Document:

Exhibit 10.1

Exhibit 10.1
INCREMENTAL ASSUMPTION AGREEMENT
INCREMENTAL ASSUMPTION AGREEMENT (this “Agreement”) dated as of April 18, 2012 relating to the Second Amended and Restated Credit Agreement dated as of March 15, 2012 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”) among CHASE ACQUISITION I, INC., RBS GLOBAL, INC. (“RBS Global”), REXNORD LLC (“Rexnord” and, together with RBS Global, the “Borrowers”), the Lenders party thereto from time to time and CREDIT SUISSE AG, as Administrative Agent (in such capacity, the “Administrative Agent”).
RECITALS:
WHEREAS, the Borrowers have, by notice to the Administrative Agent dated April 17, 2012 delivered pursuant to Section 2.21 of the Credit Agreement (the “Notice”) (a copy of which notice is attached as Exhibit A hereto), requested Incremental Revolving Facility Commitments in an aggregate principal amount of $85,000,000 (the “Revolving Facility Commitment Increase”); and
WHEREAS, each of the institutions listed on Schedule I hereto with an amount greater than $0.00 under the heading “Additional Revolving Commitment” (collectively, the “Increasing Revolving Lenders”) has agreed, on the terms and conditions set forth herein and in the Credit Agreement, to provide the amount of the Revolving Facility Commitment Increase set forth opposite its name under the heading “Additional Revolving Commitment” on Schedule I hereto (an “Additional Revolving Commitment”).
NOW, THEREFORE, the parties hereto therefore agree as follows:
Section 1.Defined Terms; References.  Capitalized terms used in this Agreement and not otherwise defined herein have the respective meanings assigned thereto in the Credit Agreement.  The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this 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 Agreement becomes effective, refer to the Credit Agreement as amended hereby.
SECTION 2.    Revolving Facility Commitment Increase.  Each Increasing Revolving Lender shall, with effect from the Incremental Facility Closing Date (as defined below), become an Incremental Revolving Facility Lender with an Incremental Revolving Facility Commitment in an amount equal to its Additional Revolving Commitment.  Such Incremental Revolving Facility Commitment shall be a Revolving Facility Commitment.

SECTION 3.    Representations of the Borrowers.  The Borrowers represent and warrant that:
(a)    the representations and warranties set forth in the Loan Documents are true and correct in all material respects on and as of the date of the Notice and on and as of the Incremental Facility Closing Date after giving effect hereto with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date);
(b)    no Event of Default or Default was continuing on the date of the Notice and no Event of Default or Default has occurred and is continuing on and as of the Incremental Facility Closing Date after giving effect hereto and to any extension of credit requested to be made on the Incremental Facility Closing Date; and
(c)    the Borrowers are in Pro Forma Compliance after giving effect to such Incremental Revolving Facility Commitments and the Revolving Loans to be made thereunder and the application of the proceeds therefrom, if any, as if made and applied on such date.
SECTION 4.    Conditions.  This Agreement shall become effective as of the first date (the “Incremental Facility Closing Date”) when each of the following conditions shall have been satisfied:
(a)    the Administrative Agent shall have received from each Loan Party, each Increasing Revolving Lender and the Administrative Agent (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement;
(b)    the representations and warranties set forth in Section 3 above shall be true and correct as of the date hereof;
(c)    the Administrative Agent shall have received a certificate, dated the Incremental Facility Closing Date and executed by a Responsible Officer of the Borrowers, confirming the accuracy of the representations and warranties set forth in Section 3 above;
(d)    the Administrative Agent shall have received, on behalf of itself, and the Increasing Revolving Lenders, a favorable written opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, special counsel for the Loan Parties, (A) dated the date hereof, (B) addressed to the Administrative Agent and the Increasing Revolving Lenders and (C) in form and substance reasonably satisfactory to the Administrative Agent and covering 

