduct a common venture or enterprise with such Person.

 

“Material Adverse Effect” shall mean a material adverse effect on (a) the business, operations, affairs, financial condition, assets, properties or prospects of the Company and its Subsidiaries, taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement, the Notes, any Security Document to which it is a party or any other Transaction Document to which it is a party, (c) the ability of any Guarantor to perform its obligations under the Guaranty Agreement, any Security Document to which it is a party or any other Transaction Document to which it is a party, (d) the validity or enforceability of this Agreement, the Notes, the Guaranty Agreement, any Security Document or any other Transaction Document or (e) a material impairment of the rights and remedies of the Collateral Agent or any holder of a Note under any Transaction Document.

 

  

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“Material Subsidiary” shall mean each Subsidiary identified as a Material Subsidiary on Schedule 5.4, each Subsidiary that is an obligor or guarantor of any Debt existing under the Bank Credit Agreement or an Existing Note Agreement and each other Subsidiary which meets either of the following conditions:

 

(a)           such Subsidiary’s total revenues for the period of the immediately preceding four fiscal quarters are equal to or greater than 10% of the consolidated total revenues of the Company and its Subsidiaries for such period determined in accordance with GAAP, in each case as reflected in the most recent annual or quarterly financial statements of the Company and its Subsidiaries; or

 

(b)           such Subsidiary’s total assets, as of the last day of the immediately preceding fiscal quarter, are equal to or greater than 10% of Consolidated Total Assets, in each case as reflected in the most recent annual or quarterly financial statements of the Company and its Subsidiaries.

 

If, at any time, Subsidiaries qualifying as Material Subsidiaries which, in the aggregate and together with the total revenues and total assets of the Company, do not represent at least 80% of the consolidated total revenues of the Company and its Subsidiaries and at least 80% of Consolidated Total Assets (the “80% Threshold”), the Company shall designate additional Domestic Subsidiaries or, to the extent no material adverse tax consequences shall result, Foreign Subsidiaries as Material Subsidiaries until the 80% Threshold is satisfied collectively by all Material Subsidiaries.  Once a Subsidiary qualifies as or is designated by the Company as a Material Subsidiary, it shall continue to constitute a Material Subsidiary throughout the term of this Agreement, until such time as the Company provides to the holders of the Notes a certificate in accordance with Section 9.6(c) that such Subsidiary is no longer required to be designated as such pursuant to the terms hereof.

 

“Mortgage” shall mean any mortgage, deed of trust, trust deed or other equivalent document now or hereafter encumbering any fee-owned real property of the Company or any Guarantor in favor of the Collateral Agent on behalf of the Secured Parties, as security for any of the Secured Obligations, each of which shall be in form and substance reasonably acceptable to the Required Holders.

 

  

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“Mortgaged Properties” shall mean, collectively, the real properties owned by the Company and the Guarantors and identified on Schedule 6, including, without limitation, all buildings, improvements, structures and fixtures now or subsequently located thereon and owned by the Company or any such Guarantor.

 

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

 

“OFAC Sanctions Program” shall mean any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.ustreas.gov/offices/enforcement/ofac/programs/.

 

“Ordinary Course of Business” shall mean, in respect of any transaction involving the Company or any Subsidiary, (a) the ordinary course of such Person’s business, substantially as conducted by any such Person prior to or as of the Second Amendment Effective Date, or in a manner reasonably related thereto, and undertaken by such Person in good faith and not for purposes of evading any covenant or restriction herein or in any other Transaction Document, or (b) transactions outside the ordinary course of such Person’s then-existing business, as long as the Company provides written notice to the holders of the Notes prior to such Person undertaking such business, specifically referencing this definition, provided that the Required Holders shall not have delivered written objections to the Company within five Business Days after their receipt of such written notice.

 

“Pledge Agreement” shall mean that certain Amended and Restated Securities Pledge Agreement dated as of the Second Amendment Effective Date among the Company, certain Guarantors and the Collateral Agent, for the benefit of the Secured Creditors, in the form attached hereto as Exhibit PA, as supplemented from time to time by the execution and delivery of Pledge Joinder Agreements pursuant to Section 9.6, as the same may be otherwise supplemented (including by Pledge Agreement Supplement), each as amended, restated, supplemented or otherwise modified from time to time.

 

“Pledge Agreement Supplement” shall mean, with respect to the Pledge Agreement, a Pledge Agreement Supplement substantially in the form attached to the Pledge Agreement, executed and delivered by the Company or a Guarantor to the Collateral Agent pursuant to Section 9.6.

