Document:

EXHIBIT 10.17

EXECUTION VERSION

SECOND AMENDMENT TO

REVOLVING CREDIT AGREEMENT

THIS SECOND AMENDMENT, dated as of July 19, 2007 (the “Amendment”), is among CONTAINER LEASING INTERNATIONAL, LLC (D/B/A CARLISLE LEASING INTERNATIONAL, LLC) (the “Borrower”), a New York limited liability company having its principal place of business at One Maynard Drive, Park Ridge, New Jersey 07656, DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation organized under the laws of the State of New York (“Deutsche Bank”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (“Wachovia” and, together with
Deutsche Bank, the “Lenders” and each a “Lender”), DEUTSCHE BANK SECURITIES INC., a corporation organized under the laws of the State of Delaware, and WACHOVIA CAPITAL MARKETS LLC, a limited liability company organized under the laws of the State of Delaware, as the joint lead arrangers (each, a “Joint Lead Arranger” and collectively, the “Joint Lead Arrangers”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation organized under the laws of the State of New York, as administrative agent for itself and such other lending institutions (the “Agent”).

WITNESSETH:

WHEREAS, the parties hereto have previously entered into that certain Revolving Credit Agreement, dated as of August 24, 2006 (as the same may be amended, restated or otherwise modified from time to time, the “Agreement”);

WHEREAS, the parties hereto desire to amend the Agreement in certain respects as provided herein; and

NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

1. Defined Terms. Unless otherwise defined herein, capitalized terms used in this Amendment shall have the meanings assigned to such terms in the Agreement, as amended by this Amendment.

2. Amendment to the Agreement. Effective as of the execution and delivery of this Amendment, the following sections of the Agreement are hereby amended as follows:

(a) The definition of “Additional Securitization Entity” in Section 1.1 of the Agreement is hereby amended by adding, immediately following “Subsidiaries” in the first line thereof, “(i) CLIF II, (ii) CLIF III, (iii)” and by adding at the end of such definition, following “Permitted Securitization”, “or (iv) a special purpose corporation, partnership, trust, limited liability company or other business entity that is formed by and will remain wholly owned by the Borrower for the sole and exclusive purpose of purchasing or financing assets of the Borrower and/or its Subsidiaries pursuant to a Permitted Securitization described in clause (c) of the definition thereof.”;

 

 

(b) The following new definition is hereby added to Section 1.1 of the Agreement immediately following the definition of “Assignment and Acceptance”:

“BA-CA Lease Financing. The lease finance transaction entered into by Interpool Limited as lessee (and subsequently assumed by Interpool Containers Limited) and BA-CA Export Leasing GmbH as lessor pursuant to that certain Lease-Agreement, dated as of September 19, 2000.”;

(c) The following new definitions are hereby added to Section 1.1 of the Agreement immediately following the definition of “CLIF”:

“CLIF II. CLI Funding II LLC , a limited liability company organized under the laws of the State of Delaware.

CLIF II Credit Agreement. That certain Credit Agreement, dated as of July 19, 2007, among CLI Funding II LLC, as borrower, Bear Stearns Corporate Lending Inc., Citigroup Global Markets Inc. and Deutsche Bank Trust Company Americas, as lenders, Citigroup Global Markets Inc., as agent, and the Joint Lead Arrangers party thereto, as such agreement may be amended, restated or otherwise modified from time to time in accordance with its terms.

CLIF II Management Agreement. That certain Management Agreement, dated as of July 19, 2007, between the Borrower and CLIF II, as such agreement may be amended, restated or otherwise modified from time to time in accordance with its terms.

CLIF III. CLI Funding III LLC, a limited liability company organized under the laws of the State of Delaware.”;

(d) The following new definitions are hereby added to Section 1.1 of the Agreement immediately following the definition of “Interest Period”:

“Interpool Acquisition. The transaction contemplated by the Sale Agreement, dated as of July 19, 2007, by and among the Borrower, as Buyer, and Interpool Containers Limited, as Seller.”;

“Interpool Sub-Servicing Agreement. The sub-servicing agreement, dated as of July 19, 2007, among the Borrower, CLIF II and Interpool Container Services, Inc., and relating to the assets that are subject to the terms of the CLIF II Credit Agreement, as such management agreement may be amended, modified or supplemented from time to time in accordance with its terms.”;

(e) The following new definition is hereby added to Section 1.1 of the Agreement immediately following the definition of “Issuing Bank”:

“Japanese Lease Financing. Each of the lease finance transactions entered into by Interpool Limited as lessee (and subsequently assumed by Interpool Containers Limited) that are set forth on Schedule 2 hereto.”;

 

 

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(f) The following new definition is hereby added to Section 1.1 of the Agreement immediately following the definition of “Joint Lead Arrangers”:

