AMENDMENT NO. 1 TO CREDIT
AGREEMENT
THIS AMENDMENT
NO. 1 TO CREDIT AGREEMENT dated as of September 18, 2008
(this “ Amendment ”) is made among REPUBLIC
SERVICES, INC. , a Delaware corporation (the “
Borrower ”), BANK OF AMERICA, N.A. (“
Bank of America ”), in its capacity as administrative
agent for the Lenders (in such capacity, the “
Administrative Agent ”), and each of the Lenders
signatory hereto. Capitalized terms used but not otherwise defined
herein have the respective meanings ascribed to them in the Credit
Agreement (as defined in Recital A below).
A. The
Borrower, Bank of America, as Administrative Agent, Swing Line
Lender and L/C Issuer, and the Lenders party thereto have entered
into a Credit Agreement, dated as of April 26, 2007 (as in
effect on the date hereof, the “ Credit Agreement
”), pursuant to which the Lenders have made available to
Borrower a revolving credit facility with a swing line sublimit and
a letter of credit sublimit.
B. The
Borrower has advised the Administrative Agent that it intends to
acquire Allied Waste Industries, Inc., a Delaware corporation
(“ Allied ”), pursuant to the terms of an
Agreement and Plan of Merger dated as of June 22, 2008, among
the Borrower, RS Merger Wedge, Inc. and Allied (such transaction,
the “ Allied Acquisition ”).
C. In
connection with the Allied Acquisition, the Borrower is entering
into a new revolving credit facility in an aggregate principal
amount of $1,750,000,000 pursuant to a credit agreement to be dated
on or about the date hereof (the “ New Credit
Agreement ”) among the Borrower, Bank of America, as
administrative agent, and the lenders party thereto.
D. The
Borrower has requested that the Credit Agreement be amended as set
forth in this Amendment in order to facilitate the Allied
Acquisition and to make certain provisions of the Credit Agreement
consistent with the provisions of the New Credit
Agreement.
E. The
Administrative Agent and the Lenders signatory hereto are willing
to effect such amendment on the terms and conditions contained in
this Amendment.
In consideration
of the premises and further valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1.
Amendments to the Credit Agreement . Subject to the terms
and conditions set forth herein, the Credit Agreement is hereby
amended as follows:
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(a)
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Effective as of the Amendment
Effective Date (as defined in Section 2 below), the
Credit Agreement is amended as follows:
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(i)
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The
definition of “ Change of Control ” in
Section 1.01 is deleted in its entirety and the following is
inserted in lieu thereof:
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“
Change of Control ” means an event or series of events
by which:
(a) (i) any
“person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act, but excluding any
employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) other than any Gates
Entity (as hereinafter defined) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such
person or group has the right to acquire whether such right is
exercisable immediately or only after the passage of time (such
right, an “option right”)), directly or indirectly, of
more than 25% of the equity securities of the Borrower entitled to
vote for members of the board of directors or equivalent governing
body of the Borrower (“ Voting Securities ”) on
a fully-diluted basis (and taking into account all such securities
that such person or group has the right to acquire pursuant to any
option right) or (ii) any one or more of Cascade Investment,
L.L.C. (“ Cascade ”), the Bill & Melinda
Gates Foundation Trust (the “ Trust ”), any
entity directly or indirectly owned or controlled by Cascade or the
Trust, or any Person directly or indirectly controlling Cascade,
the Trust or any such entity, or any trustee of any of the
foregoing (collectively, the “ Gates Entities ”)
becomes the “beneficial owner”, directly or indirectly,
of Voting Securities of the Borrower sufficient to cause the
aggregate “beneficial ownership” of Voting Securities
of the Borrower by all of the Gates Entities to exceed 34% of the
Voting Securities of the Borrower on a fully-diluted basis (and
taking into account all such securities that the Gates Entities
have the right to acquire pursuant to any option right);
or
(b) during any
period of 12 consecutive months, a majority of the members of the
board of directors or other equivalent governing body of the
Borrower cease to be composed of individuals (i) who were
members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that
board or equivalent governing body was approved by individuals
referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and
(ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent
governing body occurs as a result of an actual
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or threatened
solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on
behalf of the board of directors).
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(ii)
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The
definition of “ Restricted Cash ” in Section
1.01 is deleted in its entirety and the following is inserted
in lieu thereof:
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“
Restricted Cash ” means that amount of cash of the
Borrower and its Subsidiaries held by or pledged to trustees for
industrial revenue bonds and tax-exempt financings that is included
on the balance sheet of the Borrower, at any date of determination,
in the line item “Restricted Cash.”
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(iii)
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Section 2.03(a)(i)
is amended by inserting
“or its Subsidiaries” after “Borrower” in
the fifth and eighth lines thereof.
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(iv)
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Section 2.03(a)(iv)
is amended by inserting
“(or the applicable Subsidiary)” after
“Borrower” in the third line thereof.
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(v)
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Section 2.03(b)(ii)
is amended by inserting
“(or the applicable Subsidiary)” after
“Borrower” in the tenth line thereof.