 

  

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“Pledge Joinder Agreement” shall mean each Pledge Joinder Agreement, substantially in the form thereof attached to the Pledge Agreement, executed and delivered by a Guarantor to the Collateral Agent pursuant to Section 9.6.

 

“Pledged Interests” shall mean the Subsidiary Securities heretofore pledged to the Collateral Agent and the Subsidiary Securities required to be pledged as Collateral pursuant to this Agreement or the terms of the Pledge Agreement; provided that notwithstanding any contrary provision in any Transaction Document, in the case of any Foreign Subsidiary, “Pledged Interests” shall be limited to a pledge of 65% of the Voting Securities and 100% of the other Subsidiary Securities issued by such Foreign Subsidiary.

 

“Priority Debt” shall mean (without duplication), as of the date of any determination thereof, the sum of (a) all unsecured Debt of Subsidiaries (including Attributable Debt of Subsidiaries and all guaranties of Debt of the Company) but excluding (1) unsecured Debt owing to the Company or any Wholly-Owned Subsidiary (other than any GLC Venture or a Project Debt Entity), (2) unsecured Debt outstanding at the time such Person became a Subsidiary, provided that such Debt shall have not been incurred in contemplation of such Person becoming a Subsidiary, (3) all guaranties of Debt of the Company by any Subsidiary which has also guaranteed the Notes pursuant to the Guaranty Agreement, (4) all unsecured Debt of Subsidiaries incurred under the Bank Credit Agreement by any Subsidiary which has also guaranteed the Notes pursuant to the Guaranty Agreement and (5) at any time other than during a Collateral Release Period, all unsecured Debt of Subsidiaries that is Specified Debt, (b) all Debt of the Company and its Subsidiaries secured by Liens other than Debt that is (1) secured by Liens permitted by subparagraphs (a) through (t), inclusive, of Section 10.5 and (2) at any time other than during a Collateral Release Period, secured Debt of the Company and its Subsidiaries that is Specified Debt, and (c) all Attributable Debt of the Company other than, at any time other than during a Collateral Release Period, Attributable Debt that is Specified Debt, but excluding, in the case of clause (a), (b) and (c) hereof, Project Debt permitted by Section 10.3(b).

 

“Project Debt” shall mean, in respect of any GLC Venture (the “obligor”), any Debt of such obligor incurred in the Ordinary Course of Business of such obligor and of the Company and its Subsidiaries, which may be secured by a Lien on assets of such obligor, but as to which there is no general recourse to the Company or any Guarantor except against such obligor (a) for breach of customary representations and warranties, or (b) to the extent such obligor is a limited liability company, corporation, limited partnership or other entity as to which neither the Company nor any Guarantor (other than obligor) is, directly or indirectly (at law, through any Guaranty or otherwise), liable to pay the debts of such obligor.

 

  

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“Project Debt Entity” shall mean at any time, any GLC Venture obligated in respect of Project Debt at such time.

 

“Restricted Payment” shall mean any dividend or other distribution (whether in cash, Securities or other property) with respect to any capital stock or other equity interest of the Company or any Subsidiary, or any payment (whether in cash, Securities or other property), including any sinking fund or similar deposit on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other equity interest or of any option, warrant or other right to acquire any such capital stock or other equity interest.

 

“Second Amendment Effective Date” shall mean October 11, 2012.

 

“Secured Creditors” shall mean the “Secured Creditors” as defined in the Intercreditor Agreement.

 

“Secured Obligations” means the “Secured Obligations” as defined in the Intercreditor Agreement.

 

“Security Agreement” shall mean that certain Amended and Restated Security Agreement dated as of the Second Amendment Effective Date among the Company, the Guarantors and the Collateral Agent, in the form attached hereto as Exhibit SA, as supplemented from time to time by the execution and delivery of Security Joinder Agreements pursuant to Section 9.6, and as modified, amended, amended and restated or supplemented from time to time.

 

“Security Documents” shall mean, collectively, the Pledge Agreement, the Security Agreement, the Mortgages and all other agreements (including control agreements), instruments and other documents, whether now existing or hereafter in effect, pursuant to which the Company or any Subsidiary or other Person shall grant or convey to the Collateral Agent or any Secured Party a Lien in, or any other Person shall acknowledge any such Lien in, property as security for all or any portion of the Secured Obligations or any other obligation under any Transaction Document, as any of them has been or may be amended, amended and restated, modified or supplemented from time to time.

 

  

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“Security Joinder Agreement” shall mean each Security Joinder Agreement, substantially in the form attached to the Security Agreement, executed and delivered by a Guarantor or any other Person to the Collateral Agent pursuant to Section 9.6.