“July 2007 Bridge Financing. The term loan facility in the amount of Four Hundred Five Million Dollars ($405,000,000) evidenced by the CLIF II Credit Agreement.”;

(g) The definition of “Permitted Acquisition” in Section 1.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

“Permitted Acquisition. Each of:

(a) any acquisition by the Borrower or any of its Subsidiaries, in a single transaction or a series of related transactions, through a merger, stock purchase or otherwise, of assets or companies if, (i) the Borrower or its Subsidiary is the surviving or continuing Person, (ii) immediately before and after giving effect thereto, no Default or Event of Default exists or results therefrom, (iii) after giving effect to such acquisition, the Borrower and its Subsidiaries derive and will derive at least 85% of their consolidated revenue from the ownership or management of marine containers or any ancillary, related or complementary business, (iv) all transactions related thereto are consummated in accordance with applicable laws, (v) all actions required to be taken with respect to such acquired or newly formed Subsidiary under §8.14 have been taken, (vi) the
Borrower and its Subsidiaries are in compliance, on a pro forma basis after giving effect to such acquisition, with §10.1, recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements are available, as if such acquisition (and any related incurrence or repayment of Indebtedness with any new Indebtedness being deemed to be amortized over the applicable testing period in accordance with its terms) had occurred on the first day of each relevant period for testing such compliance and (vii) the Borrower has delivered a certificate to the Agent and each Lender to the effect set forth in clauses (i), (ii), (iii), (iv), (v) and (vi) above; and

(b) the Interpool Acquisition.”;

(h) The definition of “Permitted Securitization” in Section 1.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

“Permitted Securitization. Each of the following:

(a) Any secured lending facility entered into by an Additional Securitization Entity solely for the purpose of purchasing or financing assets of the Borrower and/or its Subsidiaries, provided that (i) any Indebtedness incurred in connection with such facility is non-recourse to the Borrower, its other Restricted Subsidiaries and their respective assets, (ii) such Additional Securitization Entity engages in no business and incurs no Indebtedness or other liabilities or obligations other than those related to or incidental to such facility, (iii) such facility has an initial term of not less than seven (7) years, (iv) such facility provides for an initial advance rate of not less than seventy-five percent (75%) of the Net Book Value, determined as of the closing date for such facility, of the Containers and Generators owned by such Additional Securitization Entity,
(v) other than 

 

 

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the initial Investment in such facility, neither the Borrower nor any of its other Restricted Subsidiaries is required to make additional Investments in connection with such facility, (vi) neither the Borrower nor any of its other Restricted Subsidiaries has any material contract, agreement, arrangement or understanding other than on terms (x) not substantially less favorable to the Borrower or such Restricted Subsidiary than the terms set forth in the “Related Documents” (as defined in the Indenture) or (y) no less favorable to the Borrower or such Restricted Subsidiary (as the case may be) than those that might be obtained at that time from Persons that are not Affiliates of the Borrower, (vii) neither the Borrower nor any of its Restricted Subsidiaries (other than such Additional Securitization Entity) has any obligation to maintain such Additional Securitization
Entity’s financial condition or cause such Additional Securitization Entity to achieve certain levels of operating results (other than incidental capital costs relating to Containers, Generators, Chassis and Refrigeration Units then owned by such entity and incurred in the ordinary course of business) and (viii) the Borrower and its Subsidiaries are in compliance on a pro forma basis after giving effect to such securitization transaction with § 10.1, recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements are available, as if such securitization transaction had occurred on the first day of each relevant period for testing such compliance;

(b) The CLIF II Credit Agreement; and

(c) Any secured lending facility entered into by an Additional Securitization Entity solely for the purpose of purchasing or financing Direct Finance Leases owned or acquired by the Borrower and/or its Subsidiaries, provided that (i) except with respect to any financing that has the benefit of a Recourse Guaranty, any Indebtedness incurred in connection with such facility is non-recourse to the Borrower, its other Restricted Subsidiaries and their respective assets, (ii) such Additional Securitization Entity engages in no business and incurs no Indebtedness or other liabilities or obligations other than those related to or incidental to such facility, (iii) such facility has a maturity date that is not earlier than the Maturity Date, (iv) such facility provides for an initial advance rate of not less than seventy-five percent (75%) nor more than one hundred
percent (100%) of the present value, discounted at an interest rate per annum equal to the applicable Direct Finance Lease Rate, of the fixed rental payments payable under such Direct Finance Leases determined as of the Closing Date and (v) the Borrower and its Subsidiaries are in compliance on a pro forma basis after giving effect to such securitization transaction with § 10.1, recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements are available, as if such securitization transaction had occurred on the first day of each relevant period for testing such compliance.”

