Document:

Exhibit 4.7

 

EXECUTION

 

APTARGROUP, INC.

 

 

SECOND AMENDMENT
 Dated as of December 16, 2014

 

to

 

NOTE PURCHASE AGREEMENT
 Dated as of July 31, 2008

 

 

RE:  $75,000,000 aggregate principal amount of
 6.03% Senior Notes, Series 2008-A-2, due July 31, 2018

 

$16,000,000 aggregate principal amount of
 2.33% Senior Notes, Series 2008-B-1, due November 30, 2015

 

$84,000,000 aggregate principal amount of
 3.78% Senior Notes, Series 2008-B-2, due November 30, 2020

 

$75,000,000 aggregate principal amount of
 3.25% Senior Notes, Series 2008-C-1, due September 5, 2022

 

$50,000,000 aggregate principal amount of
 3.40% Senior Notes, Series 2008-C-2, due September 5, 2024

 

 

 

SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT

 

THIS SECOND AMENDMENT dated as of December 16, 2014 (this “Second Amendment”) to the Note Purchase Agreement dated as of July 31, 2008 is between AptarGroup, Inc., a Delaware corporation (the “Company”), and each of the institutions which is a signatory to this Second Amendment (collectively, the “Noteholders”).

 

RECITALS:

 

A.                     Pursuant to that certain Note Purchase Agreement dated as of July 31, 2008 (as amended by the First Amendment dated as of November 30, 2010, the “Note Purchase Agreement”) between the Company and each of the purchasers listed in Schedule A thereto, the Company has heretofore issued (i) $25,000,000 aggregate principal amount of Notes designated as its 5.41% Senior Notes, Series 2008-A-1, due July 31, 2013 (the “Series 2008-A-1 Notes”) and (ii) $75,000,000 aggregate principal amount of Notes designated as its 6.03% Senior Notes, Series 2008-A-2, due July 31, 2018 (the “Series 2008-A-2 Notes” or the “Series 2008-A Notes”).  The Series 2008-A-1 Notes have matured and are no longer outstanding.

 

B.                    Pursuant to that certain Supplemental Note Purchase Agreement dated as of November 30, 2010 (the “Supplemental Note Purchase Agreement”) between the Company and each of the purchasers listed in Schedule A thereto, the Company has heretofore issued (i) $16,000,000 aggregate principal amount of Notes designated as its 2.33% Senior Notes, Series 2008-B-1, due November 30, 2015 (the “Series 2008-B-1 Notes”) and (ii) $84,000,000 aggregate principal amount of Notes designated as its 3.78% Senior Notes, Series 2008-B-2, due November 30, 2020 (the “Series 2008-B-2 Notes”, and together with the Series 2008-B-1 Notes, the “Series 2008-B Notes”).

 

C.                    Pursuant to that certain Second Supplemental Note Purchase Agreement dated as of September 5, 2012 (the “Second Supplemental Note Purchase Agreement”) between the Company and each of the purchasers listed in Schedule A thereto, the Company has heretofore issued (i) $75,000,000 aggregate principal amount of Notes designated as its 3.25% Senior Notes, Series 2008-C-1, due September 5, 2022 (the “Series 2008-C-1 Notes”) and (ii) $50,000,000 aggregate principal amount of Notes designated as its 3.40% Senior Notes, Series 2008-C-2, due September 5, 2024 (the “Series 2008-C-2 Notes”, and together with the Series 2008-C-1 Notes, the “Series 2008-C Notes”). The Series 2008-A Notes, Series 2008-B Notes and Series 2008-C are hereinafter referred to as the “Notes.”

 

D.                    The Noteholders are the holders of more than 50% of the principal amount of the Notes outstanding as of the date of this Second Amendment (exclusive of Notes owned by the Company or any of its Affiliates).

 

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

 

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

 

 

 

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

 

SECTION 1.                                             AMENDMENTS.

 

Section 1.1.                   Section 7.1(a) of the Note Purchase Agreement shall be and is hereby amended by deleting the following proviso:

 

“provided, further, that the Company shall be deemed to have made such delivery of such Form 10-Q if (x) it shall have timely made such Form 10-Q available on “EDGAR” and via the “Investor Relations” link on the Company’s home page on the worldwide web (at the date of this Agreement located at:  http//www.aptargroup.com) and (y) by email to each Purchaser, the Company shall have given each Purchaser prior notice of such availability on EDGAR and via the Company’s home page in connection with each delivery (such availability and notice thereof being referred to as “Electronic Delivery”);”

 

Section 1.2.                   Section 7.1(b) of the Note Purchase Agreement shall be and is hereby amended by deleting the following proviso:

 

“provided, further, that the Company shall be deemed to have made such delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof;”

 

Section 1.3.                   Section 7.2 of the Note Purchase Agreement shall be and is hereby amended by deleting the following qualification:

 

“(which, in the case of Electronic Delivery of such financial statements, shall be by separate delivery of such certificate to each holder of Notes)”

 

Section 1.4.                   The first sentence of Section 7.2(a) of the Note Purchase Agreement shall be and is hereby amended by adding the words “and Section 10.8” after the words “Section 10.4, inclusive,”.

 

Section 1.5.                   The following shall be added as a new Section 7.4 to the Note Purchase Agreement:

 

“Section 7.4.                          Electronic Delivery.  Financial statements, opinions of independent certified public accountants, other information and Officer’s Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:

 

(i)                such financial statements satisfying the requirements of Section 7.1(a) or (b), related Officer’s Certificate

 

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satisfying the requirements of Section 7.2 and such other information satisfying the requirements of Section 7.1(c) are delivered to each holder of a Note by e-mail at the address as set forth in Schedule 7.4, as may be updated from time to time by such holder;

 

(ii)             the Company shall have timely filed such Form 10-Q or Form 10-K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC on EDGAR and shall have made such form and the related Officer’s Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at www.aptargroup.com as of the date of this Agreement;

 

(iii)          such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer’s Certificate satisfying the requirements of Section 7.2 are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access; or

 

(iv)         the Company shall have filed any of the items referred to in Section 7.1(c) with the SEC on EDGAR and shall have made such items available on its home page on the internet or on IntraLinks or on any other similar website to which each holder of Notes has free access;

 

provided however, that in the case of any of clauses (ii), (iii) or (iv), the Company shall have given each holder of a Note prior written notice, which may be by e-mail at the address as set forth in Schedule 7.4, as may be updated from time to time by such holder or in accordance with Section 18, of such posting or filing in connection with each delivery, provided, further, that upon request of any holder to receive paper copies of such forms, financial statements and Officer’s Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the case may be, to such holder.”

 

Section 1.6.                   The following shall be added as a new Section 9.6 of the Note Purchase Agreement:

 

“Section 9.6.                Subsidiary Guarantors.  (a) The Company will cause each of its Subsidiaries that becomes a guarantor or an obligor, whether as a borrower or an additional or co-borrower or otherwise, for or in respect of any Debt under any Material Credit Facility or any Existing Note Purchase Agreement to:

 

(i)                concurrently therewith, enter into an agreement substantially in the form of Schedule 9.6(a) (a “Subsidiary Guaranty”); and

 

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(ii)             within five Business Days thereafter, deliver the following to each of holder of a Note:

 

(A)               an executed counterpart of such Subsidiary Guaranty;

 

(B)               all documents as may be reasonably requested by the Required Holders to evidence the due organization, continuing existence and good standing of such Subsidiary and the due authorization by all requisite legal entity action on the part of such Subsidiary of the execution and delivery of such Subsidiary Guaranty and the performance by such Subsidiary of its obligations thereunder; and

 

(C)               an opinion of counsel reasonably satisfactory to the Required Holders covering such matters relating to such Subsidiary and such Subsidiary Guaranty as the Required Holders may reasonably request.

 

(b)               At the election of the Company and by written notice to each holder of Notes, any Subsidiary Guarantor may be discharged from all of its obligations and liabilities under its Subsidiary Guaranty and shall be automatically released from its obligations thereunder without the need for the execution or delivery of any other document by the holders, provided that (i) if such Subsidiary Guarantor is a guarantor or obligor in respect of any Material Credit Facility or any Existing Note Purchase Agreement, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under its Subsidiary Guaranty) under such Material Credit Facility and each such Existing Note Purchase Agreement, as the case may be, (ii) at the time of, and after giving effect to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable under such Subsidiary Guaranty, (iv) if in connection with such Subsidiary Guarantor being released and discharged under any Material Credit Facility, any fee or other form of consideration is given to any holder of Debt under such Material Credit Facility for such release, the holders of the Notes shall receive equivalent consideration on a ratable basis substantially concurrently therewith and (v) each holder shall have received a certificate of a Responsible Officer certifying as to the matters set forth in clauses (i) through (iv).  In the event of any such release, for purposes of Section 10.1, all Debt of such Subsidiary shall be deemed to have been incurred concurrently with such release.”

 

Section 1.7.                   Section 10.1 of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“Section 10.1.  Debt.  The Company will not, and will not permit any Subsidiary to, create, assume or incur or in any manner become liable for any Debt, except:

 

(a)                         the Notes;

 

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(b)                         Debt of the Company and its Subsidiaries outstanding as of September 30, 2014 and reflected on Schedule 5.15;

 

(c)                          Debt of any Subsidiary to the Company or to another Wholly-Owned Subsidiary;

 

(d)                         additional unsecured Debt of the Company and its Subsidiaries and additional Debt of the Company and its Subsidiaries secured by Liens permitted by Section 10.2(g), (h), (i) or (j), provided that at the time of incurrence thereof and after giving effect thereto on a pro forma basis and to the application of the proceeds thereof:

 

(i)                (A) no Default or Event of Default exists and (B) no Default would, on a pro forma basis, exist under Section 10.9 if such Debt had been incurred on the last day of the most recent fiscal quarter for which financial statements have been delivered pursuant to Section 7.1(a) or (b), as the case may be; and

 

(ii)             in the case of Debt of a Subsidiary, the aggregate principal amount of all (A) Debt of the Subsidiaries (other than Debt permitted by Section 10.1(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) Debt of the Company or a Subsidiary secured by Liens described in Section 10.2(j) does not exceed 15% of Consolidated Total Assets; and

 

(iii)          in the case of Debt of the Company or a Subsidiary secured by Liens described in Section 10.2(j), the aggregate principal amount of all (A) Debt of the Subsidiaries (other than Debt permitted by Section 10.1(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) Debt of the Company or a Subsidiary secured by Liens described in Section 10.2(j) does not exceed 15% of Consolidated Total Assets.

 

For all purposes of this Section 10.1, any Person that becomes a Subsidiary after the date of this Agreement shall be deemed to have incurred, at the time it becomes a Subsidiary, all Debt of such Person outstanding immediately after it becomes a Subsidiary.”

 

Section 1.8.                   The references to the term “Indebtedness” in Sections 10.2(d), 10.2(g), 10.2(h), 10.3, 10.4 and 10.5 shall be and hereby are replaced by the term “Debt.”  In addition, Section 10.2(i) of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“(i)            Liens on Receivables and other property referred to in clause (b) of the definition of, and in connection with, a Permitted Receivables Transaction; and”

 

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Section 1.9.                   The following shall be added as a new Section 10.2(j) of the Note Purchase Agreement:

 

“(j)                  Additional Liens securing Debt not otherwise permitted by paragraphs (a) through (i) above, provided that, at the time of creation, assumption or incurrence thereof and immediately after giving effect thereto and to the application of the proceeds therefrom, the aggregate principal amount of (A) Debt of the Subsidiaries (other than Debt permitted by Section 10.1(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) Debt of the Company or a Subsidiary secured by Liens described in this Section 10.2(j) does not exceed 15% of Consolidated Total Assets and provided, further, that notwithstanding the foregoing, the Company shall not, and shall not permit any of its Subsidiaries to, secure pursuant to this Section 10.2(j) any Debt outstanding under or pursuant to any Material Credit Facility or any Existing Note Purchase Agreement unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally and ratably with such Debt pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including an intercreditor agreement and opinions of counsel to the Company and/or any such Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Required Holders.”

 

Section 1.10.                   The first sentence of Section 10.3 of the Note Purchase Agreement shall be and is hereby amended by adding the words “(excluding accounts receivable transferred as part of a Permitted Receivables Transaction)” after the words “provided that the aggregate net book value of all assets so disposed of.”

 

Section 1.11.                   Section 10.7 of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“Section 10.7.                    Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except (a) upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate or (b) Permitted Receivables Transactions.”

 

Section 1.12.                   The following shall be added as a new Section 10.8 of the Note Purchase Agreement:

 

“Section 10.8.                     Financial Ratios.

 

(a)                                 The Company will not, as of the end of any fiscal quarter, permit the Consolidated Leverage Ratio to be greater than 3.50 to 1.00.

 

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(b)                                 The Company will not, as of the end of any fiscal quarter, permit the Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00.”

 

Section 1.13.                   Section 11(d) of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“(d)     (i) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not remedied within 30 days after the earlier of (A) a Responsible Officer obtaining actual knowledge of such  default and (B) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)) or (ii) any Subsidiary Guarantor defaults in the performance of or compliance with any term contained in any Subsidiary Guaranty and such default would reasonably be expected to have a Material Adverse Effect and is not remedied within 30 days after the earlier of (A) a Responsible Officer obtaining actual knowledge of such default and (B) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)); or”

 

Section 1.14.                   Section 11(e) of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“(e)      (i) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or in any writing furnished by the Company in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made, or (ii) any representation or warranty made in writing by or on behalf of any Subsidiary Guarantor or by any officer of such Subsidiary Guarantor in any Subsidiary Guaranty or any writing furnished by such Subsidiary Guarantor pursuant to such Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made and such falsity or incorrectness would reasonably be expected to have a Material Adverse Effect; or”

 

Section 1.15.                   The following shall be added as a new Section 11(k) of the Note Purchase Agreement:

 

“or (k)                    any Subsidiary Guaranty (once in full force and effect) shall cease to be in full force and effect (excluding any Subsidiary Guaranty which ceases to be in full force and effect in accordance with the provisions of this Agreement), any Subsidiary Guarantor or any Person acting on behalf of any Subsidiary Guarantor shall contest in any manner the validity, binding nature or enforceability of any Subsidiary Guaranty, or the obligations of any Subsidiary Guarantor which is a Significant Subsidiary under any Subsidiary Guaranty are not or cease to be legal, valid, binding and enforceable in accordance with the terms of such Subsidiary Guaranty.”

 

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Section 1.16.                   If the undersigned Noteholders are the holders of 100% of the principal amount of the Notes outstanding, the first sentence of Section 12.2 of the Note Purchase Agreement shall be amended by adding the words “or Subsidiary Guaranty” after the words “any agreement contained herein or in any Note.”

 

Section 1.17.                   Section 15.1 of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“Section 15.1.              Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement, any Subsidiary Guaranty or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the reasonable costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, any Subsidiary Guaranty or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, any Subsidiary Guaranty or the Notes, or by reason of being a holder of any Note, (b) the reasonable costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and any Subsidiary Guaranty and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c) shall not exceed $3,500.  The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder of a Note in connection with its purchase of the Notes) and (ii) any and all wire transfer fees that any bank deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note.”

 

Section 1.18.                   The first sentence of Section 18 of the Note Purchase Agreement shall be and is hereby amended by replacing the words “Section 7.1” with the words “Section 7.4.”

 

Section 1.19.                   Section 22.8 of the Note Purchase Agreement shall be and is hereby amended in its entirety to read as follows:

 

“Section 22.8.  Accounting Terms.  (a) All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with this Agreement (including, without limitation,

 

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Section 9, Section 10 and the definition of “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 — Fair Value Option, International Accounting Standard 39 — Financial Instruments: Recognition and Measurement or any similar accounting standard and Financial Accounting Standards Board Accounting Standards Codification Topic No. 470-20 — Debt With Conversion and Other Options) shall be disregarded and such determination shall be made as if such election had not been made.

 

(b)          In the event of any change in GAAP after the date hereof, and if such change would affect the method of calculation of, or compliance with, any covenant set forth herein, upon the written request of the Company or any holder of a Note, the Company and the holders of the Notes agree to endeavor in good faith to agree upon an amendment to this Agreement that would revise such covenant or method of calculation (which may include revisions to defined terms used herein) in a manner that would preserve the original effect thereof, but would allow the method of calculation and/or compliance with such covenant to be determined in accordance with GAAP as so changed; provided that, until such covenant is so amended and subject to the foregoing in this sentence, such method of calculation and/or covenant shall continue to be calculated in accordance with GAAP prior to such change in GAAP.  No delay by the Company or any holder of Notes in requiring such negotiation process shall limit such party’s right to so require such negotiation process at any time after such a change in GAAP.”