 

“Specified Debt” shall mean, as to any Person at a particular time, all of the following:

 

(a)           all Debt of the Company and its Subsidiaries outstanding on the Second Amendment Effective Date and listed on Schedule 10.4 and any refinancings, refundings, renewals or extensions thereof, provided that the amount of such Debt is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder;

 

(b)           Debt in respect of Capital Leases, Synthetic Lease Obligations, Sale-and-Leaseback Transactions and purchase money Debt for fixed or capital assets acquired by the Company or any Subsidiary, provided that the aggregate principal amount of (1) all purchase money Debt for fixed or capital assets that may be incurred by the Company or any of its then-existing Subsidiaries in any fiscal year of the Company and included in Specified Debt under this clause (b) shall not exceed $25,000,000, (2) all Debt in respect of Capital Leases, Synthetic Lease Obligations and Sale-and-Leaseback Transactions to finance the acquisition of fixed or capital assets incurred by the Company or any of its Subsidiaries in any fiscal year of the Company and included in Specified Debt under this clause (b) shall not exceed $25,000,000 and (3) all Debt in respect of Capital Leases, Synthetic Lease Obligations, Sale-and-Leaseback Transactions and purchase money Debt for fixed or capital assets of Persons immediately prior to such Persons becoming Subsidiaries or being merged with or into (or otherwise becoming acquired by) the Company or any of its Subsidiaries following the Second Amendment Effective Date included in Specified Debt under this clause (b) shall not exceed an amount equal to $65,000,000, provided that none of such Debt was incurred in anticipation of any such merger or acquisition;

 

(c)           Debt incurred in the Ordinary Course of Business in connection with (1) securing the performance of bids, trade contracts (other than for borrowed money, the obtaining of advances or credit or the payment of the deferred purchase price of property), and statutory obligations, in each case, solely for the account and benefit of the Company, its Subsidiaries, any GLC Venture or Construction JV, (2) obligations on surety and appeal bonds solely for the account and benefit of the Company, its Subsidiaries, any GLC Venture or Construction JV (other than in relation to borrowed money debt, the obtaining of advances or credit or the payment of the deferred purchase price of property), and (3) other obligations of a like nature incurred in the Ordinary Course of Business solely for the account and benefit of the Company, its Subsidiaries, any GLC Venture or Construction JV (other than in relation to borrowed money debt, the obtaining of advances or credit or the payment of the deferred purchase price of property), in each of the foregoing cases to the extent not otherwise prohibited by the terms of any Transaction Document;

 

  

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(d)           Debt of the Company or any Guarantor comprised solely of (1) the outstanding principal amount of unsecured obligations, whether current or long-term, for borrowed money and all obligations evidenced by bonds (other than performance, surety and appeal bonds), debentures, notes, loan agreements or other similar instruments, (2) Attributable Indebtedness in respect of Capital Leases and Synthetic Lease Obligations, (3) Contingent Acquisition Obligations in respect of any acquisition or Investment, or (4) without duplication, obligations under any Guaranty with respect to Debt of the types specified in the immediately preceding clauses (1) and (3), provided that, (i) the aggregate principal amount of outstanding Debt of the types permitted by the immediately preceding clauses (1) through (4) and is included in Specified Debt under this clause (d) shall not exceed $150,000,000, (ii) the aggregate principal amount of outstanding Debt of the types permitted by the immediately preceding clauses (1) through (4) that is subject to amortization or payment at maturity prior to October 11, 2016 and is included in Specified Debt under this clause (d) shall not exceed $100,000,000 and (iii) no such Debt shall be included in Specified Debt under this clause (d) if such Debt represents Debt of any co-joint venturer in any Joint Venture, to which the Company or any Subsidiary is a party, that is assumed by the Company or any Subsidiary, if such Debt was not originally incurred by such co-joint venturer in connection with (and relate solely to) the subject Joint Venture;

 

(e)           Guaranties by the Company or any Guarantor of Debt otherwise constituting Specified Debt of the Company or any Guarantor;

 

(f)           Debt arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course of business; provided, however, that such Debt is extinguished within five Business Days of incurrence; and

 

(g)           customer deposits and advance payments received in the Ordinary Course of Business.

 

“Subject Period” shall mean, as of any date of determination, the four consecutive fiscal quarter period ending on such date.

 

  

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“Subsidiary Securities” shall mean the shares of capital stock or other equity interests issued by or equity participations in any Material Subsidiary, whether or not constituting a “security” under Article 8 of the Uniform Commercial Code as in effect in any jurisdiction.

 

“Swap Contract” shall mean (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“Swap Termination Value” shall mean, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts.

