Document:

Ex10.(vii)

Exhibit 10(viii) 

CONFORMED COPY 

 

ENERGIZER HOLDINGS, INC. 

$700,000,000 

Senior Notes 

$15,000,000 2.31% Senior Notes, Series A, Tranche 1, due June 30, 2006 

$10,000,000 2.72% Senior Notes, Series A, Tranche 2, due June 30, 2007 

$35,000,000 3.12% Senior Notes, Series A, Tranche 3, due June 30, 2008 

$20,000,000 3.40% Senior Notes, Series A, Tranche 4, due June 30, 2009 

$45,000,000 3.63% Senior Notes, Series A, Tranche 5, due June 30, 2010 

$25,000,000 3.86% Senior Notes, Series A, Tranche 6, due June 30, 2011 

$100,000,000 4.10% Senior Notes, Series A, Tranche 7, due June 30, 2012 

$125,000,000 4.25% Senior Notes, Series A, Tranche 8, due June 30, 2013 

$50,000,000 Floating Rate Senior Notes, Series B, Tranche 1, due June 30, 2008 

$115,000,000 Floating Rate Senior Notes, Series B, Tranche 2, due June 30, 2010 

$160,000,000 Floating Rate Senior Notes, Series B, Tranche 3, due June 30, 2013 

_________ 

NOTE PURCHASE AGREEMENT 

_________ 

Dated as of June 1, 2003 

 

	
Series A, Tranche 1 PPN: 29266R B@ 6 

Series A, Tranche 2 PPN: 29266R B# 4 

Series A, Tranche 3 PPN: 29266R C* 7 

Series A, Tranche 4 PPN: 29266R C@ 5 

Series A, Tranche 5 PPN: 29266R C# 3 

Series A, Tranche 6 PPN: 29266R D* 6 
	
Series A, Tranche 7 PPN: 29266R D@ 4 

Series A, Tranche 8 PPN: 29266R D# 2 

Series B, Tranche 1 PPN: 29266R E* 5 

Series B, Tranche 2 PPN: 29266R E@ 3 

Series B, Tranche 3 PPN: 29266R E# 1 

 

	 
	 	 	 
	

	 

TABLE OF CONTENTS 

	
Section 
	
Page 

	

	

	
1. 
	
AUTHORIZATION OF NOTES 
	
1 

	
 
	
1.1. 
	
The Notes 
	
1 

	
 
	
1.2. 
	
Floating Interest Rate Provisions for Series B Notes 
	
2 

	 	 	 
	
2. 
	
SALE AND PURCHASE OF NOTES. 
	
3 

	 	 	 
	
3. 
	
CLOSING 
	
4 

	 	 	 
	
4. 
	
CONDITIONS TO CLOSING 
	
4 

	
 
	
4.1. 
	
Representations and Warranties 
	
4 

	
 
	
4.2. 
	
Performance; No Default 
	
4 

	
 
	
4.3. 
	
Compliance Certificates 
	
5 

	
 
	
4.4. 
	
Opinions of Counsel 
	
5 

	
 
	
4.5. 
	
Purchase Permitted By Applicable Law, etc 
	
5 

	
 
	
4.6. 
	
Sale of Other Notes 
	
5 

	
 
	
4.7. 
	
Payment of Special Counsel Fees 
	
5 

	
 
	
4.8. 
	
Private Placement Numbers 
	
6 

	
 
	
4.9. 
	
Changes in Corporate Structure 
	
6 

	
 
	
4.10. 
	
Subsidiary Guaranty 
	
6 

	
 
	
4.11. 
	
Proceedings and Documents. 
	
6 

	 	 	 
	
5. 
	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
	
6 

	
 
	
5.1. 
	
Organization; Power and Authority 
	
6 

	
 
	
5.2. 
	
Authorization, etc 
	
7 

	
 
	
5.3. 
	
Disclosure 
	
7 

	
 
	
5.4. 
	
Organization and Ownership of Shares of Subsidiaries 
	
7 

	
 
	
5.5. 
	
Financial Statements 
	
8 

	
 
	
5.6. 
	
Compliance with Laws, Other Instruments, etc 
	
8 

	
 
	
5.7. 
	
Governmental Authorizations, etc. 
	
9 

	
 
	
5.8. 
	
Litigation; Observance of Statutes and Orders 
	
9 

	
 
	
5.9. 
	
Taxes 
	
9 

	
 
	
5.10. 
	
Title to Property; Leases 
	
9 

	
 
	
5.11. 
	
Licenses, Permits, etc 
	
10 

	
 
	
5.12. 
	
Compliance with ERISA 
	
10 

	
 
	
5.13. 
	
Private Offering by the Company 
	
11 

	
 
	
5.14. 
	
Use of Proceeds; Margin Regulations 
	
11 

	
 
	
5.15. 
	
Existing Indebtedness 
	
11 

	
 
	
5.16. 
	
Foreign Assets Control Regulations, Anti-Terrorism Order, etc 
	
12 

	
 
	
5.17. 
	
Status under Certain Statutes 
	
12 

	
 
	
5.18. 
	
Solvency of Subsidiary Guarantors 
	
12 

	
 
	
5.19. 
	
Environmental Matters 
	
12 

 

	 
	 	i	 
	

	 

 

	
6. 
	
REPRESENTATIONS OF THE PURCHASERS. 
	
13 

	
 
	
6.1. 
	
Purchase for Investment 
	
13 

	
 
	
6.2. 
	
Source of Funds 
	
13 

	 	 	 
	
7. 
	
INFORMATION AS TO COMPANY 
	
15 

	
 
	
7.1. 
	
Financial and Business Information 
	
15 

	
 
	
7.2. 
	
Officer’s Certificate 
	
17 

	
 
	
7.3. 
	
Inspection 
	
18 

	 	 	 
	
8. 
	
PREPAYMENT OF THE NOTES. 
	
19 

	
 
	
8.1. 
	
No Scheduled Prepayments 
	
19 

	
 
	
8.2. 
	
Optional Prepayments of Series A Notes with Make-Whole Amount 
	
19 

	
 
	
8.3. 
	
Optional Prepayments of Series B Notes 
	
19 

	
 
	
8.4. 
	
Allocation of Partial Prepayments 
	
19 

	
 
	
8.5. 
	
Maturity; Surrender, etc 
	
20 

	
 
	
8.6. 
	
Purchase of Notes 
	
20 

	
 
	
8.7. 
	
Make-Whole Amount 
	
20 

	
 
	
8.8. 
	
LIBOR Breakage Amount 
	
22 

	
9. 
	
AFFIRMATIVE COVENANTS 
	
22 

	 	 	 	 
	
 
	
9.1. 
	
Compliance with Law 
	
22 

	
 
	
9.2. 
	
Insurance 
	
23 

	
 
	
9.3. 
	
Maintenance of Properties 
	
23 

	
 
	
9.4. 
	
Payment of Taxes and Claims 
	
23 

	
 
	
9.5. 
	
Corporate Existence, etc 
	
23 

	 	 	 
	
10. 
	
NEGATIVE COVENANTS 
	
24 

	
 
	
10.1. 
	
Consolidated Indebtedness; Indebtedness of Restricted Subsidiaries. 
	
24 

	
 
	
10.2. 
	
Liens. 
	
24 

	
 
	
10.3. 
	
Sale of Assets. 
	
26 

	
 
	
10.4. 
	
Mergers, Consolidations, etc. 
	
26 

	
 
	
10.5. 
	
Disposition of Stock of Restricted Subsidiaries. 
	
27 

	
 
	
10.6. 
	
Designation of Restricted and Unrestricted Subsidiaries. 
	
27 

	
 
	
10.7. 
	
Restricted Subsidiary Guaranties 
	
28 

	
 
	
10.8. 
	
Nature of Business. 
	
28 

	
 
	
10.9. 
	
Transactions with Affiliates 
	
28 

	 	 	 
	
11. 
	
EVENTS OF DEFAULT 
	
28 

	 	 	 
	
12. 
	
REMEDIES ON DEFAULT, ETC 
	
31 

	
 
	
12.1. 
	
Acceleration 
	
31 

	
 
	
12.2. 
	
Other Remedies 
	
31 

	
 
	
12.3. 
	
Rescission 
	
32 

	
 
	
12.4. 
	
No Waivers or Election of Remedies, Expenses, etc 
	
32 

 

	 
	 	ii	 
	

	 

 

	
13. 
	
REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES 
	
32 

	
 
	
13.1. 
	
Registration of Notes 
	
32 

	
 
	
13.2. 
	
Transfer and Exchange of Notes 
	
33 

	
 
	
13.3. 
	
Replacement of Notes 
	
33 

	 	 	 
	
14. 
	
PAYMENTS ON NOTES. 
	
34 

	
 
	
14.1. 
	
Place of Payment 
	
34 

	
 
	
14.2. 
	
Home Office Payment 
	
34 

	 	 	 
	
15. 
	
EXPENSES, ETC 
	
34 

	
 
	
15.1. 
	
Transaction Expenses 
	
34 

	
 
	
15.2. 
	
Survival 
	
35 

	 	 	 
	
16. 
	
SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT 
	
35 

	 	 	 
	
17. 
	
AMENDMENT AND WAIVER 
	
35 

	
 
	
17.1. 
	
Requirements 
	
35 

	
 
	
17.2. 
	
Solicitation of Holders of Notes 
	
36 

	
 
	
17.3. 
	
Binding Effect, etc 
	
36 

	
 
	
17.4. 
	
Notes held by Company, etc 
	
37 

	 	 	 
	
18. 
	
NOTICES 
	
37 

	 	 	 
	
19. 
	
REPRODUCTION OF DOCUMENTS 
	
37 

	 	 	 
	
20. 
	
CONFIDENTIAL INFORMATION 
	
38 

	 	 	 
	
21. 
	
SUBSTITUTION OF PURCHASER 
	
39 

	 	 	 
	
22. 
	
RELEASE OF SUBSIDIARY GUARANTOR 
	
39 

	 	 	 
	
23. 
	
MISCELLANEOUS 
	
40 

	
 
	
23.1. 
	
Successors and Assigns 
	
40 

	
 
	
23.2. 
	
Payments Due on Non-Business Days 
	
40 

	
 
	
23.3. 
	
Severability 
	
40 

	
 
	
23.4. 
	
Construction 
	
40 

	
 
	
23.5. 
	
Counterparts 
	
40 

	
 
	
23.6. 
	
Governing Law 
	
40 

	 
	 	iii	 
	

	 

	
SCHEDULE A 
	
-- 
	
Information Relating to Purchasers 

	
SCHEDULE B 
	
-- 
	
Defined Terms 

	
SCHEDULE B-1 
	
-- 
	
Investments 

	
SCHEDULE 4.9 
	
-- 
	
Changes in Corporate Structure 

	
SCHEDULE 5.3 
	
-- 
	
Disclosure Materials 

	
SCHEDULE 5.4 
	
-- 
	
Subsidiaries of the Company and Ownership of Subsidiary Stock 

	
SCHEDULE 5.5 
	
-- 
	
Financial Statements 

	
SCHEDULE 5.11 
	
-- 
	
Licenses, Permits, etc. 

	
SCHEDULE 5.14 
	
-- 
	
Use of Proceeds 

	
SCHEDULE 5.15 
	
-- 
	
Indebtedness 

	
SCHEDULE 10.2 
	
-- 
	
Liens 

	
 
	
 
	
 

	
EXHIBIT 1.1(a) 
	
-- 
	
Form of Series A, Tranche 1, Note 

	
EXHIBIT 1.1(b) 
	
-- 
	
Form of Series A, Tranche 2, Note 

	
EXHIBIT 1.1(c) 
	
-- 
	
Form of Series A, Tranche 3, Note 

	
EXHIBIT 1.1(d) 
	
-- 
	
Form of Series A, Tranche 4, Note 

	
EXHIBIT 1.1(e) 
	
-- 
	
Form of Series A, Tranche 5, Note 

	
EXHIBIT 1.1(f) 
	
-- 
	
Form of Series A, Tranche 6, Note 

	
EXHIBIT 1.1(g) 
	
-- 
	
Form of Series A, Tranche 7, Note 

	
EXHIBIT 1.1(h) 
	
-- 
	
Form of Series A, Tranche 8, Note 

	
EXHIBIT 1.1(i) 
	
-- 
	
Form of Series B, Tranche 1, Note 

	
EXHIBIT 1.1(j) 
	
-- 
	
Form of Series B, Tranche 2, Note 

	
EXHIBIT 1.1(k) 
	
-- 
	
Form of Series B, Tranche 3, Note 

	
EXHIBIT 1.1(l) 
	
-- 
	
Form of Subsidiary Guaranty 

	
EXHIBIT 4.4(a) 
	
-- 
	
Form of Opinion of Counsel for the Company and the Subsidiary Guarantors 

	
EXHIBIT 4.4(b) 
	
-- 
	
Form of Opinion of Special Counsel for the Purchasers 

 

	
 

	 	iv	 
	

	

ENERGIZER HOLDINGS, INC. 