(i) The following new definition is hereby added in Section 1.1 of the Agreement immediately following the definition of “Record”:

“Recourse Guaranty. Any general recourse guarantee by the Borrower or any Restricted Subsidiary of Indebtedness pursuant to a Permitted Securitization of the type described in clause (c) of the definition of such term which is either unsecured or secured 

 

 

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solely by a pledge of the Capital Stock of the Additional Securitization Entity entering into such Permitted Securitization.”;

(j) Section 8.4(b) of the Agreement is hereby amended and restated in its entirety to read as follows:

(b) as soon as practicable, but in any event not later than forty-five (45) days after the end of each of the fiscal quarters of the Borrower, CLIF, and CLIF II, copies of the unaudited consolidated balance sheet of (i) the Borrower and its Subsidiaries, (ii) CLIF, and (iii) CLIF II, in each case as at the end of such quarter, and the related consolidated statement of income and consolidated statement of cash flow for the portion of the Borrower’s, CLIF’s, of CLIF II’s, as the case may be, fiscal year then elapsed, all in reasonable detail and prepared in accordance with GAAP, together with a certification by the principal financial or accounting officer of the Borrower that the information contained in such financial statements fairly presents in all material respects the financial position of the Borrower and its Subsidiaries, CLIF, or CLIF II,
as the case may be, on the date thereof (subject to normal year-end adjustments made in accordance with GAAP and the absence of footnotes);

(k) Clauses (c) and (g) in Section 9.1 of the Agreement are hereby amended and restated in their entirety to read as follows:

“(c) Indebtedness incurred in connection with the acquisition or lease after the date hereof of any real or personal property by the Borrower or such Restricted Subsidiary (including (i) obligations under the Japanese Lease Financing or the BA-CA Lease Financing to the extent constituting Indebtedness, and (ii) Indebtedness evidenced by Capital Leases and Synthetic Leases permitted pursuant to § 9.6 herein), provided that (i) the aggregate principal amount of such Indebtedness of the Borrower and its Restricted Subsidiaries (exclusive of the obligations under the Japanese Lease Financing and the BA-CA Lease Financing to the extent constituting Indebtedness) shall not exceed the aggregate amount of $40,000,000 at any one time and (ii) to the extent that the obligations under the Japanese Lease Financing constitute Indebtedness, such Indebtedness
shall not exceed the aggregate amount of $60,000,000 at any one time;

(g) Indebtedness of the Borrower incurred under a Recourse Guaranty issued pursuant to clause (c) of the definition of the term “Permitted Securitization”, in an aggregate amount not to exceed Four Hundred Million Dollars ($400,000,000);”

(l) Section 9.2.1(xvii) of the Agreement is hereby amended by adding immediately following “Permitted Securitization” at the end of such section, “and any pledge of such Voting Stock and/or Capital Stock of any Additional Securitization Entity pursuant to a Recourse Guaranty in connection with a Permitted Securitization of the type described in clause (c) of the definition of such term”;

(m) Section 9.2.1(xviii) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

 

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“(xviii) Liens created pursuant to the terms of the Japanese Lease Financing or the BA-CA Lease Financing; and”;

(n) Section 9.3(e) of the Agreement is hereby amended and restated in its entirety to read as follows:

“(e) Investments by the Borrower in CLIF and Additional Securitization Entities in connection with Permitted Securitizations, provided that such Investments are used exclusively for the purpose of financing or refinancing Containers, Refrigeration Units, Generators, Chassis and other related assets newly financed or refinanced under such Permitted Securitization.”

(o) Section 9.3(j) of the Agreement is hereby amended to add the words “, the Japanese Lease Financing and the BA-CA Lease Financing” after the words “Synthetic Lease” in the last line thereof.

(p) Section 9.4 of the Agreement is hereby amended and restated in its entirety to read as follows:

“9.4. Restricted Payments. The Borrower will not, and will not permit any of its Restricted Subsidiaries to, make any Restricted Payments if a Default or an Event of Default is then continuing or would result from such payment; provided, that (i) the Borrower and its Restricted Subsidiaries may make payments to its Affiliates with respect to services rendered or products delivered to the extent not prohibited by §9.11, (ii) the Borrower and its Restricted Subsidiaries may make payments to its Affiliates (x) in connection with the closing of the Interpool Acquisition, and (y) representing compensation for services rendered to the Borrower pursuant to the terms of the
Interpool Sub-Servicing Agreement which does not exceed the management fee received by the Borrower under the CLIF II Management Agreement, and (iii) any direct or indirect, wholly-owned Subsidiary of the Borrower may make Distributions to the Borrower or any Restricted Subsidiary; provided, notwithstanding the foregoing, CLIF may only make Distributions to the Borrower.”;

(q) Section 9.11 of the Agreement is hereby amended and restated in its entirety to read as follows:

“9.11 Transactions with Affiliates. Except as expressly permitted under §§9.1, 9.2, 9.3, 9.4 and 9.5, the Borrower will not, and will not permit any of its Restricted Subsidiaries to, engage in any transaction with any Affiliate, including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such Affiliate or, to the knowledge of the Borrower, any corporation, partnership, trust or other entity in which any such Affiliate has a substantial interest or is an officer, director, trustee or partner, on terms more favorable to such Person than would have been obtainable on an arm’s-length basis
in the ordinary course of business; provided, this Section 9.11 shall not prohibit (a) any of the transactions between (i) the Borrower and CLIF contemplated by the Indenture or any Related 

 

 

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Document, or (ii) the Borrower (or any Subsidiary thereof) and any Additional Securitization Entity in connection with a Permitted Securitization; provided further, that the provision in clause (i) above shall not extend to any amendment, waiver or modification made to the Indenture or any Related Document subsequent to the Closing Date if the effect of such amendment, waiver or modification is to materially decrease (1) the amount of the Management Fee (as defined in the Management Agreement) or (2) the purchase price which is payable to the Borrower for any assets sold by the Borrower under any Related Document, (b) the acquisition or lease of the Containers subject to the Japanese Lease Financing, and the concurrent assumption of the obligations under the Japanese Lease Financing, by the Borrower
from Interpool Containers Limited, (c) the acquisition or lease of the Containers subject to the BA-CA Lease Financing, and the concurrent assumption of the obligations under the BA-CA Lease Financing, by the Borrower from Interpool Containers Limited or (d) the payments of management fee payable by Borrower or its Restricted Subsidiaries to its Affiliates pursuant to the terms of the Interpool Sub-Servicing Agreement.”;

(r) Section 9.13 of the Agreement is hereby amended and restated in its entirety to read as follows:

“9.13 Ownership Interest in Unrestricted Subsidiaries. The Borrower agrees that neither it nor any of its Restricted Subsidiaries or Affiliates shall (i) sell, transfer or otherwise dispose of the Voting Stock or Capital Stock of CLIF except for any such sale, transfer or disposition made pursuant to the terms of the CLIF Pledge Agreement, or (ii) create, incur, assume or grant or suffer to exist, directly or indirectly, in favor of any Person (A) any Lien on the Voting Stock or Capital Stock of CLIF other than (x) the Lien created pursuant to the terms of the CLIF Pledge Agreement and (y) Liens permitted pursuant to §9.2.1(ii) and (iv), and (B) any Lien on the Voting Stock of any Unrestricted Subsidiary not covered in clause (A), other than
(x) any Lien created by the Borrower with respect to the Voting Stock and/or Capital Stock of any Additional Securitization Entity in connection with a Permitted Securitization pursuant to (I) an agreement that is substantially similar to the CLIF Pledge Agreement or (II) the terms of a Recourse Guaranty and (y) Liens permitted pursuant to §9.2.1(ii) and (iv).”;

(s) Section 10.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

“10.1 Consolidated Tangible Net Worth. The Borrower will not permit Consolidated Tangible Net Worth at any time to be less than the greater of (i) $200,000,000 and (ii) the amount appearing in the consolidated Tangible Net Worth covenant appearing in the July 2007 Bridge Financing (regardless of whether such covenant appears as an Event of Default, Early Amortization Event or Manager Default in such financing).”

(t) Section 16.6 of the Agreement is hereby amended by deleting “Daniel DeBlasio” in clause (a) of such section and inserting in its place “Lisa Leach, Esq.”.

 

 

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(u) The Agreement is hereby amended to add Schedule 1 hereto as new Schedule 2 to the Agreement.

3. Representations, Warranties and Covenants of the Borrower. To induce the undersigned parties to execute and deliver this Amendment, the Borrower hereby represents, warrants and covenants that:

(a) It has the power, and is duly authorized, to execute and deliver this Amendment, and it is authorized to perform its obligations under this Amendment and the Agreement as amended hereby;

(b) The execution, delivery and performance of this Amendment and the Agreement as amended hereby do not and will not require any consent or approval of any Governmental Authority, manager or any other Person which is not being obtained herein;

(c) This Amendment, when duly executed and delivered by the parties hereto, and the Agreement as amended hereby shall each constitute legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with the terms set forth herein; and

(d) No Default or Event of Default has occurred and is continuing, and no Default or Event of Default shall occur as a result of the execution, delivery and performance of this Amendment and the Agreement as amended hereby.

4. Scope and Effectiveness of Agreement.

(a) This Amendment and the agreements set forth herein shall be effective upon execution and delivery hereof (the “Effective Date”) and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

(b) On and after the Effective Date, (i) this Amendment shall become a part of the Agreement and (ii) each reference in the Agreement to “this Agreement”, “hereof”, “hereunder” or words of like import, and each reference in any other document to the Agreement, shall mean and be a reference to the Agreement as amended or modified hereby.