 

Section 1.20.                   Schedule B of the Note Purchase Agreement shall be and is hereby amended by deleting the definitions of “Bank Credit Agreement,” “Capital Lease,” “Guaranty,” “Indebtedness,” “Material Adverse Effect” and “Wholly-Owned Subsidiary” in their entirety and replacing them with the following in alphabetical order:

 

““Bank Credit Agreement” means that certain Credit Agreement dated as of January 31, 2012 among the Company, Wells Fargo Bank, National Association, as administrative agent, and the other commercial banks from time to time parties thereto, as amended by Amendment Nos. 1 and 2 thereto, and as the same may from time to time be further amended, modified, extended, replaced, refinanced or renewed.

 

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

 

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or

 

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indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:

 

(a)              to purchase such Debt or obligation or any property constituting security therefor;

 

(b)               to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation;

 

(c)                to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; or

 

(d)               otherwise to assure the owner of such Debt or obligation against loss in respect thereof.

 

In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or other outstanding obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

 

“Indebtedness” means, for any Person, all obligations of such Person, without duplication, required by GAAP to be shown as liabilities on its balance sheet, and in any event shall include all:

 

(i)                                     obligations of such Person for borrowed money,

 

(ii)                                  obligations of such Person representing the deferred purchase price of property or services other than accounts payable and accrued expenses arising in the ordinary course of business on terms customary in the trade,

 

(iii)                               obligations of such Person evidenced by notes, acceptances, or other instruments of such Person or arising out of letters of credit issued for such Person’s account,

 

(iv)                              obligations, whether or not assumed, secured by Liens or payable out of the proceeds or production from Property now or hereafter owned or acquired by such Person,

 

(v)                                 capitalized lease obligations of such Person,

 

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(vi)                              all Indebtedness (as defined above) of any partnership in which such Person is a general partner,

 

(vii)                           the outstanding principal amount then owed to investors in connection with the sale of the Company’s or any of its Subsidiaries’ accounts receivable,

 

(viii)                        Synthetic Lease Obligations of such Person, and

 

(ix)                              obligations for which such Person is obligated pursuant to a Guaranty with respect to liabilities of a type described in any of clauses (i) through (viii) hereof (other than a Guaranty of any Debt of a Subsidiary of such Person, if such Debt is otherwise shown as a liability on such Person’s balance sheet).

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under its Subsidiary Guaranty, when taken together with the Company’s ability to perform its obligations under this Agreement and the Notes and the other Subsidiary Guarantors’ ability to perform their obligations under any Subsidiary Guaranty, (d) the validity or enforceability of this Agreement or the Notes, or (e) the validity or enforceability against the Subsidiary Guarantors, taken as a whole, of all Subsidiary Guaranties, when taken together with the validity and enforceability against the Company of this Agreement and the Notes.

 

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary all of the equity interests (except directors’ qualifying shares or equity interests held  by Persons other than the Company or any Subsidiary to the extent required in connection with any Permitted Receivables Transactions) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.”

 

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Section 1.21.                   Schedule B of the Note Purchase Agreement shall be and is hereby amended by deleting the definitions of “Consolidated Indebtedness,” “Consolidated Total Capitalization” and “Electronic Delivery” in their entirety.

 

Section 1.22.                   Schedule B of the Note Purchase Agreement shall be and is hereby amended by adding the following definitions in alphabetical order:

 

““Asset Sale” means any sale, transfer or other disposition by the Company or any of its Subsidiaries to any Person other than the Company or any Wholly-Owned Subsidiary of the Company of any asset (including, without limitation, any capital stock or other securities of another Person) of the Company or such Subsidiary other than (i) sales, transfers or other dispositions of inventory in the ordinary course of business, (ii) sales of equipment and other fixed assets no longer used or useful in the business of the Company or any of its Subsidiaries, as determined by the Company or such Subsidiary in its reasonable judgment, (iii) sales of equipment and other fixed assets if the proceeds thereof are used to purchase additional equipment or fixed assets, (iv) the license or sublicense of software, trademarks and other intellectual property in the ordinary course of business and (v) any sale, transfer or other disposition of cash.

 

“Cash Equivalents” means (a) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than six months from the date of acquisition, (b) domestic and Eurodollar denominated time deposits, certificates of deposit and bankers acceptances of any financial institution or any bank whose short-term debt rating from Standard & Poor’ s Ratings Service (“S&P”) is at least A-1 or the equivalent or from Moody’s Investors Service, Inc. (“Moody’s”) is at least P-1 or the equivalent with maturities of not more than six months from the date of acquisition, (c) commercial paper with a rating of at least A-1 or the equivalent by S&P or at least P-1 or the equivalent by Moody’s maturing within six months after the date of acquisition, (d) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within six months from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s, (e) investments in money market funds substantially all the assets of which are comprised of securities of the types described in clauses (a) through (d) above, and (f) BMTNs (Bons Moyen-Terme Negociables) maturing within five years from the date of acquisition thereof which is issued by a Person which is

 

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rated at least A-1 or the equivalent by S&P or at least P-1 or the equivalent by Moody’s and other similar high quality instruments of equivalent United States rating in countries where Subsidiaries organized under laws of jurisdictions outside of the United States are located.

 

“Consolidated Debt” means all Debt of the Company determined on a consolidated basis.

 

“Consolidated EBITDA” means, for any period, the sum of the following determined on a consolidated basis, without duplication, for the Company and its Subsidiaries in accordance with GAAP:

 

(a)                                 Consolidated Net Income for such period plus

 

(b)                                 the sum of the following, without duplication, to the extent deducted in determining Consolidated Net Income for such period: (i) income and franchise taxes, (ii) Consolidated Interest Expense and (iii) amortization and depreciation, (iv) any extraordinary, unusual or non-recurring items reducing Consolidated Net Income for such period, (v) reasonable and documented transaction costs, fees and expenses associated with any Material Acquisition or Material Disposition, (vi) to the extent actually reimbursed by insurance or a third party, costs of legal settlement, fines, judgments or orders, provided that (A) the amounts so reimbursed shall be deemed to have been received in the fiscal quarter in which the costs of legal settlement, fines, judgments or orders were actually paid by the Company or the applicable Subsidiary (the “Loss Quarter”), notwithstanding that such amounts were not actually received in such Loss Quarter, but were received in a subsequent fiscal quarter and (B) no such amounts so reimbursed shall be used to calculate Consolidated EBITDA for any period that does not include such Loss Quarter, (vii) to the extent covered by insurance, expenses with respect to liability events or casualty events, (viii) any unrealized losses in the fair market value of any Hedge Agreements, (ix) any net unrealized currency transaction losses and (x) any other non-cash items reducing Consolidated Net Income for such period (except to the extent that such non-cash items are reserved for cash charges to be taken in the future), less

 

(c)                                  the sum of the following, without duplication, to the extent included in determining Consolidated Net Income for such period: (i) interest income, (ii) any extraordinary, unusual or non-recurring items increasing Consolidated Net Income for such period, (iii) any unrealized gains in the fair market value of any

 

13

 

Hedge Agreements, (iv) any net unrealized foreign currency transaction gains, and (v) any other non-cash items increasing Consolidated Net Income for such period.

 

For the purpose of calculating Consolidated EBITDA for any period in connection with any determination of the Consolidated Leverage Ratio, (a) if at any time during such period the Company or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA attributable to such disposed property shall be deducted from Consolidated EBITDA (if positive) or added to Consolidated EBITDA (if negative) for such period as if such Material Disposition occurred on the first day of such period, and (b) if at any time during such period the Company or any Subsidiary shall have made a Material Acquisition, the Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto, in a manner reasonably determined by the Company in good faith, as if such Material Acquisition occurred on the first day of such period.  As used in this definition, “Material Acquisition” means any acquisition (or series of related acquisitions) of property that (i) constitutes assets comprising all or substantially all of an operating unit of a business or common stock (or other ownership interests) of a Person and (ii) involves consideration paid by the Company or its Subsidiaries in excess of $25,000,000; and “Material Disposition” means any Asset Sale (or series of related Asset Sales) for which the Company its Subsidiaries received gross proceeds in excess of $25,000,000.

 

“Consolidated Interest Coverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) Consolidated EBITDA for such period of four consecutive fiscal quarters to (b) Consolidated Interest Expense for such period of four consecutive fiscal quarters.

 

“Consolidated Interest Expense” means, for any period, determined on a consolidated basis, without duplication, for the Company and its Subsidiaries in accordance with GAAP, interest expense (including, without limitation, interest expense attributable to capitalized lease obligations) for such period with respect to Debt of the Company and its Subsidiaries, plus the aggregate net payment obligations (if any) pursuant to Hedge Agreements with respect to such Debt during such period, minus the aggregate net receipts (if any) pursuant to Hedge Agreements with respect to such Debt during such period.

 

“Consolidated Leverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) the excess of (i)

 

14

 

Consolidated Debt as of the last day of such period of four consecutive fiscal quarters over (ii) an amount equal to 85% of all cash and Cash Equivalents held by the Company and its Subsidiaries as of the last day of such period of four consecutive fiscal quarters that are free and clear of all Liens (other than Liens in favor of depository and collection banks and other regulated financial institutions consisting of statutory or contractual setoff rights with respect to deposit accounts or securities accounts of the Company or any Subsidiary thereof maintained with such bank or financial institution to secure payment of customary maintenance fees or other administrative charges associated with such accounts so long as such Liens do not secure Indebtedness and are incurred in the ordinary course of business or that are being contested in good faith by appropriate proceedings) to (b) Consolidated EBITDA for such period of four consecutive fiscal quarters.

 

“Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the net income of the Company and its Subsidiaries for such period.

 

“Debt” means, for any Person, all items described in clauses (i) through (vii) and clause (ix) of the definition of Indebtedness (other than those items described in clause (ix) relating to obligations of the type described in clause (viii) of the definition of Indebtedness).

 

“Existing Note Purchase Agreement” means (i) the Note Purchase Agreement dated July 31, 2006 between the Company and each of the purchasers listed in Schedule A thereto, as amended, modified, supplemented or restated from time to time, and (ii) the Note Purchase Agreement dated December 16, 2014 between the Company and each of the purchasers listed in Schedule B thereto, as amended, modified, supplemented or restated from time to time.

 

“Hedge Agreement” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is

 

15

 

governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other similar master agreement.

 

“Material Credit Facility” means, as to the Company and its Subsidiaries,

 

(a)                                 the Bank Credit Agreement, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof; and

 

(b)                                 any other agreement(s) creating or evidencing indebtedness for borrowed money entered into on or after the date of first Closing by the Company or any Subsidiary, or in respect of which the Company or any Subsidiary is an obligor or otherwise provides a guarantee or other credit support (“Credit Facility”), in a principal amount outstanding or available for borrowing equal to or greater than $250,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency).

 

“Permitted Receivables Transaction” means a transaction whereby the Company and/or one or more of its Subsidiaries sells, transfers, otherwise disposes of or pledges Receivables or interests therein to or for the benefit of one or more third parties or another Subsidiary (and, in the latter case, such intermediate Subsidiary in turn sells, transfers, otherwise disposes of or pledges such Receivables or interests therein to one or more third parties) in connection with agreements providing for limited recourse or non-recourse to the Company or any of its Subsidiaries (other than any such intermediate Subsidiary), provided that (a) any such agreement is of a type and on terms customary for comparable transactions in the good faith judgment of the Company , (b) such agreement does not provide for the sale, transfer, disposition or pledge of, or otherwise create any interest in, any asset other than (i) Receivables, (ii) contracts associated with such Receivables, (iii) accounts into which payments of such Receivables are made, (iv) books and records related to such Receivables, (v) property securing or otherwise supporting, and guaranties and other credit support for the payment of, such Receivables, and (vi) proceeds of any of the foregoing and (c) on any date of determination, the

 

16

 

maximum outstanding capital or principal balance of the related financing with respect to such Receivables shall not exceed at any time outstanding $150,000,000.

 

“Receivable” means any right to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, including any items of property that would be classified as an account receivable of the Company or any Subsidiary, and any account, chattel paper, payment intangible or instrument under any applicable Uniform Commercial Code and any supporting obligations or proceeds as so defined of any of the foregoing.

 

“Subsidiary Guarantor” means each Subsidiary that has executed and delivered a Subsidiary Guaranty.

 

“Subsidiary Guaranty” is defined in Section 9.6(a).

 

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

 

Section 1.23.                   Schedule 5.15 of the Note Purchase Agreement shall be and is hereby amended by replacing the same with Exhibit A attached to this Second Amendment.

 

Section 1.24.                   A new Schedule 7.4 shall be added to the Note Purchase Agreement to read as set forth in Exhibit B attached to this Second Amendment.

 

Section 1.25.                   A new Schedule 9.6 shall be added to the Note Purchase Agreement to read as set forth in Exhibit C attached to this Second Amendment.

 

SECTION 2.                                             REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

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

 

(a)              this Second Amendment constitutes the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’

 

17

 

rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

(b)              the Note Purchase Agreement, as amended by this Second Amendment, constitutes the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

(c)               this Second Amendment has been duly authorized by all necessary corporate action on the part of the Company;

 

(d)              the execution, delivery and performance by the Company of this Second Amendment (i) does not require the consent or approval of any Governmental Authority and (ii) will not (A) violate (1) any provision of law, statute, rule or regulation of any Governmental Authority applicable to the Company, other than violations that would not reasonably be expected to have a Material Adverse Effect, (2) the Company’s certificate of incorporation or bylaws, (3) any order of any court, arbitrator or Governmental Authority applicable to the Company or (4) any provision of any Material indenture or any other Material agreement or instrument to which it is a party or by which its properties or assets are or may be bound, or (B) result in a breach or constitute a default under any Material indenture or any other Material agreement or instrument referred to in clause (ii)(A)(4) of this Section 2.1(d); and

 

(e)               as of the date hereof and after giving effect to this Second Amendment, no Default or Event of Default has occurred which is continuing.

 

SECTION 3.                                             CONDITIONS TO EFFECTIVENESS OF THIS SECOND AMENDMENT.

 

Section 3.1.                   This Second Amendment shall not become effective until, and shall become effective when, each and every one of the following conditions shall have been satisfied:

 

(a)              executed counterparts of this Second Amendment, duly executed by the Company and the holders of more than 50% of the outstanding principal of the Notes outstanding as of the date of this Second Amendment (exclusive of Notes owned by the Company or any of its Affiliates), shall have been delivered to the Noteholders;

 

(b)              the Noteholders shall have received evidence reasonably satisfactory to them that the Note Purchase Agreement dated July 31, 2006 between the Company and each of the purchasers listed in Schedule A thereto has been amended substantially as proposed in the form annexed hereto as Exhibit D;

 

18

 

(c)     the Noteholders shall have received evidence satisfactory to them that the Bank Credit Agreement has been amended substantially as proposed in the form annexed hereto as Exhibit E;

 

(d)     the Noteholders shall have received a copy of the resolutions of the Board of Directors of the Company authorizing the execution, delivery and performance by the Company of this Second Amendment, certified by its Secretary or an Assistant Secretary;

 

(e)     the Noteholders shall have received the favorable opinion of counsel to the Company as to the matters set forth in Section 2.1(a), 2.1(b), 2.1(c) and 2.1(d) hereof, which opinion shall cover matters as set forth in Exhibit F; and

 

(f)     the reasonable fees and expenses of Chapman and Cutler, LLP, counsel to the Noteholders, shall have been paid by the Company, in connection with the negotiation, preparation, approval, execution and delivery of this Second Amendment.

 

Upon receipt of all of the foregoing, this Second Amendment shall become effective.

 

SECTION 4.                                             PROVISION RESPECTING LEGAL REPRESENTATION.

 

Section 4.1.      Each Noteholder hereby acknowledges that Sidley Austin LLP has served as counsel to the Company in connection with the negotiation, preparation, execution and delivery of this Second Amendment and the consummation of the transactions contemplated hereby.

 

SECTION 5.                                             MISCELLANEOUS.

 

Section 5.1.      Capitalized terms used herein shall have the respective meanings ascribed thereto in the Note Purchase Agreement unless herein defined or the context shall otherwise require.

 

Section 5.2.      This Second Amendment shall be construed in connection with and as part of the Note Purchase Agreement, and except as modified and expressly amended by this Second Amendment, all terms, conditions and covenants contained in the Note Purchase Agreement and the Notes shall remain in full force and effect.

 

Section 5.3.      Any and all notices, requests, certificates and other instruments executed and delivered after the execution and delivery of this Second Amendment may refer to the Note Purchase Agreement without making specific reference to this Second Amendment, but nevertheless all such references shall include this Second Amendment unless the context otherwise requires.