800 Chouteau Avenue 

St. Louis, MO 63102 

(314) 982-2970 

Fax: (314) 982-1334 

$700,000,000 

Senior Notes 

$15,000,000 2.31% Senior Notes, Series A, Tranche 1, due June 30, 2006 

$10,000,000 2.72% Senior Notes, Series A, Tranche 2, due June 30, 2007 

$35,000,000 3.12% Senior Notes, Series A, Tranche 3, due June 30, 2008 

$20,000,000 3.40% Senior Notes, Series A, Tranche 4, due June 30, 2009 

$45,000,000 3.63% Senior Notes, Series A, Tranche 5, due June 30, 2010 

$25,000,000 3.86% Senior Notes, Series A, Tranche 6, due June 30, 2011 

$100,000,000 4.10% Senior Notes, Series A, Tranche 7, due June 30, 2012 

$125,000,000 4.25% Senior Notes, Series A, Tranche 8, due June 30, 2013 

$50,000,000 Floating Rate Senior Notes, Series B, Tranche 1, due June 30, 2008 

$115,000,000 Floating Rate Senior Notes, Series B, Tranche 2, due June 30, 2010 

$160,000,000 Floating Rate Senior Notes, Series B, Tranche 3, due June 30, 2013 

Dated as of June 1, 2003 

TO EACH OF THE PURCHASERS LISTED IN 

THE ATTACHED SCHEDULE A: 

Ladies and Gentlemen: 

 

      ENERGIZER HOLDINGS, INC., a Missouri corporation (the "Company"), agrees with you as follows: 

1.       AUTHORIZATION OF NOTES. 

 

1.1.    The Notes. 

 

 

The Company has authorized the issue and sale of $700,000,000 aggregate principal amount of its Senior Notes consisting of: (i) $15,000,000 aggregate principal amount of 2.31% Senior Notes, Series A, Tranche 1, due June 30, 2006 (the "Series A, Tranche 1, Notes"); (ii) $10,000,000 aggregate principal amount of 2.72% Senior Notes, Series A, Tranche 2, due June 30, 2007 (the "Series A, Tranche 2, Notes"); (iii) $35,000,000 aggregate principal amount of 3.12% Senior Notes, Series A, Tranche 3, due June 30, 2008 (the "Series A, Tranche 3, Notes"); (iv) $20,000,000 aggregate principal amount of 3.40% Senior Notes, Series A, Tranche 4, due June 30, 2009 (the "Series A, Tranche 4, Notes"); (v) $45,000,000 aggregate principal amount of 3.63% Senior Notes, Series A, Tranche 5, due June 30, 2010 (the "Series A, 

 

	 
	 	 	 
	

	 

 

Tranche 5, Notes"); (vi) $25,000,000 aggregate principal amount of 3.86% Senior Notes, Series A, Tranche 6, due June 30, 2011 (the "Series A, Tranche 6, Notes"); (vii) $100,000,000 aggregate principal amount of 4.10% Senior Notes, Series A, Tranche 7, due June 30, 2012 (the "Series A, Tranche 7 Notes"); (viii) $125,000,000 aggregate principal amount of 4.25% Senior Notes, Series A, Tranche 8, due June 30, 2013 (the "Series A, Tranche 8 Notes" and, collectively with the Series A, Tranche 1, Tranche 2, Tranche 3, Tranche 4, Tranche 5, Tranche 6 and Tranche 7 Notes, the "Series A Notes"); (ix) $50,000,000 aggregate principal amount of Floating Rate Senior Notes, Series B, Tranche 1, due June 30, 2008 (the "Series B, Tranche 1, Notes"); (x) $115,000,000 aggregate principal amount of Floating Rate Senior Notes, Series B, Tranche 2, due June 30, 2010 (the "Series B, Tranche 2, Notes"); $160,000,000 aggregate principal amount of Floating Rate Senior Notes, Series B, Tranche 3, due June 30, 2013 (the "Series B, Tranche 2, Notes" and, collectively with the Series B, Tranche 1 and Tranche 2 Notes, the "Series B Notes"). The Series A Notes and Series B Notes are collectively referred to as the "Notes," such term to include any such Notes issued in substitution therefor pursuant to Section 13 of this Agreement, and will be substantially in the forms set out in Exhibits 1(a) through 1(k), with such changes therefrom, if any, as may be approved by the purchasers of such Notes, or series or tranche thereof, and the Company. Certain capitalized terms used in this Agreement are defined in Schedule B; references to a "Schedule" or an "Exhibit" are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. Subject to Section 22, the Notes will be guaranteed by each Subsidiary that is now or in the future becomes a signatory to the Bank Guarantees (individually, a "Subsidiary Guarantor" and collectively, the "Subsidiary Guarantors") pursuant to a guaranty in substantially the form of Exhibit 1(l) (the "Subsidiary Guaranty"). 

1.2.    Floating Interest Rate Provisions for Series B Notes. 

 

(a)    Adjusted LIBOR Rate . "Adjusted LIBOR Rate" means, for each Interest Period, the rate per annum equal to LIBOR for such Interest Period plus the percentage applicable to each tranche of Series B Notes as specified below. 

 

	
Series B Notes 
	
Applicable Percentage 

	

	

	
Tranche 1 
	
0.65% 

	
Tranche 2 
	
0.70% 

	
Tranche 3 
	
0.75% 

For purposes of determining Adjusted LIBOR Rate, the following terms have the following meanings: 

 

"LIBOR" means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a 3-month period that appears on the Bloomberg Financial Markets Service Page BBAM-1 (or if such page is not available, the Reuters Screen LIBO Page) as of 11:00 a.m. (London, England time) on the date two Business Days before the commencement of such Interest Period (or three Business Days before the commencement of the first Interest Period). 

 

	 
	 	2	 
	

	 

 

"Reuters Screen LIBO Page" means the display designated as the "LIBO" page on the Reuters Monitory Money Rates Service (or such other page as may replace the LIBO page on that service or such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for U.S. Dollar deposits). 

 

(b)    Determination of the Adjusted LIBOR Rate . The Adjusted LIBOR Rate shall be determined by the Company, and notice thereof shall be given to the holders of the tranche of Series B Notes affected, within two Business Days after the beginning of each Interest Period, together with (i) a copy of the relevant screen used for the determination of LIBOR, (ii) a calculation of the Adjusted LIBOR Rate for such Interest Period, (iii) the number of days in such Interest Period, (iv) the date on which interest for such Interest Period will be paid and (v) the amount of interest to be paid to each holder of affected Notes on such date. If the holders of a majority in principal amount of the tranche of Series B Notes affected do not concur with such determination by the Company, as evidenced by a single written notice delivered to the Company within 10 Business Days after receipt by such holders of the notice delivered by the Company pursuant to the immediately preceding sentence, the determination of the Adjusted LIBOR Rate shall be made by such holders of the Notes, and any such determination made in accordance with the provisions of this Agreement shall be conclusive and binding absent manifest error. 

 

(c)    Interest Period . "Interest Period" means, for any tranche of Series B Notes and for any period for which interest is to be calculated or paid, the period commencing on the Interest Payment Date on the Series B Notes and continuing up to, but not including, the next March 31, June 30, September 30 or December 31, as the case may be; provided, however, that the first Interest Period shall commence on the date of Closing and continue up to, but not include, September 30, 2003. 

 

2.    SALE AND PURCHASE OF NOTES. 

 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to you and each of the other purchasers named in Schedule A (the "Other Purchasers"), and you and the Other Purchasers will purchase from the Company, at the Closing provided for in Section 3, Notes of the series and tranche and in the principal amount specified opposite your names in Schedule A at the purchase price of 100% of the principal amount thereof. Your obligation hereunder and the obligations of the Other Purchasers are several and not joint obligations and you shall have no liability to any Person for the performance or non-performance by any Other Purchaser hereunder. 

 

	 
	 	3	 
	

	 

 

3.    CLOSING. 

 

The sale and purchase of the Notes to be purchased by you and the Other Purchasers shall occur at the offices of Gardner Carton & Douglas LLC, 191 North Wacker Drive, Suite 3700, Chicago, Illinois 60606-1698, at 9:00 a.m., Chicago time, at a closing (the "Closing") on June 26, 2003 or on such other Business Day thereafter on or prior to June 30, 2003 as may be agreed upon by the Company and you and the Other Purchasers. At the Closing the Company will deliver to you the Notes to be purchased by you in the form of a single Note (or such greater number of Notes in denominations of at least $500,000 as you may request) dated the date of the Closing and registered in your name (or in the name of your nominee), against delivery by you to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number 12331-33027 at Bank of America, San Francisco, California, ABA No. 121000358. If at the Closing the Company fails to tender such Notes to you as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to your satisfaction, you shall, at your election, be relieved of all further obligations under this Agreement, without thereby waiving any rights you may have by reason of such failure or such nonfulfillment. 

4.    CONDITIONS TO CLOSING. 

 

Your obligation to purchase and pay for the Notes to be sold to you at the Closing is subject to the fulfillment to your satisfaction, prior to or at the Closing, of the following conditions: 

4.1.    Representations and Warranties. 

 

The representations and warranties of the Company in this Agreement shall be correct when made and correct in all material respects at the time of the Closing. 

4.2.    Performance; No Default. 

 

The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Schedule 5.14) no Default or Event of Default shall have occurred and be continuing. 

4.3.    Compliance Certificates. 

 

(a)    Officer’s Certificate . The Company shall have delivered to you an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled. 

 

(b)    Secretary’s Certificate . The Company shall have delivered to you a certificate certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and the Agreement. 

 

	 
	 	4	 
	

	 

 

4.4.    Opinions of Counsel. 

 

You shall have received opinions in form and substance satisfactory to you, dated the date of the Closing (a) from Bryan Cave LLP, counsel for the Company and the Subsidiary Guarantors, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as you or your counsel may reasonably request (and the Company instructs its counsel to deliver such opinion to you) and (b) from Gardner Carton & Douglas LLC, your special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as you may reasonably request. 

4.5.    Purchase Permitted By Applicable Law, etc. 

 

On the date of the Closing your purchase of Notes shall (i) be permitted by the laws and regulations of each jurisdiction to which you are subject, without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (ii) not violate any applicable law or regulation (including, without limitation, Regulation U, T or X of the Board of Governors of the Federal Reserve System) and (iii) not subject you to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by you, you shall have received an Officer’s Certificate certifying as to such matters of fact as you may reasonably specify to enable you to determine whether such purchase is so permitted. 

4.6.    Sale of Other Notes. 

 

Contemporaneously with the Closing the Company shall sell to the Other Purchasers and the Other Purchasers shall purchase the Notes to be purchased by them at the Closing as specified in Schedule A. 

4.7.    Payment of Special Counsel Fees. 

 

Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of your special counsel referred to in Section 4.4, to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing. 

4.8.    Private Placement Numbers. 

 

Private Placement Numbers issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained by Gardner Carton & Douglas LLC for each tranche of the Notes. 

 

	 
	 	5	 
	

	 

 

4.9.    Changes in Corporate Structure. 

 

Except as specified in Schedule 4.9 the Company shall not have changed its jurisdiction of incorporation or been a party to any merger or consolidation and shall not have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5. 

4.10.    Subsidiary Guaranty. 

 

Each Subsidiary Guarantor shall have executed and delivered the Subsidiary Guaranty in favor of you and the Other Purchasers. 

4.11.    Proceedings and Documents. 

 

All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to you and your special counsel, and you and your special counsel shall have received all such counterpart originals or certified or other copies of such documents as you or they may reasonably request. 

5.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 

The Company represents and warrants to you that: 

5.1.    Organization; Power and Authority. 

 

The Company is a corporation 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 Company 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 Agreement and the Notes and to perform the provisions hereof and thereof. 

5.2.    Authorization, etc. 

 

This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a 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). 

 

	 
	 	6	 
	

	 

 

The Subsidiary Guaranty has been duly authorized by all necessary corporate action on the part of each Subsidiary Guarantor and upon execution and delivery thereof will constitute the legal, valid and binding obligation of each Subsidiary Guarantor, enforceable against each Subsidiary Guarantor 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). 

5.3.    Disclosure. 

 

The Company, through its agents, Banc of America Securities LLC and Banc One Capital Markets, Inc., has delivered to you and each Other Purchaser a copy of a Private Placement Memorandum, dated May 2003 and the supplemental financial information referred to therein (the "Memorandum"), relating to the transactions contemplated hereby. Except as disclosed in Schedule 5.3, this Agreement, the Memorandum, the documents, certificates or other writings identified in Schedule 5.3 and the financial statements listed in Schedule 5.5, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Memorandum or as expressly described in Schedule 5.3, or in one of the documents, certificates or other writings identified therein, or in the financial statements listed in Schedule 5.5, since September 30, 2002, there has been no change in the financial condition, operations, business or properties of the Company or any Subsidiary except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect. 

5.4.    Organization and Ownership of Shares of Subsidiaries. 

 

(a)    Schedule 5.4 is (except as noted therein) a complete and correct list of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary. 

 

(b)    All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4). 

 

(c)    Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity 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. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 

 

	 
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5.5.    Financial Statements. 

 

The Company has delivered to you and each Other Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial condition of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). 

5.6.    Compliance with Laws, Other Instruments, etc. 

 

The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) 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 Company or any Restricted Subsidiary under, any Material agreement, or corporate charter or By-Laws, to which the Company or any Restricted Subsidiary is bound or by which the Company or any Restricted Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with 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 Company or any Restricted Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Restricted Subsidiary. 

The execution, delivery and performance by each Subsidiary Guarantor of the Subsidiary Guaranty will not (i) 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 such Subsidiary Guarantor under, any agreement, or corporate charter or by-laws, to which such Subsidiary Guarantor is bound or by which such Subsidiary Guarantor or any of its properties may be bound or affected, (ii) conflict with 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 such Subsidiary Guarantor or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Subsidiary Guarantor. 

5.7.    Governmental Authorizations, etc. 

 

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 Company of this Agreement or the Notes or the execution, delivery or performance by each Subsidiary Guarantor of the Subsidiary Guaranty. 

 

	 
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5.8.    Litigation; Observance of Statutes and Orders. 

 

(a)    Except as disclosed in the Memorandum, there are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 

 

(b)    Neither the Company nor any Subsidiary is in default under any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including Environmental Laws and the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 

 

5.9.    Taxes. 

 

The Company and its Subsidiaries have filed all income tax returns that are required to have been filed in any jurisdiction, and have paid all taxes, to the extent such taxes are payable by them, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Federal income tax liabilities of the Company and its Subsidiaries have been determined by the Internal Revenue Service and paid for all fiscal years up to and including the fiscal year ended September 30, 1992. 

5.10.    Title to Property; Leases. 

 

The Company and its Subsidiaries have good and sufficient title to their respective Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement, except for those defects in title and Liens that, individually or in the aggregate, would not have a Material Adverse Effect. All Material leases are valid and subsisting and are in full force and effect in all material respects. 

 

	 
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5.11.    Licenses, Permits, etc. 

 

Except as disclosed in Schedule 5.11, the Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, service marks, trademarks and trade names, or rights thereto, that are Material, without known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have a Material Adverse Effect. 

5.12.    Compliance with ERISA. 

 

(a)    The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in Section 3 of ERISA), and no event, transaction or condition has occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other than such liabilities or Liens as would not be individually or in the aggregate Material. 