such other matters relating to this Agreement as the Administrative Agent shall reasonably request;
(e)    the Administrative Agent shall have received board resolutions and other customary closing certificates and documentation consistent with those delivered on the Second Amendment Effective Date and such additional customary documents and filings as the Administrative Agent may reasonably require to assure that the Revolving Facility Loans in respect of the Incremental Revolving Facility Commitments contemplated hereby are secured by the Collateral ratably with the existing Term Loans and Revolving Facility Loans; and
(f)    any fees and expenses (including reasonable fees, charges and disbursements of Davis Polk & Wardwell LLP) owing by the Borrowers to the Agents in connection herewith invoiced prior to the date hereof shall have been paid in full.
SECTION 5.    Acknowledgment of Increasing Revolving Lenders.  Each Increasing Revolving Lender expressly acknowledges that neither any of the Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates have made any representations or warranties to it and that no act by any Agent 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 to such Increasing Revolving Lender.  Each Increasing Revolving Lender represents to the Agents that it has, independently and without reliance upon any Agent 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 Incremental Revolving Facility Commitment hereunder and enter into this Agreement.  Each Increasing Revolving Lender also represents that it will, independently and without reliance upon any Agent 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 Increasing Revolving Lender expressly acknowledges that prior to the date hereof, such Increasing Revolving Lender was a Lender under the Credit Agreement and remains subject to the terms of the Credit Agreement with respect to the increased Commitments contemplated herein, including, without limitation, under Section 8.06 of the Credit Agreement.  
SECTION 6.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.
SECTION 7.    Confirmation of Guaranties and Security Interests.  By signing this Agreement, each Loan Party hereby confirms that (i) the obligations of the Loan Parties under the Credit Agreement as modified hereby (including with respect to the Revolving Facility 

Commitment Increase and any Loans or other extensions of credit made thereunder) and the other Loan Documents (x) are entitled to the benefits of the guarantees and the security interests set forth or created in the Collateral Agreement and the other Loan Documents and (y) constitute Obligations and (ii) notwithstanding the effectiveness of the terms hereof, the Collateral Agreement 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.  Each Loan Party ratifies and confirms that all Liens granted, conveyed, or assigned to any Agent by such Person pursuant to each 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 8.    Counterparts.  This 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.
SECTION 9.    Miscellaneous.  This Agreement shall constitute a Loan Document for all purposes of the Credit Agreement.  The Borrowers shall pay all reasonable fees, costs and expenses of the Administrative Agent incurred in connection with the negotiation, preparation and execution of this Agreement and the transactions contemplated hereby.

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

	
	
	RBS GLOBAL, INC.

	CHASE ACQUISITION I, INC.

	REXNORD LLC

	REXNORD INDUSTRIES, LLC

	PT COMPONENTS, INC.

	RBS ACQUISITION CORPORATION

	RBS CHINA HOLDINGS, L.L.C.

	REXNORD INTERNATIONAL INC.

	THE FLAK SERVICE CORPORATION

	PRAGER INCORPORATED

	REXNORD-ZURN HOLDINGS, INC.

	ENVIRONMENTAL ENERGY COMPANY

	HL CAPITAL CORP.

	OEI, INC.

	OEP, INC.

	SANITARY-DASH MANUFACTURING CO., INC.

	ZURCO, INC.

	KRIKLES, INC.

	ZURCO, INC.

	ZURN INTERNATIONAL, INC.

	ZURN INDUSTRIES, LLC

	ZURN PEX, INC.

	
		
	By:
	/S/   Mark W. Peterson

	 
	Name:  Mark W. Peterson

	 
	Title:  Senior Vice President and Chief Financial Officier of each above-named entity

	
	
	GA INDUSTRIES HOLDINGS, LLC

	GA INDUSTIRES, LLC

	RODNEY HUNT COMPANY, INC.

	
		
	By:
	/S/   Patricia M. Whaley

	 
	Name:  Patricia M. Whaley

	 
	Title:  Vice President, General Counsel & Secretary of each above-named entity

	
		
	ADMINISTRATIVE AGENT

	CREDIT SUISSE AG, CAYMAN ISLANDS

	 
	BRANCH, as Administrative

	 
	Agent

	
		
	By:
	/S/   Robert Hetu

	 
	Name:  Robert Hetu

	 
	Title:  Managing Director

	
		
	By:
	/S/   Kevin Buddhew

	 
	Name:  Kevin Buddhew

	 
	Title:  Associate

	
	
	INCREASING REVOLVING

	LENDER

	[________________], as Increasing

	Revolving Lender

	
		
	By:
	 

	 
	Name:

	 
	Title:

	
		
	By:
	 

	 
	Name:

	 
	Title:

[ Executed by each increasing revolving lender]

Schedule I
COMMITMENTS
	
										
	Existing Revolving 
Facility Lender
	Existing 
Revolving Commitment
	Additional 
Revolving Commitment
	Total Revolving Commitment