 

Section 5.4.      The descriptive headings of the various sections of this Second Amendment are for convenience only and shall not affect the meaning or construction of any of the provisions hereof.  The Note Purchase Agreement and this Second Amendment embody the entire

 

19

 

agreement and understanding between each Noteholder and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

 

Section 5.5.       This Second Amendment shall be governed by and construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of Illinois, excluding choice-of-law principles of the law of such State that would permit or require the application of the laws of a jurisdiction other than such State.

 

(Remainder of page intentionally left blank)

 

20

 

Section 5.6.      This Second Amendment may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

 

	
 
    	
APTARGROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Kuhn
    
	
 
    	
Name:
    	
Robert W. Kuhn
    
	
 
    	
Title:
    	
Executive Vice   President, Chief Financial Officer and Secretary
    

 

 

 

Accepted and Agreed to:

 

 

	
 
    	
HOLDERS OF 2008-A-2,   2008-B-1, 2008-B-2, 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    
	
 
    	
AMERICAN   AMICABLE LIFE INSURANCE COMPANY  OF   TEXAS
    
	
 
    	
AMERICAN   FIDELITY ASSURANCE COMPANY
    
	
 
    	
AMERICAN   REPUBLIC INSURANCE COMPANY
    
	
 
    	
AMERICAN   REPUBLIC INSURANCE COMPANY (SUCCESSOR BY MERGER TO WORLD INSURANCE COMPANY)
    
	
 
    	
CATHOLIC   FINANCIAL LIFE (FKA: CATHOLIC KNIGHTS)
    
	
 
    	
CATHOLIC   UNITED FINANCIAL
    
	
 
    	
CINCINNATI   INSURANCE COMPANY
    
	
 
    	
DEARBORN   NATIONAL LIFE INSURANCE COMPANY
    
	
 
    	
DEARBORN   NATIONAL LIFE INSURANCE COMPANY (FKA: FORT DEARBORN LIFE INSURANCE COMPANY)
    
	
 
    	
FIDELITY   LIFE ASSOCIATION
    
	
 
    	
INDUSTRIAL   ALLIANCE INSURANCE AND FINANCIAL SERVICES, INC. (FKA: INDUSTRIAL   ALLIANCE PACIFIC INSURANCE AND FINANCIAL SERVICES, INC.)
    
	
 
    	
MINNESOTA   LIFE INSURANCE COMPANY
    
	
 
    	
MTL   INSURANCE COMPANY
    
	
 
    	
OCCIDENTAL   LIFE INSURANCE OF NORTH CAROLINA
    
	
 
    	
RESERVE   NATIONAL INSURANCE COMPANY
    
	
 
    	
THE   MUTUAL SAVINGS LIFE INSURANCE COMPANY
    
	
 
    	
TRUSTMARK   INSURANCE COMPANY
    
	
 
    	
UNITED   INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    
	
 
    	
By:  Advantus Capital Management, Inc.
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

Accepted and Agreed to:

 

 

	
 
    	
HOLDER OF 2008-A-2,   2008-B-1, 2008-B-2, 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AXA EQUITABLE LIFE   INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Amy Judd
    
	
 
    	
 
    	
Name:  Amy Judd
    
	
 
    	
 
    	
Title:    Investment Officer
    

 

 

Accepted and Agreed to:

 

 

	
 
    	
HOLDER OF 2008-C-1   AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    
	
 
    	
HORIZON BLUE CROSS BLUE   SHIELD OF NEW JERSEY
    
	
 
    	
 
    
	
 
    	
BY:  AllianceBernstein LP, its Investment   Advisor
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

 

Accepted and Agreed to:

 

 

	
 
    	
HOLDER OF 2008-A-2   NOTES
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AMERICAN FAMILY MUTUAL   INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ David L. Voge
    
	
 
    	
 
    	
Name:
    	
David L. Voge
    
	
 
    	
 
    	
Title:
    	
Fixed Income Portfolio   Manager
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS OF 2008-A-2,   2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE LAFAYETTE LIFE   INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:  James J. Vance
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:  Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE   WESTERN AND SOUTHERN LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:  James J. Vance
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:  Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
COLUMBUS LIFE INSURANCE   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:  James J. Vance
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:  Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:    Vice President
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS OF 2008-A-2, 2008-C-1 AND/OR 2008-C-2   NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
INTEGRITY   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:
    	
James J. Vance
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:
    	
Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
INTEGRITY   LIFE INSURANCE COMPANY SEPARATE ACCOUNT GPO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:
    	
James J. Vance
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:
    	
Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
NATIONAL   INTEGRITY LIFE INSURANCE COMPANY SEPARATE ACCOUNT GPO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ James J. Vance
    
	
 
    	
 
    	
 
    	
Name:
    	
James J. Vance
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Name:
    	
Kevin L. Howard
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER OF 2008-A-2, 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
KENTUCKY   FARM BUREAU MUTUAL INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS OF 2008-B-1, 2008-B-2 AND 2008-C-1 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
METROPOLITAN   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
METLIFE   INSURANCE COMPANY USA (SUCCESSOR BY MERGER TO METLIFE INVESTORS INSURANCE   COMPANY)
    
	
 
    	
 
    	
By:
    	
Metropolitan Life   Insurance Company, its
    
	
 
    	
 
    	
 
    	
Investment Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FIRST METLIFE INVESTORS   INSURANCE COMPANY
    
	
 
    	
 
    	
By:
    	
Metropolitan Life   Insurance Company, its
    
	
 
    	
 
    	
 
    	
Investment Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   John Wills
    
	
 
    	
 
    	
 
    	
Name:
    	
John   Wills
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
METLIFE   INSURANCE K.K. (F/K/A METLIFE ALICO LIFE INSURANCE K.K.)
    
	
 
    	
 
    	
By:
    	
MetLife Investment   Management, LLC, its Investment Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
METLIFE LIMITED
    
	
 
    	
 
    	
By:
    	
Metropolitan Life   Insurance Company, its
    
	
 
    	
 
    	
 
    	
Investment Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   C. Scott Inglis
    
	
 
    	
 
    	
 
    	
Name:
    	
C.   Scott Inglis
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER   OF 2008-A-2, 2008-B-1, 2008-B-2, 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
MODERN   WOODMEN OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Douglas A. Pannier
    
	
 
    	
 
    	
 
    	
Name:   
    	
Douglas   A. Pannier
    
	
 
    	
 
    	
 
    	
Title:
    	
Group   Head – Private Placements
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS   OF 2008-A-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
NATIONAL   GUARDIAN LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   R.A. Mucci
    
	
 
    	
 
    	
 
    	
Name:
    	
R.A.   Mucci
    
	
 
    	
 
    	
 
    	
Title:
    	
Senior   Vice President & Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SETTLERS   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   R.A. Mucci
    
	
 
    	
 
    	
 
    	
Name:
    	
R.A.   Mucci
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice   President & Treasurer
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER OF 2008-A-2, 2008-B-1, 2008-B-2, 2008-C-1   AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   David A. Barras
    
	
 
    	
 
    	
 
    	
Name:
    	
David   A. Barras
    
	
 
    	
 
    	
 
    	
Title:
    	
Its   Authorized Representative
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS   OF 2008-A-2, 2008-B-1, 2008-B-2, 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
AMERICAN   UNITED LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Michael I. Bullock
    
	
 
    	
 
    	
 
    	
Name:
    	
Michael   I. Bullock
    
	
 
    	
 
    	
 
    	
Title:
    	
VP,   Private Placements
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE STATE LIFE   INSURANCE COMPANY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
American United Life   Insurance Company
    
	
 
    	
 
    	
Its:
    	
Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Michael I. Bullock
    
	
 
    	
 
    	
 
    	
Name:
    	
Michael   I. Bullock
    
	
 
    	
 
    	
 
    	
Title:
    	
VP,   Private Placements
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PIONEER MUTUAL LIFE   INSURANCE COMPANY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
American United Life   Insurance Company
    
	
 
    	
 
    	
Its:
    	
Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Michael I. Bullock
    
	
 
    	
 
    	
 
    	
Name:
    	
Michael   I. Bullock
    
	
 
    	
 
    	
 
    	
Title:
    	
VP,   Private Placements
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER   OF 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
MONY   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Philip E. Passafiume
    
	
 
    	
 
    	
 
    	
Name:
    	
Philip   E. Passafiume
    
	
 
    	
 
    	
 
    	
Title:
    	
Director,   Fixed Income
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDERS   OF 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE PRUDENTIAL   INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Anthony Coletta
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PRUCO LIFE INSURANCE   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Anthony Coletta
    
	
 
    	
 
    	
 
    	
Assistant   Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PRUDENTIAL   ARIZONA REINSURANCE UNIVERSAL COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Prudential Investment   Management, Inc. (as Investment Manager)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Anthony Coletta
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
MEDICA HEALTH PLANS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Prudential Private   Placement Investors, L.P. (as Investment Advisor)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Prudential Private   Placement Investors, Inc. (as its General Partner)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Anthony Coletta
    
	
 
    	
 
    	
 
    	
Vice   President
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER   OF 2008-A-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
NATIONAL LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Chris P. Gudmastad
    
	
 
    	
 
    	
 
    	
Name:
    	
Chris   P. Gudmastad, CFA
    
	
 
    	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    
	
 
    	
 
    	
 
    	
 
    	
Sentinel   Asset Management, Inc.
    

 

 

Accepted and Agreed to:

 

	
 
    	
 
    	
HOLDER   OF 2008-C-1 AND/OR 2008-C-2 NOTES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SOUTHERN   FARM BUREAU LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   David Divine
    
	
 
    	
 
    	
 
    	
Name:
    	
David   Divine
    
	
 
    	
 
    	
 
    	
Title:
    	
Portfolio   Manager
    

 

 

Exhibit C to Second Amendment

 

FORM OF SUBSIDIARY GUARANTY

 

	
 
    

 

GUARANTY AGREEMENT

DATED AS OF        , 20

 

Re:

 

$75,000,000 aggregate principal amount of
 6.03% Senior Notes, Series 2008-A-2, due July 31, 2018

 

$16,000,000 aggregate principal amount of
 2.33% Senior Notes, Series 2008-B-1, due November 30, 2015

 

$84,000,000 aggregate principal amount of
 3.78% Senior Notes, Series 2008-B-2, due November 30, 2020

 

$75,000,000 aggregate principal amount of
 3.25% Senior Notes, Series 2008-C-1, due September 5, 2022

 

$50,000,000 aggregate principal amount of
 3.40% Senior Notes, Series 2008-C-2, due September 5, 2024

 

of

 

APTARGROUP, INC.

 

 

	
 
    

 

[Note to Form: To be adjusted as agreed for a non-U.S. Guarantor]

 

EXHIBIT C

 

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1.
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 2.
    	
Guaranty of Notes and   Note Purchase Agreement
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 3.
    	
Guaranty of Payment and   Performance
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 4.
    	
General Provisions   Relating to the Guaranty
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 5.
    	
Representations and   Warranties of the Guarantor
    	
7
    
	
 
    	
 
    	
 
    
	
SECTION 6.
    	
Guarantor Covenants
    	
8
    
	
 
    	
 
    	
 
    
	
SECTION 7.
    	
Notices
    	
8
    
	
 
    	
 
    	
 
    
	
SECTION 8.
    	
Miscellaneous
    	
8
    
	
 
    	
 
    	
 
    
	
SECTION 9.
    	
Indemnity
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 10.
    	
Termination
    	
10
    

 

i

 

GUARANTY AGREEMENT

 

This GUARANTY AGREEMENT dated as of                       , 20     (the or this “Guaranty”) is entered into by the undersigned (the “Guarantor”) in favor of the Holders (as hereinafter defined).

 

RECITALS

 

A.                                    The Guarantor is a Subsidiary of AptarGroup, Inc., a Delaware corporation (the “Company”).

 

B.                                    The Company has entered into that certain Note Purchase Agreement dated as of July 31, 2008 (as amended or restated from time to time, and as supplemented on November 30, 2010 and September 5, 2012, the “Note Purchase Agreement”) among the Company and each of the purchasers named on Schedule A thereto (the “Initial Note Purchasers”; the Initial Note Purchasers, together with their successors, assigns or any other future holder of the Notes (as hereinafter defined), the “Holders”), providing for, inter alia, the issue and sale by the Company to the Initial Note Purchasers of (i) $75,000,000 aggregate principal amount of its 6.03% Senior Notes, Series 2008-A-2, due July 31, 2018 (the “Series 2008-A-2 Notes”), (ii) $16,000,000 aggregate principal amount of its 2.33% Senior Notes, Series 2008-B-1, due November 30, 2015 (the “Series 2008-B-1 Notes”), (iii) $84,000,000 aggregate principal amount of its 3.78% Senior Notes, Series 2008-B-2, due November 30, 2020 (the “Series 2008-B-2 Notes”), (iv) $75,000,000 aggregate principal amount of its 3.25% Senior Notes, Series 2008-C-1, due September 5, 2022 (the “Series 2008-C-1 Notes”) and (v) $50,000,000 aggregate principal amount of its 3.40% Senior Notes, Series 2008-C-2, due September 5, 2024 (the “Series 2008-C-2 Notes” and, together with the Series 2008-A-2 Notes, the Series 2008-B-1 Notes, the Series 2008-B-2 Notes and the Series 2008-C-1 Notes, the “Notes”).

 

C.                                    The Initial Note Purchasers have required as a condition to their purchase of the Notes that the Company cause each Subsidiary that after the date of Closing becomes a guarantor or an obligor, whether as a borrower or an additional or co-borrower or otherwise, for or in respect of any Debt under any Material Credit Facility or any Existing Note Purchase Agreement to enter into this Guaranty, as security for the Notes.

 

D.                                    The Guarantor has derived substantial direct and indirect benefit from the sale of the Notes to the Initial Note Purchasers.

 

NOW, THEREFORE, as required by Section 9.6 of the Note Purchase Agreement and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, the Guarantor does hereby covenant and agree as follows:

 

 

SECTION 1.                                               Definitions.

 

Capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement unless herein defined or the context shall otherwise require.

 

SECTION 2.                                               Guaranty of Notes and Note Purchase Agreement.

 

(a)                                 Subject to the limitation set forth in Section 2(b) hereof, the Guarantor does hereby irrevocably, absolutely and unconditionally guarantee unto the Holders:  (1) the prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for principal, interest, Make-Whole Amount or otherwise) and the Note Purchase Agreement, including, without limitation, all indemnities, fees and expenses payable by the Company thereunder and (2) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement, undertaking and provision required pursuant to the Notes or the Note Purchase Agreement to be performed, observed or discharged by it.

 

(b)                                 The liability of the Guarantor under this Guaranty shall not exceed an amount equal to a maximum amount as will, after giving effect to such maximum amount and all other liabilities of the Guarantor, contingent or otherwise, result in the obligations of the Guarantor hereunder not constituting a fraudulent transfer, obligation or conveyance.

 

SECTION 3.                                               Guaranty of Payment and Performance.

 

This is a guarantee of payment and performance and the Guarantor hereby waives, to the fullest extent permitted by law, any right to require that any action on or in respect of any Note or the Note Purchase Agreement be brought against the Company or any other Person or that resort be had to any direct or indirect security for the Notes or for this Guaranty or any other remedy.  Any Holder may, at its option, proceed hereunder against the Guarantor in the first instance to collect monies when due, the payment of which is guaranteed hereby, without first proceeding against the Company or any other Person and without first resorting to any direct or indirect security for the Notes or for this Guaranty or any other remedy.  The liability of the Guarantor hereunder shall in no way be affected or impaired by any acceptance by any Holder of any direct or indirect security for, or other guaranties of, any Debt, liability or obligation of the Company or any other Person to any Holder or by any failure, delay, neglect or omission by any Holder to realize upon or protect any such guarantees, Debt, liability or obligation or any notes or other instruments evidencing the same or any direct or indirect security therefor or by any approval, consent, waiver, or other action taken, or omitted to be taken by any such Holder.

 

SECTION 4.                                               General Provisions Relating to the Guaranty.

 

(a)                                 The Guarantor hereby consents and agrees that any Holder or Holders from time to time may, without in any manner affecting the liability of the Guarantor under this Guaranty, and upon such terms and conditions as any such Holder or Holders may deem advisable:

 

(1)                                 extend in whole or in part (by renewal or otherwise), modify, change, compromise, release or extend the duration of the time for the performance or payment of any Debt, liability or obligation of the Company or of any other Person secondarily or otherwise liable for any Debt, liability or obligations of the Company on the Notes, or

 

C-2

 

waive any Default or Event of Default with respect thereto, or waive, modify, amend or change any provision of any other agreement or this Guaranty; or

 

(2)                                 sell, release, surrender, modify, impair, exchange or substitute any and all property, of any nature and from whomsoever received, held by, or for the benefit of, any such Holder as direct or indirect security for the payment or performance of any Debt, liability or obligation of the Company or of any other Person secondarily or otherwise liable for any Debt, liability or obligation of the Company on the Notes; or

 

(3)                                 settle, adjust or compromise any claim of the Company against any other Person secondarily or otherwise liable for any Debt, liability or obligation of the Company on the Notes.