 

(b)    The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans) that is a defined benefit pension plan qualified under Code Section 401(a), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities. The term "benefit liabilities" has the meaning specified in section 4001 of ERISA and the terms "current value" and "present value" have the meaning specified in section 3 of ERISA. 

 

(c)    The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material. 

 

(d)    The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material or has been disclosed in the most recent audited consolidated financial statements of the Company and its Subsidiaries. 

 

(e)    The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax would be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of your representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by you. 

 

	 
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5.13.    Private Offering by the Company. 

 

Neither the Company nor anyone acting on its behalf has offered the Notes, the Subsidiary Guaranty or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than you, the Other Purchasers and not more than 34 other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes or the execution and delivery of the Subsidiary Guaranty to the registration requirements of Section 5 of the Securities Act. 

5.14.    Use of Proceeds; Margin Regulations. 

 

The Company will apply the proceeds of the sale of the Notes for general corporate purposes, including repayment of Indebtedness as set forth in Schedule 5.14. No part of the proceeds from the sale of the Notes will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets. As used in this Section, the terms "margin stock" and "purpose of buying or carrying" shall have the meanings assigned to them in said Regulation U. 

5.15.    Existing Indebtedness. 

 

Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of March 31, 2003 (except as otherwise indicated), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any Restricted Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Restricted Subsidiary that is outstanding in an aggregate principal amount in excess of $5,000,000 and no event or condition exists with respect to any Indebtedness of the Company or any Restricted Subsidiary that is outstanding in an aggregate principal amount in excess of $5,000,000 and that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

 

	 
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5.16.    Foreign Assets Control Regulations , Anti-Terrorism Order, etc. 

 

Neither the sale of the Notes by the Company hereunder nor its use of the proceeds thereof will violate (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto or (c) to the knowledge of the Company, the Anti-Terrorism Order. Without limiting the foregoing, neither Company nor any Subsidiary (i) is a blocked person described in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions, or is otherwise associated, with any such person. 

5.17.    Status under Certain Statutes. 

 

Neither the Company nor any Restricted Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 1935, as amended, the Interstate Commerce Act, as amended by the ICC Termination Act, as amended, or the Federal Power Act, as amended. 

5.18.    Solvency of Subsidiary Guarantors. 

 

After giving effect to the transactions contemplated herein, (i) the present fair salable value of the assets of each Subsidiary Guarantor is in excess of the amount that will be required to pay its probable liability on its existing debts as said debts become absolute and matured, (ii) each Subsidiary Guarantor has received reasonably equivalent value for executing and delivering the Subsidiary Guaranty, (iii) the property remaining in the hands of each Subsidiary Guarantor is not an unreasonably small capital, and (iv) each Subsidiary Guarantor is able to pay its debts as they mature. 

5.19.    Environmental Matters. 

 

Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect. Except as otherwise disclosed to you in writing, 

(a)    neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect; 

 

	 
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(b)    neither the Company nor any of its Subsidiaries has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that could reasonably be expected to result in a Material Adverse Effect; and 

 

(c)    all buildings on all real properties now owned, leased or operated by the Company or any of its Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect. 

 

6.    REPRESENTATIONS OF THE PURCHASERS. 

 

6.1.    Purchase for Investment. 

 

You represent that you are purchasing the Notes for your own account or for one or more separate accounts maintained by you or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of your or their property shall at all times be within your or their control. You understand that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

6.2.    Source of Funds. 

 

You represent that at least one of the following statements is an accurate representation as to each source of funds (a "Source") to be used by you to pay the purchase price of the Notes to be purchased by you hereunder: 

(a)    the Source is an "insurance company general account" (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption ("PTE") 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the "NAIC Annual Statement")) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or 

 

(b)    the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or 

 

	 
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(c)    the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank collective investment fund, within the meaning of PTE 91-38 (issued July 12, 1991) and, except as you have disclosed to the Company in writing pursuant to this paragraph (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 

 

(d)    the Source constitutes assets of an "investment fund" (within the meaning of Part V of PTE 84-14 (the "QPAM Exemption")) managed by a "qualified professional asset manager" or "QPAM" (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of "control" in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or 

 

(e)    the Source constitutes assets of a "plan(s)" (within the meaning of Section IV of PTE 96-23 (the "INHAM Exemption")) managed by an "in-house asset manager" or "INHAM" (within the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of "control" in Section IV(h) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 

 

(f)    the Source is a governmental plan; or 

 

(g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this paragraph (g); or 

 

(h)    the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 

As used in this Section 6.2, the terms "employee benefit plan", "governmental plan" and "separate account" shall have the respective meanings assigned to such terms in Section 3 of ERISA. 

 

	 
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7.    INFORMATION AS TO COMPANY. 

 

7.1.    Financial and Business Information 

 

The Company will deliver to each holder of Notes that is an Institutional Investor: 

(a)    Quarterly Statements -- within 60 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of, 

 

(i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and 

 

(ii)    consolidated statements of earnings and stockholders’ equity of the Company and its Subsidiaries for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, and 

 

(iii)    consolidated statements of cash flows of the Company and its Subsidiaries for such quarter or (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 

 

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial condition of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(a); 

(b)    Annual Statements -- within 105 days after the end of each fiscal year of the Company, duplicate copies of, 

 

(i)    a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year, and 

 

(ii)    consolidated statements of income, changes in stockholders’ equity and cash flows of the Company and its Subsidiaries, for such year, 

 

	 
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setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial condition of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(b); 

(c)    Unrestricted Subsidiaries -- if, at the time of delivery of any financial statements pursuant to Section 7.1(a) or (b), Unrestricted Subsidiaries account for more than 10% of (i) the consolidated total assets of the Company and its Subsidiaries reflected in the balance sheet included in such financial statements or (ii) the consolidated revenues of the Company and its Subsidiaries reflected in the consolidated statement of income included in such financial statements, an unaudited balance sheet for all Unrestricted Subsidiaries taken as whole as at the end of the fiscal period included in such financial statements and the related unaudited statements of income, stockholders’ equity and cash flows for such Unrestricted Subsidiaries for such period, together with consolidating statements reflecting all eliminations or adjustments necessary to reconcile such group financial statements to the consolidated financial statements of the Company and its Subsidiaries; 

 

(d)    SEC and Other Reports -- promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Restricted Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration statement (other than a Registration Statement on Form S-8) that shall have become effective (without exhibits except as expressly requested by such holder), and each final prospectus and all amendments (other than one relating sole to employee benefit plans) thereto filed by the Company or any Restricted Subsidiary with the Securities and Exchange Commission; 

 

(e)    Notice of Default or Event of Default -- promptly, and in any event within five Business Days after a Responsible Officer obtains actual knowledge of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; 

 

(f)    ERISA Matters -- promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto: 

 

	 
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(i)    with respect to any Plan, any reportable event, as defined in section 4043(b) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or 

 

(ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or 

 

(iii)    any event, transaction or condition that would result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect; and 

 

(g)    Requested Information -- with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of Notes. 

 

7.2.    Officer’s Certificate. 

 

Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or (b) shall be accompanied by a certificate of a Senior Financial Officer setting forth: 

(a)    Covenant Compliance -- the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 10.1 through Section 10.9, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and 

 

(b)    Event of Default -- a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Restricted Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including any such event or condition resulting from the failure of the Company or any Restricted Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 

 

	 
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7.3.    Inspection. 

 

The Company will permit the representatives of each holder of Notes that is an Institutional Investor: 

(a)    No Default -- if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and, with the consent of the Company (which consent will not be unreasonably withheld), to visit the other offices and properties of the Company and each Restricted Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and 

 

(b)    Default -- if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances, and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. 

 

8.    PREPAYMENT OF THE NOTES. 

 

8.1.    No Scheduled Prepayments. 

 

No regularly scheduled prepayments are due on the Notes prior to their stated maturity. 

8.2.    Optional Prepayments of Series A Notes with Make-Whole Amount. 

 

The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Series A Notes, in an amount not less than $1,000,000 in the aggregate in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of Notes of the series to be prepaid written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.4), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. 

 

	 
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8.3.    Optional Prepayments of Series B Notes. 

 

The Series B Notes are not subject to prepayment prior to June 30, 2005. The Company may on or after June 30, 2005, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any tranche of the Series B Notes, in an amount not less than $1,000,000 in the aggregate in the case of a partial prepayment, at 100% of the principal amount so prepaid and if such prepayment is to occur on any date other than an Interest Payment Date, the LIBOR Breakage Amount, if any. The Company will give each holder of the tranche or tranches of Series B Notes to be prepaid written notice of each optional prepayment under this Section 8.3 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the tranche of Series B Notes to be prepaid on such date, the principal amount of each Series B Note held by such holder to be prepaid (determined in accordance with Section 8.4), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid. 

 

8.4.    Allocation of Partial Prepayments. 

 

In the case of each partial prepayment of the Series A Notes, the principal amount of the Series A Notes to be prepaid shall be allocated among all of the Series A Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. In the case of each partial prepayment of a tranche of Series B Notes, the principal amount of the Notes of such tranche to be prepaid shall be allocated among all of the Notes of such tranche at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. 

8.5.    Maturity; Surrender, etc. 

 

In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any, and LIBOR Breakage Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, and LIBOR Breakage Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and canceled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 

 

	 
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8.6.    Purchase of Notes. 

 

The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days. If the holders of more than 25% of the principal amount of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least ten Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 

8.7.    Make-Whole Amount. 

 

The term "Make-Whole Amount" means, with respect to any Series A Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Series A Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 

"Called Principal" means, with respect to any Series A Note, the principal of such Series A Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

"Discounted Value" means, with respect to the Called Principal of any Series A Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Series A Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 

"Reinvestment Yield" means, with respect to the Called Principal of any Series A Note, .50% over the yield to maturity implied by (i) the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as the "PX Screen" on the Bloomberg Financial Market Service (or such other display as may replace the PX Screen on Bloomberg Financial Market Service) for actively traded U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable, the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the actively traded U.S. Treasury security with the maturity closest to and greater than the Remaining Average Life and (2) the actively traded U.S. Treasury security with the maturity closest to and less than the Remaining Average Life. 

 

	 
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"Remaining Average Life" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 

"Remaining Scheduled Payments" means, with respect to the Called Principal of any Series A Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Series A Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1. 

"Settlement Date" means, with respect to the Called Principal of any Series A Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

8.8.    LIBOR Breakage Amount. 

 

The term " LIBOR Breakage Amount " means any loss, cost or expense reasonably incurred by any holder of a Series B Note as a result of any payment or prepayment of such Note (whether voluntary, mandatory, automatic, by reason of acceleration or otherwise) on a day other than an Interest Payment Date or at scheduled maturity thereof, and any loss or expense arising from the liquidation or reemployment of funds obtained by such holder or from fees payable to terminate the deposits from which such funds were obtained. Any such loss, cost or expense shall be limited to the time period from the date of such prepayment through the earlier of the next Interest Payment Date or the maturity of such Series B Note. Each holder of a Series B Note shall determine the LIBOR Breakage Amount with respect to the principal amount of its Series B Notes then being paid or prepaid (or required to be paid or prepaid) by written notice to the Company setting forth such determination in reasonable detail not less than two Business Days prior to the date of prepayment. Each such determination shall be conclusive absent manifest error. 

 

	 
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9.    AFFIRMATIVE COVENANTS. 

 

The Company covenants that so long as any of the Notes are outstanding: 

9.1.    Compliance with Law. 

 

The Company will, and will cause each Subsidiary to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Restricted Subsidiaries taken as a whole. 

9.2.    Insurance. 

 

The Company will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated. 

9.3.    Maintenance of Properties. 

 

The Company will and will cause each Restricted Subsidiary to maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Restricted Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Restricted Subsidiaries taken as a whole. 

 

	 
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9.4.    Payment of Taxes and Claims. 

 

The Company will, and will cause each Subsidiary to, file all income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent such taxes and assessments have become due and payable and before they have become delinquent, provided that neither the Company nor any Subsidiary need pay any such tax or assessment or claims if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes and assessments in the aggregate could not reasonably be expected to have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 

9.5.    Corporate Existence, etc. 

 

The Company will at all times preserve and keep in full force and effect its corporate existence. Subject to Sections 10.3 and 10.4, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Restricted Subsidiaries (unless merged into the Company or a Wholly-Owned Restricted Subsidiary) and all rights and franchises of the Company and its Restricted Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect a particular corporate existence, right or franchise could not, individually or in the aggregate, have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Restricted Subsidiaries taken as a whole. 

10.    NEGATIVE COVENANTS. 

 

The Company covenants that so long as any of the Notes are outstanding: 

10.1.    Consolidated Indebtedness; Indebtedness of Restricted Subsidiaries. 

 

The Company will not permit: 

(a)    the ratio of Consolidated Indebtedness (as of the date of determination) to EBITDA (for the Company’s then most recently completed four fiscal quarters) to be greater than 3.5 to 1.0 at any time ; and 

 

(b)    any Restricted Subsidiary to incur any Indebtedness if, after giving effect thereto and to the application of the proceeds therefrom, Priority Debt outstanding would exceed 20% of Consolidated Total Capitalization. For purposes of this Section 10.1(b), any unsecured Indebtedness of a Restricted Subsidiary that is a Subsidiary Guarantor shall be deemed to have been incurred by such Subsidiary at the time it ceases to be a Subsidiary Guarantor. 

 

	 
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10.2.    Liens. 

