Document:

Exhibit 4.2

AMENDED AND RESTATED

 

ARTICLES OF INCORPORATION

 

OF

 

CSX CORPORATION

 

 

Article I

 

NAME

 

The name of the Corporation is “CSX Corporation”.

 

Article II

 

PURPOSE

 

The purpose for which the Corporation is organized is to transact any lawful business not required to be specifically stated in the Articles of Incorporation.

 

Article III

 

AUTHORIZED STOCK

 

3.1      Number and Designation. The Corporation shall have authority to issue one billion eight hundred million (1,800,000,000) shares of Common Stock, par value $1.00 per share, and twenty-five million (25,000,000) shares of Serial Preferred Stock, without par value.

 

3.2      Preemptive Rights. No holder of capital stock of the Corporation of any class shall have any preemptive right to subscribe to or purchase (i) any shares of capital stock of this Corporation, (ii) any securities convertible into such shares or (iii) any options, warrants or rights to purchase such shares or securities convertible into any such shares.

 

Article IV

 

SERIAL PREFERRED STOCK

 

4.1      Issuance in Series. The Board of Directors is hereby empowered by the adoption of an amendment to these Amended and Restated Articles of Incorporation to cause the Serial Preferred Stock of the Corporation to be issued in series with such of the variations permitted by clauses (a)-(h), both inclusive, of this Section 4.1 as shall have been fixed and determined by the Board of Directors with respect to any series prior to the issue of any shares of such series.

 

The shares of the Serial Preferred Stock of different series may vary as to:

 

 

  

  

  

 

 

(a)    the number of shares constituting such series and the designation of such series, which shall be such as to distinguish the shares thereof from the shares of all other series and classes;

 

(b)   the rate of dividend, the time of payment and, if cumulative, the dates from which dividends shall be cumulative, and the extent of participation rights, if any;

 

(c)   any right to vote with holders of shares of any other series or class and any right to vote as a class, either generally or as a condition to specified corporate action;

 

	
  

	
(d)

	
the price at and the terms and conditions on which shares may be redeemed;

 

	
  

	
(e)

	
the amount payable upon shares in event of involuntary liquidation;

 

	
  

	
(f)

	
the amount payable upon shares in event of voluntary liquidation;

 

	
  

	
(g)

	
any sinking fund provisions for the redemption or purchase of shares; and

 

(h)   the terms and conditions on which shares may be converted, if the shares of any series are issued with the privilege of conversion.

 

The shares of all series of Serial Preferred Stock shall be identical except as, within the limits set forth above in this Section 4.1, shall have been fixed and determined by the Board of Directors prior to the issuance thereof.

 

4.2      Dividends. The holders of the Serial Preferred Stock of each series shall be entitled to receive, if and when declared payable by the Board of Directors, dividends in lawful money of the United States of America, at the dividend rate for such series, and not exceeding such rate except to the extent of any participation right. Such dividends shall be payable on such dates as shall be fixed for such series. Dividends, if cumulative and in arrears, shall not bear interest.

 

No dividends shall be declared or paid upon or set apart for the Common Stock or for stock of any other class hereafter created ranking junior to the Serial Preferred Stock in respect of dividends or assets (hereinafter called Junior Stock), and no shares of Serial Preferred Stock, Common Stock or Junior Stock shall be purchased, redeemed or otherwise reacquired for a consideration, nor shall any funds be set aside for or paid to any sinking fund therefor, unless and until (i) full dividends on the outstanding Serial Preferred Stock at the dividend rate or rates therefor, together with the full additional amount required by any participation right, shall have been paid or declared and set apart for payment with respect to all past dividend periods, to the extent that the holders of the Serial Preferred Stock are entitled to dividends with respect to any past dividend period, and the current dividend period, and (ii) all mandatory sinking fund payments that shall have become due in respect of any series of the Serial Preferred Stock shall have been made. Unless full dividends with respect to all past dividend periods on the outstanding Serial Preferred Stock at the dividend rate or rates therefor, to the extent the holders of the Serial Preferred Stock are entitled to dividends with respect to any particular past dividend period, together with the full additional amount required by any participation right, shall have

 

 

  

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been paid or declared and set apart for payment and all mandatory sinking fund payments that shall have become due in respect of any series of the Serial Preferred Stock shall have been made, no distributions shall be made to the holders of the Serial Preferred Stock of any series unless distributions are made to the holders of the Serial Preferred Stock of all series then outstanding in proportion to the aggregate amounts of the deficiencies in payments due to the respective series, and all payments shall be applied, first, to dividends accrued and in arrears, next, to any amount required by any participation right, and, finally, to mandatory sinking fund payments. The terms “current dividend period” and “past dividend period” mean, if two or more series of Serial Preferred Stock having different dividend periods are at the time outstanding, the current dividend period or any past dividend period, as the case may be, with respect to each such series.