 

The Guarantor hereby ratifies and confirms any such extension, renewal, change, sale, release, waiver, surrender, exchange, modification, amendment, impairment, substitution, settlement, adjustment or compromise and that the same shall be binding upon it, and hereby waives, to the fullest extent permitted by law, any and all defenses, counterclaims or offsets which it might or could have by reason thereof, it being understood that the Guarantor shall at all times be bound by this Guaranty and remain liable hereunder.

 

(b)                                 The Guarantor hereby waives, to the fullest extent permitted by law:

 

(1)                                 notice of acceptance of this Guaranty by the Holders or of the creation, renewal or accrual of any liability of the Company, present or future, or of the reliance of such Holders upon this Guaranty (it being understood that every Debt, liability and obligation described in Section 2 hereof shall conclusively be presumed to have been created, contracted or incurred in reliance upon the execution of this Guaranty);

 

(2)                                 demand of payment by any Holder from the Company or any other Person indebted in any manner on or for any of the Debt, liabilities or obligations hereby guaranteed; and

 

(3)                                 presentment for the payment by any Holder or any other Person of the Notes or any other instrument, protest thereof and notice of its dishonor to any party thereto and to the Guarantor.

 

The obligations of the Guarantor under this Guaranty and the rights of any Holder to enforce such obligations by any proceedings, whether by action at law, suit in equity or otherwise, shall not be subject to any reduction, limitation, impairment or termination (other than by indefeasible payment in full in cash of the Notes and the obligations of the Company under the Note Purchase Agreement), whether by reason of any claim of any character whatsoever or otherwise and shall not be subject to any defense, set-off, counterclaim (other than any compulsory counterclaim), recoupment or termination whatsoever.

 

(c)                                  The obligations of the Guarantor hereunder shall be binding upon the Guarantor and its successors and assigns, and shall remain in full force and effect until the entire principal, interest and premium, if any, on the Notes and all other sums due pursuant to Section 2 shall have been paid and such obligations shall not be affected, modified or impaired upon the

 

C-3

 

happening from time to time of any event, including without limitation any of the following, whether or not with notice to or the consent of the Guarantor:

 

(1)                                 the genuineness, validity, regularity or enforceability of the Notes, the Note Purchase Agreement or any other agreement or any of the terms of any thereof, the continuance of any obligation on the part of the Company or any other Person on or in respect of the Notes or under the Note Purchase Agreement or any other agreement or the power or authority or the lack of power or authority of the Company to issue the Notes or to execute and deliver the Note Purchase Agreement or any other agreement or the existence or continuance of the Company or any other Person as a legal entity; or

 

(2)                                 any default, failure or delay, willful or otherwise, in the performance by the Company or any other Person of any obligations of any kind or character whatsoever under the Notes, the Note Purchase Agreement, this Guaranty or any other agreement; or

 

(3)                                 any creditors’ rights, bankruptcy, receivership or other insolvency proceeding of the Company or any other Person or in respect of the property of the Company or any other Person or any merger, consolidation, reorganization, dissolution, liquidation, the sale of all or substantially all of the assets of or winding up of the Company or any other Person; or

 

(4)                                 impossibility or illegality of performance on the part of the Company or any other Person of its obligations under the Notes, the Note Purchase Agreement, this Guaranty or any other agreements; or

 

(5)                                 in respect of the Company or any other Person, any change of circumstances, whether or not foreseen or foreseeable, whether or not imputable to the Company or any other Person, or other impossibility of performance through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars (whether or not declared), civil commotion, acts of God or the public enemy, delays or failure of suppliers or carriers, inability to obtain materials, action of any Federal or state regulatory body or agency, change of law or any other causes affecting performance, or any other force majeure, whether or not beyond the control of the Company or any other Person and whether or not of the kind hereinbefore specified; or

 

(6)                                 any attachment, claim, demand, charge, Lien, order, process, encumbrance or any other happening or event or reason, similar or dissimilar to the foregoing, or any withholding or diminution at the source, by reason of any taxes, assessments, expenses, Indebtedness, obligations or liabilities of any character, foreseen or unforeseen, and whether or not valid, incurred by or against the Company or any other Person or any claims, demands, charges or Liens of any nature, foreseen or unforeseen, incurred by the Company or any other Person, or against any sums payable in respect of the Notes or under the Note Purchase Agreement or this Guaranty, so that such sums would be rendered inadequate or would be unavailable to make the payments herein provided; or

 

(7)                                 any order, judgment, decree, ruling or regulation (whether or not valid) of any court of any nation or of any political subdivision thereof or any body, agency,

 

C-4

 

department, official or administrative or regulatory agency of any thereof or any other action, happening, event or reason whatsoever which shall delay, interfere with, hinder or prevent, or in any way adversely affect, the performance by the Company or any other Person of its respective obligations under or in respect of the Notes, the Note Purchase Agreement, this Guaranty or any other agreement; or

 

(8)                                 the failure of the Guarantor to receive any benefit from or as a result of its execution, delivery and performance of this Guaranty; or

 

(9)                                 any failure or lack of diligence in collection or protection, failure in presentment or demand for payment, protest, notice of protest, notice of default and of nonpayment, any failure to give notice to the Guarantor of failure of the Company or any other Person to keep and perform any obligation, covenant or agreement under the terms of the Notes, the Note Purchase Agreement, this Guaranty or any other agreement or failure to resort for payment to the Company or to any other Person or to any other guaranty or to any property, security, Liens or other rights or remedies; or

 

(10)                          the acceptance of any additional security or other guaranty, the advance of additional money to the Company or any other Person, the renewal or extension of the Notes or amendments, modifications, consents or waivers with respect to the Notes, the Note Purchase Agreement or any other agreement, or the sale, release, substitution or exchange of any security for the Notes; or

 

(11)                          any merger or consolidation of the Company or any other Person into or with any other Person or any sale, lease, transfer or other disposition of any of the assets of the Company or any other Person to any other Person, or any change in the ownership of any shares of the Company or any other Person or any release of any other guarantor under a Subsidiary Guaranty; or

 

(12)                          any defense whatsoever that:  (i) the Company or any other Person might have to the payment of the Notes (principal, premium, if any, or interest), other than indefeasible payment thereof in Federal or other immediately available funds, or (ii) the Company or any other Person might have to the performance or observance of any of the provisions of the Notes, the Note Purchase Agreement or any other agreement, whether through the satisfaction or purported satisfaction by the Company or any other Person of its debts due to any cause such as bankruptcy, insolvency, receivership, merger, consolidation, reorganization, dissolution, liquidation, winding-up or otherwise, other than the defense of indefeasible payment in full in cash of the Notes; or

 

(13)                          any act or failure to act with regard to the Notes, the Note Purchase Agreement, this Guaranty or any other agreement or anything which might vary the risk of the Guarantor or any other Person; or

 

(14)                          any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Guarantor or any other Person in respect of the obligations of the Guarantor or other Person under this Guaranty or any other agreement, other than the defense of indefeasible payment in full in cash of the Notes;

 

C-5

 

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not be deemed to exclude any other acts, failures or omissions, though not specifically mentioned above, it being the purpose and intent of this Guaranty and the parties hereto that the obligations of the Guarantor shall be absolute and unconditional and shall not be discharged, impaired or varied except by the indefeasible payment in full in cash of the principal of, premium, if any, and interest on the Notes in accordance with their respective terms whenever the same shall become due and payable as in the Notes provided and all other sums due and payable under the Note Purchase Agreement, at the place specified in and all in the manner and with the effect provided in the Notes and the Note Purchase Agreement, as each may be amended or modified from time to time.  Without limiting the foregoing, it is understood that repeated and successive demands may be made and recoveries may be had hereunder as and when, from time to time, the Company shall default under or in respect of the terms of the Notes or the Note Purchase Agreement and that notwithstanding recovery hereunder for or in respect of any given default or defaults by the Company under the Notes or the Note Purchase Agreement, this Guaranty shall remain in full force and effect and shall apply to each and every subsequent default.

 

(d)                                 All rights of any Holder may be transferred or assigned at any time and shall be considered to be transferred or assigned at any time or from time to time upon the transfer of such Note whether with or without the consent of or notice to the Guarantor under this Guaranty or to the Company.

 

(e)                                  To the extent of any payments made under this Guaranty, the Guarantor shall be subrogated to the rights of the Holder or Holders upon whose Notes such payment was made, but the Guarantor covenants and agrees that such right of subrogation shall be junior and subordinate in right of payment to the prior indefeasible final payment in cash in full of all amounts due and owing by the Company with respect to the Notes and the Note Purchase Agreement and by the Guarantor under this Guaranty, and the Guarantor shall not take any action to enforce such right of subrogation, and the Guarantor shall not accept any payment in respect of such right of subrogation, until all amounts due and owing by the Company under or in respect of the Notes and the Note Purchase Agreement and all amounts due and owing by the Guarantor hereunder have indefeasibly been finally paid in cash in full.  If any amount shall be paid to the Guarantor in violation of the preceding sentence at any time prior to the indefeasible payment in cash in full of the Notes and all other amounts payable under the Notes, the Note Purchase Agreement and this Guaranty, such amount shall be held in trust for the benefit of the Holders and shall forthwith be paid to the Holders to be credited and applied to the amounts due or to become due with respect to the Notes and all other amounts payable under the Note Purchase Agreement and this Guaranty, whether matured or unmatured. The Guarantor acknowledges that it has received direct and indirect benefits from the financing arrangements contemplated by the Note Purchase Agreement and that the waiver set forth in this paragraph (e) is knowingly made as a result of the receipt of such benefits.

 

(f)                                   The Guarantor agrees that to the extent the Company or any other Person makes any payment on any Note, which payment or any part thereof is subsequently invalidated, voided, declared to be fraudulent or preferential, set aside, recovered, rescinded or is required to be retained by or repaid to a trustee, receiver, or any other Person under any bankruptcy code, common law, or equitable cause, then and to the extent of such payment, the obligation or the part thereof intended to be satisfied shall be revived and continued in full force and effect with

 

C-6

 

respect to the Guarantor’s obligations hereunder, as if said payment had not been made.  The liability of the Guarantor hereunder shall not be reduced or discharged, in whole or in part, by any payment to any Holder from any source that is thereafter paid, returned or refunded in whole or in part by reason of the assertion of a claim of any kind relating thereto, including, but not limited to, any claim for breach of contract, breach of warranty, preference, illegality, invalidity, or fraud asserted by any account debtor or by any other Person.

 

(g)                                  No Holder shall be under any obligation:  (1) to marshal any assets in favor of the Guarantor or in payment of any or all of the liabilities of the Company under or in respect of the Notes or the obligations of the Guarantor hereunder or (2) to pursue any other remedy that the Guarantor may or may not be able to pursue itself and that may lighten the Guarantor’s burden, any right to which the Guarantor hereby expressly waives.

 

(h)                                 The obligations of the Guarantor under this Guaranty rank pari passu in right of payment with all other Debt of the Guarantor which is not secured or which is not expressly subordinated in right of payment to any other Debt of the Guarantor.

 

(i)                                     The Guarantor shall be automatically discharged and released from this Guaranty pursuant to and in accordance with the provisions of Section 9.6(b) of the Note Purchase Agreement.

 

SECTION 5.                                               Representations and Warranties of the Guarantor.

 

The Guarantor represents and warrants to each Holder that:

 

(a)                                 The Guarantor is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Guarantor has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Guaranty and to perform the provisions hereof.

 

(b)                                 This Guaranty has been duly authorized by all necessary company action on the part of the Guarantor, and this Guaranty constitutes a legal, valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (2) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(c)                                  The execution, delivery and performance by the Guarantor of this Guaranty will not (1) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Guarantor or any of its Subsidiaries under, any Material indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, shareholders agreement or any Material other agreement or instrument to

 

C-7

 

which the Guarantor or any of its Subsidiaries is bound or by which the Guarantor or any of its Subsidiaries or any of their respective properties may be bound or affected, (2) violate or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to the Guarantor or any of its Subsidiaries or (3) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Guarantor or any of its Subsidiaries, other than violations (other than with respect to its corporate charter or bylaws) that would not reasonably be expected to have a Material Adverse Effect.

 

(d)                                 No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Guarantor of this Guaranty.

 

SECTION 6.                                               Guarantor Covenants.

 

From and after the date of issuance of the Notes by the Company and continuing so long as any amount remains unpaid thereon the Guarantor agrees to comply with the terms and provisions of Sections 9.1, 9.2, 9.3, 9.4 and 9.5 of the Note Purchase Agreement, insofar as such provisions apply to the Guarantor, as if said Sections were set forth herein in full.

 

SECTION 7.                                               Notices.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by facsimile if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:

 

(1)                                 if to an Initial Note Purchaser or such Initial Note Purchaser’s nominee, to such Initial Note Purchaser or such Initial Note Purchaser’s nominee at the address specified for such communications in Schedule B to the Note Purchase Agreement, or at such other address as such Initial Note Purchaser or such Initial Note Purchaser’s nominee shall have specified to the Company in writing,

 

(2)                                 if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

 

(3)                                 if to the Guarantor, to the Guarantor c/o the Company at its address set forth at the beginning of the Note Purchase Agreement to the attention of the Treasurer, with a copy to the General Counsel, or at such other address as the Guarantor shall have specified to the holder of each Note in writing.

 

Notices under this Section 7 will be deemed given only when actually received.

 

C-8

 

SECTION 8.                            Miscellaneous.

 

(a)                                 Amendment and Waiver.  This Guaranty may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively for a specified period of time or permanently), only with the written consent of the Guarantor and the Required Holders.

 

(b)                                 Successors and Assigns.  All covenants and other agreements contained in this Guaranty bind and inure to the benefit of the Guarantor’s successors and assigns whether so expressed or not.

 

(c)                                  Severability.  Any provision of this Guaranty that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

(d)                                 Construction, Etc.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

(e)                                  Governing Law.  This Guaranty shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of Illinois excluding choice-of-law principles of the law of such State that would permit or require the application of the laws of a jurisdiction other than such State.

 

(f)                                   Jurisdiction and Process; Waiver of Jury Trial.

 

(1)                                 The Guarantor irrevocably submits to the non-exclusive jurisdiction of any Illinois State or federal court sitting in Cook County, over any suit, action or proceeding arising out of or relating to this Guaranty.  To the fullest extent permitted by applicable law, the Guarantor irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(2)                                 The Guarantor consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 8(f)(1) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to the Company at its address specified in Section 18 of the Note Purchase Agreement or at such other address of which such holder shall then have been notified pursuant to said Section.  The Guarantor agrees that such service upon receipt (i) shall be deemed in every

 

C-9

 

respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to the Company.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

 

(3)                                 Nothing in this Section 8(f) shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Guarantor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(4)                                 The Guarantor hereby waives trial by jury in any action brought on or with respect to this Guaranty or any other document executed in connection herewith.

 

(g)                                  Payment.  The Guarantor will pay all sums becoming due under this Guaranty by the method and at the address specified in the Note Purchase Agreement, or by such other method or at such other address as any Holder shall have from time to time specified to the Guarantor in writing for such purpose, without the presentation or surrender of this Guaranty or any Note.

 

SECTION 9.                                               Indemnity.

 

To the fullest extent of applicable law, the Guarantor shall indemnify and save each Holder harmless from and against any losses which may arise by virtue of any of the obligations hereby guaranteed being or becoming for any reason whatsoever in whole or in part void, voidable, contrary to law, invalid, ineffective or otherwise unenforceable by the Holder or any of them in accordance with its terms (all of the foregoing collectively, an “Indemnifiable Circumstance”).  For greater certainty, these losses shall include without limitation all obligations hereby guaranteed which would have been payable by the Company but for the existence of an Indemnifiable Circumstance, net of any withholding or deduction of or on account of any tax; provided, however, that the extent of the Guarantor’s aggregate liability under this Section 9 shall not at any time exceed the amount (but for any Indemnifiable Circumstance) otherwise guaranteed pursuant to Section 2.

 

SECTION 10.                                        Termination.

 

This Guaranty shall automatically, without any action on the part of any party hereto, terminate and be void and of no further force and effect if and when the Guarantor (or any successor thereto or assign thereof) is released from this Guaranty by reason of the express provisions of Section 9.6(b) of the Note Purchase Agreement or is otherwise released from this Guaranty in accordance with the terms of the Note Purchase Agreement.

 

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IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed by an authorized representative as of this        day of                                 ,           .