	Credit Suisse AG, Cayman Islands Branch
	$
	25,000,000
	

	$
	21,500,000
	

	$
	46,500,000
	

	Deutsche Bank AG
	$
	30,000,000
	

	$
	16,500,000
	

	$
	46,500,000
	

	Merrill Lynch Capital Corporation
	$
	30,000,000
	

	$
	16,500,000
	

	$
	46,500,000
	

	Goldman Sachs Lending Partners LLC
	$
	25,000,000
	

	$
	21,500,000
	

	$
	46,500,000
	

	Barclays Bank PLC
	$
	20,000,000
	

	$
	4,000,000
	

	$
	24,000,000
	

	Sumitomo Mitsui Banking Corporation
	$
	20,000,000
	

	$
	5,000,000
	

	$
	25,000,000
	

	BMO Harris Bank, N.A.*
	$
	30,000,000
	

	$
	—
	

	$
	30,000,000
	

	Total
	$
	180,000,000
	

	$
	85,000,000
	

	$
	265,000,000
	

*Indicates an Existing Revolving Facility Lender that is not an Increasing Revolving Lender

EXHIBIT A
Notice Requesting Incremental Revolving Facility Commitments
[SEE ATTACHED]

NOTICE REQUESTING INCREMENTAL REVOLVING FACILITY COMMITMENTS
Date:     April 17, 2012
		
	To:
	Credit Suisse AG, as administrative agent (in such capacity, the “Administrative Agent”) under that certain Second Amended and Restated Credit Agreement dated as of March 15, 2012 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”) among Chase Acquisition I, Inc., RBS Global, Inc. (“RBS Global”), Rexnord LLC (“Rexnord” and, together with RBS Global, the “Borrowers”), the Lenders party thereto from time to time as lenders and agents and the Administrative Agent.

Ladies and Gentlemen:
Reference is made to the above-described Credit Agreement.  Terms defined in the Credit Agreement, wherever used herein, unless otherwise defined herein, shall have the same meanings herein as are prescribed by the Credit Agreement.  The Borrowers hereby request Incremental Revolving Facility Commitments in an amount set forth below to be made available under the Credit Agreement from the Increased Amount Date specified below.
	
					
	1.     Amount of the Incremental Revolving Facility
       Commitments being requested:
	 
	$
	85,000,000.00
	

	 
	 
	 

	2.     Date on which such Incremental Revolving Facility
        Commitments are requested to become effective
        (the “Increased Amount Date”):
	 
	April 18, 2012
	

The Borrowers hereby further request that the Incremental Revolving Facility Commitments requested hereby be Revolving Loan Commitments for all purposes under the Credit Agreement from and after the Increased Amount Date.
[Signature page follows]

This Notice Requesting Revolving Facility Commitment Increase is issued pursuant to and is subject to the Credit Agreement and is executed as of the date set forth above.

	
	
	RBS GLOBAL, INC.

	REXNORD LLC

	
		
	By:
	/S/   Mark W. Peterson

	 
	Name:  Mark W. Peterson

	 
	Title:  Senior Vice President and Chief Financial Officer of each above-named entitysrer_ex101.htm

EXHIBIT 10.1

 

SECURED PROMISSORY NOTE

	
Maker:  

	
LC Luxuries Limited,

	
Holder:   Justin Hartfield

	  	
a Nevada corporation

	  

	
Principal Amount: $900,000.00

	
Rate:  0.35%

	
Date: November 19, 2010

Promise to Pay: FOR VALUE RECEIVED, LC Luxuries Limited, a Nevada corporation  (“Maker”), hereby promises to pay on or before January 10, 2012 (the “Maturity Date”) to the order of Justin Hartfield (“Holder”), at 2183 Fairview Rd, Ste 101, Costa Mesa, California, or at such other place or to such other party as the Holder may from time to time designate in writing, the principal sum of Nine Hundred Thousand Dollars and no cents ($900,000.00), together with accrued interest on the unpaid principal from time to time outstanding, as set forth in this Secured Promissory Note (this “Note”) until fully paid.

This Note is being issued in connection with that certain Agreement and Plan of Reorganization and Merger by and among Weedmaps, LLC, a Nevada limited liability company, and its three members, namely Justin Hartfield, Keith Hoerling, and Douglas Francis (collectively, the “Members”), on the one hand, and Maker and LC Merger Corp., a Nevada corporation and a wholly owned subsidiary of Maker (“LC Merger Sub”), on the other hand, dated November 19, 2010 (the “Merger Agreement”).