 

4.3      Preference on Liquidation. In the event of any liquidation, dissolution or winding up of the Corporation, the holders of the Serial Preferred Stock of each series shall be entitled to receive, for each share thereof, the fixed liquidation price for such series, plus, in case such liquidation, dissolution or winding up shall have been voluntary, the fixed liquidation premium for such series, if any, together in all cases with a sum equal to all dividends accrued or in arrears thereon and the full additional amount required by any participation right, before any distribution of the assets shall be made to holders of the Common Stock or Junior Stock; but the holders of the Serial Preferred Stock shall be entitled to no further participation in such distribution. If, upon any such liquidation, dissolution or winding up, the assets distributable among the holders of the Serial Preferred Stock shall be insufficient to permit the payment of the full preferential amounts aforesaid, then such assets shall be distributed among the holders of the Serial Preferred Stock then outstanding ratably in proportion to the full preferential amounts to which they are respectively entitled. For the purposes of this Section 4.3, the expression “dividends accrued or in arrears” means, in respect of each share of the Serial Preferred Stock of any series at a particular time, an amount equal to the product of the rate of dividend per annum applicable to the shares of such series multiplied by the number of years and any fractional part of a year that shall have elapsed from the date when dividends on such shares became cumulative to the particular time in question less the total amount of dividends actually paid on the shares of such series or declared and set apart for payment thereon; provided, however, that, if the dividends on such shares shall not be fully cumulative, such expression shall mean the dividends, if any, cumulative in respect of such shares for the period stated in the articles of serial designation creating such shares less all dividends paid in or with respect to such period.

 

Article V

 

COMMON STOCK

 

5.1      Dividends. Subject to the provisions of law and the rights of holders of shares at the time outstanding of all classes of stock having prior rights as to dividends, the holders of Common Stock at the time outstanding shall be entitled to receive such dividends at such times and in such amounts as the Board of Directors may deem advisable.

 

 

  

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5.2      Liquidation. In the event of any liquidation, dissolution or winding up (whether voluntary or involuntary) of the Corporation, after the payment or provision for payment in full for all debts and other liabilities of the Corporation and all preferential amounts to which the holders of shares at the time outstanding of all classes of stock having prior rights thereto shall be entitled, the remaining net assets of the Corporation shall be distributed ratably among the holders of the shares at the time outstanding of Common Stock.

 

5.3      Voting Rights. The holders of Common Stock shall be entitled to one vote per share on all matters.

 

Article VI

 

NUMBER OF DIRECTORS

 

The number of directors shall be fixed by the By-Laws or, in the absence of a By-law fixing the number, the number shall be four.

 

Article VII

 

LIMIT ON LIABILITY AND INDEMNIFICATION

 

	
7.1

	
Definitions. For purposes of this Article the following definitions shall apply:

 

   (a)      “Corporation” means this Corporation, including Chessie System, Inc. and Seaboard Coast Line Industries, Inc. and no other predecessor entity or other legal entity;

 

   (b)      “expenses” include counsel fees, expert witness fees, and costs of investigation, litigation and appeal, as well as any amounts expended in asserting a claim for indemnification;

 

   (c)      “liability” means the obligation to pay a judgment, settlement, penalty, fine, or other such obligation, including, without limitation, any excise tax assessed with respect to an employee benefit plan;

 

   (d)      “legal entity” means a corporation, partnership, joint venture, trust, employee benefit plan or other enterprise;

 

   (e)      “predecessor entity” means a legal entity the existence of which ceased upon its acquisition by the Corporation in a merger or otherwise; and

 

   (f)      “proceeding” means any threatened, pending, or completed action, suit, proceeding or appeal whether civil, criminal, administrative or investigative and whether formal or informal.

 

7.2      Limit on Liability. In every instance permitted by the Virginia Stock Corporation Act, as it exists on the date hereof or may hereafter be amended, the liability of a director or officer of the

 

 

  

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Corporation to the Corporation or its shareholders arising out of a single transaction, occurrence or course of conduct shall be limited to one dollar.

 

7.3      Indemnification of Directors and Officers. The Corporation shall indemnify any individual who is, was or is threatened to be made a party to a proceeding (including a proceeding by or in the right of the Corporation) because such individual is or was a director or officer of the Corporation, or because such individual is or was serving the Corporation or any other legal entity in any capacity at the request of the Corporation, against all liabilities and reasonable expenses incurred in the proceeding except such liabilities and expenses as are incurred because of such individual’s willful misconduct or knowing violation of the criminal law. Service as a director or officer of a legal entity controlled by the Corporation shall be deemed service at the request of the Corporation. The determination that indemnification under this Section 7.3 is permissible and the evaluation as to the reasonableness of expenses in a specific case shall be made, in the case of a director, as provided by law, and in the case of an officer, as provided in Section 7.4 of this Article; provided, however, that if a majority of the directors of the Corporation has changed after the date of the alleged conduct giving rise to a claim for indemnification, such determination and evaluation shall, at the option of the person claiming indemnification, be made by special legal counsel agreed upon by the Board of Directors and such person. Unless a determination has been made that indemnification is not permissible, the Corporation shall make advances and reimbursements for expenses incurred by a director or officer in a proceeding upon receipt of an undertaking from such director or officer to repay the same if it is ultimately determined that such director or officer is not entitled to indemnification. Such undertaking shall be an unlimited, unsecured general obligation of the director or officer and shall be accepted without reference to such director’s or officer’s ability to make repayment. The termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that a director or officer acted in such a manner as to make such director or officer ineligible for indemnification. The Corporation is authorized to contract in advance to indemnify and make advances and reimbursements for expenses to any of its directors or officers to the same extent provided in this Section 7.3.