 

“Synthetic Lease Obligation” shall mean the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

 

“Transaction Documents” shall mean, collectively, this Agreement, each Note, the Guaranty Agreement, the Security Documents, the Intercreditor Agreement, and the other agreements, documents, certificates and instruments now or hereafter executed or delivered by a Company or any Subsidiary or Affiliate in connection with this Agreement.

 

  

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“Transfer” shall mean the sale, transfer, license, lease or other disposition (including, without limitation, any sale and leaseback transaction) of any property, including, without limitation, Subsidiary Stock, by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith; provided that the term “Transfer” shall not apply to or include any lease of real property.  For purposes of determining the application of the Net Proceeds Amount in respect of any Transfer, the Company may designate any Transfer as one or more separate Transfers each yielding a separate Net Proceeds Amount.  In any such case, (a) the Disposition Value of any property subject to each such separate Transfer and (b) the amount of Consolidated Total Assets attributable to any property subject to each such separate Transfer shall be determined by ratably allocating the aggregate Disposition Value of, and the aggregate Consolidated Total Assets attributable to, all property subject to all such separate Transfers to each such separate Transfer on a proportionate basis.

 

“Voting Securities” shall mean shares of capital stock issued by a corporation, or equivalent interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a contingency.

 

1.20.                 Schedule B to the Note Purchase Agreement shall be and is hereby further amended to delete the following definitions therefrom:

 

“Capital Lease Obligation,” “Consolidated Net Worth,” “Consolidated Total Capitalization,” “Consolidated Total Debt,” “Preferred Stock,” “Receivables Securitization Transactions” and “Restricted Investments.”

 

1.21.                Schedule 5, Schedule 6, Schedule 10.4, Schedule 10.6(a), Schedule 10.11, Exhibit PA and Exhibit SA are added to the Note Purchase Agreement to read respectively as Schedule 5, Schedule 6, Schedule 10.4, Schedule 10.6(a), Schedule 10.11, Exhibit PA and Exhibit SA attached hereto.

 

1.22.                Schedule 5.4 to the Note Purchase Agreement shall be and is hereby amended and restated in its entirety to read as set forth on Schedule 5.4 attached hereto.

 

  

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SECTION 2. Representations and Warranties of the Company and the Guarantors.

 

2.1.                   To induce the Noteholders to execute and deliver this Second Amendment (which representations shall survive the execution and delivery of this Second Amendment), the Company represents and warrants to the Noteholders that:

 

(a)  this Second Amendment, each Security Document and the Intercreditor Agreement have been duly authorized by all necessary corporate or other action on the part of the Company and/or the Guarantors party thereto, executed and delivered by the Company and/or the Guarantors party thereto and this Second Amendment, the Note Purchase Agreement, as amended by this Second Amendment, each Security Document and the Intercreditor Agreement constitute the legal, valid and binding obligations, contracts and agreements of the Company and/or the Guarantors party thereto, enforceable against such Persons in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally;

 

(b)  Schedule 5.4 contains (except as noted therein) complete and correct lists (1) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary and whether or not such Subsidiary is a Material Subsidiary on the Second Amendment Effective Date, (2) of the Company’s Affiliates and (3) of the Company’s directors and executive officers;

 

(c)  the execution and delivery of this Second Amendment, each Security Document and the Intercreditor Agreement by the Company and/or the Guarantors party thereto and the performance thereof and of the Note Purchase Agreement, as amended by this Second Amendment, will not (1) violate (i) any provision of law, statute, rule or regulation or its certificate of incorporation or bylaws or other charter documents, (ii) any order of any court or any rule, regulation or order of any other agency or government binding upon it, or (iii) any provision of any indenture, agreement or other instrument to which it is a party or by which its properties or assets are or may be bound, or (2) result in a breach or constitute (alone or with due notice or lapse of time or both) a default under any indenture, agreement or other instrument referred to in clause (1)(iii) of this Section 2.1(c);

 

(d)  no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution and delivery of this Second Amendment, the Security Documents or the Intercreditor Agreement by the Company and/or the Guarantors party thereto or the performance thereof or of the Note Purchase Agreement, as amended by this Second Amendment, by the Company and/or any Guarantor party thereto except for (1) the authorizations, approvals, actions, notices and filings which have been duly obtained, taken, given or made and are in full force and effect or (2) the filing of Uniform Commercial Code financing statements and any applicable state certificate of title statute with respect to motor vehicles to perfect and exercise remedies with respect to the security interest conferred under the Security Documents, filings of security agreements in the United States Patent and Trademark Office and the United States Copyright Office, the recording of Mortgages pursuant to the Transaction Documents and filings required under state and federal securities laws upon the sale of stock;