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(vi)
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Section 2.03(b)
is amended by inserting
the following new subsection (v) immediately following
2.03(b)(iv) :
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(v) If the
Borrower so requests in any applicable Letter of Credit
Application, an L/C Issuer may, in its sole and absolute
discretion, agree to issue a Letter of Credit that permits the
automatic reinstatement of all or a portion of the stated amount
thereof after any drawing thereunder (each, an “
Auto-Reinstatement Letter of Credit ”). Unless
otherwise directed by such L/C Issuer, the Borrower shall not be
required to make a specific request to such L/C Issuer to permit
such reinstatement. Once an Auto-Reinstatement Letter of Credit has
been issued, except as provided in the following sentence, the
Lenders shall be deemed to have authorized (but may not require)
the applicable L/C Issuer to reinstate all or a portion of the
stated amount thereof in accordance with the provisions of such
Letter of Credit. Notwithstanding the foregoing, if such
Auto-Reinstatement Letter of Credit permits an L/C Issuer to
decline to reinstate all or any portion of the stated amount
thereof after a drawing thereunder by giving notice of such
non-reinstatement within a specified number of days after such
drawing (the “ Non-Reinstatement Deadline ”),
such L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or
before the day that is seven Business Days before the
Non-Reinstatement Deadline (A) from the Administrative Agent
that the Required Lenders have elected not to permit such
reinstatement or (B) from the Administrative Agent, any Lender
or
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the Borrower
that one or more of the applicable conditions specified in
Section 4.02 is not then satisfied or that such
reinstatement would violate the proviso to the first sentence of
Section 2.03(a)(i) (treating such reinstatement as an
L/C Credit Extension for purposes of this clause) and, in each
case, directing such L/C Issuer not to permit such
reinstatement.
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(vii)
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Section 2.03(j)
is amended by deleting
“advance” from the sixth line and inserting
“arrears” in lieu thereof.
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(viii)
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Section 10.17
is amended by inserting
the following sentence at the end thereof:
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The
Borrower shall, promptly following a request by the Administrative
Agent or any Lender, provide all documentation and other
information that the Administrative Agent or such Lender requests
in order to comply with its ongoing obligations under applicable
“know your customer” and anti-money laundering rules
and regulations, including the Act.
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(b)
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Effective as of the Allied
Acquisition Date (as defined in Section 3 below), the
Credit Agreement, as in effect on the Allied Acquisition Date, is
hereby amended such that, after giving effect to all such
amendments, it shall read in its entirety as attached hereto as
Exhibit A . The Credit Agreement, as so amended, is
referred to herein as the “ Amended Credit Agreement
”.
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2.
Conditions Precedent to Section 1(a) Amendments . The
effectiveness of the amendments to the Credit Agreement set forth
in Section 1(a) above is subject to the satisfaction of
the following conditions precedent (the first date all such
conditions have been satisfied, the “ Amendment Effective
Date ”):
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(a)
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the
Administrative Agent shall have received counterparts of this
Amendment, duly executed by the Borrower, the Administrative Agent,
and the Required Lenders;
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(b)
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the
Borrower shall have paid to each Lender that signs this Amendment
on or before the Amendment Effective Date a fee in an amount equal
to 0.05% times such Lender’s Commitment, which fee shall be
fully earned and due on the Amendment Effective Date and shall be
nonrefundable; and
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(c)
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unless waived by the Administrative
Agent, all fees and expenses of the Administrative Agent and the
Lenders (including the reasonable fees and expenses of counsel to
the Administrative Agent to the extent invoiced prior to the date
hereof) in connection with this Amendment shall have been paid in
full (without prejudice to final settling of accounts for such fees
and expenses).
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3.
Conditions Precedent to Section 1(b) Amendments . The
effectiveness of the amendments to the Credit Agreement set forth
in Section 1(b) above is subject to the satisfaction of
the following conditions precedent (the first date all such
conditions have been satisfied, the “ Allied Acquisition
Date ”):
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(a)
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the
Administrative Agent shall have received each of the following in
form and substance reasonably acceptable to it:
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(i)
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(A) a Guaranty Agreement
substantially in the form attached hereto as Exhibit B
, duly executed by each Material Subsidiary (as defined in the
Amended Credit Agreement) of the Borrower (before giving effect to
the Allied Acquisition), and (B) a Guaranty Joinder Agreement
in the form attached to Exhibit B , duly executed by
Allied and each of its Subsidiaries that are Material Subsidiaries
(it being understood and agreed that such Guaranty Joinder
Agreement is being delivered in escrow with irrevocable
authorization to release such Guaranty Joinder Agreement to the
Administrative Agent on the day after the Allied Acquisition Date
and that such Guaranty Joinder Agreement shall be effective on the
day after the Allied Acquisition Date);
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(ii)
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a
certificate of a Responsible Officer of the Borrower certifying
(A) that the representations and warranties of the Borrower
contained in Article V of the Amended Credit Agreement
and in the other Loan Documents are true and correct in all
material respects on and as of the Allied Acquisition Date, except
to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct
in all material respects as of such earlier date, (B) that no
Default or Event of Default has occurred or will result from the
Allied Acquisition (after giving effect to the effectiveness of the
amendments to the Credit Agreement set forth in
Section 1(b) above), (C) as to the current Debt
Ratings, (D) the accuracy of and attaching a proposed updated
Schedule 2.03 to the Amended Credit Agreement for
approval by the Administrative Agent (such approval not to be
unreasonably conditioned, withheld or delayed), (E) the
accuracy of and attaching a proposed updated parts (a) and
(b)of Schedule 5.16 to the Amended Credit Agreement as
of the Allied Acquisition Date and giving effect to the Allied
Acquisition for approval by the Administrative Agent (such approval
not to be unreasonably conditioned, withheld or delayed),
(E) the accuracy of and attaching a proposed updated parts
(a) and (b) of Schedule 5.16 as of the Allied