 

7.4      Indemnification of Others. The Corporation may, to a lesser extent or to the same extent that it is required to provide indemnification and make advances and reimbursements for expenses to its directors and officers pursuant to Section 7.3 of this Article, provide indemnification and make advances and reimbursements for expenses to its employees and agents, the directors, officers, employees and agents of its subsidiaries and predecessor entities, and any person serving any other legal entity in any capacity at the request of the Corporation, and may contract in advance to do so. The determination that indemnification under this Section 7.4 is permissible, the authorization of such indemnification and the evaluation as to the reasonableness of expenses in a specific case shall be made as authorized from time to time by general or specific action of the Board of Directors, which action may be taken before or after a claim for indemnification is made, or as otherwise provided by law. No person’s rights under Section 7.3 of this Article shall be limited by the provisions of this Section 7.4.

 

 

  

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7.5      Miscellaneous. The rights of each person entitled to indemnification under this Article shall inure to the benefit of such person’s heirs, executors and administrators. Special legal counsel selected to make determinations under this Article may be counsel for the Corporation. Indemnification pursuant to this Article shall not be exclusive of any other right of indemnification to which any person may be entitled, including indemnification pursuant to a valid contract, indemnification by legal entities other than the Corporation and indemnification under policies of insurance purchased and maintained by the Corporation or others. However, no person shall be entitled to indemnification by the Corporation to the extent such person is indemnified by another, including an insurer. The Corporation is authorized to purchase and maintain insurance against any liability it may have under this Article or to protect any of the persons named above against any liability arising from their service to the Corporation or any other legal entity at the request of the Corporation regardless of the Corporation’s power to indemnify against such liability. The provisions of this Article shall not be deemed to preclude the Corporation from entering into contracts otherwise permitted by law with any individuals or legal entities, including those named above. If any provision of this Article or its application to any person or circumstances is held invalid by a court of competent jurisdiction, the invalidity shall not affect other provisions or applications of this Article, and to this end the provisions of this Article are severable.

 

7.6      Application; Amendments. The provisions of this Article shall be applicable from and after its adoption even though some or all of the underlying conduct or events relating to a proceeding may have occurred before its adoption. No amendment, modification or repeal of this Article shall diminish the rights provided hereunder to any person arising from conduct or events occurring before the adoption of such amendment, modification or repeal.

 

Article VIII

 

UNSURRENDERED SHARES OF CHESSIE SYSTEM, INC. AND

 

SEABOARD COAST LINE INDUSTRIES, INC.

 

8.1      Conversion of Shares. On October 31, 1980 (the “Merger Date”), the outstanding shares of Chessie Systems, Inc. (“Chessie”) and Seaboard Coast Line Industries, Inc. (“Industries”) were converted by operation of law into shares of the Corporation.

 

8.2      Failure to Surrender Shares. No holder of a Chessie or Industries common stock certificate shall be entitled to vote at any meeting of stockholders of the Corporation or to receive any dividends from the Corporation until surrender of his certificate in exchange for a certificate for shares of the Corporation’s Common Stock. Upon such surrender, there shall be paid to the holder the amount of dividends (without interest thereon) that have theretofore become payable, but that have not been paid by reason of the foregoing, with respect to the number of whole shares of the Corporation’s Common Stock represented by the certificates issued in exchange. The Corporation shall, however, be entitled after the Merger Date to treat the certificates of outstanding common stock of Chessie and Industries as evidencing the ownership of the number of full shares of the Corporation’s Common Stock into which the Chessie and Industries shares,

 

 

  

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represented by such certificates, shall have been converted, notwithstanding the failure to surrender such certificates.

 

Article IX

 

VOTE TO AMEND OR RESTATE

 

As to each voting group entitled to vote on an amendment or restatement of these Articles of Incorporation the vote required for approval shall be (i) the vote required by the terms of these Articles of Incorporation, as amended or as restated from time to time, if such terms specifically require the approval of more than a majority of the votes entitled to be cast thereon by such voting group; or (ii) if clause (i) of this Article is not applicable, a majority of the votes entitled to be cast thereon.

 

Article X

 

AFFILIATED TRANSACTIONS

 

The Corporation shall not be governed by Article 14 (Affiliated Transactions) of the Virginia Stock Corporation Act (the “VSCA”).

 

Article XI

 

OTHER VOTING MATTERS

 

Any action on a matter involving:

 

	
  

	
(a)

	
a plan of merger or share exchange for which the VSCA requires shareholder approval;

 

	
  

	
(b)

	
a sale of all or substantially all the Corporation’s property for which the VSCA requires shareholder approval; or

 

	
  

	
(c)

	
the dissolution of the Corporation 

 

shall require the approval, by the affirmative vote, of a majority of the votes entitled to be cast thereon.

 

 

 

7eh1401383_ex1001.htm

EXHIBIT 10.1

 

EXECUTION VERSION

NEW TERM LOAN COMMITMENT AGREEMENT NO. 2

 

NEW TERM LOAN COMMITMENT AGREEMENT NO. 2 dated December 19, 2014 and effective as of the 2014 Euro Term Loan Closing Date (as defined below) (this “Commitment Agreement”) relating to the Credit Agreement dated as of December 17, 2012, and as amended and restated on December 18, 2013, and as further amended, restated, supplemented or otherwise modified prior to the date hereof (the “Credit Agreement”), among Spectrum Brands, Inc., as Lead Borrower (the “Lead Borrower”), Spectrum Brands Canada, Inc., as Canadian Borrower, Spectrum Brands Europe, GmbH, as German Borrower, SB/RH Holdings, LLC, as Holdings (“Holdings”), the lenders from time to time party thereto and Deutsche Bank AG New York Branch, as the Administrative Agent (the “Administrative Agent”).