 

	
 
    	
[GUARANTOR], a(n)                          [corporation]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

C-11Exhibit 10.1

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

 

This AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”) dated as of December 16, 2014 is entered into by and among APTARGROUP, INC., a Delaware corporation (the “Borrower”), WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement described below) (in such capacity, the “Administrative Agent”) and in its capacity as the maker of swingline loans (in such capacity, the “Swingline Lender”), and each of the Lenders signatory hereto.  Each capitalized term used and not otherwise defined in this Amendment has the definition specified in the Credit Agreement described below.

 

WITNESSETH:

 

WHEREAS, the Borrower, the Administrative Agent and the Lenders party thereto have entered into that certain Credit Agreement dated as of January 31, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made available to the Borrower a revolving credit facility;

 

WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to amend the Credit Agreement to provide for, among other things, (i) an extension of the Maturity Date and (ii) certain changes in the financial covenant requirements and in how the Applicable Rate is determined; and

 

WHEREAS, the Administrative Agent, the Swingline Lender and the Lenders are willing to so amend the Credit Agreement on the terms and conditions contained in this Amendment;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:

 

1.                                      Amendments to Credit Agreement.  Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows:

 

(a)                                 Section 1.1 is amended by adding the following defined terms in the appropriate alphabetical order therein:

 

“Amendment No. 3 Effective Date” means December 16, 2014.

 

“Consolidated EBITDA” means, for any period, the sum of the following determined on a consolidated basis, without duplication, for the Borrower and its Subsidiaries in accordance with GAAP: (a) Consolidated Net Income for such period plus (b) the sum of the following, without duplication, to the extent deducted in determining Consolidated Net Income for such period: (i) income and franchise taxes, (ii) Consolidated Interest Expense, (iii) amortization and depreciation, (iv) any extraordinary, unusual or non-recurring items reducing Consolidated Net Income for such period, (v) reasonable and documented transaction costs, fees and expenses associated with or incurred by the Borrower or any Subsidiary in connection with any Material Acquisition or Material Disposition, (vi) to the extent actually reimbursed by insurance or a third party, costs of legal settlement, fines, judgments or orders; provided that (A) the amounts so reimbursed shall be deemed to have been received in the fiscal quarter in which the costs of legal settlement, fines, judgments or orders were actually paid by the Borrower or the applicable Subsidiary (the “Loss Quarter”), notwithstanding that such amounts were not actually received in such Loss Quarter, but were received in a subsequent fiscal quarter and (B) no such amounts so

 

 

reimbursed shall be used to calculate Consolidated EBITDA for any period that does not include such Loss Quarter, (vii) to the extent covered by insurance, expenses with respect to liability events or casualty events, (viii) any unrealized losses in the fair market value of any Hedge Agreements, (ix) any net unrealized currency transaction losses and (x) any other non-cash items reducing Consolidated Net Income for such period (except to the extent that such non-cash items are reserved for cash charges to be taken in the future), less (c) the sum of the following, without duplication, to the extent included in determining Consolidated Net Income for such period: (i) interest income, (ii) any extraordinary, unusual or non-recurring items increasing Consolidated Net Income for such period, (iii) any unrealized gains in the fair market value of any Hedge Agreements, (iv) any net unrealized foreign currency transaction gains, and (v) any other non-cash items increasing Consolidated Net Income for such period.  For the purpose of calculating Consolidated EBITDA for any period in connection with any determination of the Consolidated Leverage Ratio, (a) if at any time during such period the Borrower or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA attributable to such disposed property shall be deducted from Consolidated EBITDA (if positive) or added to Consolidated EBITDA (if negative) for such period as if such Material Disposition occurred on the first day of such period, and (b) if at any time during such period the Borrower or any Subsidiary shall have made a Material Acquisition, the Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto, in a manner reasonably acceptable to the Administrative Agent, as if such Material Acquisition occurred on the first day of such period.  As used in this definition, “Material Acquisition” means any acquisition (or series of related acquisitions) of property that (i) constitutes assets comprising all or substantially all of an operating unit of a business or common stock (or other ownership interests) of a Person and (ii) involves consideration paid by the Borrower or its Subsidiaries in excess of $25,000,000; and “Material Disposition” means any Asset Sale (or series of related Asset Sales) for which the Borrower or its Subsidiaries received gross proceeds in excess of $25,000,000.

 

“Consolidated Interest Coverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) Consolidated EBITDA for such period of four consecutive fiscal quarters to (b) Consolidated Interest Expense for such period of four consecutive fiscal quarters.

 

“Consolidated Interest Expense” means, for any period, determined on a consolidated basis, without duplication, for the Borrower and its Subsidiaries in accordance with GAAP, interest expense (including, without limitation, interest expense attributable to capitalized lease obligations) for such period with respect to Debt of the Borrower and its Subsidiaries, plus the aggregate net payment obligations (if any) pursuant to Hedge Agreements with respect to such Debt during such period, minus the aggregate net receipts (if any) pursuant to Hedge Agreements with respect to such Debt during such period.

 

“Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, the net income of the Borrower and its Subsidiaries for that period.

 

“Consolidated Total Assets” means, as of any date, the assets and properties of the Borrower and its Subsidiaries as of such date determined on a consolidated basis in accordance with GAAP.

 

“Existing Note Purchase Agreement” means, individually or collectively as the context may require, (i) the Note Purchase Agreement dated December 16, 2014 between the Borrower and each of the purchasers listed in Schedule B thereto, as amended, modified, supplemented or restated from time to time, (ii) the Note Purchase Agreement dated July 31, 2006 between the Borrower and each of the purchasers listed in Schedule A thereto, as amended, modified, 

 

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supplemented or  restated from time to time, and (iii) the Note Purchase Agreement dated July 31, 2008 between the Borrower and each of the purchasers listed in Schedule A thereto, as amended, modified, supplemented or restated from time to time.

 

“Guaranteed Parties” means, collectively, the Administrative Agent, each Lender, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 8.2, any other holder from time to time of any of any Obligations and, in each case, their respective successors and permitted assigns.

 

“Material Credit Facility” means, as to the Borrower and its Subsidiaries, any agreement(s) creating or evidencing indebtedness for borrowed money entered into on or after the Amendment No. 3 Effective Date by the Borrower or any Subsidiary, or in respect of which the Borrower or any Subsidiary is an obligor or otherwise provides a guarantee or other credit support, in a principal amount outstanding or available for borrowing equal to or greater than $250,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency).

 

“Subsidiary Guarantor” means any Subsidiary of the Borrower that is party to the Subsidiary Guaranty.

 

“Subsidiary Guaranty” means a Subsidiary Guaranty Agreement entered into by one or more Subsidiaries of the Borrower after the Amendment No. 3 Effective Date in favor of the Administrative Agent, for the benefit of the Guaranteed Parties, which shall be substantially in the form of Exhibit G.

 

(b)                                 The definition of “Applicable Rate” in Section 1.1 is amended by deleting the pricing grid therein and replacing it with the pricing grid below:

 

	
Pricing
   Level
    	
 
    	
Consolidated Leverage
   Ratio
    	
 
    	
Applicable Rate
   for LIBOR
   Loans
    	
 
    	
Applicable Rate for
   Base Rate Loans /
   Swingline Loans
    	
 
    	
Applicable Rate
   for Facility
   Fee
    	
 
    
	
1
    	
 
    	
Less than 0.75 to 1.00
    	
 
    	
1.000
    	
%
    	
0.000
    	
%
    	
0.125
    	
%
    
	
2
    	
 
    	
Less than 1.75 to 1.00 but   greater than or equal to 0.75 to 1.00
    	
 
    	
1.100
    	
%
    	
0.100
    	
%
    	
0.150
    	
%
    
	
3
    	
 
    	
Less than 2.75 to 1.00 but greater   than or equal to 1.75 to 1.00
    	
 
    	
1.300
    	
%
    	
0.300
    	
%
    	
0.200
    	
%
    
	
4
    	
 
    	
Greater than or equal to 2.75 to   1.00
    	
 
    	
1.500
    	
%
    	
0.500
    	
%
    	
0.250
    	
%
    

 

(c)                                  The definition of “Applicable Rate” in Section 1.1 is further amended by deleting the paragraph immediately following the pricing grid therein and replacing it with the following:

 

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.6(b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing

 

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Level 4 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered through the date of delivery of such Compliance Certificate.  The Applicable Rate in effect from the Amendment No. 3 Effective Date through the date the first Compliance Certificate is required to be delivered pursuant to Section 6.6(b) thereafter shall be determined based upon Pricing Level 2.

 

(d)                                 The definition of “Asset Sale” in Section 1.1 is amended by inserting “, but excluding any capital stock of the Borrower held by the Borrower as treasury stock” immediately following the reference to “Person” in the parenthetical therein.

 

(e)                                  The definitions of “Consolidated Leverage Ratio”, “Credit Documents”, “Debt” and “Material Adverse Effect” in Section 1.1 are amended and restated in their entirety as follows:

 

“Consolidated Leverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) the excess of (i) Consolidated Debt as of the last day of such period of four consecutive fiscal quarters over (ii) an amount equal to 85% of all cash and Cash Equivalents held by the Borrower and its Subsidiaries as of the last day of such period of four consecutive fiscal quarters that are free and clear of all Liens (other than Liens permitted by Section 6.13(g)) to (b) Consolidated EBITDA for such period of four consecutive fiscal quarters.

 

“Credit Documents” means this Agreement, each Note, each Fee Letter, the Subsidiary Guaranty and any other agreements executed and delivered by the Borrower or any Subsidiary Guarantor in favor of or provided to the Administrative Agent or any Lender in connection with this Agreement.

 

“Debt” means all items described in clauses (i) through (vii) and clause (ix) of the definition of Indebtedness (other than those items described in clause (ix) relating to obligations of the type described in clause (viii) of the definition of Indebtedness).

 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on, the business, assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole; (b) a material impairment of the ability of (i) the Borrower to perform its obligations under this Agreement or any Note or (ii) any Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty, when taken together with the Borrower’s ability to perform its obligations under this Agreement and the Notes and the other Subsidiary Guarantors’ ability to perform their obligations under the Subsidiary Guaranty; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against (i) the Borrower of this Agreement or any Note or (ii) the Subsidiary Guarantors, taken as a whole, of the Subsidiary Guaranty, when taken together with the validity and enforceability against the Borrower of this Agreement and the Notes.

 

(f)                                   The definition of “Indebtedness” in Section 1.1 is amended by deleting clause (ix) thereof and substituting therefor the following:

 

(ix)                              obligations for which such Person is obligated pursuant to a Guaranty with respect to liabilities of a type described in any of clauses (i) through (viii) hereof (other than a Guaranty of any Debt of a Subsidiary of such Person, which Debt is otherwise shown as a liability on such Person’s balance sheet).

 

(g)                                  The definition of “Maturity Date” in Section 1.1 is amended by deleting the reference therein to “January 31, 2019” and replacing it with “December 16, 2019.”

 

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(h)                                 The definition of “Obligations” in Section 1.1 is amended by inserting “or any Subsidiary Guarantor” immediately following each reference to “Borrower” therein.

 

(i)                                     Section 1.1 is amended by deleting the defined term “Total Capitalization” in its entirety.

 

(j)                                    Section 2.13(a) is amended and restated in its entirety as follows:

 

(a)                                 Requests for Extension.  The Borrower may, by notice to the Administrative Agent (who shall promptly notify the Lenders) not earlier than 45 days and not later than 35 days prior to the first anniversary of the Amendment No. 3 Effective Date and/or the second anniversary of the Amendment No. 3 Effective Date (each an “Anniversary Date”), request that each Lender extend such Lender’s then existing Maturity Date for one year.

 

(k)                                 The last sentence of Section 2.14(a) is amended and restated in its entirety as follows:

 

At the time of sending such notice, the Borrower (in consultation with the Administrative Agent) shall specify (i) the identity of each existing Lender and each Eligible Assignee to whom the Borrower proposes any portion of such increase be allocated and the amounts of such allocations; provided that (A) any existing Lender approached to provide all or a portion of such increase may elect or decline, in its sole discretion, to provide such increase and (B) any such Eligible Assignee shall be subject to the approval of the Administrative Agent and the Swingline Lender (which approvals shall not be unreasonably withheld or delayed), and (ii) the time period within which each such existing Lender and each such Eligible Assignee is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders).

 

(l)                                     Section 2.14(b) is amended and restated in its entirety as follows:

 

(b)                                 Lender Elections to Increase.  Each Lender and Eligible Assignee shall notify the Administrative Agent within such time period whether or not it agrees to increase or accept such Commitment in the amount allocated to it.  Any Lender or Eligible Assignee not responding within such time period shall be deemed to have declined to increase or accept such Commitment.

 

(m)                             The last sentence of Section 2.14(c) is amended and restated in its entirety as follows:

 

Any Eligible Assignee invited to become a Lender pursuant to this Section 2.14 shall do so pursuant to a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(n)                                 Section 2 is amended by adding the following new Section 2.16 to the end thereof:

 

Section 2.16                             Margin Stock.  Each Lender acknowledges that it is entering into the transactions contemplated by this Agreement without reliance on any “margin stock” (as defined in Regulation U of the FRB) held or owned by the Borrower or any of its Subsidiaries, and such Lender, in good faith, has not and is not relying upon such margin stock as collateral in extending or maintaining any Loan hereunder.

 

(o)                                 Section 4.2(b) is amended by inserting “, or of any Subsidiary Guarantor set forth in the Subsidiary Guaranty,” immediately following the reference to “Section 5” therein.

 

5

 

(p)                                 Section 5.2 is amended by (i) replacing the first two references to “The Borrower” therein with “Each of the Borrower and each Subsidiary Guarantor”, (ii) inserting “or other organizational” immediately following each reference to “corporate” therein, and (iii) replacing the last reference to “the Borrower” therein with “the Borrower or such Subsidiary Guarantor, as the case may be,”.

 

(q)                                 Section 5.3 is amended by inserting “or any Subsidiary Guarantor” immediately following the first reference to “Borrower” therein.

 

(r)                                    Section 5.4 is amended by replacing the reference to “the Borrower of any Credit Document” therein with “the Borrower or any Subsidiary Guarantor of any Credit Document to which it is a party”.

 

(s)                                   Section 5.6(b) is amended and restated in its entirety as follows:

 

(b)                                 No proceeds of any Loan will be used to purchase or carry any “margin stock” (as defined in Regulation U of the FRB) or to extend credit for the purpose of purchasing or carrying any “margin stock,” in each case other than capital stock of the Borrower repurchased and held as treasury stock.  The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying “margin stock”, or extending credit for the purpose of purchasing or carrying “margin stock.”

 

(t)                                    The first sentence of Section 6.11(a) is amended and restated in its entirety as follows:

 

The Borrower will not, and will not permit any of its Subsidiaries to, be a party to any merger or consolidation or engage in any Asset Sale of all or a “substantial part” of the consolidated assets (including assets consisting of stock) of the Borrower and its Subsidiaries, except for any such merger or consolidation (w) by any Subsidiary into or with the Borrower, (x) by any Subsidiary into or with any Subsidiary; provided that if a Subsidiary Guarantor is involved in such merger or consolidation, a Subsidiary Guarantor is the survivor, (y) by any Subsidiary provided the survivor is a Subsidiary, and if a Subsidiary Guarantor is involved in such merger or consolidation, a Subsidiary Guarantor is the survivor or (z) by the Borrower provided the Borrower is the survivor.

 

(u)                                 Section 6.13 is amended by (i) deleting “and” at the end of clause (j) therein, (ii) amending and restating clause (k) therein in its entirety as set forth below and (iii) inserting new clauses (l) and (m) immediately following clause (k) therein as set forth below:

 

(k)                                 Liens on capital stock of the Borrower held by the Borrower as treasury stock;

 

(l)                                     Liens existing on property or assets of the Borrower or any Subsidiary as of the Amendment No. 3 Effective Date that are described in Schedule 6.13(l); and

 

(m)                             additional Liens securing Debt not otherwise permitted by the foregoing clauses (a) through (l), provided that, at the time of creation, assumption or incurrence thereof and immediately after giving effect thereto and to the application of the proceeds therefrom, the aggregate principal amount of (A) all Debt of the Subsidiaries (other than Debt permitted by Section 6.14(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) all Debt of the Borrower and the Subsidiaries secured by Liens permitted by this Section 6.13(m) does not exceed 15% of Consolidated Total Assets and provided, further,

 

6

 

that notwithstanding the foregoing, the Borrower shall not, and shall not permit any of its Subsidiaries to, secure pursuant to this Section 6.13(m) any Debt outstanding under or pursuant to any Material Credit Facility or any Existing Note Purchase Agreement unless and until the Obligations shall concurrently be secured equally and ratably with such Debt pursuant to documentation reasonably acceptable to the Administrative Agent in substance and in form, including an intercreditor agreement and opinions of counsel to the Borrower and/or any such Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Administrative Agent.