Acquisition Date and giving effect to the Allied Acquisition for
approval by the Administrative Agent (such approval not to be
unreasonably conditioned, withheld or delayed), (F) the
accuracy of and attaching a proposed updated
Schedule 7.02 as of the Allied Acquisition Date to
reflect Liens of Allied and its Subsidiaries for approval by the
Administrative Agent (such approval not to be unreasonably
conditioned, withheld or delayed), and (G) the accuracy of and
attaching a proposed
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updated
Schedule 7.06 as of the Allied Acquisition Date to
reflect secured Indebtedness of Allied and its Subsidiaries for
approval by the Administrative Agent (such approval not to be
unreasonably conditioned, withheld or delayed);
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(iii)
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such certificates of resolutions or
other action, incumbency certificates and/or other certificates of
Responsible Officers of each Loan Party (as defined in the Amended
Credit Agreement) as the Administrative Agent may reasonably
require evidencing the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Amendment, the Credit Agreement (as
amended by this Amendment) and the other Loan Documents to which
such Loan Party is a party;
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(iv)
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such documents and certifications as
the Administrative Agent may reasonably require to evidence that
each Loan Party is duly organized or formed, and that each Loan
Party is validly existing and in good standing in its jurisdiction
of organization or formation;
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(v)
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favorable opinions of counsel to the
Loan Parties addressed to Administrative Agent and each Lender, as
to the matters described in Exhibit C
hereto;
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(vi)
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satisfactory evidence that
(A) the Allied Acquisition has been or substantially
contemporaneously with the effectiveness of Section 1(b) of
this Amendment will be consummated, and (B) the
“Conditions to Initial Funding” set forth in clauses
(vi) through (xi) and (xiv) of
Section 4.02(b) of the New Credit Agreement have been
or substantially contemporaneously with the effectiveness of
Section 1(b) of this Amendment will be satisfied (with
any references therein to the “Administrative Agent”,
“Lenders”, “Initial Funding Date” or
“Initial Funding Date Material Adverse Effect” being
deemed to be references to the “Administrative Agent”,
“Lenders”, “Allied Acquisition Date” or
“Allied Acquisition Date Material Adverse Effect”, in
each case as defined in the Amended Credit Agreement) without
giving effect to any waiver of any such conditions not approved by
the Administrative Agent; and
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(vii)
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such other certificates, instruments
and documents as the Administrative Agent shall reasonably
request;
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(b)
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the
Allied Acquisition Date shall have occurred on or prior to
May 15, 2009; it being understood that the amendments to the
Credit Agreement in Section 1(b) above shall be
effective, if at all, only if the Allied Acquisition and the
Initial Funding Date (as defined in the New Credit Agreement) shall
have occurred on or before such date; and
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(c)
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unless waived by the Administrative
Agent, all fees and expenses of the Administrative Agent and the
Lenders (including the reasonable fees and expenses of counsel to
the Administrative Agent to the extent invoiced prior to the Allied
Acquisition Date) estimated to date in connection with this
Amendment to the extent not previously paid shall have been paid in
full (without prejudice to final settling of accounts for such fees
and expenses).
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For the
avoidance of doubt, the conditions to any Credit Extension under
the Credit Agreement on the Allied Acquisition Date for the purpose
of consummating the Allied Acquisition shall be as set forth in the
Amended Credit Agreement; provided that all conditions set
forth in this Section 3 have been satisfied other than
those to result from the funding of any such Credit
Extension.
4.
Representations and Warranties . In order to induce the
Administrative Agent and the Lenders to enter into this Amendment,
the Borrower represents and warrants to the Administrative Agent
and the Lenders as follows:
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(a)
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The
representations and warranties of the Borrower contained in
Article V of the Credit Agreement and in the other Loan
Documents are true and correct in all material respects on and as
of the date hereof, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case
they are true and correct in all material respects as of such
earlier date.
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(b)
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This Amendment has been duly
authorized, executed and delivered by, and constitutes a legal,
valid and binding obligation of, the Borrower, except as may be
limited by general principles of equity or by the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or
similar law affecting creditors’ rights generally.
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(c)
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No
Default has occurred and is continuing.
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5. Entire
Agreement . This Amendment, together with the Loan Documents
(collectively, the “ Relevant Documents ”), sets
forth the entire understanding and agreement of the parties hereto
in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such
subject matter. No promise, condition, representation or warranty,
express or implied, not set forth in the Relevant Documents shall
bind any party hereto, and no such party has relied on any such
promise, condition, representation or warranty. Each of the parties
hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or
commitments, express or implied, have been made by any party to the
other in relation to the subject matter hereof or thereof. None of
the terms or conditions of this Amendment may be changed, modified,
waived or canceled orally or otherwise, except in writing and in
accordance with Section 10.01 of the Credit
Agreement.
6. Full
Force and Effect of Amendment . Except as hereby specifically
amended, modified or supplemented, the Credit Agreement and all
other Loan Documents are hereby
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confirmed and
ratified in all respects and shall be and remain in full force and
effect according to their respective terms.
7.
Counterparts . This Amendment may be executed in any number
of counterparts, each of which shall be deemed an original as
against any party whose signature appears thereon, and all of which
shall together constitute one and the same instrument. Delivery of
an executed counterpart of a signature page of this Amendment by
telecopy, facsimile or other electronic transmission (including
.PDF) shall be effective as delivery of a manually executed
counterpart of this Amendment.
8.
Governing Law . This Amendment shall in all respects be
governed by, and construed in accordance with, the laws of the
State of Florida.