 

RECITALS:

 

WHEREAS, the Lead Borrower has, by notice to the Administrative Agent delivered pursuant to Section 2.23(a) of the Credit Agreement, requested a New Term Loan (as defined in the Credit Agreement) in an aggregate principal amount equal to €150,000,000.

 

WHEREAS, each financial institution identified on the signature pages hereto as a “2014 Euro Term Loan Lender” (each, a “2014 Euro Term Loan Lender”) has agreed severally, on the terms and conditions set forth herein and in the Credit Agreement, to provide a portion of such 2014 Euro Term Loans and to become, if not already, a Lender for all purposes under the Credit Agreement.

 

The parties hereto therefore agree as follows:

 

SECTION 1.    Defined Terms; References.  Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.  Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after this Commitment Agreement becomes effective, refer to the Credit Agreement as amended hereby.

 

SECTION 2.    2014 Euro Term Loans.  Subject to and upon the terms and conditions set forth herein, each 2014 Euro Term Loan Lender party hereto severally agrees to make, on the 2014 Euro Term Loan Closing Date, a single loan of term loans (each, a “2014 Euro Term Loan”) in Euros to the Lead Borrower in an amount equal to the commitment amount (if any) set forth next to such 2014 Euro Term Loan Lender’s name in Schedule 1 hereto under the caption “2014 Euro Term Loan Commitment”.  The gross proceeds required to be funded by each 2014 Euro Term Loan Lender with respect to its 2014 Euro Term Loan Commitment, shall be equal to 99.75% of the principal amount of such 2014 Euro Term Loan. Immediately upon the incurrence of the 2014 Euro Term Loans on the 2014 Euro Term Loan Closing Date, (i) the 2014 Euro Term Loans shall be added as a new Class of Term Loans under the Credit Agreement, (ii) the 2014 Euro Term Loans shall constitute a separate Class of Term Loans apart from the Canadian Term Loans, the Tranche A Term Loans, the Tranche C Term Loans and the Initial Euro Term 

 

 

  

  

  

 

 

Loans and (iii) the 2014 Euro Term Loans shall be secured by identical collateral and guaranteed on identical terms as the existing Tranche A Term Loans and Tranche C Term Loans.

 

SECTION 3.        Availability and Use of Proceeds.  The 2014 Euro Term Loans shall be used solely:  (i) to repay certain existing indebtedness of the Lead Borrower owing under the ABL Credit Agreement, (ii) to finance consideration and other amounts owing in connection with the direct or indirect acquisition (the “Acquisition”) by the Lead Borrower of the “Pet Assets” (as defined in the Acquisition Agreement), including 100% of the issued and outstanding capital stock of Iam Brands B.V., a private limited liability company organized under the laws of the Netherlands, pursuant to that certain Transaction Agreement, dated as of September 22, 2014, by and between the Procter & Gamble Company, as the seller party thereto (the “Seller”) and Spectrum Brands Holdings, Inc., as purchaser (as amended from time to time, the “Acquisition Agreement”) and (iii) with the balance of the proceeds thereof for working capital and general corporate purposes, including to finance future direct or indirect acquisitions permitted under the Credit Agreement and to pay fees and expenses incurred in connection with this Commitment Agreement and related transactions.

 

SECTION 4.    Applicable Euro Margin and Related Definitions.  a)  The “Applicable Euro Margin” shall mean, for any day (i) for the 2014 Euro Term Loans, which shall bear interest at a rate determined by reference to the Adjusted EURIBOR Rate (as defined below), 3.00% per annum.

 

(b)           The “Adjusted EURIBOR Rate” shall mean for the 2014 Euro Term Loans, with respect to any Eurocurrency Borrowing denominated in Euros for any Interest Period, an interest rate per annum equal to the greater of (a) 0.75% and (b) the EURIBOR Rate (as defined below) in effect for such Interest Period.

 

(c)           The “EURIBOR Rate” shall mean for the 2014 Euro Term Loans, with respect to any Eurocurrency Borrowing in Euros for any Interest Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (Brussels time) on the date that is two Business Days prior to the commencement of such Interest Period by reference to the Banking Federation of the European Union’s Interest Settlement Rates for deposits in Euros (as set forth by any service selected by the Administrative Agent that has been nominated by the Banking Federation of the European Union as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period, provided that if such rate is below zero, the “EURIBOR Rate” will be deemed to be zero; provided, further, that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, the “EURIBOR Rate” shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Euros are offered for such relevant Interest Period to major banks in the European interbank market by an Affiliate of the Administrative Agent at approximately 11:00 a.m. (Brussels time) on the date that is two Business Days prior to the beginning of such Interest Period.

 

SECTION 5.    Repayment of 2014 Euro Term Loans; 2014 Euro Term Loan Maturity Date.  a)  The Lead Borrower shall pay to the Administrative Agent, for the account of the applicable Lenders, on the last day of each March, June, September and December, commencing March 31, 2015, or if any such date is not a Business Day, on the next preceding Business Day 

 

 

  

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prior to the 2014 Euro Term Loan Maturity Date (each such date, a “2014 Euro Term Loan Repayment Date”), in each case in an amount equal to 0.25% of the original principal amount of the 2014 Euro Term Loans incurred by it (as adjusted from time to time pursuant to Sections 2.11(b), 2.12, 2.13(e) and 2.22(d) of the Credit Agreement, as amended hereby), together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.