(c) Except as expressly amended or modified hereby, the Agreement shall remain in full force and effect and is hereby ratified and confirmed by the parties hereto.

(d) Each party hereto agrees and acknowledges that this Amendment constitutes a “Loan Document” under the Agreement.

5. Entire Agreement. This Amendment, represents the entire agreement between the parties with respect to the subject matter hereof.

6. Execution in Counterparts. This Amendment may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. A facsimile counterpart shall be effective as an original.

 

 

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7. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN APPLICATION OF LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK, AND THE RIGHTS, OBLIGATIONS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signature Page Follows]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective officers as of the day and year first above written.

 

	
                         
 	
                         
 	
                         
 	
                        CONTAINER LEASING INTERNATIONAL,
 LLC (D/B/A CARLISLE LEASING
 INTERNATIONAL, LLC)
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ David F. Doorley
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        David F. Doorley
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Treasurer
 

 

 

SIGNATURE PAGE TO
SECOND AMENDMENT TO CLI REVOLVING CREDIT AGREEMENT

 

 

	
                         
 	
                         
 	
                         
 	
                        DEUTSCHE BANK TRUST COMPANY
 AMERICAS, as Agent
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Omayra Laucella
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Omayra Laucella
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Vice President
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
                        
 /s/ Susan LeFevre
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Susan LeFevre
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Director
 

 

 

	
                         
 	
                         
 	
                         
 	
                        DEUTSCHE BANK TRUST COMPANY
 AMERICAS, as Lender 
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Evelyn Thierry
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Evelyn Thierry
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Vice President
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
                        
 /s/ Omayra Laucella
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Omayra Laucella
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Vice President
 

 

 

SIGNATURE PAGE TO
SECOND AMENDMENT TO CLI REVOLVING CREDIT AGREEMENT

 

 

	
                         
 	
                         
 	
                         
 	
                        WACHOVIA BANK, NATIONAL
 ASSOCIATION, as Lender
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Grainne M. Pergolini
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Grainne M. Pergolini
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Director
 

 

 

SIGNATURE PAGE TO
SECOND AMENDMENT TO CLI REVOLVING CREDIT AGREEMENTEXHIBIT 10.18

EXECUTION VERSION

GUARANTY

GUARANTY, dated as of August 24, 2006, by EACH GUARANTOR (each, a “Guarantor”) signatory hereto or signatory to a joinder agreement in the form of Appendix I hereto (a “Joinder Agreement”) in favor of (i) DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation organized under the laws of the State of New York, as administrative agent (hereinafter, in such capacity, the “Agent”) for itself and the other banking institutions (hereinafter, collectively, the “Lenders”) which are or may become parties to a Revolving Credit Agreement dated as of August 24, 2006 (as amended and in effect from time to time, the “Credit Agreement”), among CONTAINER LEASING INTERNATIONAL, LLC (D/B/A CARLISLE LEASING INTERNATIONAL, LLC), a New York limited liability company (the “Company”), DEUTSCHE BANK SECURITIES INC. and WACHOVIA CAPITAL MARKETS, LLC, as the Joint Lead Arrangers, DEUTSCHE BANK TRUST COMPANY AMERICAS and WACHOVIA BANK, NATIONAL ASSOCIATION as Lenders, and the Agent, and
(ii) each of the Lenders.

WHEREAS, the Company and each Guarantor are members of a group of related entities, the success of either one of which is dependent in part on the success of the other member of such group;

WHEREAS, each Guarantor expects to receive substantial direct and indirect benefits from the extensions of credit to the Company by the Lenders pursuant to the Credit Agreement (which benefits are hereby acknowledged);

WHEREAS, it is a condition precedent to the Lenders’ making any loans or otherwise extending credit to the Company under the Credit Agreement that each Guarantor execute and deliver to the Agent, for the benefit of the Lenders and the Agent, a guaranty substantially in the form hereof; and

WHEREAS, each Guarantor wishes to guaranty the Company’s obligations to the Lenders and the Agent under or in respect of the Credit Agreement as provided herein;

NOW, THEREFORE, each Guarantor hereby agrees with the Lenders and the Agent as follows:

1. Definitions. The term “Obligations” and all other capitalized terms used herein without definition shall have the respective meanings provided therefor in the Credit Agreement.