 

  

- 35 -

  

 

(e)  the provisions of the Security Documents are effective to create in favor of the Collateral Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien (subject only to Liens permitted by Section 10.5) on all right, title and interest of the Company or the applicable Guarantor in the Collateral described therein.  Except for filings and actions contemplated hereby and by the Security Documents, no filing or other action will be necessary to perfect or protect such Liens;

 

(f)  (1)  other than in connection with a non-ratable prepayment or purchase of Notes pursuant to Section 8.5, the Notes and all other obligations of the Company under this Agreement shall rank at least pari passu in right of payment with all other present and future Secured Obligations of the Company; and

 

  (2)   the obligations of each Guarantor under the Guaranty Agreement rank at least pari passu in right of payment with all other present and future Secured Obligations of such Subsidiary Guarantor;

 

(g)  as of the Second Amendment Effective Date, there exists no Project Debt, other than as specifically identified on Schedule 5;

 

(h)  the Mortgaged Properties listed on Schedule 6 constitute all of the material real properties owned by the Company and the Guarantors as of the Second Amendment Effective Date;

 

(i)  except as superseded by the representations and warranties set forth in Exhibit SR hereto, all the representations and warranties contained in Section 5 of the Note Purchase Agreement are true and correct in all material respects with the same force and effect as if made by the Company on and as of the date hereof date (except to the extent such representations and warranties expressly refer to an earlier date, in which case they were true and correct in all material respects as of such earlier date); and

 

(j)  as of the date hereof and after giving effect to this Second Amendment, each of the Security Documents and the Intercreditor Agreement, no Default or Event of Default has occurred which is continuing and no waiver of Default or Event of Default is in effect.

 

  

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SECTION 3. Conditions to Effectiveness of this Second Amendment.

 

3.1.                  Upon satisfaction of each and every one of the following conditions, this Second Amendment shall become effective as of the date first written above:

 

(a)  executed counterparts of this Second Amendment, duly executed by the Company and the holders of at least 51% of the outstanding principal of the Notes, shall have been delivered to each Noteholder or its special counsel;

 

(b)  the representations and warranties of the Company set forth in Section 2 hereof are true and correct on and with respect to the date hereof;

 

(c)  the Intercreditor Agreement, in form and substance satisfactory to each Noteholder, shall have been duly executed by each of the parties thereto and shall be in full force and effect and a copy thereof shall have been delivered to each Noteholder or its special counsel;

 

(d)  each Noteholder or its special counsel (or, in the case of clause (2) below, the Collateral Agent) shall have received an executed counterpart of the Security Agreement and the Pledge Agreement, each in form and substance satisfactory to the Required Holders, together with:

 

(1)           Uniform Commercial Code financing statements suitable in form and substance for filing in all places required by applicable law to perfect the Liens of the Collateral Agent under the Security Documents as a first priority Lien as to items of Collateral in which a security interest may be perfected by the filing of financing statements, and such other documents and/or evidence of other actions as may be reasonably necessary under applicable law to perfect the Liens of the Collateral Agent under such Security Documents as a first priority Lien in and to such other Collateral as the Required Holders may reasonably require, including without limitation the delivery by the Company or any Subsidiary of all certificates evidencing pledged interests, accompanied in each case by duly executed stock powers (or other appropriate transfer documents) in blank affixed thereto;

 

(2)           the originals of all promissory notes issued in connection with Debt permitted by Section 7.03(e) of the Bank Credit Agreement, together with duly executed undated endorsements in blank affixed thereto;

 

(3)           except with the express prior written consent of the Required Holders in each instance, with respect to the Investment Property (as defined in the Security Agreement) listed on Schedule 9(e) of the Security Agreement, copies of each existing Qualifying Control Agreement (as defined in the Security Agreement) from the applicable securities intermediary;

 

  

- 37 -

  

 

(4)           except with the express prior written consent of the Required Holders in each instance, with respect to the Deposit Accounts (as defined in the Security Agreement) listed on Schedule 9(f) of the Security Agreement, copies of each existing Qualifying Control Agreement (as defined in the Security Agreement) from the applicable depositary institutions; and

 

(5)           evidence that all insurance required to be maintained pursuant to the Note Purchase Agreement, the Security Documents or any other Transaction Document has been obtained and is in effect, together with the certificates of insurance and endorsements, naming the Collateral Agent on behalf of the Secured Creditors as an additional insured or lender’s loss payee, as the case may be, under all insurance policies maintained with respect to the assets and properties of the Company and the Guarantors that constitute Collateral.