 

(b)           To the extent not previously paid, the 2014 Euro Term Loans shall be due and payable together with accrued and unpaid interest on the principal amount to be paid to but excluding the date that is the seven year anniversary of the 2014 Euro Term Loan Closing Date (the “2014 Euro Term Loan Maturity Date”); provided, however, that if the aggregate outstanding principal amount of all of Spectrum’s 6.75% Unsecured Notes due March 15, 2020 (the “6.75% Notes”) or Spectrum’s 6.375% Senior Notes due November 15, 2020 (the “6.375% Notes”) (and, in each case, respectively, Permitted Refinancing in respect thereof that has a final scheduled maturity or requires amortization or repayment on or prior to original maturity of the 6.75% Notes or the 6.375% Notes, as applicable) is not repaid or defeased in full by the earlier of the date that is either (x) in the case of the 6.75% Notes, 91 days prior to the maturity of the 6.75% Notes and (y) in the case of the 6.375% Notes, 91 days prior to the maturity of the 6.375% Notes, the 2014 Euro Term Loans shall mature on such date.

 

(c)           All repayments required pursuant to this Section 5 shall be subject to Section 2.11 and Section 2.16 of the Credit Agreement, but shall otherwise be without premium or penalty.

 

SECTION 6.    Voluntary Prepayments.  Any voluntary prepayments of 2014 Euro Term Loans shall be applied to the outstanding principal amounts due on a 2014 Euro Term Loan Repayment Date in respect of such Class of Term Loans as directed by the Lead Borrower.

 

SECTION 7.    Repricing Transaction.  In the event that the 2014 Euro Term Loans are prepaid in whole or in part pursuant to Section 2.12(a) or Section 2.13(c) of the Credit Agreement, as amended hereby, or in the event of an assignment of such 2014 Euro Term Loans pursuant to Section 2.21(a)(iv) of the Credit Agreement, as amended hereby, in each case, in connection with a Repricing Transaction, on or prior to the date that is the six month anniversary of the 2014 Euro Term Loan Closing Date, the Lead Borrower shall pay to the relevant Lenders a prepayment fee equal to 1.00% of the principal amount so prepaid or assigned.

 

SECTION 8.    Other Terms.  Except as otherwise set forth in this Commitment Agreement, the 2014 Euro Term Loans shall have the same terms as the Tranche C Term Loans, and shall share ratably in any mandatory prepayment of Term Loans.

 

SECTION 9.    Technical Amendments to the Credit Agreement to Effect the 2014 Euro Term Loans.  To effect the 2014 Euro Term Loans in accordance with Section 2.23 of the Credit Agreement, effective on the 2014 Euro Term Loan Closing Date, the Credit Agreement shall be amended to delete the stricken text (indicated textually in the same manner as the following example:  stricken text) and to add the double- underlined text (indicated textually in the same manner as the following example:  double-underlined text) as set forth in the pages of the amended Credit Agreement attached as Exhibit A hereto.

 

 

 

  

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SECTION 10.   Representations and Warranties.  Each of Holdings and each Borrower represents and warrants:

 

(a)           the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document shall be true and correct in all material respects on and as of the 2014 Euro Term Loan Closing Date after giving effect hereto and to any extension of loans requested to be made on the 2014 Euro Term Loan Closing Date and the application of the proceeds thereof, except to the extent such representations and warranties expressly relate to an earlier date (for purposes of this representation and warranty, (x) the reference to “Closing Date” in Section 3.22 of the Credit Agreement shall be deemed to refer to the 2014 Euro Term Loan Closing Date and such representation shall be made after giving effect to the 2014 Euro Term Loans made on the 2014 Euro Term Loan Closing Date and (y) the financial statements referenced in Section 3.05(a) of the Credit Agreement shall be deemed to refer to the financial statements most recently delivered by the Lead Borrower pursuant to Section 5.04 of the Credit Agreement);

 

(b)           at the time of and immediately after the 2014 Euro Term Loan Closing Date after giving effect hereto and to any extension of loans requested to be made on the 2014 Euro Term Loan Closing Date and the application of the proceeds thereof, no Default or Event of Default shall have occurred and be continuing;

 

(c)           each of Holdings, the Lead Borrower and each U.S. Subsidiary Guarantor has the power and authority to execute, deliver and perform its obligations under this Commitment Agreement and under each of the Loan Documents and each other agreement or instrument contemplated thereby as amended or supplemented hereby to which it is a party and, in the case of the Lead Borrower, to borrow hereunder;

 

(d)           the transactions contemplated hereby (i) have been duly authorized by all requisite corporate and, if required, stockholder action of Holdings, the Lead Borrower and each U.S. Subsidiary Guarantor and (ii) will not (A) violate (1) any provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or other constitutive documents or by-laws of Holdings, the Lead Borrower or any U.S. Subsidiary Guarantor, (2) any order of any Governmental Authority or (3) any provision of any indenture, agreement or other instrument to which Holdings, the Lead Borrower or any U.S. Subsidiary Guarantor is a party or by which any of them or any of their property is or may be bound, (B) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such indenture, agreement or other instrument or (C) result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by Holdings, the Borrowers or with respect to each Borrower, any of their respective Restricted Subsidiaries (other than any Lien created under the Security Documents or the ABL Documents);