9.
Enforceability . Should any one or more of the provisions of
this Amendment be determined to be illegal or unenforceable as to
one or more of the parties hereto, all other provisions
nevertheless shall remain effective and binding on the parties
hereto.
10.
References . All references in any of the Loan Documents to
the “Credit Agreement” shall mean the Credit Agreement,
as amended hereby.
11.
Successors and Assigns . This Amendment shall be binding
upon and inure to the benefit of the Borrower, the Administrative
Agent, the Lenders and their respective successors and assignees to
the extent such assignees are permitted assignees as provided in
Section 10.06 of the Credit Agreement.
[Signature pages
follow.]
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IN WITNESS
WHEREOF , the parties hereto have caused this instrument to be
made, executed and delivered by their duly authorized officers as
of the day and year first above written.
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BORROWER:
REPUBLIC SERVICES, INC.
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By:
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/s/ Edward A.
Lang, III
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Name:
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Edward A. Lang,
III
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Title:
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Vice President
Finance & Treasurer
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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BANK OF
AMERICA, N.A., as
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Administrative
Agent
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By:
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/s/ Ronaldo
Naval
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Name:
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Title:
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Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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BANK OF
AMERICA, N.A., as a
Lender, L/C
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Issuer and
Swing Line Lender
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By:
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/s/ Maria F.
Maia
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Name:
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Title:
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Managing
Director
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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CITIBANK,
N.A.
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By:
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/s/ Thomas F.
Faherty
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Name:
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Title:
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Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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JPMORGAN
CHASE BANK, N.A. , as a
Lender
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and L/C
Issuer
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By:
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/s/ Robert P.
Carswell
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Name:
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Title:
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Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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BARCLAYS
BANK PLC
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By:
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/s/ Douglas
Bernegger
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Name:
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Title:
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Director
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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SUNTRUST
BANK , as a Lender and
L/C Issuer
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By:
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/s/ Robert
Maddox
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Name:
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Title:
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Director
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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BNP
PARIBAS
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By:
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/s/ Fikret
Durmus
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Name:
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Title:
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Vice
President
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By:
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/s/ C.
Palfer-Sollier
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Name:
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C.
Palfer-Sollier
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Title:
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Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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UNION BANK
OF CALIFORNIA, N.A.
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By:
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/s/ Marissa
Petri
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Name:
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Title:
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Assistant Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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COMERICA
BANK , as a Lender and
L/C Issuer
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By:
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/s/ Gerald R.
Finney Jr.
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Name:
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Title:
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Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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KBC BANK
N.V.
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By:
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/s/ William
Cavanaugh
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Name:
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Title:
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Director
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By:
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/s/ Thomas G.
Jackson
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Name:
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Title:
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First Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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MIZUHO
CORPORATE BANK, LTD.
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By:
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/s/ Raymond
Ventura
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Name:
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Title:
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Deputy General
Manager
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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WACHOVIA
BANK, NATIONAL
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ASSOCIATION
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By:
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/s/ Robert
Lozano
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Name:
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Title:
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Senior Vice
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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WELLS FARGO
BANK, NATIONAL
ASSOCIATION
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By:
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/s/ Robert
Krasnow
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Name:
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Title:
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Senior Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
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THE BANK OF
NEW YORK MELLON
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(formerly known
as The Bank of New York)
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By:
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/s/ Clifford A.
Mull
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Name:
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Title:
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First Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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WILLIAMS
STREET COMMITMENT
CORPORATION
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By:
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Name:
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Title:
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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THE BANK OF
NOVA SCOTIA
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By:
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/s/ Todd
Meller
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Name:
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Title:
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Managing
Director
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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U.S. BANK
NATIONAL ASSOCIATION
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By:
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/s/ Blake
Malia
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Name:
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Title:
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Assistant Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
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UNICREDIT
BANCA DI ROMA S.p.A., NEW
YORK BRANCH
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By:
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/s/ Linda
Lee
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Name:
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Title:
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Assistant
Treasurer
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By:
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/s/ Luce
Balestra
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Name:
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Title:
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Executive Vice
President
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Republic Services, Inc.
Amendment No. 1 to Credit Agreement
Signature Page
THIS GUARANTY
AGREEMENT dated as of
, 200___(this “ Guaranty
Agreement ”), is being entered into among EACH OF THE
UNDERSIGNED AND EACH OTHER PERSON WHO SHALL BECOME A PARTY HERETO
BY EXECUTION OF A GUARANTY JOINDER AGREEMENT (each a “
Guarantor ” and collectively the “
Guarantors ”) and BANK OF AMERICA, N.A ., as
Administrative Agent (in such capacity, the “
Administrative Agent ”) for each of the Guaranteed
Parties (as defined in the Credit Agreement referenced below). All
capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to such terms in the Credit
Agreement.
A. Pursuant
to that certain Credit Agreement dated as of April 26, 2007
(as amended, restated, supplemented or otherwise modified from time
to time, the “ Credit Agreement ”), among
Republic Services, Inc., a Delaware corporation (the “
Borrower ”), the Administrative Agent, and the lenders
now or hereafter party thereto (the “ Lenders
”), the Lenders have provided to the Borrower a revolving
credit facility including letter of credit and swing line
facilities.
B. Certain
additional extensions of credit may be made from time to time for
the benefit of the Guarantors pursuant to certain Guaranteed Cash
Management Agreements and Guaranteed Hedge Agreements.
C. The
execution and delivery of this Guaranty Agreement is a condition
precedent to the Guaranteed Parties’ obligations to make and
maintain such extensions of credit.