 

(e)  each Noteholder or its special counsel shall have received an executed counterpart of a Mortgage, or an amendment to Mortgage, in each case, in form and substance satisfactory to the Required Holders, with respect to each Mortgaged Property listed on Schedule 6 in recordable form, and, to the extent not previously delivered to the Collateral Agent, together with:

 

(1)           to the extent necessary under applicable law, for filing in the appropriate county land office(s), Uniform Commercial Code financing statements covering fixtures, if required, in each case appropriately completed;

 

(2)           mortgage policies of title insurance (which, if satisfactory to the Required Holders, may be in the form of a mark-up of pro forma mortgage policies which are satisfactory to the Required Holders subsequently to be followed by mortgage policies) relating to each Mortgage of the Mortgaged Property referred to above, issued by a title insurer reasonably satisfactory to the Required Holders (the “Title Company”), in an insured amount satisfactory to the Required Holders and insuring the Collateral Agent and the Secured Creditors that the Mortgage on each such Mortgaged Property is a valid and enforceable first priority mortgage lien on such Mortgaged Property, free and clear of all defects and encumbrances except Liens permitted by Section 10.5, with each such mortgage policy (i) to be in form and substance satisfactory to the Required Holders, (ii) to include a reference to the relevant survey with no survey exceptions except those theretofore approved by the Required Holders (such approval not to be unreasonably withheld or delayed), (iii) not to include any exception(s) for mechanic’s liens, and (iv) to provide for affirmative insurance and endorsements (to the extent applicable and available in the relevant jurisdiction) as the Required Holders may reasonably request;

 

  

- 38 -

  

 

(3)           if requested by the Required Holders, (i) surveys for each Mortgaged Property sufficient for the Title Company to remove the standard survey exceptions from the title insurance policies and issue the endorsements required in clause (2)(iv) above, or (ii) affidavits delivered to the title insurer sufficient for the Title Company to remove the standard survey exceptions from the title policies and issue the endorsements referenced in clause (2)(iv) above;

 

(4)           evidence (which may be satisfied by appropriate instructions in a funds flow memorandum) of payment to the title insurer of all expenses and premiums of the title insurer in connection with the issuance of such policies and endorsements and payment to the Title Company of an amount equal to any fees or taxes, including recording, mortgage, intangible and stamp taxes payable in connection with recording the Mortgages and Uniform Commercial Code financing statements covering fixtures, if applicable, in the appropriate county or state land office(s);

 

(5)           in connection with any Mortgage, customary opinions of counsel in the jurisdiction where each Mortgaged Property is located; and

 

(6)           evidence of flood insurance coverage satisfactory to the Required Holders for each Mortgaged Property located in a specified flood hazard zone pursuant to a Standard Flood Hazard Determination.

 

(f)       the Bank Credit Agreement, providing for a $215,000,000 revolving credit facility to the Company and having other terms and conditions satisfactory to the Required Holders, shall have been duly executed and delivered by each of the parties thereto and shall be in full force and effect and a copy thereof shall have been delivered to each Noteholder or its special counsel;

 

(g)  an amendment to the Note Purchase Agreement, dated as of December 12, 2007, by and among the Company and the Purchasers named on the Schedule A attached thereto, consistent with the amendments set forth in this Amendment, and such amendment shall have been duly executed by each of the parties thereto and shall be in full force and effect and a copy thereof shall have been delivered to each Noteholder or its special counsel;

 

(h)  such certificates of resolutions or other action, incumbency certificates and/or other certificates (including specimen signatures) of Responsible Officers of the Company and each Guarantor as the Required Holders or their special counsel may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Second Amendment, the Security Documents to which such Person is a party and the Intercreditor Agreement;

 

  

- 39 -

  

 

(i)  such documents and certifications as the Required Holders may reasonably require to evidence that the Company and each Guarantor is duly organized or formed, and that the Company and each Guarantor is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

(j)  each Noteholder shall have received a customary opinion, addressed to the such Noteholder, of Jones Day, counsel for the Company and the Guarantors, and the general counsel or assistant general counsel for the Company and the Guarantors, in each case in form and substance satisfactory to the Required Holders concerning the Company, the Guarantors, this Second Amendment, the Security Documents (which may include some or all of the Mortgages), the Intercreditor Agreement and as to such matters as the Required Holders  may reasonably request;

 

(k)  a certificate of a Responsible Officer of the Company and each Guarantor either (1) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by such Person and the validity against such Person of the Transaction Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required;

 

(l)  each Noteholder shall have received, by payment in immediately available funds to the account of such holder set forth in Schedule A to the Note Purchase Agreement the amount set forth opposite such holder’s name in Schedule 1 attached hereto; and

 

(m)    the Company shall have paid the fees and expenses of Schiff Hardin LLP, special counsel to the Noteholders, in connection with the negotiation, preparation, approval, execution and delivery of this Second Amendment, the Security Documents and the Intercreditor Agreement.