 

(v)                                 Section 6.13 is further amended by amending and restating the last sentence therein in its entirety as follows:

 

Nothing contained in subsections (a) through (m) of this Section 6.13 shall be deemed to permit a pledge of the stock (or other equity interests) of the Borrower or any of its Subsidiaries (except, as permitted pursuant to subsection (k), on the capital stock of the Borrower held by the Borrower as treasury stock).

 

(w)                               Section 6.14 is amended and restated in its entirety as follows:

 

Section 6.14                             Debt.  The Borrower will not, and will not permit any of its Subsidiaries to, contract, assume or suffer to exist any Debt, except:

 

(a)                                 Debt under this Agreement;

 

(b)                                 Debt outstanding as of September 30, 2014 and reflected on Schedule 6.14(b);

 

(c)                                  Debt of a Subsidiary to the Borrower or to another Wholly-Owned Subsidiary; and

 

(d)                                 additional unsecured Debt and additional Debt secured by Liens permitted by Section 6.13(h), (i), (j), (l) or (m), provided that at the time of incurrence thereof and after giving effect thereto on a pro forma basis and to the application of the proceeds thereof:

 

(i)                                     (A) no Default or Event of Default shall exist and (B) no Default would, on a pro forma basis, exist under Section 6.17 if such Debt had been incurred on the last day of the most recent fiscal quarter for which financial statements have been delivered pursuant to Section 6.6(a)(i) or (a)(ii), as the case may be; and

 

(ii)                                  in the case of Debt of a Subsidiary, the aggregate principal amount of (A) all Debt of the Subsidiaries (other than Debt permitted by Section 6.14(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) all Debt of the Borrower and the Subsidiaries secured by Liens permitted by Section 6.13(m) does not exceed 15% of Consolidated Total Assets; and

 

(iii)                               in the case of Debt of the Borrower or a Subsidiary secured by Liens permitted by Section 6.13(m), the aggregate principal amount of (A) all Debt of the Subsidiaries (other than Debt permitted by Section 6.14(b) and (c) and unsecured Debt of a Subsidiary Guarantor) plus (B) all Debt of the Borrower 

 

7

 

and  the Subsidiaries secured by Liens permitted by Section 6.13(m) does not exceed 15% of Consolidated Total Assets.

 

For all purposes of this Section 6.14, any Person that becomes a Subsidiary after the date of this Agreement shall be deemed to have incurred, at the time it becomes a Subsidiary, all Debt of such Person outstanding immediately after it becomes a Subsidiary.

 

(x)                                 Section 6.17 is amended and restated in its entirety as follows:

 

Section 6.17                             Financial Covenants.

 

(a)                                 The Borrower will maintain as of the end of each fiscal quarter a Consolidated Leverage Ratio of not more than 3.50 to 1.00.

 

(b)                                 The Borrower will maintain as of the end of each fiscal quarter a Consolidated Interest Coverage Ratio of not less than 3.00 to 1.00.

 

(y)                                 Section 6 is amended by adding the following new Section 6.22 to the end thereof:

 

Section 6.22                             Subsidiary Guarantors.

 

(a)                                 The Borrower may at its option cause any of its Subsidiaries, and will cause each of its Subsidiaries that becomes a guarantor or an obligor, whether as a borrower or an additional borrower or co-borrower or otherwise, for or in respect of any Debt under any Material Credit Facility or any Existing Note Purchase Agreement concurrently therewith, to:

 

(i)                                     become a Subsidiary Guarantor by way of execution of a Subsidiary Guaranty (or a joinder to an existing Subsidiary Guaranty); and

 

(ii)                                  concurrently with becoming a Subsidiary Guarantor pursuant to the foregoing clause (i), deliver the following to the Administrative Agent:

 

(A)                               all documents as may be reasonably requested by the Administrative Agent to evidence the due organization, continuing existence and good standing of such Subsidiary and the due authorization by all requisite legal entity action on the part of such Subsidiary of the execution and delivery of such Subsidiary Guaranty and the performance by such Subsidiary of its obligations thereunder;

 

(B)                               copies of the Organization Documents of such Subsidiary, certified by the Secretary or Assistant Secretary (or other appropriate officer) of such Subsidiary;

 

(C)                               specimen signatures of the persons authorized to execute the Subsidiary Guaranty (or joinder) on such Subsidiary’s behalf, certified by the Secretary or Assistant Secretary (or other appropriate officer) of such Subsidiary;

 

(D)                               such documentation and other information requested by the Administrative Agent and each Lender in order to comply with requirements of

 

8

 

the PATRIOT Act, applicable “know your customer” and anti-money laundering rules and regulations; and

 

(E)           if requested by the Administrative Agent, an opinion of counsel reasonably satisfactory to the Administrative Agent covering such matters relating to such Subsidiary and such Subsidiary Guaranty as the Administrative Agent may reasonably request.

 

(b)           At the election of the Borrower and by written notice to the Administrative Agent, any Subsidiary Guarantor may be discharged from all of its obligations and liabilities under its Subsidiary Guaranty and shall be automatically released from its obligations thereunder without the need for the execution or delivery of any other document by the Administrative Agent or any Lender, provided that (i) if such Subsidiary Guarantor is a guarantor or obligor in respect of any Material Credit Facility or any Existing Note Purchase Agreement, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under its Subsidiary Guaranty) under each such Material Credit Facility and each such Existing Note Purchase Agreement, as the case may be, (ii) at the time of, and after giving effect to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable under such Subsidiary Guaranty, (iv) if in connection with such Subsidiary Guarantor being released and discharged under any Material Credit Facility or any Existing Note Purchase Agreement, any fee or other form of consideration is given to any holder of Debt under such Material Credit Facility or such Existing Note Purchase Agreement for such release, the Lenders shall receive equivalent consideration on a ratable basis substantially concurrently therewith and (v) the Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying as to the matters set forth in the foregoing clauses (i) through (iv).  In the event of any such release, for purposes of Section 6.14, all Debt of such Subsidiary shall be deemed to have been incurred concurrently with such release.

 

(z)           Section 7.1(d) is amended by (i) inserting “or in any other Credit Document” immediately following the reference to “herein” therein and (ii) inserting “or thereto” immediately following the reference to “hereto” therein.

 

(aa)         Section 7.1(j)(i) is amended and restated in its entirety as follows:

 

(i) the Borrower, any Subsidiary Guarantor or any Person acting on behalf of the Borrower or any Subsidiary Guarantor, or any Governmental Authority, challenges the validity of any Credit Document or the Borrower’s or any Subsidiary Guarantor’s obligations thereunder

 

(bb)         Section 8.3 is amended by inserting “or any Subsidiary Guarantor” immediately following the first two references to “Borrower” therein.

 

(cc)         Section 8.10 is amended by inserting “or any Subsidiary Guarantor” immediately following the first reference to “Borrower” therein.

 

(dd)         Section 8 is amended by adding the following new Section 8.12 to the end thereof:

 

Section 8.12          Guaranty Matters.

 

(a)           Each of the Lenders irrevocably authorizes the Administrative Agent, at its option and in its discretion to (i) accept any Subsidiary Guaranty Agreement or joinder 

 

9

 

thereto executed by a Subsidiary of the Borrower, and to determine such documentation as shall be required in connection therewith in accordance with Section 6.22(a), and (ii) release any Subsidiary Guarantor from its obligations under any Credit Documents if either  (1) such Person ceases to be a Subsidiary as a result of a transaction permitted under the Credit Documents or (2) such Person is permitted to be released pursuant to Section 6.22(b).

 

(b)           Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty pursuant to this Section 8.12.  In each case as specified in this Section 8.12, the Administrative Agent will, at the Borrower’s expense, execute and deliver to the applicable Subsidiary Guarantor such documents as such Subsidiary Guarantor may reasonably request to release such Subsidiary Guarantor from its obligations under the Subsidiary Guaranty, in each case in accordance with the terms of the Credit Documents and this Section 8.12.

 

(ee)         Section 9.1 is amended by (i) inserting “or any Subsidiary Guarantor” immediately following the first reference to “Borrower” therein and (ii) inserting “or the applicable Subsidiary Guarantors” immediately following the second reference to “Borrower” therein.

 

(ff)          Section 9.1 is further amended by (i) deleting “or” at the end of clause (e) therein, (ii) inserting “or” at the end of clause (f) therein and (iii) inserting the following new clause (g) immediately following clause (f) therein:

 

(g)           release (i) all of the Subsidiary Guarantors or (ii) Subsidiary Guarantors comprising substantially all of the credit support for the Obligations, in any case, from the Subsidiary Guaranty (other than as authorized in Section 8.12), without the written consent of each Lender;

 

(gg)         Each of Schedule 6.13(l) and Schedule 6.14(b) attached hereto is added to the Credit Agreement as a new Schedule 6.13(l) and Schedule 6.14(b) to the Credit Agreement, respectively.

 

(hh)         The existing Exhibit B attached to the Credit Agreement is deleted in its entirety and Exhibit B attached hereto is inserted in lieu thereof.

 

(ii)           Exhibit G attached hereto is added to the Credit Agreement as a new Exhibit G to the Credit Agreement.

 

The amendments set forth in this Section 1 are limited to the extent specifically set forth above and no other terms, covenants or provisions of the Credit Agreement are intended to be affected hereby.

 

2.             Effectiveness; Condition Precedent.  The effectiveness of this Amendment and the amendments provided in Section 1 are subject to the satisfaction of the following conditions precedent:

 

10

 

(a)           Documentation. The Administrative Agent shall have received (i) this Amendment, duly executed and acknowledged where appropriate by all parties hereto, in form and substance satisfactory to the Administrative Agent, the Swingline Lender and the Lenders, (ii) an amendment to the Wells Fargo Fee Letter (reflecting discussions between Wells Fargo and the Borrower), duly executed by Wells Fargo, WFS and the Borrower and (iii) a Note executed by the Borrower in favor of BNP Paribas.

 

(b)           Assignments and Assumptions.  The Administrative Agent shall have received a duly executed and completed Assignment and Assumption between Union Bank, N.A., as assignor, and BNP Paribas and HSBC Bank USA, N.A., as assignees, whereby such assignor assigns, among other things, all of its rights and obligations as a Lender under the Credit Agreement to such assignees.

 

(c)           Fees.  Any fees required to be paid on or before the effective date hereof shall have been paid.

 

(d)           Legal Expenses.  The Borrower shall have paid all reasonable fees and expenses due the Administrative Agent’s counsel as of the date hereof.

 

3.             Representations and Warranties.  In order to induce the Administrative Agent, the Swingline Lender and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent, the Swingline Lender and the Lenders as follows:

 

(a)              The representations and warranties made by it in Section 5 of the Credit Agreement are true and correct in all material respects on and as of the date hereof, except that (i) if a qualifier relating to materiality or Material Adverse Effect applies, such representation or warranty is true and correct in all respects, (ii) if such representation or warranty specifically refers to an earlier date, such representation or warranty is true and correct in all material respects as of such earlier date (except that if a qualifier relating to materiality or Material Adverse Effect applies, such representation or warranty is true and correct in all respects as of such earlier date) and (iii) for purposes of this Amendment, the representations and warranties contained in Section 5.9 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a)(i) and (ii), respectively, of Section 6.6 of the Credit Agreement;

 

(b)           This Amendment has been duly authorized, executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally; and

 

(c)           No Default or Event of Default has occurred and is continuing or will exist after giving effect to this Amendment.

 

4.             Entire Agreement.  This Amendment, together with the Credit Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty.  Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or thereof.  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 9.1 of the Credit Agreement.

 

11

 

5.             Full Force and Effect of Amendment.  Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all other Credit Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms.

 

6.             Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy, facsimile or other electronic transmission (including .pdf) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

7.             Governing Law.  This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of New York.

 

8.             Enforceability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

 

9.             References.  All references in any of the Credit Documents to the “Credit Agreement” shall mean the Credit Agreement, as amended hereby and as from time to time hereafter further amended, modified, supplemented, restated or amended and restated.

 

10.          Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent, the Swingline Lender, each Lender and their respective successors and assignees to the extent such assignees are permitted assignees as provided in Section 9.7 of the Credit Agreement.

 

[Signature pages follow.]

 

12

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to Credit Agreement to be executed as of the date first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
APTARGROUP, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert   W. Kuhn
    
	
 
    	
Name: 
    	
Robert W.   Kuhn
    
	
 
    	
Title: 
    	
Executive   Vice President and Chief Financial Officer
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
ADMINISTRATIVE AGENT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO   BANK, NATIONAL ASSOCIATION, as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Beth   Rue
    
	
 
    	
Name: 
    	
Beth Rue
    
	
 
    	
Title: 
    	
Director
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO   BANK, NATIONAL ASSOCIATION, as a Lender and Swingline Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Beth   Rue
    
	
 
    	
Name: 
    	
Beth Rue
    
	
 
    	
Title: 
    	
Director
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
BANK OF AMERICA,   N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew N. Walt
    
	
 
    	
Name:
    	
Matthew N. Walt
    
	
 
    	
Title:
    	
Assistant Vice   President
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
JPMORGAN CHASE   BANK, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Barritt
    
	
 
    	
Name:
    	
Richard Barritt
    
	
 
    	
Title:
    	
Associate
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
HSBC BANK USA,   N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Fik Durmus
    
	
 
    	
Name:
    	
Fik Durmus
    
	
 
    	
Title:
    	
Senior Vice President
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
BNP PARIBAS
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Pace
    
	
 
    	
Name:
    	
Richard Pace
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nanette Baudon
    
	
 
    	
Name:
    	
Nanette Baudon
    
	
 
    	
Title:
    	
Director
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
THE NORTHERN   TRUST COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa DeCristofaro
    
	
 
    	
Name:
    	
Lisa DeCristofaro
    
	
 
    	
Title:
    	
Senior Vice President
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
PNC BANK,   NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Flaherty
    
	
 
    	
Name:
    	
Patrick Flaherty
    
	
 
    	
Title:
    	
Vice President
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

	
 
    	
U.S. BANK   NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James DeVries
    
	
 
    	
Name:
    	
James DeVries
    
	
 
    	
Title:
    	
Senior Vice President
    

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

Signature Page

 

 

EXHIBIT B

 

EXHIBIT B
  to
 Credit Agreement
 dated as of January 31, 2012
 by and among
 AptarGroup, Inc.,
 as Borrower,
 the Lenders referred to therein,
 as Lenders,
 and
 Wells Fargo Bank, National Association,
 as Administrative Agent

 

FORM OF COMPLIANCE CERTIFICATE

 

 

COMPLIANCE CERTIFICATE

 

Statement Date:               , 20   

To:          Wells Fargo Bank, National Association, as Administrative Agent

 

The undersigned, the                   [(1)] of AptarGroup, Inc., a Delaware corporation (the “Borrower”), hereby certifies to the Administrative Agent and the Lenders, each as defined in the Credit Agreement referred to below, as follows:

 

1.             This Compliance Certificate is delivered to you pursuant to Section 6.6(b) of the Credit Agreement dated as of January 31, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the lenders from time to time party thereto, as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.

 

[Use following paragraph 2 for fiscal year-end financial statements]

 

2.             Attached hereto as Schedule 1 (or otherwise available in the Borrower’s public filings with the Securities and Exchange Commission) are the year-end audited financial statements required by Section 6.6(a)(ii) of the Credit Agreement for the fiscal year of the Borrower and its Subsidiaries ended as of the above date, together with the certification of an independent certified public accountant required by such section.

 

[Use following paragraph 2 for fiscal quarter-end financial statements]

 

2.             Attached hereto as Schedule 1 (or otherwise available in the Borrower’s public filings with the Securities and Exchange Commission) are the unaudited financial statements required by Section 6.6(a)(i) of the Credit Agreement for the fiscal quarter of the Borrower and its Subsidiaries ended as of the above date.  Such consolidated financial statements fairly present the financial condition of the Borrower and its Subsidiaries (as applicable) as of their respective dates and the results of operations and changes in cash flows of the Borrower and its Subsidiaries for the respective periods then ended and have been prepared in accordance with the terms of the Credit Agreement, subject to normal year end audit adjustments.

 

3.             I have reviewed the terms of the Credit Agreement and have made, or caused to be made under my supervision, a review in reasonable detail of the transactions and the condition of the Borrower and its Subsidiaries relevant to the delivery of this Compliance Certificate.  To the best of my knowledge, [no Default or Event of Default occurred during the period covered by the financial statements referred to in paragraph 2 above.] — or — [the following is a list of each Default and Event of Default that occurred during the period covered by the financial statements referred to in paragraph 2 above, a description thereof and the action the Borrower has taken, if any, to remedy the same:]

 

4.             Except as set forth below, the representations and warranties of the Borrower set forth in Section 5 of the Credit Agreement are true and correct in all material respects on and as of the date

 

(1)  This Compliance Certificate should be signed by the Executive Vice President or Vice President-Treasurer of the Borrower.