2. Guaranty of Payment and Performance. Each Guarantor, jointly and severally, by its execution hereof or a Joinder Agreement hereto, guarantees to the Lenders and the Agent the full and punctual payment when due (whether at stated maturity, by required pre-payment, by acceleration or otherwise), as well as the performance, of all of the Obligations including all such which would become due but for the operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code. This 

 

 

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Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment and performance of all of the Obligations and not of their collectibility only and is in no way conditioned upon any requirement that the Agent or any Lender first attempt to collect any of the Obligations from the Company or resort to any collateral security or other means of obtaining payment. Should the Company default in the payment or performance of any of the Obligations, the obligations of each Guarantor hereunder with respect to such Obligations in default shall become immediately due and payable to the Agent, for the benefit of the Lenders and the Agent, without demand or notice of any nature, all of which are expressly waived by each Guarantor. Payments by any Guarantor hereunder may be required by the Agent on any number of occasions. All payments by any Guarantor hereunder shall be made
to the Agent, in the manner and at the place of payment specified therefor in the Credit Agreement, for the account of the Lenders and the Agent.

3. Guarantors’ Agreement to Pay Enforcement Costs, etc. Each Guarantor further agrees, as the principal obligor and not as a guarantor only, to pay to the Agent, on demand, all costs and expenses (including court costs and legal expenses) incurred or expended by the Agent or any Lender in connection with the Obligations, this Guaranty and the enforcement thereof, together with interest on amounts recoverable under this §3 from the time when such amounts become due until payment, whether before or after judgment, at the rate of interest for overdue principal set forth in the Credit Agreement, provided that if such interest exceeds the maximum amount permitted to be paid
under applicable law, then such interest shall be reduced to such maximum permitted amount.

4. Waivers by Guarantor; Lenders’ Freedom to Act. Each Guarantor agrees that the Obligations will be paid and performed strictly in accordance with their respective terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Agent or any Lender with respect thereto. Each Guarantor waives promptness, diligence, presentment, demand, protest, notice of acceptance, notice of any Obligations incurred and all other notices of any kind, all defenses which may be available by virtue of any valuation, stay, moratorium law or other similar law now or hereafter in effect, any right to require the marshalling of assets of the Company or any other entity or other person primarily or
secondarily liable with respect to any of the Obligations, and all suretyship defenses generally. Without limiting the generality of the foregoing, each Guarantor agrees to the provisions of any instrument evidencing, securing or otherwise executed in connection with any Obligation and agrees that the obligations of each Guarantor hereunder shall not be released or discharged, in whole or in part, or otherwise affected by (i) the failure of the Agent or any Lender to assert any claim or demand or to enforce any right or remedy against the Company or any other entity or other person primarily or secondarily liable with respect to any of the Obligations; (ii) any extensions, compromise, refinancing, consolidation or renewals of any Obligation; (iii) any change in the time, place or manner of payment of any of the Obligations or any rescissions, waivers, compromise, refinancing, consolidation or other amendments or modifications of any of the terms or provisions of the Credit Agreement,
the Note, the other Loan Documents or any other agreement evidencing, securing or otherwise executed in connection with any of the  

 

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Obligations, (iv) the addition, substitution or release of any entity or other person primarily or secondarily liable for any Obligation; (v) the adequacy of any rights which the Agent or any Lender may have against any collateral security or other means of obtaining repayment of any of the Obligations; (vi) the impairment of any collateral securing any of the Obligations, including without limitation the failure to perfect or preserve any rights which the Agent or any Lender might have in such collateral security or the substitution, exchange, surrender, release, loss or destruction of any such collateral security; or (vii) any other act or omission which might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a release or discharge of any Guarantor, all of which may be done without notice to the Guarantors. To the fullest extent permitted by law, each Guarantor hereby expressly waives any and all rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law which would otherwise prevent the Agent or any Lender from bringing any action, including any claim for a deficiency, or exercising any other
right or remedy (including any right of set-off), against any Guarantor before or after the Agent’s or such Lender’s commencement or completion of any foreclosure action, whether judicially, by exercise of power of sale or otherwise, or (B) any other law which in any other way would otherwise require any election of remedies by the Agent or any Lender.

5. Unenforceability of Obligations Against Company. If for any reason the Company has no legal existence or is under no legal obligation to discharge any of the Obligations, or if any of the Obligations have become irrecoverable from the Company by reason of the Company’s insolvency, bankruptcy or reorganization or by other operation of law or for any other reason, this Guaranty shall nevertheless be binding on each Guarantor to the same extent as if each Guarantor at all times had been the principal obligor on all such Obligations. In the event that acceleration of the time for payment of any of the Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Company, or for any other reason, all such amounts otherwise subject to
acceleration under the terms of the Credit Agreement, the Note, the other Loan Documents or any other agreement evidencing, securing or otherwise executed in connection with any Obligation shall be immediately due and payable by each Guarantor.