 

SECTION 4. Reaffirmation of Guaranty Agreement.

 

4.1.                  By their execution and delivery hereof, the undersigned Guarantors hereby acknowledge and agree to this Second Amendment and reaffirm the Guaranty Agreement dated as of May 1, 2001 given in favor of each Noteholder and their respective successors and assigns.

 

SECTION 5. Post-Closing Covenant.

 

5.1.                  Unless otherwise agreed to by the Required Holders (in their reasonable discretion), the Company and the Guarantors hereby agree to deliver, or cause to be delivered, to the holders of the Notes each of the agreements, instruments and other documents (each in form and substance reasonably acceptable to the Required Holders) set forth on Exhibit P-C attached hereto and made a part hereof, and to take, or cause to be taken, each of the actions set forth on Exhibit P-C, in each case within the time set forth therein for each such agreement, instrument, document or action. The Required Holders may, but shall not be obligated to, extend the time (if applicable) for the satisfaction of any of the requirements set forth in Exhibit P-C in its reasonable discretion.

 

  

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5.2.                  The Company and the Guarantors hereby acknowledge and agree that the failure to satisfy any of the requirements set forth in Exhibit P-C within the time provided herein or therein (including any extension granted by the Required Holders pursuant to the last sentence of Section 5.1) shall constitute a default hereunder and an additional Event of Default under the Note Purchase Agreement for all purposes, and, without limiting the foregoing, all rights, powers, remedies and restrictions, including restrictions on extensions of credit, under the Transaction Documents resulting from an Event of Default shall be applicable.

 

SECTION 6. Miscellaneous.

 

6.1.                  No right, power or remedy conferred by this Second Amendment, the Note Purchase Agreement, by any Note, by the Guaranty Agreement, by any Security Document or by any other Transaction Document upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.

 

6.2.                  The Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel for the Purchasers and the Collateral Agent and, if reasonably required by the Required Holders, local or other counsel) incurred by each holder of a Note or the Collateral Agent in connection with the transactions contemplated hereby and in connection with any amendments, waivers or consents under or in respect of this Second Amendment, the Note Purchase Agreement, the Notes, the Guaranty Agreement, any Security Document or any other Transaction Document (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Second Amendment, the Note Purchase Agreement, the Notes, the Guaranty Agreement, any Security Document or any other Transaction Document or the Collateral or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Second Amendment, the Note Purchase Agreement, the Notes, the Guaranty Agreement, any Security Document or any other Transaction Document or the Collateral, or by reason of being a holder of any Note or a beneficiary of the Guaranty Agreement or any Security Document or any other Transaction Document, and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby, by the Note Purchase Agreement, by the Notes, by the Guaranty Agreement, by any Security Document or by any other Transaction Document or any realization upon the Collateral.

 

  

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6.3.                  The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof, of the Note Purchase Agreement, of the Notes, of any Security Document or of any other Transaction Document.

 

6.4.                  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof, of any Note, the Guaranty Agreement, any Security Document or any other Transaction Document unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.

 

6.5.                  This Second Amendment shall be construed in connection with and as part of the Note Purchase Agreement, and except as modified and expressly amended by this Second Amendment, all terms, conditions and covenants contained in the Note Purchase Agreement and the Notes are hereby ratified and shall be and remain in full force and effect.

 

6.6.                  Any and all notices, requests, certificates and other instruments executed and delivered after the execution and delivery of this Second Amendment may refer to the Note Purchase Agreement without making specific reference to this Second Amendment but nevertheless all such references shall include this Second Amendment unless the context otherwise requires.

 

6.7.                  The descriptive headings of the various Sections or parts of this Second Amendment are for convenience only and shall not affect the meaning or construction of any of the provisions hereof.

 

6.8.                  This Second Amendment shall he governed by and construed in accordance with the laws of the State of New York.

 

6.9.                  The execution hereof by you shall constitute a contract between us for the uses and purposes hereinabove set forth, and this Second Amendment may be executed in any number of counterparts, each executed counterpart constituting an original, but all together only one agreement.

 

[Remainder of page intentionally left blank.]