 

 

hereof, with the same effect as though such representations and warranties had been made on and as of each such date, except that (a) if a qualifier relating to materiality or Material Adverse Effect applies, then such representation or warranty is true and correct in all respects, (b) if such representation or warranty specifically refers to an earlier date, then such representation or warranty is true and correct in all material respects as of such earlier date (except that if a qualifier relating to materiality or Material Adverse Effect applies, then such representation or warranty is true and correct in all respects as of such earlier date), and (c) for purposes of this Compliance Certificate, the representations and warranties contained in Section 5.9 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses  (a)(i) and (ii), respectively, of Section 6.6 of the Credit Agreement, including the statements in connection with which this Compliance Certificate is delivered:

 

[                                ](2)

 

5.             The financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this Compliance Certificate.

 

6              [Schedule 5.1 of the Credit Agreement contains a true and complete list of all Subsidiaries of the Borrower as of the date of this Compliance Certificate.] — or — [Attached hereto is an updated Schedule 5.1 to the Credit Agreement which contains a true and complete list of all Subsidiaries of the Borrower as of the date of this Compliance Certificate.]

 

IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of                ,         .

 

	
 
    	
APTARGROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

(2)  Include description of any representations and warranties that are not true and correct as of the date hereof.

 

 

Schedule 1
 to
  Compliance Certificate

 

[See attached.]

 

 

Schedule 2
 to
  Compliance Certificate
 ($ in 000’s)

 

Statement Date:             , 20   

 

	
I.
    	
 
    	
 
    	
 
    	
Section 6.17(a) — Consolidated Leverage Ratio:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.
    	
 
    	
The excess of Consolidated Debt over 85% of all cash and Cash Equivalents   as of the Statement Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(1)
    	
Consolidated Debt as of the   Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
(2)
    	
Cash and Cash Equivalents as of   the Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
(3)
    	
A(2) multiplied by   0.85
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
(4)
    	
A(1) minus A(3)
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.
    	
 
    	
Consolidated EBITDA for the four fiscal quarters ending on the   Statement Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(1)
    	
Consolidated Net Income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(2)
    	
The following amounts, without duplication, to the extent   deducted in the determination of Consolidated Net Income:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(a)                                 Income   and franchise taxes:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(b)                                 Consolidated   Interest Expense:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(c)                                  Amortization   and depreciation:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(d)                                 Extraordinary,   unusual or non-recurring items reducing Consolidated Net Income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(e)                                  Transaction   costs, etc. relating to any Material Acquisition or Material Disposition:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(f)                                   Reimbursed   costs of legal settlement, fines, judgments or orders:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(g)                                  Expenses   with respect to liability events or casualty events (to the extent covered by   insurance):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(h)                                 Unrealized   losses in the fair market value of any Hedge Agreements:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)                                     Net   unrealized currency transaction losses:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(j)                                    Non-cash   items reducing Consolidated Net Income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(k)                                 Sum   of B(2)(a) through (j):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(3)
    	
The following amounts, without duplication, to the extent added in   determining Consolidated Net Income:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(a)                                 Interest   income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(b)                                 Extraordinary,   unusual or non-recurring items increasing Consolidated Net Income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(c)                                  Unrealized   gains in the fair market value of any Hedge Agreements:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(d)                                 Net   unrealized foreign currency transaction gains:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(e)                                  Non-cash   items increasing Consolidated Net Income:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
(f)                                   Sum   of B(3)(a) through (e):
    	
 
    	
$                    
    

 

 

	
 
    	
 
    	
 
    	
 
    	
(4)
    	
Consolidated EBITDA (prior to any pro forma adjustments): B(1) plus   B(2)(k) minus B(3)(f):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(5)
    	
Pro forma adjustments (if any):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(6)
    	
Consolidated EBITDA (including any pro forma adjustments): B(4) plus   B(5):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Consolidated Leverage Ratio =   A(4) ÷ B(6):
    	
 
    	
       to 1.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maximum permitted   Consolidated Leverage Ratio is:
    	
 
    	
3.50 to 1.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Applicable Rate is to be   calculated at Pricing Level          .
    	
 
    	
 
    

 

	
Pricing Level
    	
 
    	
Consolidated Leverage Ratio
    
	
1
    	
 
    	
Less than 0.75 to 1.00
    
	
2
    	
 
    	
Less than 1.75 to 1.00 but   greater than or equal to 0.75 to 1.00
    
	
3
    	
 
    	
Less than 2.75 to 1.00 but   greater than or equal to 1.75 to 1.00
    
	
4
    	
 
    	
Greater than or equal to 2.75 to   1.00
    

 

	
II.
    	
 
    	
 
    	
 
    	
Section 6.17(b) — Consolidated Interest Coverage Ratio:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.
    	
 
    	
Consolidated EBITDA (B(4) above):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.
    	
 
    	
Consolidated Interest Expense for the four fiscal quarters   ending on the Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Consolidated Interest Coverage   Ratio = A ÷ B:
    	
 
    	
       to 1.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Minimum permitted   Consolidated Interest Coverage Ratio is:
    	
 
    	
3.00 to 1.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
III.
    	
 
    	
 
    	
 
    	
Section 6.14(c) — Other Debt:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
 
    	
 
    	
Debt of Subsidiaries of the Borrower (excluding Debt owing to   the Borrower or other Subsidiaries of the Borrower) as of the Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
 
    	
 
    	
Consolidated Net Worth as of the Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Subsidiary Debt to Consolidated   Net Worth Ratio = A ÷ B:
    	
 
    	
       to 1.00 (     %)
    
	
 
    	
 
    	
 
    
	
Maximum permitted   Subsidiary Debt to Consolidated Net Worth Ratio is:
    	
 
    	
0.30 to 1.00 (30%)
    

 

 

	
IV.
    	
 
    	
 
    	
 
    	
Section 6.15(k) — Other Investments, Etc.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A.
    	
 
    	
 
    	
 
    	
Purchases, advances, loans and investments with respect to   Persons who are not (or as a result of such investment do not become) a   Subsidiary as of the Statement Date (other than those permitted under clauses   (a) through (j) of Section 6.15):
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
 
    	
 
    	
Consolidated Net Worth as of the Statement Date:
    	
 
    	
$                    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Non-Subsidiary Investments to   Consolidated Net Worth Ratio = A ÷ B:
    	
 
    	
       to 1.00 (     %)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maximum permitted Non-Subsidiary Investments   to Consolidated Net Worth Ratio is:
    	
 
    	
0.125 to 1.00 (12.5%)
    

 

 

EXHIBIT G

 

EXHIBIT G
  to
 Credit Agreement
 dated as of January 31, 2012
 by and among
 AptarGroup, Inc.,
 as Borrower,
 the Lenders referred to therein,
 as Lenders,
 and
 Wells Fargo Bank, National Association,
 as Administrative Agent

 

FORM OF SUBSIDIARY GUARANTY

 

 

SUBSIDIARY GUARANTY AGREEMENT

 

THIS SUBSIDIARY GUARANTY AGREEMENT (this “Agreement”), dated as of [            ], 20[  ], is made by [                     ], a [                      ], AND EACH OTHER PERSON WHO SHALL BECOME A PARTY HERETO PURSUANT TO SECTION 22 (each a “Subsidiary Guarantor” and collectively the “Subsidiary Guarantors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent (in such capacity, the “Administrative Agent”) for the benefit of the Guaranteed Parties (as defined in the Credit Agreement referenced below).

 

RECITALS

 

A.            Pursuant to the terms of that certain Credit Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) dated as of January 31, 2012, among AptarGroup, Inc., a Delaware corporation (the “Borrower”), the lenders from time to time party thereto (the “Lenders”) and the Administrative Agent, the Lenders have agreed to provide to the Borrower, a revolving credit facility with a swingline sublimit.  All capitalized terms used but not otherwise defined herein have the definitions set forth in the Credit Agreement.

 

B.            Each Subsidiary Guarantor is a Subsidiary of the Borrower and will materially benefit from such extensions of credit.

 

C.            The Guaranteed Parties are unwilling to enter into the Credit Agreement or make or maintain such credit extensions unless the Subsidiary Guarantors execute and deliver this Agreement.

 

In consideration of the foregoing and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             GUARANTY.  Each Subsidiary Guarantor hereby jointly and severally, unconditionally, absolutely, continually and irrevocably guarantees to the Administrative Agent for the benefit of the Guaranteed Parties the payment and performance in full of the Guaranteed Liabilities (as defined below).  For all purposes of this Agreement, “Guaranteed Liabilities” means:  (a) the Borrower’s prompt payment in full, when due or declared due and at all such times, of all Obligations and all other amounts pursuant to the terms of the Credit Agreement, the Notes and all other Credit Documents heretofore, now or at any time or times hereafter owing, arising, due or payable from the Borrower to any one or more of the Guaranteed Parties, including, without limitation, principal, interest, premiums and fees (including, without limitation, loan fees and attorneys’ fees and expenses that are required to be paid or reimbursed by any such Person thereunder); and (b) the Borrower’s prompt, full and faithful performance, observance and discharge of each and every agreement, undertaking, covenant and provision to be performed, observed or discharged by any such Person under the Credit Agreement, the Notes and all other Credit Documents.  The Subsidiary Guarantors’ obligations to the Guaranteed Parties under this Agreement are hereinafter collectively referred to as the “Subsidiary Guarantors’ Obligations” and, with respect to each Subsidiary Guarantor individually, the “Subsidiary Guarantor’s Obligations.”  Notwithstanding the foregoing, the liability of each Subsidiary Guarantor individually with respect to its Subsidiary Guarantor’s Obligations shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of any applicable state law.

 

Each Subsidiary Guarantor agrees that it is jointly and severally, directly and primarily liable (subject to the limitation in the immediately preceding sentence) for the Guaranteed Liabilities.

 

 

2.             PAYMENT.          If the Borrower shall default in payment or performance of any of the Guaranteed Liabilities, whether principal, interest, premium, fee (including, without limitation, loan fees and attorneys’ fees and expenses that are required to be paid or reimbursed by the Borrower thereunder), or otherwise, when and as the same shall become due, and after expiration of any applicable grace period, whether according to the terms of the Credit Agreement, by acceleration, or otherwise, or upon the occurrence and during the continuance of any Event of Default, then any or all of the Subsidiary Guarantors will, upon demand thereof by the Administrative Agent, (i) fully pay to the Administrative Agent for the benefit of the Guaranteed Parties, subject to any limitation on each Subsidiary Guarantor’s Obligations set forth in Section 1, an amount equal to all the Guaranteed Liabilities then due and owing or declared or deemed to be due and owing, including for this purpose, in the event of any Event of Default under subsection (f) or (g) of Section 7.1 of the Credit Agreement (and irrespective of the applicability of any restriction on acceleration or other action as against the Borrower under any bankruptcy, insolvency, reorganization, moratorium, or similar law affecting the enforcement of creditors’ rights generally), the entire outstanding or accrued amount of all Obligations or (ii) perform such Guaranteed Liabilities, as applicable.  For purposes of this Section 2, the Subsidiary Guarantors acknowledge and agree that “Guaranteed Liabilities” shall be deemed to include any amount (whether principal, interest, premium or fees) which would have been accelerated in accordance with Section7.2 of the Credit Agreement but for the fact that such acceleration could be unenforceable or not allowable under any bankruptcy, insolvency, reorganization, moratorium, or similar law affecting the enforcement of creditors’ rights generally.

 

3.             ABSOLUTE RIGHTS AND OBLIGATIONS.  This is a guaranty of payment and not of collection.  The Subsidiary Guarantors’ Obligations under this Agreement shall be joint and several, absolute and unconditional irrespective of, and each Subsidiary Guarantor hereby expressly waives, to the extent permitted by law, any defense to its obligations under this Agreement and all other Credit Documents to which it is a party by reason of:

 

(a)           any lack of legality, validity or enforceability of the Credit Agreement, any Note, any other Credit Document, or any other agreement or instrument creating, providing security for,  or otherwise relating to any of the Subsidiary Guarantors’ Obligations, any of the Guaranteed Liabilities, or any other guaranty of any of the Guaranteed Liabilities (all such documents, agreements and instruments being collectively referred to as the “Related Agreements”);

 

(b)           any action taken under any of the Related Agreements, any exercise of any right or power therein conferred, any failure or omission to enforce any right conferred thereby, or any waiver of any covenant or condition therein provided;

 

(c)           any acceleration of the maturity of any of the Guaranteed Liabilities, of any Subsidiary Guarantor’s Obligations of any other Subsidiary Guarantor, or of any other obligations or liabilities of any Person under any of the Related Agreements;

 

(d)           any release, exchange, non-perfection, lapse in perfection, disposal, deterioration in value, or impairment of any security for any of the Guaranteed Liabilities, for any Subsidiary Guarantor’s Obligations of any other Subsidiary Guarantor, or for any other obligations or liabilities of any Person under any of the Related Agreements;

 

(e)           any dissolution of the Borrower, any Subsidiary Guarantor or any other Person party to a Related Agreement, or the combination or consolidation of the Borrower, any Subsidiary Guarantor or any other Person party to a Related Agreement into or with another entity or any transfer or disposition of any assets of the Borrower, any Subsidiary Guarantor or any other Person party to a Related Agreement;

 

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(f)            any extension (including, without limitation, extensions of time for payment), renewal, amendment, restructuring or restatement of, any acceptance of late or partial payments under, or any change in the amount of any borrowings or any credit facilities available under, the Credit Agreement, any Note, any other Credit Document or any other Related Agreement, in whole or in part;

 

(g)           the existence, addition, modification, termination, reduction or impairment of value, or release of any other guaranty (or security therefor) of the Guaranteed Liabilities (including, without limitation, the Subsidiary Guarantor’s Obligations of any other Subsidiary Guarantor and obligations arising under any other guaranty now or hereafter in effect);

 

(h)           any waiver of, forbearance or indulgence under, or other consent to any change in or departure from any term or provision contained in the Credit Agreement, any other Credit Document or any other Related Agreement, including, without limitation, any term pertaining to the payment or performance of any of the Guaranteed Liabilities, any of the Subsidiary Guarantor’s Obligations of any other Subsidiary Guarantor, or any of the obligations or liabilities of any Person party to any other Related Agreement; or

 

(i)            any other circumstance whatsoever (with or without notice to or knowledge of any Subsidiary Guarantor) which may or might in any manner or to any extent vary the risks of such Subsidiary Guarantor, or might otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a guarantor, including, without limitation, any right to require or claim that resort be had to the Borrower, any Subsidiary Guarantor or any other Person providing collateral for the Guaranteed Liabilities (any such Person, a “Credit Support Party”) or to any collateral in respect of the Guaranteed Liabilities or the Subsidiary Guarantors’ Obligations.

 

It is the express purpose and intent of the parties hereto that this Agreement and the Subsidiary Guarantors’ Obligations hereunder shall be absolute and unconditional under any and all circumstances and shall not be discharged except by payment and performance as herein provided.

 

4.             CURRENCY AND FUNDS OF PAYMENT.  All of the Subsidiary Guarantors’ Obligations for payment will be paid in Dollars and in immediately available funds, regardless of any law, regulation or decree now or hereafter in effect that might in any manner affect the Guaranteed Liabilities, or the rights of any Guaranteed Party with respect thereto as against the Borrower or any Subsidiary Guarantor, or cause or permit to be invoked any alteration in the time, amount or manner of payment by the Borrower or any Subsidiary Guarantor of any or all of the Guaranteed Liabilities.

 

5.             EVENTS OF DEFAULT.  Without limiting the provisions of Section 2, in the event that there shall occur and be continuing an Event of Default, then notwithstanding any collateral or other security or credit support for the Guaranteed Liabilities, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Subsidiary Guarantors in accordance with Section 12, declare the Subsidiary Guarantors’ Obligations to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Subsidiary Guarantors, anything in this Agreement or the other Credit Documents to the contrary notwithstanding; provided that upon the occurrence of an Event of Default specified in subsection (f) or (g) of Section 7.1 of the Credit Agreement, the Subsidiary Guarantors’ Obligation shall immediately be and become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Subsidiary Guarantors, anything in this Agreement or in any other Credit Document to the contrary notwithstanding.