 

The Company will not, and will not permit any Restricted Subsidiary to, permit to exist, create, assume or incur, directly or indirectly, any Lien on its properties or assets, whether now owned or hereafter acquired, except: 

(a)    Liens existing on property or assets of the Company or any Restricted Subsidiary as of the date of this Agreement that are described in Schedule 10.2; 

 

(b)    Liens for taxes, assessments or governmental charges not then due and delinquent or the nonpayment of which is permitted by Section 9.4; 

 

(c)    encumbrances in the nature of leases, subleases, zoning restrictions, easements, rights of way and other rights and restrictions of record on the use of real property and defects in title arising or incurred in the ordinary course of business, which, individually and in the aggregate, do not materially impair the use or value of the property or assets subject thereto or which relate only to assets that in the aggregate are not material; 

 

(d)    Liens incidental to the conduct of business or the ownership of properties and assets (including landlords’, lessors’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar liens) and Liens to secure the performance of bids, tenders, leases or trade contracts, or to secure statutory obligations (including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens of like general nature incurred in the ordinary course of business and not in connection with the borrowing of money; 

 

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

 

(f)    Liens securing Indebtedness of a Restricted Subsidiary to the Company or to another Restricted Subsidiary and Liens securing Indebtedness of the Company to a Restricted Subsidiary; 

 

(g)    Liens (i) existing on property at the time of its acquisition by the Company or a Restricted Subsidiary and not created in contemplation thereof, whether or not the Indebtedness secured by such Lien is assumed by the Company or a Restricted Subsidiary; or (ii) on property created contemporaneously with its acquisition or within 180 days of the acquisition or completion of construction thereof to secure or provide for all or a portion of the purchase price or cost of construction of such property after the date of Closing; or (iii) existing on property of a Person at the time such Person is merged or consolidated with, or becomes a Restricted Subsidiary of, or substantially all of its assets are acquired by, the Company or a Restricted Subsidiary and not created in contemplation thereof; provided that in the case of clauses (i), (ii) and (iii) such Liens do not extend to additional property of the Company or any Restricted Subsidiary (other than property that is an improvement to or is acquired for specific use in connection with the subject property) and, in the case of clause (ii) only, that the aggregate principal amount of Indebtedness secured by each such Lien does not exceed the lesser of the fair market value (determined in good faith by one or more officers of the Company to whom authority to enter into such transaction has been delegated by the board of directors of the Company) or cost of acquisition or construction of the property subject thereto; 

 

	 
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(h)    Liens incurred in connection with Asset Securitization Transactions; 

 

(i)    Liens resulting from extensions, renewals or replacements of Liens permitted by paragraphs (a), (f), (g) and (h), provided that (i) there is no increase in the principal amount or decrease in maturity of the Indebtedness secured thereby at the time of such extension, renewal or replacement, (ii) any new Lien attaches only to the same property theretofore subject to such earlier Lien and (iii) immediately after such extension, renewal or replacement no Default or Event of Default would exist; and 

 

(j)    Liens securing Indebtedness not otherwise permitted by paragraphs (a) through (h) 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, Priority Debt outstanding does not exceed 20% of Consolidated Total Capitalization. 

 

10.3.    Sale of Assets. 

 

Except as permitted by Section 10.4, the Company will not, and will not permit any Restricted Subsidiary to, sell, lease, transfer or otherwise dispose of, including by way of merger (collectively a "Disposition"), any assets, including capital stock of Restricted Subsidiaries, in one or a series of transactions, to any Person, other than (a) Dispositions in the ordinary course of business, (b) Dispositions by the Company to a Restricted Subsidiary or by a Restricted Subsidiary to the Company or another Restricted Subsidiary or (c) Dispositions not otherwise permitted by clauses (a) or (b) of this Section 10.3, provided that the aggregate net book value of all assets so disposed of in any fiscal year pursuant to this Section 10.3(c) does not exceed 15% of Consolidated Total Assets as of the end of the immediately preceding fiscal year. Notwithstanding the foregoing, the Company may, or may permit any Restricted Subsidiary to, make a Disposition (including the sale of receivables in an Asset Securitization Transaction) and the assets subject to such Disposition shall not be subject to or included in the foregoing limitation and computation contained in clause (c) of the preceding sentence to the extent that (i) such assets were acquired or constructed not more than 180 days prior to the date of Closing and are leased back by the Company or any Restricted Subsidiary, as lessee, within 180 days of the acquisition or construction thereof, or (ii) the net proceeds from such Disposition are within one year of such Disposition ( A ) reinvested in productive assets by the Company or a Restricted Subsidiary or (B) applied to the payment or prepayment of any outstanding Indebtedness of the Company or any Restricted Subsidiary that is not subordinated to the Notes. Any prepayment of Notes pursuant to this Section 10.3 shall be in accordance with Sections 8.2 or 8.3, as applicable, and Section 8.4 without regard to the minimum prepayment requirements of Section 8.2 or 8.3, as applicable. 

 

	 
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10.4.    Mergers, Consolidations, etc. 

 

The Company will not, and will not permit any Restricted Subsidiary to, consolidate with or merge with any other Person or convey, transfer, sell or lease all or substantially all of its assets in a single transaction or series of transactions to any Person except that: 

(a)    the Company may consolidate or merge with any other Person or convey, transfer, sell or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, provided that: 

 

(i)    the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer, sale or lease all or substantially all of the assets of the Company as an entirety, as the case may be, is a solvent corporation organized and existing under the laws of the United States or any state thereof (including the District of Columbia), and, if the Company is not such corporation, such corporation (y) shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (z) shall have caused to be delivered to each holder of any Notes an opinion of independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and 

 

(ii)    immediately before and after giving effect to such transaction, no Default or Event of Default shall exist; and 

 

(b)    Any Restricted Subsidiary may (x) merge into the Company (provided that the Company is the surviving corporation) or another Wholly Owned Restricted Subsidiary or (y) sell, transfer or lease all or any part of its assets to the Company or another Wholly Owned Restricted Subsidiary, or (z) merge or consolidate with, or sell, transfer or lease all or substantially all of its assets to, any Person in a transaction that is permitted by Section 10.3 or, as a result of which, such Person becomes a Restricted Subsidiary; provided in each instance set forth in clauses (x) through (z) that, immediately before and after giving effect thereto, there shall exist no Default or Event of Default; 

 

No such conveyance, transfer, sale or lease of all or substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation that shall theretofore have become such in the manner prescribed in this Section 10.4 from its liability under this Agreement or the Notes. 

 

	 
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10.5.    Disposition of Stock of Restricted Subsidiaries. 

 

The Company (i) will not permit any Restricted Subsidiary to issue its capital stock, or any warrants, rights or options to purchase, or securities convertible into or exchangeable for, such capital stock, to any Person other than the Company or another Restricted Subsidiary (other than directors’ qualifying shares, shares satisfying local ownership requirements or shares for any similar statutory purposes) and (ii) will not, and will not permit any Restricted Subsidiary to, sell, transfer or otherwise dispose of any shares of capital stock of a Restricted Subsidiary if such sale would be prohibited by Section 10.3. If a Restricted Subsidiary at any time ceases to be such as a result of a sale or issuance of its capital stock, any Liens on property of the Company or any other Restricted Subsidiary securing Indebtedness owed to such Restricted Subsidiary, which is not contemporaneously repaid, together with such Indebtedness, shall be deemed to have been incurred by the Company or such other Restricted Subsidiary, as the case may be, at the time such Restricted Subsidiary ceases to be a Restricted Subsidiary. 

10.6.    Designation of Restricted and Unrestricted Subsidiaries. 

 

The Company may designate any Restricted Subsidiary as an Unrestricted Subsidiary and any Unrestricted Subsidiary as a Restricted Subsidiary; provided that, (a) if such Subsidiary initially is designated a Restricted Subsidiary, then such Restricted Subsidiary may be subsequently designated as an Unrestricted Subsidiary and such Unrestricted Subsidiary may be subsequently designated as a Restricted Subsidiary, but no further changes in designation may be made, (b) if such Subsidiary initially is designated an Unrestricted Subsidiary, then such Unrestricted Subsidiary may be subsequently designated as a Restricted Subsidiary and such Restricted Subsidiary may be subsequently designated as an Unrestricted Subsidiary, but no further changes in designation may be made, (c) immediately before and after designation of a Restricted Subsidiary as an Unrestricted Subsidiary there exists no Default or Event of Default and (d) a Subsidiary Guarantor may not be designated an Unrestricted Subsidiary. If a Restricted Subsidiary at any time ceases to be such as a result of a redesignation, any Liens on property of the Company or any other Restricted Subsidiary securing Indebtedness owed to such Restricted Subsidiary that is not contemporaneously repaid, together with such Indebtedness, shall be deemed to have been incurred by the Company or such other Restricted Subsidiary, as the case may be, at the time such Restricted Subsidiary ceases to be a Restricted Subsidiary. 

 

10.7.    Restricted Subsidiary Guaranties. 

 

The Company will not permit any Restricted Subsidiary to become a party to the Bank Guarantees or to directly or indirectly guarantee any of the Company’s obligations under the Credit Agreement unless such Restricted Subsidiary is, or concurrently therewith becomes, a party to the Subsidiary Guaranty. 

 

10.8.    Nature of Business. 

 

The Company will not, and will not permit any Restricted Subsidiary to, engage in any business if, as a result, the general nature of the business in which the Company and its Restricted Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Restricted Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum; provided, that the foregoing shall not be deemed to prohibit acquisitions by the Company or its Restricted Subsidiaries as long as the acquired companies are consumer products companies or other companies operating in businesses similar to or related to the current and future businesses conducted by the Company and its Subsidiaries, as well as suppliers to or distributors of products similar to those of the Company and its Subsidiaries. 

 

	 
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10.9.    Transactions with Affiliates. 

 

The Company will not and will not permit any Restricted Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation 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 Restricted Subsidiary), except upon fair and reasonable terms no less favorable to the Company or such Restricted Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate. 

11.    EVENTS OF DEFAULT. 

 

An "Event of Default" shall exist if any of the following conditions or events shall occur and be continuing: 

(a)    the Company defaults in the payment of any principal or Make-Whole Amount, if any, or LIBOR Breakage Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 

 

(b)    the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or 

 

(c)    the Company defaults in the performance of or compliance with any term contained in or Sections 10.1 through 10.9; or 

 

(d)    the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note; or 

 

(e)    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 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 

 

	 
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(f)    (i) the Company or any Significant Restricted Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount in excess of $30,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Significant Restricted Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness that is outstanding in an aggregate principal amount in excess of $30,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared, due and payable before its stated maturity or before its regularly scheduled dates of payment; or 

 

(g)    the Company or any Significant Restricted Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 

 

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

 

(i)    a final judgment or judgments for the payment of money aggregating in excess of $30,000,000 are rendered against one or more of the Company and its Significant Restricted Subsidiaries, which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or 

 

(j)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate "amount of unfunded benefit liabilities" (within the meaning of section 4001(a)(18) of ERISA) under all Plans determined in accordance with Title IV of ERISA, shall exceed $30,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, would reasonably be expected to have a Material Adverse Effect; or 

 

	 
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(k)    any Subsidiary Guarantor that is a Significant Restricted Subsidiary defaults in the performance of or compliance with any term contained in the Subsidiary Guaranty or the Subsidiary Guaranty ceases to be in full force and effect as a result of acts taken by the Company or any Subsidiary Guarantor, except as provided in Section 22, or is declared to be null and void in whole or in material part by a court or other governmental or regulatory authority having jurisdiction or the validity or enforceability thereof shall be contested by any of the Company or any Subsidiary Guarantor or any of them renounces any of the same or denies that it has any or further liability thereunder. 

 

As used in Section 11(j), the terms "employee benefit plan" and "employee welfare benefit plan" shall have the respective meanings assigned to such terms in Section 3 of ERISA. 

12.    REMEDIES ON DEFAULT, ETC. 

 

12.1.    Acceleration. 

 

(a)    If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 11 (other than an Event of Default described in clause (i) of paragraph (g) or described in clause (vi) of paragraph (g) by virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 

 

(b)    If any other Event of Default has occurred and is continuing, any holder or holders of a majority or more in principal amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

 

(c)    If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 

 

	 
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Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (w) all accrued and unpaid interest thereon, (x) any applicable Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law) and (y) any LIBOR Breakage Amount determined in respect of such principal amount, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event any Series A Notes are prepaid or are accelerated as a result of an Event of Default is intended to provide compensation for the deprivation of such right under such circumstances. 

12.2.    Other Remedies. 

 

If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 

12.3.    Rescission. 

 

At any time after any Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of more than 67% in principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and any Make-Whole Amount and LIBOR Breakage Amount on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and any Make-Whole Amount and LIBOR Breakage Amount and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 

12.4.    No Waivers or Election of Remedies, Expenses, etc. 

 

No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements. 

 

	 
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13.    REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 

 

13.1.    Registration of Notes. 

 

The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor, promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 

13.2.    Transfer and Exchange of Notes. 

 

Upon surrender of any Note at the principal executive office of the Company for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or his attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or part thereof), the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) of the same series and tranche in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Note established for such series and tranche. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $500,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $500,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2. 

13.3.    Replacement of Notes. 

 

Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 

 

	 
	 	32	 
	

	 

 

(a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another Institutional Investor holder of a Note with a minimum net worth of at least $50,000,000, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 

 

(b)    in the case of mutilation, upon surrender and cancellation thereof, 

 

the Company at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series and tranche, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 

14.    PAYMENTS ON NOTES. 

 

14.1.    Place of Payment . 

 

Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, LIBOR Breakage Amount, if any, and interest becoming due and payable on the Notes shall be made in Chicago, Illinois at the principal office of Bank of America in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 

14.2.    Home Office Payment. 

 

So long as you or your nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, LIBOR Breakage Amount, if any, and interest by the method and at the address specified for such purpose below your name in Schedule A, or by such other method or at such other address as you shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, you shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by you or your nominee you will, at your election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by you under this Agreement and that has made the same agreement relating to such Note as you have made in this Section 14.2. 

 

	 
	 	33	 
	

	 

 

15.    EXPENSES, ETC. 

 

15.1.    Transaction Expenses. 

 

Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of one special counsel for you and the Other Purchasers collectively and, if reasonably required, local or other counsel) incurred by you and each Other Purchaser or 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 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 or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note, and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes. The Company will pay, and will save you and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses if any, of brokers and finders (other than those retained by you). 

15.2.    Survival. 

 

The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 

16.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 

 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by you of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of you or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between you and the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 

 

	 
	 	34	 
	

	 

 

17.    AMENDMENT AND WAIVER. 

 

17.1.    Requirements. 

 

This Agreement, the Notes and the Subsidiary Guaranty may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to you unless consented to by you in writing, and (b) no such amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of Make-Whole Amount on, or LIBOR Breakage Amount in respect of, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20. 