D. Each
Guarantor is, directly or indirectly, a Domestic Subsidiary and
will materially benefit from such extensions of credit.
In order to induce
the Guaranteed Parties to from time to time make and maintain
extensions of credit under the Credit Agreement and under the
Guaranteed Cash Management Agreements and Guaranteed Hedge
Agreements, the parties hereto agree as follows:
1.
Guaranty . Each Guarantor hereby jointly and severally,
unconditionally, absolutely, continually and irrevocably guarantees
to the Administrative Agent for the benefit of the Guaranteed
Parties the payment and performance in full of the Guaranteed
Liabilities (as defined below). For all purposes of this Guaranty
Agreement, “ Guaranteed Liabilities ” means:
(a) the Borrower’s prompt payment in full, when due or
declared due and at all such times, of all Obligations and all
other amounts pursuant to the terms of the Credit Agreement, the
Notes, and all other Loan Documents heretofore, now or at any time
or times hereafter owing, arising, due or payable from the Borrower
to any one or more of the Guaranteed Parties, including principal,
interest, premiums and fees (including all fees and expenses of
counsel (collectively, “ Attorneys’ Costs
”); (b) the Borrower’s prompt, full and faithful
performance, observance and discharge of
each and every
agreement, undertaking, covenant and provision to be performed,
observed or discharged by the Borrower under the Credit Agreement,
the Notes and all other Loan Documents; and (c) the prompt
payment in full by each Loan Party, when due or declared due and at
all such times, of obligations and liabilities now or hereafter
arising under the Guaranteed Cash Management Agreements and
Guaranteed Hedge Agreements. The Guarantors’ obligations to
the Guaranteed Parties under this Guaranty Agreement are
hereinafter collectively referred to as the “
Guarantors’ Obligations ” and, with respect to
each Guarantor individually, the “ Guarantor’s
Obligations ”. Notwithstanding the foregoing, the
liability of each Guarantor individually with respect to its
Guarantor’s Obligations shall be limited to an aggregate
amount equal to the largest amount that would not render its
obligations hereunder subject to avoidance under Section 548
of the United States Bankruptcy Code or any comparable provisions
of any applicable state law.
Each Guarantor
agrees that it is jointly and severally, directly and primarily
liable (subject to the limitation in the immediately preceding
sentence) for the Guaranteed Liabilities.
For purposes of
this Guaranty Agreement, “ Facility Termination Date
” means the date as of which all of the following shall have
occurred: (a) the Aggregate Commitments have terminated,
(b) all Obligations have been paid in full (other than
(x) contingent indemnification obligations and
(y) obligations and liabilities under Guaranteed Cash
Management Agreements and Guaranteed Hedge Agreements as to which
arrangements satisfactory to the applicable Cash Management Bank or
Hedge Bank have been made), and (c) all Letters of Credit have
terminated or expired or been cancelled (other than Letters of
Credit as to which other arrangements with respect thereto
satisfactory to the Administrative Agent and the L/C Issuer shall
have been made).
2.
Payment . If the Borrower shall default in payment or
performance of any of the Guaranteed Liabilities, whether
principal, interest, premium, fees (including, but not limited to,
Attorneys’ Costs), or otherwise, when and as the same shall
become due, and after expiration of any applicable grace period,
whether according to the terms of the Credit Agreement, by
acceleration, or otherwise, or upon the occurrence and during the
continuance of any Event of Default, then any or all of the
Guarantors will, upon written demand thereof by the Administrative
Agent, fully pay to the Administrative Agent, for the benefit of
the Guaranteed Parties, subject to any restriction on each
Guarantor’s Obligations set forth in Section 1
hereof, an amount equal to all the Guaranteed Liabilities then due
and owing.
3.
Absolute Rights and Obligations . This is a guaranty of
payment and not of collection. The Guarantors’ Obligations
under this Guaranty Agreement shall be joint and several, absolute
and unconditional irrespective of, and each Guarantor hereby
expressly waives, to the extent permitted by law, any defense to
its obligations under this Guaranty Agreement to which it is a
party by reason of:
(a) any lack of
legality, validity or enforceability of the Credit Agreement, of
any of the Notes, of any other Loan Document, of any Guaranteed
Cash Management Agreement or Guaranteed Hedge Agreement or of any
other agreement or instrument creating, providing security for, or
otherwise relating to any of the Guarantors’
Obligations,
any of the Guaranteed Liabilities, or any other guaranty of any of
the Guaranteed Liabilities (the Loan Documents, the Guaranteed Cash
Management Agreements, the Guaranteed Hedge Agreements and all such
other agreements and instruments being collectively referred to as
the “ Related Agreements ”);
(b) any action
taken under any of the Related Agreements, any exercise of any
right or power therein conferred, any failure or omission to
enforce any right conferred thereby, or any waiver of any covenant
or condition therein provided;
(c) any
acceleration of the maturity of any of the Guaranteed Liabilities,
of the Guarantor’s Obligations of any other Guarantor, or of
any other obligations or liabilities of any Person under any of the
Related Agreements;
(d) any release,
exchange, non-perfection, lapse in perfection, disposal,
deterioration in value, or impairment of any security for any of
the Guaranteed Liabilities, for any of the Guarantor’s
Obligations of any Guarantor, or for any other obligations or
liabilities of any Person under any of the Related
Agreements;
(e) any
dissolution of the Borrower or any Guarantor or any other party to
a Related Agreement, or the combination or consolidation of the
Borrower or any Guarantor or any other party to a Related Agreement
into or with another entity or any transfer or disposition of any
assets of the Borrower or any Guarantor or any other party to a
Related Agreement;
(f) any extension
(including without limitation extensions of time for payment),
renewal, amendment, restructuring or restatement of, any acceptance
of late or partial payments under, or any change in the amount of
any borrowings, other credit extensions or any credit facilities
available under, the Credit Agreement, any of the Notes or any
other Loan Document or any other Related Agreement, in whole or in
part;
(g) the existence,
addition, modification, termination, reduction or impairment of
value, or release of any other guaranty (or security therefor) of
the Guaranteed Liabilities (including without limitation the
Guarantor’s Obligations of any other Guarantor and
obligations arising under any other Guaranty now or hereafter in
effect);
(h) any waiver of,
forbearance or indulgence under, or other consent to any change in
or departure from any term or provision contained in the Credit
Agreement, any other Loan Document or any other Related Agreement,
including without limitation any term pertaining to the payment or
performance of any of the Guaranteed Liabilities, any of the
Guarantor’s Obligations of any other Guarantor, or any of the
obligations or liabilities of any party to any other Related
Agreement; or
(i) any other
circumstance whatsoever (with or without notice to or knowledge of
any Guarantor) which may or might in any manner or to any extent
vary the risks of such Guarantor, or might otherwise constitute a
legal or equitable defense available to, or discharge of, a surety
or a guarantor, including without limitation any
right to
require or claim that resort be had to the Borrower or any other
Loan Party or to any collateral in respect of the Guaranteed
Liabilities or Guarantors’ Obligations.