6. Subrogation; Subordination. 

6.1. Waiver of Rights Against Company. Until the final payment and performance in full of all of the Obligations, each Guarantor shall not exercise and hereby waives any rights against the Company arising as a result of payment by such Guarantor hereunder, by way of subrogation, reimbursement, restitution, contribution or otherwise, and will not prove any claim in competition with the Agent or any Lender in respect of any payment hereunder in any bankruptcy, insolvency or reorganization case or proceedings of any nature; no Guarantor will claim any setoff, recoupment or counterclaim against the Company in respect of any liability of any Guarantor to the Company; and each Guarantor waives any benefit of and any right to participate in any
collateral security which may be held by the Agent or any Lender.

 

 

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6.2. Subordination. The payment of any amounts due with respect to any indebtedness of the Company for money borrowed or credit received now or hereafter owed to any Guarantor is hereby subordinated to the prior payment in full of all of the Obligations. Each Guarantor agrees that, after the occurrence of any default in the payment or performance of any of the Obligations, no Guarantor will demand, sue for or otherwise attempt to collect any such indebtedness of the Company to any Guarantor until all of the Obligations shall have been paid in full. If, notwithstanding the foregoing sentence, any Guarantor shall collect, enforce or receive any amounts in respect of such indebtedness while any Obligations are still outstanding, such amounts shall be collected, enforced and
received by such Guarantor as trustee for the Lenders and the Agent and be paid over to the Agent, for the benefit of the Lenders and the Agent, on account of the Obligations without affecting in any manner the liability of any Guarantor under the other provisions of this Guaranty.

6.3. Provisions Supplemental. The provisions of this §6 shall be supplemental to and not in derogation of any rights and remedies of the Lenders and the Agent under any separate subordination agreement which the Agent may at any time and from time to time enter into with each Guarantor for the benefit of the Lenders and the Agent.

7. Security; Setoff. Each Guarantor grants to each of the Agent and the Lenders, as security for the full and punctual payment and performance of all of such Guarantor’s obligations hereunder, a continuing lien on and security interest in all securities or other property belonging to such Guarantor now or hereafter held by the Agent or such Lender and in all deposits (general or special, time or demand, provisional or final) and other sums credited by or due from the Agent or such Lender to such Guarantor or subject to withdrawal by such Guarantor. Regardless of the adequacy of any collateral security or other means of obtaining payment of any of the Obligations, each of the Agent and the Lenders is hereby authorized at any time and from time to time,
without notice to any Guarantor (any such notice being expressly waived by each Guarantor) and to the fullest extent permitted by law, to set off and apply such deposits and other sums against the obligations of any Guarantor under this Guaranty, whether or not the Agent or such Lender shall have made any demand under this Guaranty and although such obligations may be contingent or unmatured.

8. Further Assurances. Each Guarantor agrees that it will from time to time, at the request of the Agent, do all such things and execute all such documents as the Agent may consider necessary or desirable to give full effect to this Guaranty and to perfect and preserve the rights and powers of the Lenders and the Agent hereunder. Each Guarantor acknowledges and confirms that it has established its own adequate means of obtaining from the Company on a continuing basis all information desired by such Guarantor concerning the financial condition of the Company and that each Guarantor will look to the Company and not to the Agent or any Lender in order for such Guarantor to keep adequately informed of changes in the Company’s financial condition.

 

 

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9. Termination; Reinstatement. This Guaranty shall remain in full force and effect until the Agent is given written notice of the Guarantors’ intention to discontinue this Guaranty, notwithstanding any intermediate or temporary payment or settlement of the whole or any part of the Obligations, provided that this Guaranty shall terminate upon irrevocable payment in full of all of the Obligations and termination of the Commitment. No such notice shall be effective unless received and acknowledged by an officer of the Agent at the address of the Agent for notices set forth in §16.6 of the Credit Agreement. No such notice shall affect any rights of the Agent or any Lender hereunder, including without limitation the rights set forth in §§4 and 6, with respect to any
Obligations incurred or accrued prior to the receipt of such notice or any Obligations incurred or accrued pursuant to any contract or commitment in existence prior to such receipt. This Guaranty shall continue to be effective or be reinstated, notwithstanding any such notice, if at any time any payment made or value received with respect to any Obligation is rescinded or must otherwise be returned by the Agent or any Lender upon the insolvency, bankruptcy or reorganization of the Company, or otherwise, all as though such payment had not been made or value received.

10. Successors and Assigns. This Guaranty shall be binding upon each Guarantor, its successors and assigns, and shall inure to the benefit of the Agent and the Lenders and their respective successors, transferees and assigns. Without limiting the generality of the foregoing sentence, each Lender may assign or otherwise transfer the Credit Agreement, the Note, the other Loan Documents or any other agreement or note held by it evidencing, securing or otherwise executed in connection with the Obligations, or sell participations in any interest therein, to any other entity or other person, and such other entity or other person shall thereupon become vested, to the extent set forth in the agreement evidencing such assignment, transfer or participation, with all the
rights in respect thereof granted to such Lender herein, all in accordance with and to the extent permitted by §15 of the Credit Agreement. No Guarantor may assign any of its obligations hereunder.