17.2.    Solicitation of Holders of Notes. 

 

(a)    Solicitation . The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 

 

(b)    Payment . The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes or any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment. 

 

(c)    Consent in Contemplation of Transfer . Any consent made pursuant to this Section 17 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder. 

 

	 
	 	35	 
	

	 

 

17.3.    Binding Effect, etc. 

 

Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term "this Agreement" or "the Agreement" and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 

17.4.    Notes held by Company, etc. 

 

Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding. 

18.    NOTICES. 

 

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

(i)    if to you or your nominee, to you or it at the address specified for such communications in Schedule A, or at such other address as you or it shall have specified to the Company in writing, 

 

(ii)    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 

 

(iii)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of the Office of the Treasurer, or at such other address as the Company shall have specified to the holder of each Note in writing. 

 

Notices under this Section 18 will be deemed given only when actually received. 

 

	 
	 	36	 
	

	 

 

19.    REPRODUCTION OF DOCUMENTS. 

 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by you at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to you, may be reproduced by you by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and you may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by you in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it would contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

20.    CONFIDENTIAL INFORMATION. 

 

For the purposes of this Section 20, "Confidential Information" means information delivered to you by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified in writing when received by you as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to you prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by you or any person acting on your behalf, (c) otherwise becomes known to you other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to you under Section 7.1 that are otherwise publicly available. You will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by you in good faith to protect confidential information of third parties delivered to you, provided that you may deliver or disclose Confidential Information to (i) your directors, trustees officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by your Notes), (ii) your financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which you sell or offer to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which you offer to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over you, (vii) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about your investment portfolio or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to you, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which you are a party or (z) if an Event of Default has occurred and is continuing, to the extent you may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under your Notes and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 20. 

 

	 
	 	 37	 
	

	 

 

Notwithstanding anything to the contrary set forth herein or in any other written or oral understanding or agreement to which the parties hereto are parties or by which they are bound, the parties acknowledge and agree that (i) any obligations of confidentiality contained herein and therein do not apply and have not applied from the commencement of discussions between the parties to the tax treatment and tax structure of the Notes (and any related transactions or arrangements), and (ii) each party (and each of its employees, representatives, or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Notes and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax structure, all within the meaning of Treasury Regulations Section 1.6011-4. 

21.    SUBSTITUTION OF PURCHASER. 

 

You shall have the right to substitute any one of your Affiliates as the purchaser of the Notes that you have agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both you and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, wherever the word "you" is used in this Agreement (other than in this Section 21), such word shall be deemed to refer to such Affiliate in lieu of you. In the event that such Affiliate is so substituted as a purchaser hereunder and such Affiliate thereafter transfers to you all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever the word "you" is used in this Agreement (other than in this Section 21), such word shall no longer be deemed to refer to such Affiliate, but shall refer to you, and you shall have all the rights of an original holder of the Notes under this Agreement. 

22.    RELEASE OF SUBSIDIARY GUARANTOR. 

 

You and each subsequent holder of a Note agree to release any Subsidiary Guarantor from the Subsidiary Guaranty (i) if such Subsidiary Guarantor ceases to be such as a result of a Disposition permitted by Section 10.3 or (ii) at such time as the banks party to the Credit Agreement release such Subsidiary from the Bank Guarantees; provided, however, that you and each subsequent holder will not be required to release a Subsidiary Guarantor from the Subsidiary Guaranty upon such Subsidiary’s release from the Bank Guarantees if (A) a Default or Event of Default has occurred and is continuing, (B) such Subsidiary Guarantor is to become a borrower under the Credit Agreement or (C) such release is part of a plan of financing that contemplates such Subsidiary Guarantor guaranteeing any other Indebtedness of the Company. Your obligation to release a Subsidiary Guarantor from the Subsidiary Guaranty is conditioned upon your prior receipt of a certificate from a Senior Financial Officer of the Company stating that none of the circumstances described in clauses (A), (B) and (C) above are true. 

 

	 
	 	38	 
	

	 

 

23.    MISCELLANEOUS. 

 

23.1.    Successors and Assigns. 

 

All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not. 

23.2.    Payments Due on Non-Business Days. 

 

Anything in this Agreement or the Notes to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 

23.3.    Severability. 

 

Any provision of this Agreement 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. 

23.4.    Construction. 

 

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. 

23.5.    Counterparts. 

 

This Agreement 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. 

 

	 
	 	39	 
	

	 

 

23.6.    Governing Law. 

 

This Agreement 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 require the application of the laws of a jurisdiction other than such State. 

* * * * * 

 

	 
	 	40	 
	

	 

 

If you are in agreement with the foregoing, please sign the form of agreement on the accompanying counterpart of this Agreement and return it to the Company, whereupon the foregoing shall become a binding agreement between you and the Company. 

Very truly yours, 

ENERGIZER HOLDINGS, INC. 

By:     /s/ William C. Fox        

Name:     William C. Fox        

Title:     VP & Treasurer        

 

	 
	 	S-1	 
	

	 

 

The foregoing is agreed 

to as of the date thereof. 

GUIDEONE MUTUAL INSURANCE COMPANY 

By: Advantus Capital Management, Inc. 

By:   /s/ Theodore R. Hoxmeier    

Name:   Theodore R. Hoxmeier    

Title:   Vice President            

GUIDEONE PROPERTY & CASUALTY INSURANCE COMPANY 

By: Advantus Capital Management, Inc. 

By:   /s/ Theodore R. Hoxmeier    

Name:   Theodore R. Hoxmeier    

Title:   Vice President            

NATIONAL FARM LIFE INSURANCE COMPANY 

By: Advantus Capital Management, Inc. 

By:   /s/ Theodore R. Hoxmeier    

Name:   Theodore R. Hoxmeier    

Title:   Vice President            

TRUSTMARK INSURANCE COMPANY 

By: Advantus Capital Management, Inc. 

By:   /s/ Theodore R. Hoxmeier    

Name:   Theodore R. Hoxmeier    

Title:   Vice President            

 

	 
	 	S-2	 
	

	 

 

TRANSAMERICA LIFE INSURANCE AND ANNUITY COMPANY 

By:   /s/ Bill Henricksen        

Name:   Bill Henricksen        

Title:   Vice President            

MONUMENTAL LIFE INSURANCE COMPANY 

By:   /s/ Bill Henricksen        

Name:   Bill Henricksen        

Title:   Vice President            

 

	 
	 	S-3	 
	

	 

 

ALLIED IRISH BANKS PLC 

By:   /s/ Grace Gilligan        

Name:   Grace Gilligan            

Title:   Senior Vice President        

By:   /s/ Declan Fitzgerald        

Name:   Declan Fitzgerald        

Title:   Head of Investment Grade Credit    

 

In respect of Allied Irish Banks PLC $20,000,000 Floating Rate Senior Notes, Series B, Tranche 1, due June 30, 2008 

 

	 
	 	S-4	 
	

	 

 

ALLSTATE LIFE INSURANCE COMPANY 

By:  /s/ Jerry D. Zinkula        

Name:   Jerry D. Zinkula        

By:   /s/ Robert B. Bodett        

Name:   Robert B. Bodett        

Authorized Signatories 

ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK 

By:   /s/ Jerry D. Zinkula        

Name:   Jerry D. Zinkula        

By:   /s/ Robert B. Bodett        

Name:  Robert B. Bodett        

Authorized Signatories 

 

	 
	 	S-5	 
	

	 

 

IDS LIFE INSURANCE COMPANY 

By:   /s/ Lorraine R. Hart        

Name:   Lorraine R. Hart        

Title:  Vice President- Investments    

IDS LIFE INSURANCE COMPANY OF NEW YORK 

By:  /s/ Lorraine R. Hart        

Name:   Lorraine R. Hart        

Title:   Vice President- Investments    

AMERICAN ENTERPRISE LIFE INSURANCE COMPANY 

By:   /s/ Lorraine R. Hart        

Name:   Lorraine R. Hart        

Title:  Vice President- Investments    

 

	 
	 	S-6	 
	

	 

 

AMERICAN FAMILY LIFE INSURANCE COMPANY 

By:   /s/ Phillip Hannifan        

Name:   Phillip Hannifan        

Title:   Investment Director        

 

	 
	 	S-7	 
	

	 

 

AMERICAN UNITED LIFE INSURANCE COMPANY 

By:   /s/ Kent R. Adams        

Name:  Kent R. Adams        

Title: Vice President Fixed Income Securities 

THE STATE LIFE INSURANCE COMPANY 

By:  /s/ Kent R. Adams        

Name:  Kent R. Adams        

Title: Vice President Fixed Income Securities 

LAFAYETTE LIFE INSURANCE COMPANY 

By:  /s/ Kent R. Adams        

Name:  Kent R. Adams        

Title: Vice President Fixed Income Securities 

PIONEER MUTUAL LIFE INSURANCE COMPANY 

By:  /s/ Kent R. Adams        

Name:  Kent R. Adams        

Title: Vice President Fixed Income Securities 

 

	 
	 	S-8	 
	

	 

 

AMERUS LIFE INSURANCE COMPANY 

By: AmerUs Capital Management Group, Inc., its authorized attorney-in-fact 

By:  /s/ Roger D. Fors        

Name:  Roger D. Fors            

Title:   V.P. Investment Management & Research 

AMERICAN INVESTORS LIFE INSURANCE COMPANY 

By: AmerUs Capital Management Group, Inc., its authorized attorney-in-fact 

By:  /s/ Roger D. Fors        

Name:  Roger D. Fors            

Title:  V.P. Investment Management & Research 

INDIANAPOLIS LIFE INSURANCE COMPANY 

By: AmerUs Capital Management Group, Inc., its authorized attorney-in-fact 

By:  /s/ Roger D. Fors        

Name:  Roger D. Fors            

Title:  V.P. Investment Management & Research 

 

	 
	 	S-9	 
	

	 

 

CANADA LIFE INSURANCE COMPANY OF AMERICA 

By:  /s/ Kevin Phelan        

Name:  Kevin Phelan            

Title:   Assistant Treasurer        

 

	 
	 	S-10	 
	

	 

 

CONNECTICUT GENERAL LIFE INSURANCE COMPANY 

By: CIGNA Investments, Inc. (authorized agent) 

By:  /s/ Lori E. Hopkins        

Name:  Lori E. Hopkins        

Title:  Vice President            

 

	 
	 	S-11	 
	

	 

 

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY 

By: David L. Babson & Company Inc. as Investment Adviser 

By:  /s/ Mark A. Ahmed        

Name:  Mark A. Ahmed        

Title:  Managing Director        

MASSMUTUAL ASIA LIMITED 

By: David L. Babson & Company Inc. as Investment Adviser 

By:  /s/ Mark A. Ahmed        

Name:  Mark A. Ahmed        

Title:  Managing Director        

C.M. LIFE INSURANCE COMPANY 

By: David L. Babson & Company Inc. as Investment Adviser 

By:  /s/ Mark A. Ahmed        

Name:  Mark A. Ahmed        

Title:  Managing Director        

 

	 
	 	S-12	 
	

	 

 

THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES 

By:  /s/ Nantha Suppiah        

Name:  Nantha Suppiah        

Title:  Investment Officer        

 

	 
	 	S-13	 
	

	 

 

GE EDISON LIFE INSURANCE COMPANY 

By: GE Asset Management, Inc., its investment advisor 

By:  /s/ Morian C. Mooers        

Name:  Morian C. Mooers        

Title:  Vice President- Private Investments    

GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY 

By: GE Asset Management, Inc., its investment advisor 

By:  /s/ Morian C. Mooers        

Name:  Morian C. Mooers        

Title:  Vice President- Private Investments    

GE LIFE AND ANNUITY ASSURANCE COMPANY 

By: GE Asset Management, Inc., its investment advisor 

By:  /s/ Morian C. Mooers        

Name:  Morian C. Mooers        

Title:  Vice President- Private Investments    

 

	 
	 	S-14	 
	

	 

 

HARTFORD LIFE INSURANCE COMPANY 

HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY 

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY 

By: Hartford Investment Services, Inc., 

Its Agent and Attorney-in-Fact 

By:  /s/ Eva Konopka        

Name:  Eva Konopka            

Title:  Vice President            

 

	 
	 	S-15	 
	

	 

 

JEFFERSON-PILOT LIFE INSURANCE COMPANY 

By:  /s/ James E. McDonald, Jr.    

Name:  James E. McDonald, Jr.    

Title:  Vice President            

JEFFERSON PILOT FINANCIAL INSURANCE COMPANY 

By:  /s/ James E. McDonald, Jr.    

Name:  James E. McDonald, Jr.    

Title:  Vice President            

 

	 
	 	S-16	 
	

	 

 

METROPOLITAN LIFE INSURANCE COMPANY 

By:  /s/ Judith A. Gulotta        

Name:  Judith A. Gulotta        

Title:  Director            

 

	 
	 	S-17	 
	

	 

 

MODERN WOODMEN OF AMERICA 

By:  /s/ Clyde C. Schoeck        

Name:  Clyde C. Schoeck        

Title:  President            

 

	 
	 	S-18	 
	

	 

 

UNITED OF OMAHA LIFE INSURANCE COMPANY 

By:  /s/ Edwin H. Garrison, Jr.    

Name:  Edwin H. Garrison, Jr.    

Title:  First Vice President        

 

	 
	 	S-19	 
	

	 

 

NATIONWIDE LIFE INSURANCE COMPANY 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

NATIONWIDE MUTUAL INSURANCE COMPANY 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

NATIONWIDE LIFE INSURANCE COMPANY OF AMERICA 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

NATIONWIDE MULTIPLE MATURITY SEPARATE ACCOUNT 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

AMCO INSURANCE COMPANY 

By:  /s/ Joseph P. Young        

Name:  Joseph P. Young        

Title:  Associate Vice President    

 

	 
	 	S-20	 
	

	 

 

NEW YORK LIFE INSURANCE COMPANY 

By:  /s/ Kathleen Haberkern    

Name:  Kathleen Haberkern        

Title:  Investment Vice President    

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION 

By: New York Life Investment Management LLC, Its Investment Manager 

By:  /s/ Kathleen Haberkern    

Name:  Kathleen Haberkern        

Title:  Director            

 

	 
	 	S-21	 
	

	 

 

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY 

By:  /s/ David A. Barras        

Name:  David A. Barras        

Title:  Its Authorized Representative    

 

	 
	 	S-22	 
	

	 

 

PACIFIC LIFE INSURANCE COMPANY 

(Nominee: Mac & Co.) 