It is the
express purpose and intent of the parties hereto that this Guaranty
Agreement and the Guarantors’ Obligations hereunder and under
each Guaranty Joinder Agreement shall be absolute and unconditional
under any and all circumstances and shall not be discharged except
by payment as herein provided.
4.
Currency and Funds of Payment . All Guarantors’
Obligations will be paid in lawful currency of the United States of
America and in immediately available funds, regardless of any law,
regulation or decree now or hereafter in effect that might in any
manner affect the Guaranteed Liabilities, or the rights of any
Guaranteed Party with respect thereto as against the Borrower, or
cause or permit to be invoked any alteration in the time, amount or
manner of payment by the Borrower of any or all of the Guaranteed
Liabilities.
5.
Events of Default . Without limiting the provisions of
Section 2 hereof, in the event that there shall occur
and be continuing an Event of Default, then notwithstanding any
collateral or other security or credit support for the Guaranteed
Liabilities, at the Administrative Agent’s election and
without notice thereof or demand therefor (except as provided in
the Credit Agreement), the Guarantors’ Obligations shall
immediately be and become due and payable.
6.
Subordination . Until this Guaranty Agreement is
terminated in accordance with Section 21 hereof, each
Guarantor hereby unconditionally subordinates all present and
future debts, liabilities or obligations now or hereafter owing to
such Guarantor (a) of the Borrower, to the payment in full of
the Guaranteed Liabilities, (b) of every other Guarantor (an
“obligated guarantor”), to the payment in full of the
Guarantors’ Obligations of such obligated guarantor, and
(c) of each other Person now or hereafter constituting a Loan
Party, to the payment in full of the obligations of such Loan Party
owing to any Guaranteed Party and arising under the Loan Documents,
any Guaranteed Cash Management Agreement or any Guaranteed Hedge
Agreement. All amounts due under such subordinated debts,
liabilities, or obligations shall, upon the occurrence and during
the continuance of an Event of Default, be collected and, upon
request by the Administrative Agent, paid over forthwith to the
Administrative Agent for the benefit of the Guaranteed Parties on
account of the Guaranteed Liabilities, the Guarantors’
Obligations, or such other obligations, as applicable, and, after
such request and pending such payment, shall be held by such
Guarantor as agent and bailee of the Guaranteed Parties separate
and apart from all other funds, property and accounts of such
Guarantor.
7.
Suits . Each Guarantor from time to time shall pay to
the Administrative Agent for the benefit of the Guaranteed Parties,
on written demand, at the Administrative Agent’s Office or
such other address as the Administrative Agent shall give notice of
to such Guarantor, the Guarantors’ Obligations as they become
or are declared due, and in the event such payment is not made
forthwith, the Administrative Agent may proceed to suit against any
one or more or all of the Guarantors. At the Administrative
Agent’s election, one or more and successive or concurrent
suits may be brought hereon by the Administrative Agent against any
one or more or all of the Guarantors, whether or not suit has been
commenced against the Borrower, any other Guarantor, or any other
Person and whether or not the Guaranteed Parties have taken or
failed to
take any other
action to collect all or any portion of the Guaranteed Liabilities
or Guarantors’ Obligations or have taken or failed to take
any actions against any collateral securing payment or performance
of all or any portion of the Guaranteed Liabilities or
Guarantors’ Obligations, and irrespective of any event,
occurrence, or condition described in Section 3
hereof.
8.
Set-Off and Waiver . Each Guarantor waives any right to
assert against any Guaranteed Party as a defense, counterclaim,
set-off, recoupment or cross claim in respect of its
Guarantor’s Obligations, any defense (legal or equitable) or
other claim which such Guarantor may now or at any time hereafter
have against the Borrower or any or all of the Guaranteed Parties
without waiving any additional defenses, set-offs, counterclaims or
other claims otherwise available to such Guarantor.
9.
Waiver of Notice; Subrogation .