Payment.  The principal, together with all accrued interest on this Note shall be payable on the Maturity Date (the “Note Payment”).  This Note shall be payable by certified or bank cashier’s check or by wire transfer of immediately available funds to an account designated by Holder in writing. Unless otherwise agreed or required by applicable law, all payments will be applied first to any charges, costs, expenses or late fees then owed to Holder, next to unpaid accrued interest, with any balance applied to principal.

Fixed Interest Rate.  Commencing the date hereof, this Note shall accrue interest on the unpaid principal from time to time outstanding at a rate of 0.35% per annum. Accrued interest shall be due and payable concurrently with the Note Payment.  In addition, accrued interest shall be due and payable upon any prepayment (to the extent thereof), at the maturity hereof (whether by acceleration or otherwise) and, thereafter, upon demand.

Prepayment.  Prepayment of the principal and all accrued interest on this Note shall be allowed with the consent of Holder, and any such prepayment shall be applied first to interest accrued but unpaid to such date on the outstanding principal balance hereof immediately preceding such prepayment and then to reduction of the principal balance hereof.

Events of Default.  Holder may, at its option, accelerate the maturity of this Note upon the occurrence of any of the following events (any one of which shall be deemed an “Event of Default”), in which event the unpaid balance of this Note, together with accrued interest, shall become immediately due and payable without demand or notice:

 

  

 

  

 

	 	
1. 

	
The failure by Maker to pay the Note Payment on or before the Maturity Date;

	 	
2. 

	
The material breach or failure by Maker to perform any covenant or undertaking of Maker in this Note or under the Merger Agreement, and (other than failure by Maker to pay the Note Payment on or before the Maturity Date) each of such breach or failure to perform is not cured within ten (10) days following the receipt by Maker of written notice thereof by Holder; or

	 	
3. 

	
In the event that Maker shall (A) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of all or substantially all of its property, (B) make a general assignment for the benefit of creditors, (C) commence a voluntary case under the federal bankruptcy laws (as now or hereafter in effect), (D) be adjudicated as bankrupt or insolvent, (E) file a petition or take advantage of any other law providing for the relief of debtors, or (F) acquiesce to, or fail to have dismissed within forty-five (45) days, any petition filed against it in any involuntary case under such bankruptcy law.

Security.  This Note is secured by the Collateral, as that term is defined in that certain Security Agreement, of an even date herewith and attached to the Merger Agreement as Exhibit C thereto, by and between Maker and LC Merger Sub, on the one hand, and  the Members and Justin Hartfield as the “Collateral Agent”, on the other hand (the “Security”).

Waivers and General Provisions.  Maker expressly waives presentment, protest and demand, notice of protest, demand, intention to accelerate the maturity of this Note and dishonor and nonpayment of this Note, and all other notices of any kind, and expressly agrees that this Note, or any payment hereunder, may be extended from time to time without in any way affecting the liability of Maker and endorsers hereof.

No single or partial exercise of any power hereunder shall preclude other or further exercise thereof or the exercise of any other power.  No delay or omission on the part of the Holder hereof in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note.

Attorneys’ Fees.  If an action shall be brought on this Note, the losing party shall pay immediately upon demand all costs and expenses of the prevailing party, including reasonable attorneys’ fees.  The obligations set forth in this paragraph are separate and several, shall survive the discharge of this Note and the merger of this Note into any judgment on this Note.

 

  

2

  

 

Severability.  Every provision of this Note is intended to be severable.  In the event any term or provision hereof is declared by a court of competent jurisdiction to be illegal or invalid for any reason whatsoever, such illegal or invalid term or provision shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable.

Successors and Assigns.  The provisions contained herein shall be binding upon, and inure to the benefit of, the heirs and successors of the parties hereto.  This Note may not be assigned by either party without the prior written consent of the other party, which consent shall not be reasonably withheld.

Release.  After the payment of all sums for which the Maker is obligated under this Note, the Holder shall deliver, or mail to the Maker at his or her last known address, such one or more good and sufficient instruments as may be necessary to acknowledge payment in full and to release the Security.

Governing Law.  This Note, and every other agreement entered into or document signed in connection with this Note, shall be governed by and construed in accordance with the laws of the State of California.

  IN WITNESS WHEREOF, the undersigned has caused this Secured Promissory Note to be executed at Costa Mesa, California as of the date first set forth above.

	
“Maker”

	  
	
LC Luxuries Limited, a Nevada corporation

	  
	
  /s/  James Pakulis

	
By: 

	
James Pakulis, CEO

	  	
(print)

  

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]