By:  /s/ Cathy Schwartz        

Name:  Cathy Schwartz        

Title:  Assistant Vice President    

By:  /s/ Diane W. Dales        

Name:  Diane W. Dales        

Title:                        

 

	 
	 	S-23	 
	

	 

 

JACKSON NATIONAL LIFE INSURANCE COMPANY 

By: PPM America, Inc., as attorney in fact, on behalf of Jackson National Life Insurance Company 

By:  /s/ Chris Raub            

Name:  Chris Raub            

Title:   Senior Managing Director    

JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK 

By: PPM America, Inc., as attorney in fact, on behalf of Jackson National Life Insurance Company of New York 

By:  /s/ Chris Raub            

Name:  Chris Raub            

Title:  Senior Managing Director    

 

	 
	 	S-24	 
	

	 

 

SECURITY FINANCIAL LIFE INSURANCE CO. 

By:  /s/ Kevin W. Hammond    

Name:  Kevin W. Hammond        

Title:   Vice President                    Chief Investment Officer        

 

	 
	 	S-25	 
	

	 

 

STATE FARM LIFE INSURANCE COMPANY 

By:  /s/ Julie Pierce            

Name:  Julie Pierce            

Title:  Investment Officer        

By:   /s/ Larry Rottunda        

Name:  Larry Rottunda        

Title:  Assistant Secretary        

 

	 
	 	S-26	 
	

	 

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA 

By:  /s/ Marietta Moshiashvili    

Name:  Marietta Moshiashvili        

Title:  Associate Director        

 

	 
	 	S-27EXHIBIT 4.33

                               EIGHTH AMENDMENT TO
                       AMENDED AND RESTATED LOAN AGREEMENT

     THIS  EIGHTH  AMENDMENT  TO  AMENDED  AND  RESTATED  LOAN  AGREEMENT  (this
"Amendment"),  dated  as  of July 1, 2003 between GOLD BANC CORPORATION, INC., a
Kansas  corporation  (the  "Borrower"), and LASALLE BANK NATIONAL ASSOCIATION, a
national  banking  association  (the  "Bank").

                                    RECITALS:

     A.  The  Borrower  and  the  Bank entered into an Amended and Restated Loan
Agreement  dated  December  1, 1998, as amended by a First Amendment dated April
26,  1999, a Second Amendment dated May 1, 2000, a Third Amendment dated Ju1y 1,
2000, a Fourth Amendment dated January 23, 2001, a Fifth Amendment dated July 1,
2001,  a  Sixth Amendment dated September 28, 2001, a Seventh Amendment dated as
of  July  1,  2002  (the  "Agreement").

     B. The Borrower and the Bank have agreed to amend the Agreement pursuant to
the  terms  and  conditions  hereof.

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

1.     DEFENITIONS.  All  capitalized terms used herein without definition shall
have  the  meaning  set  forth  in  the  Agreement.

2.     AMENDMENTS  TO  THE  AGREEMENT.

     2.1     Amendment  to  Section  1.  Section  1  of  the Agreement is hereby
             -------------------------   ----------
amended  and  restated  in  its  entirety  as  follows:

               "Subject to the terms and conditions set forth in this Agreement,
          the  Bank  agrees to extend a loan (the "Loan") to the Borrower in the
          maximum principal amount of $10,000,000, evidenced by a revolving note
          (the "Note") and secured by 100% of the shares of the capital stock of
          Gold  Bank, a Kansas state bank, pursuant to that Amended and Restated
          Third  Party Pledge Agreement dated as of July 1, 2003 executed by GBC
          Kansas,  Inc.,  as  amended  from time to time, for the benefit of the
          Bank."

     2.2     Amendment to Section 3(a).  Section 3(a) of the Agreement is hereby
             -------------------------   ------------
amended  and  restated  in  its  entirety  as  follows:

               "Interest  on  all  amounts  outstanding  under the Note, whether
          Prime  Rate  Loans  or  LIBOR  Loans,  shall  be  payable quarterly in
          arrears.  A  final  payment  of  all outstanding amounts due under the
          Note, including but not limited to principal, interest and any amounts
          owing under Subsection 11(m) of this Agreement, if not payable earlier
          shall  be  due  and  payable  on July 1, 2004. The amounts outstanding
          under the Note

<PAGE>
          from  time to time shall bear interest calculated on the actual number
          of  days  elapsed  on the basis of a 360 day year, at a rate equal, at
          the  Borrower's  option, to either (a) LIBOR plus 125 basis points, or
          (b)  the  Prime  Rate  (whichever  rate  is so selected, the 'Interest
          Rate'),  provided that the Interest Rate shall, at all times, equal or
          exceed  3.5%  per  annum."

     2.3     Replacement of Exhibit A.  Exhibit A attached to and made a part of
             ------------------------   ---------
the Agreement is hereby deleted in its entirety and Exhibit A attached hereto is
                                                    ---------
hereby  substituted  therefor.

3.     WARRANTIES.  To  induce  the  Bank  to  enter  into  this  Amendment, the
       ----------
Borrower  warrants  that:

     3.1     Authorization.  The  Borrower  is  duly  authorized  to execute and
             -------------
deliver  this Amendment and is and will continue to be duly authorized to borrow
monies  under  the  Agreement, as amended hereby, and to perform its obligations
under  the  Agreement,  as  amended  hereby.

     3.2     No  Default.  As of the date hereof, no Default under Section 10 of
             -----------                                           ----------
the  Agreement,  as amended by this Amendment, or event or condition which, with
the  giving  of  notice  or  the  passage  of time, shall constitute an Event of
Default,  has  occurred  or  is  continuing.

     3.3     Warranties.  As  of  the  date  hereof,  the  representations  and
             ----------
warranties  in Section 6 of the Agreement are true and correct as though made on
               ---------
such  date, except for such changes as are specifically permitted under the Loan
Agreement.

4.     CONDITIONS  PRECEDENT.  This  Amendment  shall become effective as of the
date  above  first  written  after  receipt  by  Bank  of  the  following:

          (a)     this  Amendment  duly  executed  by  the  Borrower;

          (b)     Replacement  Revolving  Note in the form of Exhibit A attached
                                                              ---------
       hereto,  duly  executed  by  the  Borrower;

          (c)     Amended  and Restated Third Party Pledge Agreement in the form
       of  Exhibit  B  attached  hereto,  duly  executed  by  GBC  Kansas, Inc.;
           ----------

          (d)     a  renewal  fee  in the amount of $25,000, which fee is deemed
       fully  earned  upon  the  execution  of  this  Amendment;  and

          (e)     such  other  documents  as  the  Bank  reasonably may request.

5.     GENERAL.

     5.1     Law.  This  Amendment  shall  be  construed  in accordance with and
             ---
governed  by  the  laws  of  the  State  of  Illinois.

                                        2
<PAGE>
     5.2     Successors.  This  Amendment shall be binding upon the Borrower and
             ----------
the  Bank  and  their  respective successors and assigns, and shall inure to the
benefit of the Borrower and the Bank and the successors and assigns of the Bank.

     5.3     Confirmation of Loan Agreement.  Except as amended hereby, the Loan
             ------------------------------
Agreement  shall  remain  in  full  force  and effect and is hereby ratified and
confirmed  in  all  respects.

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Amendment to be
executed at Chicago, Illinois by their respective officers duly authorized as of
the  date  first  above  written.

LASALLE BANK NATIONAL
ASSOCIATON                         GOLD BANC CORPORATION, INC.

By:   __________________________   By:  ___________________________

Title:__________________________   Its: ___________________________

                                        3
<PAGE>
                                    EXHIBIT A
                                    ---------

                           REPLACEMENT REVOLVING NOTE

Dated as of July 1, 2003                                   Due:  July 1, 2004
Amount: $10,000,000

     On  July  1,  2004  (the  "Maturity  Date"), GOLD BANC CORPORATION, INC., a
Kansas  corporation  (the  "Undersigned"),  whose  address is 11301 Nall Avenue,
Leawood,  Kansas  66211,  for  value  received,  promises to pay to the order of
LASALLE  BANK NATIONAL ASSOCIATION, a national banking association (the "Bank"),
whose  address  is 135 South LaSalle Street, Chicago, Illinois 60603, the lesser
of  the  principal  sum  of TEN MILLION and 00/100 DOLLARS ($10,000,000), or the
aggregate unpaid principal amount of the loans made available by the Bank to the
Undersigned  pursuant  to  the Loan Agreement hereinafter defined, together with
interest  on  any  and  all principal amounts outstanding hereunder from time to
time  from  the  date  hereof until maturity.  The Undersigned may borrow, repay
(except  as  provided herein) without penalty and reborrow under this Note, from
the  date  hereof  until  but  excluding  the  Maturity  Date.

     Interest shall be computed at the rates of interest and shall be payable at
the times set forth in that certain Amended and Restated Loan Agreement dated as
of  December  1, 1998 between the Undersigned and the Bank (as amended from time
to  time,  the  "Loan  Agreement").

     The  Undersigned  hereby  authorizes  the Bank to charge any account of the
Undersigned for all sums due hereunder, following a default hereunder. Principal
payments submitted in funds not available until collected shall continue to bear
interest  until  collected.  If  payment  hereunder becomes due and payable on a
Saturday,  Sunday  or  legal  holiday under the laws of the United States or the
State of Illinois, the due date thereof shall be extended to the next succeeding
business day, and interest shall be payable thereon at the rate specified during
such  extension.

     All  advances and repayments hereunder shall be evidenced by entries on the
books  and  records of Bank which shall be presumptive evidence of the principal
amount  and  interest owing and unpaid on this Note, or any renewal or extension
hereof.  The  failure to so record any such amount or any error so recording any
such amount shall not, however, limit or otherwise affect the obligations of the
Undersigned  hereunder to repay the principal amount of the liabilities together
with  all  interest  accruing  thereon.

     This Note evidences indebtedness incurred under the Loan Agreement to which
reference is hereby made for a statement of the terms and conditions under which
the  due  date of the Note or any payment thereon may be accelerated. The holder
of this Note is entitled to all of the benefits and security provided for in the
Loan  Agreement.

     The loan evidenced hereby has been made and this Note has been delivered at
the  Bank's  main  office and shall be governed and construed in accordance with
the  laws  of  the  State of Illinois, in which state it shall be performed, and
shall  be  binding upon the Undersigned and its successors and assigns. Wherever
possible,  each provision of this Note

                                        4
<PAGE>
shall  be  interpreted  in  such  manner  as  to  be  effective  and valid under
applicable  law,  but if any provision of this Note shall be prohibited by or be
invalid  under  such  law,  such  provision  shall  be  severable, and be deemed
ineffective to the extent of such prohibition or invalidity without invalidating
the  remaining  provisions  of  this  Note.

     The  Note replaces that certain Replacement Revolving Note dated as of July
1,  2002 in the original principal amount of $25,000,000 and does not constitute
payment  therefore  or  a  novation  thereof.

     In Witness Whereof the Undersigned has executed this Note on the date above
set  forth.

                                       GOLD BANC CORPORATION, INC.

                                       By:  _______________________________
                                       Its: _______________________________

                                        5
<PAGE>
                                    EXHIBIT B

                              AMENDED AND RESTATED
                          THIRD PARTY PLEDGE AGREEMENT

This  AMENDED  AND  RESTATED  THIRD PARTY PLEDGE AGREEMEMT is entered into as of
July 1, 2003 (the "Pledge Agreement") between GBC KANSAS, INC. (the "Assignor"),
and  LASALLE  BANK  NATIONAL  ASSOCIATION,  a  national banking association (the
"Bank"),  whose  address  is  135 South LaSalle Street, Chicago, Illinois 60603.

                                R E C I T A L S:

     A.     In  1998  -  1999,  the  Assignor  and Bank entered into one or more
pledge  agreements pursuant to which the Assignor granted to the Bank a security
interest in 100% of the shares of the capital stock of the "Issuer" (hereinafter
defined)  or  a predecessor thereof (collectively, as amended from time to time,
the  "Original  Pledge  Agreement"),  to  secure  the  obligations  of Gold Banc
Corporation,  Inc.  (the  "Borrower")  to  the  Bank.

     B.     Assignor  executed  that  certain  Amended  and Restated Third Party
Pledge Agreement as of June 1, 2002 and the Assignor and the Bank have agreed to
amend and restate the said Amended and Restated Pledge Agreement pursuant to the
terms  hereof.

     NOW,  THEREFORE,  for and in consideration of the foregoing premises, which
are  hereby incorporated herein as true, and the mutual promises and agreements:
contained  herein,  the  Assignor  and  the  Bank  hereby  agree  as  follows:

                                   AGREEMENTS:

     1.     Grant  of Security Interest.  To secure the "Obligations" defined in
            ---------------------------
Section  2,  the  Assignor  hereby assigns, pledges and grants to the Bank, as a
secured  party  and  a  secured  creditor  under  the Uniform Commercial Code of
Illinois, in effect from time to time (the "UCC"), a security interest in and to
the  following  (collectively,  the  "Collateral"):

          (a) together with all voting rights thereto, 100% of the shares of the
     common  stock of Gold Bank - Kansas (the "Issuer"), together with any stock
     of  the  Issuer  delivered  to  the Bank pursuant to Section 4(b) hereof or
     otherwise in the possession of the Bank and any and all other shares of the
     capital  stock of the Issuer hereafter owned or acquired by the Assignor by
     reason of a stock dividend or a sale or other transfer of the capital stock
     of  the  Issuer  by  the Assignor, as a result of or in connection with any
     increase  or reduction of capital, reclassification, merger, consolidation,
     sale  of assets, combination of shares, stock split, spin-off or split-off,
     together  with  all  substitutions  or replacements of any of the foregoing
     (together  with  any  other  stock in the Issuer required to be pledged and
     delivered  hereunder being collectively referred to herein as the "Stock");

          (b)  any  and  all  other  certificates  now  or  hereinafter  in  the
     possession  of the Assignor or the Bank evidencing the Stock, together with
     any  stock  powers  therefor;

                                        6
<PAGE>
          (c)  all  payments,  income  and  dividends (whether in cash; stock or
     other  property),  liquidating  dividends,  stock  warrants, stock options,
     stock  rights,  subscription  rights, securities of the Issuer or any other
     distributions  of  any,  other  property  which  the Assignor is now or may
     hereafter  be entitled to receive on account of the Stock collectively, the
     "Distributions");

          (d)  any  and  all products and proceeds of any kind of any and all of
     the  foregoing  Collateral  now  or  hereafter  owned  or  acquired  by the
     Assignor.