 

(e)           this Commitment Agreement has been duly executed and delivered by each Loan Party party hereto, and this Commitment Agreement and each Loan Document 

 

 

 

  

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to which it is a party as amended or supplemented hereby constitutes a legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditor’s rights generally or by equitable principles relating to enforceability;

 

(f)           no action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with the transactions contemplated hereby, except for such as have been made or obtained prior to the 2014 Euro Term Loan Closing Date and are in full force and effect on the 2014 Euro Term Loan Closing Date;

 

(g)           after giving effect to the 2014 Euro Term Loans and the application of the proceeds thereof, the aggregate amount of all 2014 Euro Term Loan Commitments provided pursuant to Section 2.23 of the Credit Agreement and the aggregate principal amount of all 2014 Euro Term Loans to be made pursuant hereto will not exceed the Maximum Incremental Amount; and

 

(h)           the terms of this Commitment Agreement comply with the requirements of Section 2.23 of the Credit Agreement.

 

SECTION 11.   Conditions to the 2014 Euro Term Loan Closing Date.  This Commitment Agreement shall become effective as of the first date occurring on or prior to December 19, 2014 (such first date, the “2014 Euro Term Loan Closing Date”) when each of the following conditions shall have been satisfied:

 

(a)           the Administrative Agent shall have received from Holdings, the Lead Borrower and each U.S. Subsidiary Guarantor, each 2014 Euro Term Loan Lender and the Administrative Agent an executed counterpart hereof or other written confirmation (in form reasonably satisfactory to the Administrative Agent) that such party has signed a counterpart hereof;

 

(b)           the representations and warranties set forth in Section 10 above shall be true and correct in all material respects on and as of the 2014 Euro Term Loan Closing Date after giving effect hereto and to any extension of loans requested to be made on the 2014 Euro Term Loan Closing Date and the application of the proceeds thereof (it being understood that (x) any representation or warranty that is qualified by materiality or Material Adverse Effect shall be required to be true and correct in all respects after taking into account such qualification and (y) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects (or all respects after taking into account such qualification, as the case may be) as of such specified date);

 

(c)           no Default or Event of Default shall have occurred and be continuing or shall result from the borrowing of the 2014 Euro Term Loans;

 

 

  

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(d)           the Administrative Agent shall have received an officer’s certificate executed by a Responsible Officer of the Lead Borrower and (x) certifying the matters referred to in clauses (b) and (c) above of this Section 11 and (y) designating whether the 2014 Euro Term Loans are to be treated as incurred under clause (a) and/or clause (b), as applicable, of the definition of “Maximum Incremental Amount” in the Credit Agreement;

 

(e)           the Administrative Agent shall have received a Solvency Certificate from the chief financial officer of the Lead Borrower (after giving effect to the 2014 Euro Term Loans made on the 2014 Euro Term Loan Closing Date and the application of the proceeds thereof) substantially in the form attached as Exhibit L to the Credit Agreement;

 

(f)           the Administrative Agent and any “Engagement Party” (each, an “Engagement Party”) referred to in the engagement letter (the “Engagement Letter”) entered into in connection herewith shall have received, by wire transfer of immediately available funds, all applicable fees and other amounts due and payable on or prior to the 2014 Euro Term Loan Closing Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder, under such Engagement Letter or under any other Loan Document, including the reasonable fees, charges and disbursements of White & Case LLP, counsel for the Engagement Parties and the Administrative Agent;

 

(g)           the Administrative Agent shall have received (i) either (x) a copy of the certificate or articles of incorporation or equivalent organizational document, including all amendments thereto, of each Loan Party party hereto, and in the case of each U.S. Loan Party party hereto, certified as of a recent date by the Secretary of State of the state of its organization or (y) confirmation from such Loan Party that there has been no change to such organizational documents since last delivered to the Administrative Agent, (ii) a certificate as to the good standing of each Loan Party party hereto as of a recent date, from such Secretary of State or other applicable similar Governmental Authority; (iii) a certificate of the Secretary or Assistant Secretary of each Loan Party party hereto dated the 2014 Euro Term Loan Closing Date and certifying (A) that (x) attached thereto is a true and complete copy of the by-laws, operating agreement or similar governing document of such Loan Party as in effect on the 2014 Euro Term Loan Closing Date and at all times since a date prior to the date of the resolutions described in clause (B) below or (y) there has been no change to such governing documents since last delivered to the Administrative Agent, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such Person is a party and, in the case of the Borrowers, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that any attached certificate or articles of incorporation, equivalent organizational document, by-law, operating agreement or similar governing document of such Loan Party have not been amended (in the case of the articles of incorporation of each U.S. Loan Party since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (ii) above), and (D) to the extent 

 

 

  

6

  

 

 

not previously delivered to the Administrative Agent as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Loan Party; and (iv) a certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the certificate pursuant to clause (iii) above;

 

(h)           the Administrative Agent shall have received a favorable written opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel for Holdings and the Lead Borrower reasonably acceptable to the Administrative Agent, (A) dated the 2014 Euro Term Loan Closing Date and (B) the Lead Borrower hereby requests such counsel to deliver such opinion;

 

(i)           to the extent not previously delivered, the Administrative Agent shall have received at least 3 Business Days prior to the 2014 Euro Term Loan Closing Date (unless otherwise agreed by the Engagement Parties), to the extent requested by the Administrative Agent at least 5 Business Days prior to the 2014 Euro Term Loan Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act; and

 

(j)           the Administrative Agent shall have received a notice of Borrowing as required by Section 2.03 of the Credit Agreement.