 

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6.             SUBORDINATION.  Until this Agreement is terminated in accordance with Section 20, each Subsidiary Guarantor hereby unconditionally subordinates all present and future debts, liabilities or obligations now or hereafter owing to such Subsidiary Guarantor (i) of the Borrower, to the payment in full of the Guaranteed Liabilities, (ii) of every other Subsidiary Guarantor (an “obligated guarantor”), to the payment in full of the Subsidiary Guarantors’ Obligations of such obligated guarantor, and (iii) of each other Person now or hereafter constituting a Credit Support Party, to the payment in full of the obligations of such Credit Support Party owing to any Guaranteed Party and arising under the Credit Documents.  All amounts due under such subordinated debts, liabilities, or obligations shall, upon the occurrence and during the continuance of an Event of Default, be collected and, upon request by the Administrative Agent, paid over forthwith to the Administrative Agent for the benefit of the Guaranteed Parties on account of the Guaranteed Liabilities, the Subsidiary Guarantors’ Obligations, or such other obligations, as applicable, and, after such request and pending such payment, shall be held by such Subsidiary Guarantor as agent and bailee of the Guaranteed Parties separate and apart from all other funds, property and accounts of such Subsidiary Guarantor.  Subject to the preceding sentence, all amounts due under such subordinated debts, liabilities or obligations shall be permitted to be paid to the extent permitted by, and in accordance with, the provisions of the Credit Agreement.

 

7.             SUITS.  Each Subsidiary Guarantor from time to time shall pay to the Administrative Agent for the benefit of the Guaranteed Parties, on demand, at the Administrative Agent’s Office or such other address as the Administrative Agent shall give notice of to such Subsidiary Guarantor, the Subsidiary Guarantors’ Obligations as they become or are declared due, and in the event such payment is not made forthwith, the Administrative Agent may proceed to bring suit against any one or more or all of the Subsidiary Guarantors.  At the Administrative Agent’s election, one or more and successive or concurrent suits may be brought hereon by the Administrative Agent against any one or more or all of the Subsidiary Guarantors, whether or not suit has been commenced against the Borrower, any other Subsidiary Guarantor, or any other Person and whether or not the Administrative Agent has taken or failed to take any other action  to collect all or any portion of the Guaranteed Liabilities or has taken or failed to take any actions against any collateral securing payment or performance of all or any portion of the Guaranteed Liabilities, and irrespective of any event, occurrence, or condition described in Section 3.

 

8.             SET-OFF AND WAIVER.  Each Subsidiary Guarantor waives any right to assert any reduction of the Subsidiary Guarantors’ Obligations as a result of any counterclaim, set-off, recoupment or cross claim such Subsidiary Guarantor may now or at any time hereafter have against the Borrower or any Guaranteed Party without waiving any additional defenses, set-offs, counterclaims or other claims otherwise available to such Subsidiary Guarantor.  Each Subsidiary Guarantor agrees that each Guaranteed Party shall have a lien for all its Subsidiary Guarantor’s Obligations upon all deposits or deposit accounts, of any kind, or any interest in any deposits or deposit accounts, now or hereafter pledged, mortgaged, transferred or assigned to such Guaranteed Party or otherwise in the possession or control of such Guaranteed Party for any purpose for the account or benefit of such Subsidiary Guarantor, including, without limitation, any balance of any deposit account or of any credit of such Subsidiary Guarantor with such Guaranteed Party, whether now existing or hereafter established, and hereby authorizes each Guaranteed Party during the existence of an Event of Default at any time or times with or without prior notice to apply such balances or any part thereof to such of the Subsidiary Guarantor’s Obligations then due and in such amounts as provided for in the Credit Agreement or otherwise as the Guaranteed Parties may elect.  For the purposes of this Section 8, all remittances and property shall be deemed to be in the possession of a Guaranteed Party as soon as the same may be put in transit to it by mail or carrier or by other bailee.

 

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9.             WAIVER OF NOTICE; SUBROGATION.

 

(a)           Each Subsidiary Guarantor hereby waives to the extent permitted by law notice of the following events or occurrences:  (i) acceptance of this Agreement; (ii) the Guaranteed Parties heretofore, now or from time to time hereafter giving or extending credit to or for the benefit of the Borrower or any Subsidiary Guarantor; (iii) presentment, demand, default, non-payment, partial payment and protest; and (iv) any other event, condition, or occurrence described in Section 3.  Each Subsidiary Guarantor agrees that each Guaranteed Party may heretofore, now or at any time hereafter do any or all of the foregoing in such manner, upon such terms and at such times as such Guaranteed Party, in its sole and absolute discretion, deems advisable, without in any way or respect impairing, affecting, reducing or releasing such Subsidiary Guarantor from its Subsidiary Guarantor’s Obligations, and each Subsidiary Guarantor hereby consents to each and all of the foregoing events or occurrences.

 

(b)           Each Subsidiary Guarantor hereby agrees that payment or performance by such Subsidiary Guarantor of its Subsidiary Guarantor’s Obligations under this Agreement may be enforced by the Administrative Agent on behalf of the Guaranteed Parties upon demand to such Subsidiary Guarantor without the Administrative Agent being required, such Subsidiary Guarantor expressly waiving to the extent permitted by law any right it may have to require the Administrative Agent, to (i) prosecute collection or seek to enforce or resort to any remedies against the Borrower, any other Subsidiary Guarantor or any other guarantor of the Guaranteed Liabilities, or (ii) seek to enforce or resort to any remedies with respect to any security interests, Liens or encumbrances granted to the Administrative Agent or any other Guaranteed Party or other Person party to a Related Agreement by the Borrower, any other Subsidiary Guarantor or any other Person on account of the Guaranteed Liabilities or any guaranty thereof, IT BEING EXPRESSLY UNDERSTOOD, ACKNOWLEDGED AND AGREED TO BY SUCH SUBSIDIARY GUARANTOR THAT DEMAND UNDER THIS AGREEMENT MAY BE MADE BY THE ADMINISTRATIVE AGENT, AND THE PROVISIONS HEREOF ENFORCED BY THE ADMINISTRATIVE AGENT, EFFECTIVE AS OF THE FIRST DATE ANY EVENT OF DEFAULT OCCURS AND IS CONTINUING UNDER THE CREDIT AGREEMENT.

 

(c)           Each Subsidiary Guarantor further agrees with respect to this Agreement that it shall have no right of subrogation, reimbursement, contribution or indemnity, nor any right of recourse to security for Guaranteed Liabilities unless and until 93 days immediately following the termination of the Obligations shall have elapsed without the filing or commencement, by or against any Credit Support Party, of any state or federal action, suit, petition or proceeding seeking any reorganization, liquidation or other relief or arrangement in respect of creditors of, or the appointment of a receiver, liquidator, trustee or conservator in respect to, such Credit Support Party or its assets.  This waiver is expressly intended to prevent the existence of any claim in respect to such subrogation, reimbursement, contribution or indemnity by any Subsidiary Guarantor against the estate of any other Credit Support Party or within the meaning of Section 101 of the Bankruptcy Code, in the event of a subsequent case involving any Credit Support Party.  If an amount shall be paid to any Subsidiary Guarantor on account of such rights at any time prior to termination of this Agreement in accordance with the provisions of Section 20, such amount shall be held in trust for the benefit of the Guaranteed Parties and shall forthwith be paid to the Administrative Agent for the benefit of the Guaranteed Parties to be credited and applied upon the Subsidiary Guarantors’ Obligations, whether matured or unmatured, in accordance with the terms of the Credit Agreement or otherwise as the Guaranteed Parties may elect.  The agreements in this subsection shall survive repayment of all of the Subsidiary Guarantors’ Obligations, the termination or expiration of this Agreement in any manner, including, without limitation, termination in accordance with Section 20, and the occurrence of the maturity date for any of the Obligations.

 

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10.          REPRESENTATIONS AND WARRANTIES AND COVENANTS.

 

(a)           Each Subsidiary Guarantor represents and warrants to the Administrative Agent for the benefit of the Guaranteed Parties that (i) the execution, delivery and performance by such Subsidiary Guarantor of each Credit Document to which it is a party, has been duly authorized by all necessary corporate or other organizational action; (ii) this Agreement has been, each other Credit Document to which it is a party when delivered will have been, duly executed and delivered on behalf of such Subsidiary Guarantor; (iii) this Agreement constitutes, and each other Credit Document to which it is a party when so delivered will constitute, a legal, valid and binding obligation of such Subsidiary Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other similar Laws now or hereafter in effect relating to creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in equity or at law); (iv) such Subsidiary Guarantor’s execution, delivery and performance of this Agreement and each other Credit Document to which it is a party will not (A) contravene any applicable provision of any Law, or any order, writ, injunction or decree of any court or governmental instrumentality, (B) conflict with or result in any breach of any term, covenant, condition or other provision of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of such Subsidiary Guarantor under the terms of any Contractual Obligation to which it is a party or by which it or any of its property or assets are bound or to which it may be subject or (C) violate any provision of the Articles of Incorporation or By-Laws or corresponding organizational documents of such Subsidiary Guarantor; and (v) no material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority which has not been obtained or given is necessary or required in connection with the execution, delivery or performance by, or enforcement against, such Subsidiary of any Credit Document to which it is a party.

 

(b)           Each Subsidiary Guarantor acknowledges and agrees to comply with the covenants applicable to such Subsidiary Guarantor set forth in Section 6 of the Credit Agreement.

 

11.          POWERS OF THE ADMINISTRATIVE AGENT.  Each Subsidiary Guarantor appoints the Administrative Agent its true attorney in fact to perform any of the provisions of this Agreement, which are coupled with an interest, are irrevocable until termination of this Agreement and may be exercised from time  to time by the Administrative Agent’s officers and employees, or any of them; provided that the Administrative Agent agrees not to exercise such power of attorney unless an Event of Default has occurred and is continuing.

 

12.          NOTICES.  All notices, requests and demands required or permitted hereunder shall be given (a) with respect to any Subsidiary Guarantor, at the Borrower’s address indicated in Section 9.2 of the Credit Agreement, and (b) with respect to the Administrative Agent or any other Guaranteed Party, at the Administrative Agent’s address indicated in Section 9.2 of the Credit Agreement.  All such addresses may be modified, and all such notices shall be given and shall be effective, as provided in Section 9.2 of the Credit Agreement for the giving and effectiveness of notices and modifications of addresses thereunder.

 

13.          EXPENSES AND INDEMNITY.  Each Subsidiary Guarantor, jointly and severally, agrees to pay all expenses incurred by the Administrative Agent or any Lender (including the reasonable fees, charges and disbursements of any counsel for any such Person) in connection with the enforcement or protection of its rights under this Agreement, whether or not suit be brought.  Without limitation of any other obligations of any Subsidiary Guarantor or remedies of the Administrative Agent or any Guaranteed Party under this Agreement, each Subsidiary Guarantor, jointly and severally, agrees to indemnify the Administrative Agent (and any sub-agent thereof)and each Lender, and each Related Party of any of the 

 

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foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, and shall pay or reimburse any such Indemnitee for, any and all losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any Subsidiary Guarantor), other than such Indemnitee and its Related Parties, arising out of, in connection with or as a result of any failure of any Guaranteed Liabilities to be the legal, valid and binding obligations of the Borrower or any Subsidiary Guarantor enforceable against the Borrower or such Subsidiary Guarantor in accordance with their terms.  The obligations of each Subsidiary Guarantor under this paragraph shall survive the payment in full of the Guaranteed Liabilities and termination of this Agreement.

 

14.          SUCCESSORS; ASSIGNMENT.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective successors and assigns; provided that no Subsidiary Guarantor shall be permitted to assign any of its rights, powers, duties or obligations under this Agreement or any other interest herein except as expressly permitted herein or in the Credit Agreement.  Without limiting the generality of the foregoing sentence of this Section 14, any Guaranteed Party may assign to one or more Persons, or grant to one or more Persons participations in or to, all or any part of its rights and obligations under the Credit Agreement (to the extent permitted by the Credit Agreement); and to the extent of any such assignment or participation such other Person shall, to the fullest extent permitted by law, thereupon become vested with all the benefits in respect thereof granted to such Guaranteed Party herein or otherwise, subject however, to the provisions of the Credit Agreement.

 

15.          SEVERABILITY.  If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

16.          GOVERNING LAW; SUBMISSION TO JURISDICTION; ETC.

 

(a)           Governing Law.  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR  TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT (EXCEPT, AS TO ANY OTHER CREDIT DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           Submission to Jurisdiction.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE 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 AGREEMENT OR ANY OTHER CREDIT DOCUMENT, 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 FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED 

 

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IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER CREDIT DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AGAINST THE BORROWER, ANY SUBSIDIARY GUARANTOR OR THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)           Waiver of Venue. Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Credit Document in any court referred to in subsection (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d)           Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 12.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable Law.

 

17.          WAIVER OF JURY TRIAL.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY CREDIT DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY CREDIT DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

18.          REINSTATEMENT.  Each Subsidiary Guarantor agrees that this Agreement shall continue to be effective or be reinstated, as the case may be, at any time payment received by any Guaranteed Party in respect of any of the Guaranteed Liabilities is rescinded or must be restored for any reason, or is repaid by any Guaranteed Party in whole or in part in good faith settlement of any pending or threatened avoidance claim.

 

19.          RELIANCE.  Each Subsidiary Guarantor represents and warrants to the Administrative Agent for the benefit of the Guaranteed Parties that:  (a) such Subsidiary Guarantor has adequate means to obtain on a continuing basis (i) from the Borrower, information concerning the Borrower and the Borrower’s financial condition and affairs and (ii) from other reliable sources, such other information as it deems material in deciding to provide this Agreement (“Other Information”), and has full and complete access to the Borrower’s books and records and to such Other Information; (b) such Subsidiary Guarantor is not relying on any Guaranteed Party or its employees, directors, agents or other representatives or affiliates, to provide any such information, now or in the future; (c) such Subsidiary Guarantor has been furnished with, and reviewed the terms of, the Credit Agreement and such other Credit Documents as it has requested, is executing this Agreement freely and deliberately, and understands the obligations and financial risk undertaken by providing this Agreement; (d) such Subsidiary Guarantor has relied solely on the Subsidiary Guarantor’s own independent investigation, appraisal and analysis of the Borrower, the Borrower’s financial condition and affairs, the Other Information, and such other matters as it deems 

 

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material in deciding to provide this Agreement and is fully aware of the same; and (e) such Subsidiary Guarantor has not depended or relied on any Guaranteed Party or its employees, directors, agents or other representatives or affiliates, for any information whatsoever concerning the Borrower or the Borrower’s financial condition and affairs or any other matters material to such Subsidiary Guarantor’s decision to provide this Agreement, or for any counseling, guidance, or special consideration or any promise therefor with respect to such decision.  Each Subsidiary Guarantor agrees that no Guaranteed Party has any duty or responsibility whatsoever, now or in the future, to provide to such Subsidiary Guarantor any information concerning the Borrower or the Borrower’s financial condition and affairs, or any Other Information, other than as expressly provided herein, and that, if such Subsidiary Guarantor receives any such information from any Guaranteed Party or its employees, directors, agents or other representatives or affiliates, such Subsidiary Guarantor will independently verify the information and will not rely on such Guaranteed Party or its employees, directors, agents or other representatives or affiliates, with respect to such information.

 

20.          TERMINATION.  Subject to reinstatement in accordance with Section 18, this Agreement will terminate upon the payment in full of all Guaranteed Liabilities (other than contingent indemnification and expense reimbursement obligations which survive termination of the Credit Documents and in respect of which no claim has been made) and the termination or expiration of the Aggregate Commitments.

 

21.          COUNTERPARTS.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart executed by the party against whom enforcement is sought.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

22.          ADDITIONAL SUBSIDIARY GUARANTORS.  Upon execution and delivery by any Subsidiary of a subsidiary guaranty joinder agreement in form and substance reasonably satisfactory to the Administrative Agent (each a “Subsidiary Guaranty Joinder Agreement”), such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor herein.  The execution and delivery of a Subsidiary Guaranty Joinder Agreement adding an additional Subsidiary Guarantor as a party to this Agreement shall not require the consent of any other Subsidiary Guarantor hereunder.  The rights and obligations of each Subsidiary Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Guarantor as a party to this Agreement.

 

23.          ENTIRE AGREEMENT.  This Agreement and each Subsidiary Guaranty Joinder Agreement, together with the Credit Agreement and other Credit Documents, constitutes and expresses the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior negotiations, agreements and understandings, inducements, commitments or conditions, express or implied, oral or written, except as contained in the Credit Documents.  The express terms hereof and of the Subsidiary Guaranty Joinder Agreements control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof or thereof.  Neither this Agreement nor any Subsidiary Guaranty Joinder Agreement nor any portion or provision hereof or thereof may be changed, altered, modified, supplemented, discharged, canceled, terminated, or amended orally or in any manner other than as provided in the Credit Agreement.

 

[Signature pages follow.]

 

30

 

IN WITNESS WHEREOF, the parties have caused this Subsidiary Guaranty Agreement to be executed and delivered as of the day and year first written above.

 

	
 
    	
SUBSIDIARY GUARANTOR(S):
    
	
 
    	
 
    
	
 
    	
[                                                    ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
ADMINISTRATIVE AGENT:
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION,   as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]