     2.     Obligations.  The  obligations secured by this Pledge Agreement (the
            -----------
"Obligations")  are  the  following:

          (a)  any  and  all  obligations and liabilities of the Borrower to the
     Bank  whether direct or indirect, joint or several, absolute or contingent,
     now  or  hereafter  existing  or arising, including without limitation, the
     obligations  of  the  Borrower under that certain Amended and Restated Loan
     Agreement  dated  as of December l, 1998, as amended from time to time, and
     the  documents and instruments, including without limitation the promissory
     notes  (the  "Notes"  and  each  a  "Note"), from time to time executed and
     delivered  in  connection  therewith;

          (b)  any  and  all  sums  advanced  by  Bank  in order to preserve the
     Collateral  or  to  perfect  its  security  interest in the Collateral; and

          (c)  in  the  event of any proceeding to enforce the collection of the
     Obligations,  the  reasonable  expenses of retaking, holding, preparing for
     sale  or  lease,  selling  or  otherwise  disposing  of or realizing on the
     Collateral,  or  of  any  exercise  by Bank of its rights in the event of a
     default  under  any  agreement  between the Borrower and the Bank, together
     with  reasonable  attorneys'  fees  and  court  costs.

     3.     Representations  and  Warranties.  The  Assignor  represents  and
            --------------------------------
warrants  to  the  Bank  as  follows:

          (a) The Assignor is a corporation duly organized, existing and in good
     standing  with full and adequate power to carry on and conduct its business
     as  presently  conducted,  and is duly licensed or qualified in all foreign
     jurisdictions  wherein  the  nature  of  its  activities  require  such
     qualification  or  licensing.

          (b)  The  Assignor  has  full  right,  power  and  authority,  without
     obtaining  the consent of any other person, body or governmental agency, to
     enter into and deliver this Pledge Agreement, to pledge, assign and grant a
     security interest in and deliver the Collateral to the Bank, and to perform
     all  of  its  duties  and  obligations  under  this  Pledge  Agreement.

          (c) All necessary and appropriate action has been taken on the part of
     the  Assignor  to  authorize  the  execution  and  delivery  of this Pledge
     Agreement.  This  Pledge  Agreement  is  a  valid and binding agreement and
     contract  of  the Assignor in accordance with its terms. No basis presently
     exists  for  any claim against the Bank under this Pledge

                                        7
<PAGE>
     Agreement  or  with  respect  to  the  enforcement thereof, and this Pledge
     Agreement  is  subject  to  defenses  of  any  kind.

          (d)  The  execution,  delivery and performance by the Assignor of this
     Pledge  Agreement and any other documents or instruments to be executed and
     delivered  by  the  Assignor  in connection therewith is valid, binding and
     enforceable  against the Assignor, and shall not: (i) violate or contravene
     the articles of incorporation and by-laws of the Assignor, any existing law
     or  regulation  or  any  order,  writ, injunction or decree of any court or
     governmental  authority,  or  (ii)  conflict with, be inconsistent with, or
     result in any breach or default of any of the terms, covenants, conditions,
     or  provisions  of  any  indenture,  mortgage,  deed  of trust, instrument,
     document,  agreement  or  contract  of  any kind to which the Assignor is a
     party,  or  by  which  the Assignor or any of its property or assets may be
     bound,  and  will  not result in the creation or imposition of any security
     interest in any properties pursuant to the provisions of any such mortgage,
     indenture,  contract  or  other  agreement.

          (e)  To  the  best  of  the  Assignor's  knowledge,  no  condition,
     circumstance,  document,  restriction,  litigation  or  proceeding  (or
     threatened  litigation  or proceeding or basis therefor) exists which could
     adversely  affect  the  validity  or  priority  of  the  liens and security
     interests  granted  the  Bank  hereunder,  which could materially adversely
     affect  the  ability  of the Assignor to perform the obligations under this
     Pledge  Agreement, which would constitute a default hereunder or thereunder
     or which would constitute such a default with the giving of notice or lapse
     of  time  or  both.

          (f)  None  of the actions contemplated by this Pledge Agreement are in
     violation  of  or  restricted  by  any restrictive agreement, stop transfer
     order,  any  legend  appearing  on  the  certificates evidencing any of the
     Collateral consisting of Stock, the Securities Act of 1933, as amended, the
     Securities  Exchange  Act  of  1934,  as  amended,  any  state  blue-sky or
     securities  law,  any Canadian federal or provincial blue-sky or securities
     law,  or  any  rule or regulation issued under the foregoing acts and laws.

          (g)  The  nature and transaction of the business and operations of the
     Assignor,  and  the  use  of  its properties and assets will not materially
     violate  or  conflict  with  any  applicable law, statute, ordinance, rule,
     regulation  or  order  of  any  kind  including  without limitation zoning,
     building, environmental, land use, noise abatement, occupational health and
     safety  or  other  laws,  any  building  permit  or  any  condition, grant,
     easement,  covenant,  condition  or  restriction,  whether recorded or not.

          (h) The Assignor is the beneficial and record owner of the Collateral.
     All  of  the  Collateral  is free of all pledges, hypothecation, mortgages,
     security interests, charges or other encumbrances, except those in favor of
     the  Bank.

          (i)  All  of  the Stock pledged hereunder has been and continues to be
     duly and validly authorized and issued, fully paid and nonassessable shares
     of  the  Issuer  of  such  stock,  and  was  not issued in violation of any
     preemptive  rights  or  any  agreement  by  which  the  Issuer  is  bound.

                                        8
<PAGE>
          (j)  The  Assignor  has  either  previously or simultaneously herewith
     delivered  to the Bank the certificates for all of the Stock, together with
     appropriate  stock  powers  therefor  executed  in  blank  by the Assignor.

          (k)  Upon  delivery  of  the  duly  executed  Pledge Agreement and any
     certificates  evidencing  all  of  the  Stock,  together  with stock powers
     therefor,  the  Bank shall have a valid first lien and security interest in
     all  of  the Collateral hereunder, free and clear of all other, and subject
     to  no  pledges,  hypothecation,  mortgages,  security interest, charges or
     other  encumbrances,  except  in  favor  of  the  Bank.

     4.     Covenants.  Until the Obligations have been satisfied and discharged
            ---------
in  full,  the  Assignor  covenants  to  and  agrees  with  the Bank as follows:

          (a)  The Assignor shall not sell, assign, deliver, convey or otherwise
     dispose  of  or  transfer,  or  create, grant, incur or permit to exist any
     pledge,  mortgage,  lien,  security  interest,  charge or other encumbrance
     whatsoever  (except  in  favor  of  the  Bank)  in  or  with respect to the
     Collateral  hereunder  or  any  interest  therein.

          (b)  The  Assignor  shall deliver to the Bank all the certificates for
     all  the  shares  of  the  Issuer  which  the  Assignor may own directly or
     indirectly  now  or  hereafter.

          (c)  If,  at  any  time  following  an Event of Default hereunder, the
     Assignor  receives  or  is  entitled  to  receive  into  its possession any
     payments, checks, instruments, chattel paper, dividends on account of or in
     respect  of  the  Collateral,  or any other Collateral or proceeds thereof,
     such  Assignor  shall  accept such Collateral as the Bank's agent, in trust
     for the Bank without commingling such Collateral with any other property of
     such  Assignor and shall, upon receipt, immediately deliver such Collateral
     to  the  Bank in the exact form so received, with any necessary endorsement
     of  the  Assignor  or  stock  powers  executed  by  the  Assignor in blank.

          (d)  The Assignor will, at all times and from time to time, defend the
     Collateral  against  any and all claims of any person or party whose claims
     are adverse to the claims, rights or interest of the Bank, and the Assignor
     shall  indemnify  and  hold the Bank harmless from any and all such adverse
     claims.  The Assignor shall bear all risk of loss, damage and diminution in
     value with respect to the Collateral, and the Assignor agrees that the Bank
     shall  have no liability or obligation to the Assignor with respect to, and
     is  hereby  released  by  the  Assignor  from  any  of,  the  foregoing.

          (e) At any time and from time to time after the occurrence of an Event
     of  Default  (as  hereinafter  defined)  or  a  default  under  any  of the
     Obligations  which  is continuing uncured and unwaived, the Assignor shall,
     upon  request  of  the  bank,  execute and deliver to the Bank any proxies,
     stock  powers  or  assignments with respect to any of the Stock, or endorse
     any  instruments  or  chattel  paper  with  respect to the Collateral as so
     requested.

          (f)  The  Assignor  will,  from  time  to time on request of the Bank,
     execute  such  financing statements and other documents and pay the cost of
     filing  or  recording the same in all public offices as deemed necessary by
     the  Bank,  and  will  take  such  other actions as

                                        9
<PAGE>
     the  Bank  may  reasonably  request  to  establish  and  maintain  a valid,
     perfected  first  priority  security interest in the Collateral in favor of
     the  Bank (free of all other liens and claims whatsoever) to secure payment
     of  the  Obligations,  including, without limitation, registering any Stock
     pledged  hereunder  with the Issuer of the Stock in the event such Stock is
     at  any  time  uncertificated.

     5.     Events  of  Default.  The  Assignor  shall  be in default under this
            -------------------
Pledge  Agreement upon the occurrence of any one or more of the following events
or  conditions  (an  "Event  of  Default"):

          (a)  nonpayment  of  any  of  the  Obligations  following any curative
     period;

          (b)  the  Assignor shall default in the performance or fail to perform
     any  promise,  covenant  or  agreement  to  be  performed  by  the Assignor
     hereunder  or  under  any other agreement now existing or hereafter entered
     into between the Assignor and the Bank and, if capable of being cured, such
     failure  to  perform  or default in performance shall continue for ten (10)
     days after the Assignor receives notice or actual knowledge from any source
     of such failure to perform or default in performance, or the Borrower shall
     default  in  the  performance  or  fail to perform any promise, covenant or
     agreement  to  be  performed  by the Borrower under any other agreement now
     existing  or  hereafter entered into between the Borrower and the Bank and,
     if  capable  of  being  cured,  such  failure  to  perform  or  default  in
     performance  continues for ten (10) days after the Borrower receives notice
     or  actual  knowledge from any source of such failure to perform or default
     in  performance;

          (c)  the  Bank  shall have possession of less than 100% of the capital
     stock  of  the  Issuer;

          (d)  the  Assignor  shall  own  directly less than 100% of the capital
     stock  of  the  Issuer;

          (e) any misrepresentation or breach of any warranty by the Assignor in
     this  Pledge  Agreement,  in connection with the Collateral or in any other
     agreement  entered  into  between  the  Assignor  and  the  Bank, or by the
     Borrower  in  the  Note  or in any other document or agreement entered into
     between  the  Borrower  and  the  Bank;

          (f)  the  dissolution of the Assignor or the termination or incapacity
     of  the  Borrower;

          (g)  the  Assignor  or  the Borrower shall make any assignment for the
     benefit  of  creditors,  or  there  shall  be  commenced  any  bankruptcy,
     receivership,  insolvency,  reorganization,  dissolution  or  liquidation
     proceedings  by  or  against  the  Assignor  or  the  Borrower;

          (h)  the entry of any judgment, levy, attachment, garnishment or other
     process  against the Assignor or the Borrower, or the creation or filing of
     any  lien  or  encumbrance  upon  the Collateral or the making of any levy,
     judicial  seizure,  or  attachment  thereof  or  thereon;

                                       10
<PAGE>
          (i)  the  failure  of the Assignor to do any act necessary to preserve
     and  maintain  the  value  and  collectability  of  any  of the Collateral;

          (j) there be any deterioration or impairment of any Collateral, or any
     decline  or  depreciation  in  the  value  or market price thereof (whether
     actual or reasonably anticipated), which causes the Collateral, in the sole
     opinion  of  the  Bank acting in good faith, to become unsatisfactory as to
     value  or character, or which causes the Bank to reasonably believe that it
     is insecure and that the likelihood for repayment of any of the Obligations
     is  or  will  soon  be  impaired,  time  being  of  the  essence;  or

          (k)  the  Bank  in  good  faith  deems  itself  insecure.

     6.     Rights and Remedies of Bank.  Upon the happening or occurrence of an
            ---------------------------
Event  of Default hereunder which is continuing uncured and unwaived, and at any
time thereafter and from time to time, the Bank shall have all of the rights and
remedies  of a secured party under the Uniform Commercial Code as enacted in and
then in effect in Illinois.  In addition, the Bank shall also have the following
rights  and  remedies:

          (a)  Without  further  notice to the Assignor, the Bank shall have the
     right  and  be  entitled  to  notify the Issuer of any of the Stock to make
     payment  to  the Bank and to receive all Distributions to be applied toward
     the satisfaction of the Obligations and to exercise all voting, conversion,
     exchange,  subscription  or  other  corporate rights; privileges or options
     pertaining  to  such  Stock.

          (b)  The  Bank shall have the right, at its discretion, to transfer to
     or  register  in the name of the Bank or any nominee of the Bank any of the
     Collateral.