11. Amendments and Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by any Guarantor therefrom shall be effective unless the same shall be in writing and signed by the Agent with the consent of the Required Lenders. No failure on the part of the Agent or any Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.

12. Notices. All notices and other communications called for hereunder shall be made in writing and, unless otherwise specifically provided herein, shall be deemed to have been duly made or given when delivered by hand or mailed first class, postage prepaid, or, in the case of telegraphic or telexed notice, when transmitted, answer back received, addressed as follows:  if to any Guarantor, at the address set forth beneath its signature hereto, and if to the Agent, at the address for notices to the Agent set forth in §16.6 of the Credit Agreement, or at such address as either party may designate in writing to the other.

 

 

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13. Governing Law; Consent to Jurisdiction. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS THEREOF BUT OTHERWISE WITHOUT REGARD TO THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW. Each Guarantor irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty, or for recognition or enforcement of any judgment, and each of the
parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fully extent permitted by applicable law, in such Federal court. Each Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that the Agent or any Lender may otherwise have to bring any action or proceeding relating to this Guaranty against any Guarantor or its properties in the courts of any jurisdiction.

14. Waiver of Jury Trial. EACH GUARANTOR HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE ADMINISTRATIVE AGENT OR ANY LENDER RELATING TO THE ENFORCEMENT OF THIS GUARANTY AND AGREES THAT IT WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, EACH GUARANTOR HEREBY WAIVES ANY RIGHT IT MAY
HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH GUARANTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED HEREIN.

 

 

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15. Miscellaneous. This Guaranty constitutes the entire agreement of each Guarantor with respect to the matters set forth herein. The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other agreement, and this Guaranty shall be in addition to any other guaranty of or collateral security for any of the Obligations. The invalidity or unenforceability of any one or more sections of this Guaranty shall not affect the validity or enforceability of its remaining provisions. Captions are for the ease of reference only and shall not affect the meaning of the relevant provisions. The meanings of all defined terms used in this Guaranty shall be equally applicable to the singular and plural forms of the terms defined.

16. Contribution. 

16.1. In addition to all such rights of indemnity and subrogation as any Guarantor may have under applicable law, the Company agrees that (a) in the event a payment shall be made by any Guarantor under this Guaranty on account of any Obligation of the Company, the Company shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of any Guarantor shall be sold pursuant to any Loan Document to satisfy a claim on account of any Obligation of the Company, the Company shall indemnify such Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold. 

16.2. Each Guarantor (a “Contributing Guarantor”) agrees (subject to Section 6 hereof) that, in the event a payment shall be made by any other Guarantor under this or any other Guaranty, or assets of any other Guarantor shall be sold pursuant to any Loan Document to satisfy a claim described in Section 16.1 and such other Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Company as provided in Section 16.1, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Guarantor on the date hereof and the denominator shall
be the aggregate net worth of all the Guarantors on the date hereof. Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 16.2 shall be subrogated to the rights of such Claiming Guarantor under Section 16.1 to the extent of such payment.

17. Limitation on Guaranteed Obligations. Each Guarantor and the Agent (by its acceptance of the benefits of this Guaranty) hereby confirms that it is its intention that this Guaranty not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act of any similar Federal or state law. To effectuate the foregoing intention, each Guarantor and the Agent (by its acceptance of the benefits of this Guaranty) hereby irrevocably agrees that the Guaranteed Obligations guaranteed by such Guarantor shall be limited to such amount as will, after giving effect to such maximum amount and all other (contingent or otherwise) 

 

 

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liabilities of such Guarantor that are relevant under such laws and after giving effect to any rights to contribution pursuant to any agreement providing for an equitable contribution among such Guarantor and the other Guarantors, result in the Obligations of such Guarantor in respect of such maximum amount not constituting a fraudulent transfer or conveyance. 

18. Counterparts. This Guaranty may be executed in any number of counterparts and by the different parties hereto on separate counterparts (including by facsimile), each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Agent.

 

IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of the date first above written.

 

	
                         
 	
                         
 	
                        CLI DOMESTIC AND RESALE  GROUP, LLC
 
	
        
 	
       
 	
      By: 
 	
                        
 /s/ Lisa Leach
 
	
                         
 	
                         
 	
                         
 	
                        Name: Lisa Leach
 
	
                         
 	
                         
 	
                         
 	
                        Title: Vice President & General Counsel
 
	 	 	 	 

 	
       
 	
       
 	
                        Address: 
 	
                        1 Maynard Drive
 Park Ridge, NJ 07656
 
					

CLI Domestic Guaranty

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