 

 

  

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	Granite Construction Incorporated
	  	 	  
	  	 	  
	
 

	By 	/s/ Laurel J. Krzeminski
	  	 	
Laurel J. Krzeminski

	  	 	
Its VP and CFO

	  	 	  
	  	 	  
	
 

	By	
/s/ Jigisha Desai

	  	 	
Jigisha Desai

	  	 	
Its VP Treasurer

	  	 	  
	
 

	

Granite Construction Company

	  	 	  
	  	 	  
	
 

	By	/s/ Laurel J. Krzeminski
	  	 	
Laurel J. Krzeminski

	  	 	
Its VP and CFO

	  	 	  
	  	 	  
	
 

	By	
/s/ Jigisha Desai

	  	 	
Jigisha Desai

	  	 	
Its VP Treasurer

	
 

	 	  
	  	

GILC Incorporated

	 	 	 
	  	 	  
	
 

	By	/s/ Laurel J. Krzeminski
	  	 	
Laurel J. Krzeminski

	  	 	
Its President and CEO

	  	 	  
	  	 	  
	
 

	By	
/s/ Jigisha Desai

	  	 	
Jigisha Desai

	  	 	
Its VP and CFO

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

	
 

	Granite Construction Northeast, Inc.
	  	 	  
	  	 	  
	
 

	By	/s/ Laurel J. Krzeminski
	  	 	
Laurel J. Krzeminski

	  	 	
Its VP and CFO

	  	 	  
	  	 	  
	
 

	

By

	
/s/ Jigisha Desai

	  	 	
Jigisha Desai

	  	 	
Its VP Treasurer

	
 

	 	  
	  	

Intermountain Slurry Seal, Inc.

	 	 	 
	  	 	  
	
 

	By	
/s/ Kathleen Schreckengost

	  	 	
Kathleen Schreckengost

	  	 	
Its VP Treasurer

	  	 	  
	  	 	  
	
 

	By 	
/s/ Darren S. Beevor

	  	 	
Darren S. Beevor

	  	 	
Its VP Controller

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	
Accepted and Agreed to:

	 	  	  
	  	 	  	  
	
 

	Prudential Retirement Insurance and Annuity
	
 

	Company
	  	 	  	  
	
 

	By:	
Prudential Investment Management, Inc.,

	  	 	
as investment manager

	  	 	  	  
	  	 	  	  
	 	 	By:	

/s/ Mitchell W. Reed

	  	 	  	
      Vice President

	 	 	  	  
	
 

	

Security Benefit Life Insurance,

	
 

	

Company, Inc.

	  	 	  	  
	
 

	By:	
Prudential Private Placement Investors,

	  	 	
L.P. (as Investment Advisor)

	  	 	  	  
	
 

	By:	
Prudential Private Placement Investors, Inc.

	
 

	 	

(as its General Partner)

	  	 	  	  
	  	 	  	  
	  	 	
By:

	

/s/ Mitchell W. Reed

	  	 	  	
      Vice President

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	 	
Nationwide Life Insurance Company

	 	
Nationwide Indemnity Company

	 	
Nationwide Mutual Fire Insurance Company

	 	
Nationwide Mutual Insurance Company

	 	  	  
	 	 	 
	 	  	  
	 	
By

	
/s/ Thomas A. Gleason

	 	  	
Name: Thomas A. Gleason

	 	  	
Title: Authorized Signatory

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	 	
Allstate Life Insurance Company of New York

	 	 	 
	 	 	 
	 	  	  
	 	
By

	
/s/ Mark W. (Sam) Davis

	 	
Name: Mark W. (Sam) Davis

	 	 	 
	 	 	 
	 	
By

	
/s/ Allen Dick

	 	
Name: Allen Dick

	 	  	
Authorized Signatories

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	 	
United of Omaha Life Insurance Company

	 	 	 
	 	 	 
	 	 	 
	 	
By

	
/s/ Curtis R. Caldwell

	 	  	
Name: Curtis R. Caldwell

	 	  	
Title: Senior Vice President

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	 	
Companion Life Insurance Company

	 	  	  
	 	  	  
	 	  	  
	 	
By

	
/s/ Curtis R. Caldwell

	 	  	
Name: Curtis R. Caldwell

	 	  	
Title: Authorized Signer

 

 

Second Amendment to 2001 Note Purchase Agreement

 

  

  

  

 

	 	
Thrivent Financial for Lutherans,

	 	
successor by merger to Lutheran Brotherhood

	 	 	 
	 	 	 
	 	 	 
	 	
By

	
/s/ Alan D. Onstad

	 	  	
Name:  Alan D. Onstad

	 	  	
Title:    Senior Director

 

 

Second Amendment to 2001 Note Purchase Agreement

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