          (c)  Without  demand, notice or advertisement, all of which are hereby
     expressly  waived  to  the  extent permitted by applicable law the Bank may
     sell,  pledge, transfer or otherwise dispose of, or enter into an agreement
     with  respect  to the foregoing, or otherwise realize on the Collateral and
     any  other Collateral, or any part thereof, at any broker's board or on any
     exchange  or  at  public  or  private  sale or sales, held at such place or
     places  in  the City of Chicago, Illinois or otherwise, and at such time or
     times  within  ordinary  business  hours, for a purchase price or prices in
     cash  or,  without  assuming  any  credit  risk  or thereby discharging the
     Obligations  to  the  extent  of said purchase price until paid in cash and
     reserving  the  to  right to resell the Collateral upon the failure of said
     purchaser  to  so  pay  the purchase price therefor, upon credit, or future
     delivery,  and  upon  such  other  terms  and  conditions as the Bank deems
     satisfactory,  and,  if  required  by  law,  as set forth in any applicable
     notice.  The  Bank shall not be obligated to make any such sale pursuant to
     any  such applicable notice require by law. The Bank may, without notice or
     publication,  adjourn  any such sale or cause the same to be adjourned from
     time  to time by announcement at the time and place fixed for the sale, and
     such  sale  may  be  made  at any time or place to which the same may be so
     adjourned.  The  Bank,  for its own account, may purchase any or all of the
     Collateral at any public sale and, in lieu of payment of the purchase price
     therefor,  may set off or apply the purchase price against the Obligations.
     The  Bank is authorized, at any sale, if it deems it advisable so to do, to
     restrict  the  prospective  bidders  or purchasers to financially reputable
     persons who will

                                       11
<PAGE>
     represent  and  agree  that  they are purchasing for their own account, for
     investment,  and  not with a view to the distribution or sale of any of the
     Collateral.  Upon  any such sale, the Bank shall have the right to deliver,
     assign,  and  transfer  to  the purchaser thereof, including the Bank, that
     portion  of  the Collateral so sold. Each purchaser, including the Bank, at
     any  sale  shall  hold  the properly sold absolutely free from any claim or
     right  of  whatsoever  kind, including any equity or right of redemption of
     the  Assignor, and the Assignor hereby specifically waives and releases all
     rights  of redemption, stay or appraisal which it has or may have under any
     rule  or  law  or  statute  now  existing  or  hereafter adopted. The Bank,
     however,  instead  of  exercising the power of disposition herein conferred
     upon  it,  may  proceed by a suit or suits at law or in equity to foreclose
     the  pledge  and  sell  the  Collateral,  or  any  portion thereof, under a
     judgment  or  decree  of a court or courts of competent jurisdiction. After
     deducting  from  the proceeds of the foregoing sale or other disposition of
     said  Collateral, all expenses incurred by the Bank in connection therewith
     (including  reasonable attorneys' fees), the Bank shall apply such proceeds
     towards  the  satisfaction  of  the  Obligations  and  shall account to the
     Assignor  for  any  surplus  of  such  proceeds.

          (d)  If at any time after the occurrence and during the continuance of
     an  Event  of Default without cure or waiver, in the opinion of counsel for
     the  Bank,  any  proposed  disposition  of  Collateral  hereunder  requires
     registration,  qualification,  notification,  or  other  action  under  or
     compliance  with  any  state  blue  sky  or  securities  law or the Federal
     Securities  Act of 1933, as amended, or any rules or regulations thereunder
     (collectively  the  "Securities Laws"), the Assignor, at the request of the
     Bank,  will  as expeditiously as possible use its best efforts to take such
     action  or  cause  such action to be taken, comply or cause compliance with
     such  Securities Laws and maintain such compliance or cause such compliance
     to  be  maintained  for  such  period  a  may  be  necessary to permit such
     disposition.  The Assignor acknowledges that a breach of the above covenant
     contained  in  this  Section 6 may cause irreparable injury to the Bank and
     that  the  Bank  will  have  no adequate remedy at law with respect to such
     breach, and consequently, the Assignor agrees that the above covenant shall
     be  specifically  enforceable and the Assignor hereby waives, to the extent
     such waiver is enforceable under law, and agrees not to assert any defenses
     against  an action for specific performance of such covenant. In connection
     with  the  foregoing,  the Assignor will (i) pay all expenses imposed on or
     demanded  of  the  Bank  under  the Securities Laws in connection with such
     compliance,  including  the  expense  of furnishing to the Bank an adequate
     number  of  copies  of  the  prospectus  contained in any such registration
     statement,  (ii)  indemnify and hold the Bank harmless from and against any
     and all claims and liabilities caused by any untrue statement of a material
     fact  or  omission  to  state  a material fact required to be stated in any
     registration  statement, offering circular or prospectus used in connection
     with  such  compliance,  or  necessary  to  make the statements therein not
     misleading,  and  (iii)  pay  all expenses (including reasonable attorneys'
     fees)  incurred  by  the Bank in specifically enforcing the above covenant.

The rights and remedies provided herein, in the Note and in any other agreements
between  the Assignor and the Bank are cumulative and are in addition to and not
exclusive  of  the  rights  and  remedies  of  a secured party under the Uniform
Commercial  Code in effect from time to time in Illinois and any other rights or
remedies provided by applicable law.  The Assignor hereby (i)

                                       12
<PAGE>
names,  constitutes  and  appoints  the  Bank  as  the  Assignor's  proxy  and
attorney-in-fact  in  the  Assignor's name, place and stead, (ii) authorizes the
Bank to take, at any time without the appropriate signature of the Assignor, any
action  for  and  on behalf of the Assignor which is required of the Assignor or
permitted  to  be  taken  by  the Bank hereunder, including, without limitation,
voting any and all of the Stock or other securities as such proxy may elect, for
and  in  the  name,  place  and  stead of the Assignor, as to all matters coming
before  shareholders,  and  (iii)  acknowledges  that  the  constitution  and
appointment  of such proxy and attorney-in-fact are coupled with an interest and
are  irrevocable.  The  rights,  powers  and  authority  of  said  proxy  and
attorney-in-fact  shall  remain  in  full  force  and  effect,  and shall not be
rescinded,  revoked,  terminated,  amended  or  otherwise  modified,  until  all
Obligations  have  been  fully  satisfied.

     7.     No  Duty Concerning Collection on Collateral.  The Bank shall not be
            --------------------------------------------
liable  for  its  failure  to give notice to the Assignor of a default under the
Note  or  under any other agreement between the Assignor and the Bank.  The Bank
shall  not  be  liable  for  its  failure to use diligence to collect any amount
payable in respect to the Collateral, but shall be liable only to account to the
Assignor  for  what  the  Bank  may  actually  collect  or  receive.

     8.     Ascertaining  Maturities,  Calls,  etc.  Without  limiting  the
            ---------------------------------------
foregoing,  it is specifically understood and agreed that the Bank shall have no
responsibility  for  ascertaining any maturities, calls, conversions, exchanges,
offers  tenders,  or  similar  matters  relating to any of the Collateral or for
informing  the  Assignor  with  respect  to any of such matters (irrespective of
whether  the  Bank  actually  has, or may be deemed to have, knowledge thereof).
The  foregoing  provisions  of  this  Section  shall  be fully applicable to all
securities or similar property held in pledge hereunder, irrespective of whether
the  Bank  may  have  exercised  any  right  to  have such securities or similar
property  registered  in  its  name  or  in  the  name  of  a  nominee.

     9.     Care  in  Custody.  The  Bank  shall  be  deemed  to  have exercised
            -----------------
reasonable  care  in  the  custody  and  preservation  of  the Collateral and in
protecting  any  rights with respect to the Collateral against prior parties, if
the  Bank  takes  such  action for that purpose as the Assignor shall request in
writing,  but  failure  of the Bank to comply with any such request shall not of
itself  be deemed a failure to exercise reasonable care, provided, however, that
in  any  event  the  Bank's responsibility for the safekeeping of the Collateral
shall  not  extend to matters beyond the control of the Bank, including, without
limitation,  acts  of God, war, insurrection, riot, governmental actions or acts
of  any  corporate  or  other  depository.

     10.     Waiver of Defenses.  No renewal or extension of the time of payment
             ------------------
of the Obligations; no release or surrender of, or failure to perfect or enforce
any security interest for the Obligations; no release of any person primarily or
secondarily  liable  on  the  Obligations  (including  any  maker,  endorser, or
guarantor);  no delay in enforcement of payment of the Obligations; and no delay
or  omission in exercising any right or power with respect of the Obligations or
any  security  agreement securing the Obligations shall affect the rights of the
Bank in the Collateral.  Except as relates to notice specifically provided under
Section  5  hereof,  the  Assignor  hereby  waives presentment, protest, demand,
notice  of dishonor or default, notice of any loans made, extensions granted, or
other action taken in reliance hereon and all demands and notices of any kind in
connection  with  the  Obligations.

                                       13
<PAGE>
     11.     Waiver  of  Assignor's  Subrogation  Rights.  In  case  of  the
             -------------------------------------------
dissolution or insolvency (howsoever evidenced) of the Borrower or the Assignor,
or  in  case  of  any  bankruptcy,  reorganization,  debt  arrangement  or other
proceeding  under  any  bankruptcy  or  insolvency  law,  or  any  dissolution,
liquidation  or receivership proceeding is instituted by or against the Borrower
or  the Assignor, all Obligations then existing shall, without notice to anyone,
immediately  become  due  or accrued and be payable, jointly and severally, from
the  Assignor.  If  bankruptcy  or  reorganization  proceedings  at any time are
instituted  by  or against the Borrower under the United States Bankruptcy Code,
the  Assignor  hereby:  (a)  expressly  and  irrevocably  waives, to the fullest
extent  possible,  on behalf of itself and its successors and assigns (including
any  surety)  and  any  other  person, any and all rights at law or in equity to
subrogation,  to  reimbursement,  to  exoneration,  to  contribution,  to
indemnification, to set off or to any other rights that could accrue to a surety
against  a  principal,  to  a  guarantor  against  a  maker  or  obligor,  to an
accommodation  party  against  the party accommodated, to a holder or transferee
against  a  maker, or to the holder of a claim against any person, and which the
Assignor  may have or hereafter acquire against any person in connection with or
as  a  result  of  the Assignor's execution, delivery and/or performance of this
Pledge  Agreement,  or  any  other documents to which the Assignor is a party or
otherwise;  (b)  expressly  and  irrevocably waives any "claim" (as such term is
defined  in the United States Bankruptcy Code) of any kind against the Borrower,
and  further agrees that he shall not have or assert any such rights against any
person (including any surety), either directly or as an attempted set off to any
action  commenced  against the Assignor by the Bank or any other person; and (c)
acknowledges and agrees that (i) this waiver is intended to benefit the Bank and
shall  not  limit  or otherwise effect the Assignor's liability hereunder or the
enforceability  of  this  Pledge Agreement, (ii) the Borrower and its successors
and assigns are intended third party beneficiaries of this waiver, and (iii) the
agreements  set  forth  in this Section and the Bank's rights under this Section
shall  survive  payment  in  full  of  the  Obligations.

     12.     Waiver  by Bank.  No course of dealing between the Assignor and the
             ---------------
Bank,  nor  any  failure  to  exercise,  nor  any delay in exercising any right,
remedy,  power  or  privilege of the Bank hereunder, under the Note or under any
other agreement entered into between the Assignor and the Bank, shall operate as
a waiver thereof.  No waiver by the Bank of any Event of Default or any right or
remedy  hereunder,  under  the  Note  or  under  any document or agreement shall
constitute  a waiver of any other event of default, right or remedy of the Bank,
nor  of  the  same  event  of  default,  right  or  remedy on a future occasion.

     13.     Governing  Law;  Severability.  This Pledge Agreement has bean made
             -----------------------------
and  entered  into  in  Illinois  and  shall  be  governed  by  and construed in
accordance  with  the  laws  of  the  State of Illinois.  Wherever possible each
provision  of this Pledge Agreement shall be interpreted in such manner as to be
effective  and  valid  under applicable law, but if any provision of this Pledge
Agreement shall be prohibited by or invalid under such law, such provision shall
be  ineffective  to  the  extent  of  such  prohibition  or  invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Pledge  Agreement.

     14.     Successors  and  Assigns.  This Pledge Agreement and all rights and
             ------------------------
liabilities  hereunder  and  in and to any and all Collateral shall inure to the
benefit  of the Bank and its successors and assigns, and shall be binding on the
Assignor,  its  successors  and  assigns.

                                       14
<PAGE>
     15.     Notice.  Any notice of any sale, lease, other disposition, or other
             ------
intended  action by the Bank shall be deemed reasonable if in writing, addressed
to  the Assignor at the address set forth above, or any other address designated
in  a  written  notice  by  the  Assignor  previously  received  by the Bank and
deposited, first class postage prepaid, in the United States mails ten (10) days
in  advance  of  the  intended  disposition  or other intended action, provided,
however,  that  the  foregoing  shall not preclude the fact that failure to give
such  notice  or  by  other  means  may  be  reasonable  under  the  particular
circumstances  involved.

     16.     Duration  and  Effect.  This  Pledge  Agreement  shall  remain  and
             ---------------------
continue  in  full  force  and  effect (notwithstanding, without limitation, the
death,  incompetency  or  dissolution  of the Assignor or the Borrower) from the
date  hereof  until  all of the Obligations have been fully and completely paid,
satisfied  and discharged.  Thereupon, this Pledge Agreement shall terminate and
the  Bank  shall release any Collateral still held by it which has not been sold
or  otherwise disposed of in accordance with Section 6 hereof and applied toward
the  satisfaction  of the Obligations hereunder, and the Bank shall delivery any
such  Collateral  to  the  Assignor, together with any necessary stock powers or
assignment  executed  by  the  Bank  in  blank,  at the Assignor's expense.  The
Assignor  acknowledges that this Pledge Agreement is and shall be effective upon
execution  by the Assignor and delivery to and acceptance hereof by the Bank and
it  shall  not  be  necessary  for  the Bank to execute any acceptance hereof or
otherwise  to  signify  or  express  its  acceptance  hereof  to  the  Assignor.

     IN  WITNESS  WHEREOF,  the  Assignor  and  the  Bank have duly executed and
delivered  this Amended and Restated Third Party Pledge Agreement as of the date
first  above  written.

                                       ASSIGNOR:
                                       --------

                                       GBC KANSAS, INC.

                                       By:______________________________
                                       Name:____________________________
                                       Title:___________________________

                                       BANK:
                                       ----

                                       LASALLE BANK NATIONAL ASSOCIATION

                                       By:______________________________
                                       Name:____________________________
                                       Title:___________________________

                                       15
<PAGE>

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