(a) Each Guarantor
hereby waives to the extent permitted by law notice of the
following events or occurrences: (i) acceptance of this
Guaranty Agreement; (ii) the Guaranteed Parties’
heretofore, now or from time to time hereafter making Loans and
issuing Letters of Credit and otherwise loaning monies or giving or
extending credit to or for the benefit of the Borrower or any other
Loan Party, or otherwise entering into arrangements with any Loan
Party giving rise to Guaranteed Liabilities, whether pursuant to
the Credit Agreement or the Notes or any other Loan Document or
Related Agreement or any amendments, modifications, or supplements
thereto, or replacements or extensions thereof;
(iii) presentment, demand (other than any written demand
expressly required hereunder), default, non-payment, partial
payment and protest; and (iv) any other event, condition, or
occurrence described in Section 3 hereof. Each Guarantor
agrees that each Guaranteed Party may heretofore, now or at any
time hereafter do any or all of the foregoing in such manner, upon
such terms and at such times as each Guaranteed Party, in its sole
and absolute discretion, deems advisable, without in any way or
respect impairing, affecting, reducing or releasing such Guarantor
from its Guarantor’s Obligations, and each Guarantor hereby
consents to each and all of the foregoing events or
occurrences.
(b) Each Guarantor
hereby agrees that payment or performance by such Guarantor of its
Guarantor’s Obligations under this Guaranty Agreement may be
enforced by the Administrative Agent on behalf of the Guaranteed
Parties upon written demand by the Administrative Agent to such
Guarantor without the Administrative Agent being required, such
Guarantor expressly waiving to the extent permitted by law any
right it may have to require the Administrative Agent, to
(i) prosecute collection or seek to enforce or resort to any
remedies against the Borrower or any other Guarantor or any other
guarantor of the Guaranteed Liabilities, or (ii) seek to
enforce or resort to any remedies with respect to any security
interests, Liens or encumbrances granted to the Administrative
Agent or any Lender or other party to a Related Agreement by the
Borrower, any other Guarantor or any other Person on account of the
Guaranteed Liabilities or any guaranty thereof, IT BEING
EXPRESSLY UNDERSTOOD, ACKNOWLEDGED AND AGREED TO BY SUCH GUARANTOR
THAT DEMAND UNDER THIS GUARANTY AGREEMENT MAY BE MADE BY
THE
ADMINISTRATIVE AGENT, AND THE PROVISIONS HEREOF
ENFORCED BY THE ADMINISTRATIVE AGENT, EFFECTIVE AS OF THE FIRST
DATE ANY EVENT OF DEFAULT OCCURS AND IS CONTINUING.
(c) Each Guarantor
further agrees with respect to this Guaranty Agreement that it
shall have no right of subrogation, reimbursement, contribution or
indemnity, nor any right of recourse to security for the Guaranteed
Liabilities, unless and until 93 days immediately following
the Facility Termination Date shall have elapsed without the filing
or commencement, by or against any Loan Party, of any state or
federal action, suit, petition or proceeding seeking any
reorganization, liquidation or other relief or arrangement in
respect of creditors of, or the appointment of a receiver,
liquidator, trustee or conservator in respect to, such Loan Party
or its assets. This waiver is expressly intended to prevent the
existence of any claim in respect of such subrogation,
reimbursement, contribution or indemnity by any Guarantor against
the estate of any other Loan Party within the meaning of
Section 101 of the Bankruptcy Code, in the event of a
subsequent case involving any other Loan Party. If an amount shall
be paid to any Guarantor on account of such rights at any time
prior to termination of this Guaranty Agreement in accordance with
the provisions of Section 21 hereof, such amount shall
be held in trust for the benefit of the Guaranteed Parties and
shall forthwith be paid to the Administrative Agent, for the
benefit of the Guaranteed Parties, to be credited and applied upon
the Guarantors’ Obligations, whether matured or unmatured, in
accordance with the terms of the Credit Agreement or otherwise as
the Guaranteed Parties may elect. The agreements in this subsection
shall survive repayment of all of the Guarantors’
Obligations, the termination or expiration of this Guaranty
Agreement in any manner, including but not limited to termination
in accordance with Section 21 hereof, and occurrence of
the Facility Termination Date.
10.
Effectiveness; Enforceability . This Guaranty Agreement
shall be effective as of the date first above written and shall
continue in full force and effect until termination in accordance
with Section 21 hereof. Any claim or claims that the
Guaranteed Parties may at any time hereafter have against a
Guarantor under this Guaranty Agreement may be asserted by the
Administrative Agent on behalf of the Guaranteed Parties by written
notice directed to such Guarantor in accordance with
Section 23 hereof.
11.
Representations and Warranties . Each Guarantor warrants
and represents to the Administrative Agent, for the benefit of the
Guaranteed Parties, that it has the power and authority and is duly
authorized to execute and deliver this Guaranty Agreement (or the
Guaranty Joinder Agreement to which it is a party, as applicable),
and to perform its obligations under this Guaranty Agreement, that
this Guaranty Agreement (or the Guaranty Joinder Agreement to which
it is a party, as applicable) has been duly executed and delivered
on behalf of such Guarantor by its duly authorized representatives;
that this Guaranty Agreement (and any Guaranty Joinder Agreement to
which such Guarantor is a party) is legal, valid, binding and
enforceable against such Guarantor in accordance with its terms
except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general
equitable principles; and that such Guarantor’s execution,
delivery and performance of this Guaranty Agreement (and any
Guaranty
Joinder
Agreement to which such Guarantor is a party) do not require any
consent or approval of any Person and do not violate or constitute
a breach of any of its Organization Documents, any agreement or
instrument to which such Guarantor is a party, or any law, order,
regulation, decree or award of any governmental authority or
arbitral body to which it or its properties or operations is
subject.