 

SECTION 12.   Post-Closing Obligations.  Within sixty (60) days of the 2014 Euro Term Loan Closing Date (or such longer period as the Administrative Agent may agree in its sole discretion), the Administrative Agent shall have received:

 

(a)           a fully executed counterpart of an amendment to each Existing Mortgage (individually, a “Mortgage Amendment” and, collectively, “Mortgage Amendments”; together with the Existing Mortgages, as amended by the applicable Mortgage Amendments, if any, individually, an “Amended Mortgage” and, collectively,  “Amended Mortgages”), each duly executed by the applicable U.S. Loan Party, together with evidence that such counterparts have been delivered to the title insurance company insuring the Amended Mortgages for recording;

 

(b)           a date down and modification endorsement or an ALTA 11 endorsement in connection with each existing lender’s title insurance policy insuring each Existing Mortgage or to the extent unavailable, a new lender’s title insurance policy, insuring that each Amended Mortgage is a valid and enforceable Lien on the applicable Mortgaged Property, free of any other Liens except Liens permitted by Section 6.02 of the Credit Agreement or Liens arising by operation of law, at the time of recordation thereof; and

 

(c)           such affidavits, certificates, information and instruments of indemnification, including, without limitation, memoranda of intercreditor agreement executed by the Administrative Agent and the ABL Administrative Agent, in each case, to the extent required to induce the title company to issue the endorsements and/or title insurance policies contemplated in subparagraph (b) above and evidence of payment of all applicable title insurance 

 

 

  

7

  

 

premiums, search and examination charges, mortgage recording taxes, if applicable, and related charges required for the issuance of such endorsements and/or title insurance policies.

 

SECTION 13.   Acknowledgment of 2014 Euro Term Loan Lenders.  Each 2014 Euro Term Loan Lender expressly acknowledges that neither any Agent, nor any Engagement Party, nor any of their Affiliates nor any of their respective officers, directors, employees, agents or attorneys-in-fact have made any representations or warranties to it and that no act by any Agent or Engagement Party hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent or any Engagement Party to any 2014 Euro Term Loan  Lender.  Each 2014 Euro Term Loan Lender represents to the Agents and the Engagement Parties that it has, independently and without reliance upon any Agent, Engagement Party or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to provide its 2014 Euro Term Loans hereunder and enter into this Commitment Agreement and become a Lender under the Credit Agreement.  Each 2014 Euro Term Loan Lender also represents that it will, independently and without reliance upon any Agent, Engagement Party or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under the Credit Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates.  Each 2014 Euro Term Loan Lender hereby (a) confirms that it has received a copy of the Credit Agreement and each other Loan Document and such other documents (including financial statements) and information as it deems appropriate to make its decision to enter into this Commitment Agreement, (b) agrees that it shall be bound by the terms of the Loan Agreement as a Lender thereunder and that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender, (c) irrevocably designates and appoints the Agents as the agents of such 2014 Euro Term Loan Lender under the Credit Agreement and the other Loan Documents, and each 2014 Euro Term Loan Lender irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of the Credit Agreement and the other Loan Documents and to exercise such powers and perform such duties as are delegated to such Agent by the terms of the Credit Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto and (d) specifies as its lending office and address for notices the offices set forth on the Administrative Questionnaire provided by it to the Administrative Agent prior to the date hereof.

 

SECTION 14.   Governing Law .  This Commitment Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York.

 

SECTION 15.   Confirmation of Guarantees and Security Interests.  By signing this Commitment Agreement, each Loan Party party hereto hereby confirms that (a) the obligations of the Loan Parties under the Credit Agreement as modified or supplemented hereby (including with respect to the 2014 Euro Term Loans contemplated by this Commitment Agreement) and the other Loan Documents (i) are entitled to the benefits of the guarantees and the security 

 

 

  

8

  

 

interests set forth or created in the Holdings/Lead Borrower Guaranty, the U.S. Subsidiary Guaranty, the Security Documents, and the other Loan Documents, (ii) constitute “Obligations”, “U.S. Obligations”, “Secured Obligations” and “Guaranteed Obligations” or other similar term for purposes of the Credit Agreement, the Security Documents and all other Loan Documents, (iii) notwithstanding the effectiveness of the terms hereof, the Holdings/Lead Borrower Guaranty, the U.S. Subsidiary Guaranty, the Security Documents, and the other Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects and (b) each 2014 Euro Term Loan Lender shall be a “Secured Party”, a “U.S. Secured Party”, a “Secured Creditor” and a “Lender” (including without limitation for purposes of the definition of “Required Lenders” contained in Section 1.01 of the Credit Agreement) for all purposes of the Credit Agreement and the other Loan Documents.  Each Loan Party party hereto ratifies and confirms that all Liens granted, conveyed, or assigned to any Agent by such Person pursuant to any Loan Document to which it is a party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations as increased hereby.

 

SECTION 16.   Credit Agreement Governs.  This Commitment Agreement shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of any Lender or Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.

 

SECTION 17.   Counterparts.  This Commitment Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Delivery of an executed counterpart of a signature page to this Commitment Agreement by facsimile or electronic (i.e., “pdf” or “tif”) transmission shall be effective as delivery of a manually executed counterpart of this Commitment Agreement.

 

SECTION 18.   Miscellaneous.  This Commitment Agreement shall constitute a “New Term Loan Commitment Agreement” and a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.  The 2014 Euro Term Loans shall constitute “New Term Loans” for all purposes of the Credit Agreement and the other Loan Documents. The Lead Borrower shall pay all reasonable fees, costs and expenses of the Administrative Agent incurred in connection with the negotiation, preparation and execution of this Commitment Agreement and the transactions contemplated hereby.  The provisions of this Commitment Agreement are deemed incorporated as of the 2014 Euro Term Loan Closing Date into the Credit Agreement as if fully set forth therein.  To the extent required by the Credit Agreement, each of the Lead Borrower and the Administrative Agent hereby consent to each 2014 Euro Term Loan Lender that is not a Lender as of the date hereof becoming a Lender under the Credit Agreement on the 2014 Euro Term Loan Closing Date.  In addition, the Lead Borrower hereby consents to the 

 

 

  

9

  

 

 

assignment by any 2014 Euro Term Loan Lender of all or a portion of its 2014 Euro Term Loans to any bank, financial institution or other investor identified by any Engagement Party in writing to the Lead Borrower on or prior to the date hereof.

 

SECTION 19.   Electronic Execution.  The words “execution,” “signed,” “signature,” and words of like import in this Commitment Agreement or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

[Remainder of Page Intentionally Left Blank.]

 

 

  

10

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Commitment Agreement to be duly executed as of the date first above written.

 

 

	
SPECTRUM BRANDS, INC.

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ Nathan E. Fagre

	  
	  	
Name:

	
Nathan E. Fagre

	  
	  	
Title:

	
Senior Vice President

	  
	  	  	  	  
	  	  	  	  
	
SB/RH HOLDINGS, LLC

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ Nathan E. Fagre

	  
	  	
Name:

	
Nathan E. Fagre

	  
	  	
Title:

	
Senior Vice President, Secretary and General Counsel

	  

 

 

[Signature Page to New Term Loan Commitment Agreement No. 2]

  

  

  

 

 

	
APPLICA MEXICO HOLDINGS, INC.

	  
	
NATIONAL MANUFACTURING CO.

	  
	
NATIONAL MANUFACTURING MEXICO A LLC

	  
	
NATIONAL MANUFACTURING MEXICO B LLC

	  
	
PRICE PFISTER, INC.

	  
	
ROV INTERNATIONAL HOLDINGS LLC

	  
	
SCHULTZ COMPANY

	  
	
UNITED INDUSTRIES CORPORATION

	  
	
UNITED PET GROUP, INC.

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ Nathan E. Fagre

	  
	  	
Name:

	
Nathan E. Fagre

	  
	  	
Title:

	
 Vice President

	  
	  	  	  	  
	  	  	  	  
	
BALDWIN HARDWARE CORPORATION

	  
	
KWIKSET CORPORATION

	  
	
WEISER LOCK CORPORATION

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ Nathan E. Fagre

	  
	  	
Name:

	
Nathan E. Fagre

	  
	  	
Title:

	
Vice President

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ John Beattie

	  
	  	
Name:

	
John Beattie

	  
	  	
Title:

	
Vice President and Treasurer

	  
	  	  	  	  
	  	  	  	  
	
ROV HOLDING, INC.

	  
	  	  	  	  
	  	  	  	  
	
By:

	

/s/ Nathan E. Fagre

	  
	  	
Name:

	
Nathan E. Fagre

	  
	  	
Title:

	
Secretary

	  
	  	  	  	  
	  	  	  	  

 

	
LIQUID FENCE CO., INC.

	 
	 	 	 	 
	 	 	 	 
	
By:

	/s/ John Beattie	 
	  	
Name:

	 
John Beattie

	 
	  	
Title:

	Vice President	 
	  	  	  	 
	  	  	  	 

 

 

 

[Signature Page to New Term Loan Commitment Agreement No. 2]

  

  

  

 

 

	
TELL MANUFACTURING, INC.

TELL SOURCING, INC.

TELL DOORS & WINDOWS, LLC

DAI NENG US IMPORTS, LLC

NATIONAL OPENINGS, LLC

	 
	  	  	  	 
	  	  	  	 
	
By:

	/s/ Brent Esplin	 
	  	Name:	Brent Esplin	 
	  	Title:	Chief Financial Officer, Treasurer and Secretary	 

 

 

 

 

 

 

 

[Signature Page to New Term Loan Commitment Agreement No. 2]

  

  

  

 

	
DEUTSCHE BANK AG NEW YORK BRANCH, 

     as Administrative Agent and as 2014 Euro Term Loan Lender

	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
By:

	/s/ Peter Cucchiara	  
	  	
Name:

	Peter Cucchiara	  
	  	
Title:

	Vice President	  
	  	  	  	  
	  	  	  	  
	
By:

	/s/ Kirk L. Tashjian	  
	  	
Name:

	Kirk L. Tashjian	  
	  	
Title:

	Vice President	  

 

 

 

[Signature Page to New Term Loan Commitment Agreement No. 2]

  

  

  

SCHEDULE 1

 

	
Name of 2014 Euro Term Loan Lender

	
2014 Euro Term Loan Commitment

	
Deutsche Bank AG New York Branch

	
€150,000,000

	  	
Total:  €150,000,000

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