12.
Expenses . Each Guarantor agrees to be jointly and
severally liable for the payment of all reasonable fees and
expenses, including Attorneys’ Costs, incurred by any
Guaranteed Party in connection with the enforcement of this
Guaranty Agreement, whether or not suit be brought.
13.
Reinstatement . Each Guarantor agrees that this Guaranty
Agreement shall continue to be effective or be reinstated, as the
case may be, if at any time payment received by any Guaranteed
Party in respect of any Guaranteed Liabilities is rescinded or must
be restored for any reason, or is repaid by any Guaranteed Party in
whole or in part in good faith settlement of any pending or
threatened avoidance claim.
14.
Reliance . Each Guarantor represents and warrants to the
Administrative Agent, for the benefit of the Guaranteed Parties,
that: (a) such Guarantor has adequate means to obtain on a
continuing basis (i) from the Borrower, information concerning
the Loan Parties and the Loan Parties’ financial condition
and affairs and (ii) from other reliable sources, such other
information as it deems material in deciding to provide this
Guaranty Agreement and any Guaranty Joinder Agreement (“
Other Information ”), and has full and complete access
to the Loan Parties’ books and records and to such Other
Information; (b) such Guarantor is not relying on any
Guaranteed Party or its or their employees, directors, agents or
other representatives or Affiliates, to provide any such
information, now or in the future; (c) such Guarantor has been
furnished with and reviewed the terms of the Credit Agreement and
such other Loan Documents and Related Agreements as it has
requested, is executing this Guaranty Agreement (or the Guaranty
Joinder Agreement to which it is a party, as applicable) freely and
deliberately, and understands the obligations and financial risk
undertaken by providing this Guaranty Agreement (and any Guaranty
Joinder Agreement); (d) such Guarantor has relied solely on
such Guarantor’s own independent investigation, appraisal and
analysis of the Borrower, the Borrower’s financial condition
and affairs, the Other Information, and such other matters as it
deems material in deciding to provide this Guaranty Agreement (and
any Guaranty Joinder Agreement) and is fully aware of the same; and
(e) such Guarantor has not depended or relied on any
Guaranteed Party or its or their employees, directors, agents or
other representatives or Affiliates, for any information whatsoever
concerning the Borrower or the Borrower’s financial condition
and affairs or any other matters material to such Guarantor’s
decision to provide this Guaranty Agreement (and any Guaranty
Joinder Agreement), or for any counseling, guidance, or special
consideration or any promise therefor with respect to such
decision. Each Guarantor agrees that no Guaranteed Party has any
duty or responsibility whatsoever, now or in the future, to provide
to such Guarantor any information concerning the Borrower or the
Borrower’s financial condition and affairs, or any Other
Information, other than as expressly provided herein, and that, if
such Guarantor receives any such information from any Guaranteed
Party or its or their employees, directors, agents or other
representatives or Affiliates, such Guarantor will independently
verify such information and will not rely on any Guaranteed Party
or its or their
employees,
directors, agents or other representatives or Affiliates, with
respect to such information.
15.
Rules of Interpretation . The rules of interpretation
contained in Section 1.02 of the Credit Agreement shall be
applicable to this Guaranty Agreement and each Guaranty Joinder
Agreement and are hereby incorporated by reference. All
representations and warranties contained herein shall survive the
delivery of documents and any extension of credit referred to
herein or guaranteed hereby.
16.
Entire Agreement . This Guaranty Agreement and each
Guaranty Joinder Agreement, together with the Credit Agreement and
other Loan Documents, constitutes and expresses the entire
understanding between the parties hereto with respect to the
subject matter hereof, and supersedes all prior negotiations,
agreements, understandings, inducements, commitments or conditions,
express or implied, oral or written, with respect to such subject
matter except as herein contained. The express terms hereof control
and supersede any course of performance or usage of the trade
inconsistent with any of the terms hereof. Except as provided in
Section 21 hereof, neither this Guaranty Agreement nor
any Guaranty Joinder Agreement nor any portion or provision hereof
or thereof may be changed, altered, modified, supplemented,
discharged, canceled, terminated, or amended orally or in any
manner other than as provided in the Credit Agreement.
17.
Binding Agreement; Assignment . This Guaranty Agreement,
each Guaranty Joinder Agreement and the terms, covenants and
conditions hereof and thereof, shall be binding upon and inure to
the benefit of the parties hereto and thereto, and to their
respective heirs, legal representatives, successors and assigns;
provided , however , that no Guarantor shall be
permitted to assign any of its rights, powers, duties or
obligations under this Guaranty Agreement, any Guaranty Joinder
Agreement or any other interest herein or therein without the prior
written consent of the Administrative Agent. Without limiting the
generality of the foregoing sentence of this Section 17
, any Lender may assign to one or more Persons, or grant to one or
more Persons participations in or to, all or any part of its rights
and obligations under the Credit Agreement (to the extent permitted
by the Credit Agreement); and to the extent of any such assignment
or participation such other Person shall, to the fullest extent
permitted by law, thereupon become vested with all the benefits in
respect thereof granted to such Lender herein or otherwise, subject
however, to the provisions of the Credit Agreement, including
Article IX thereof (concerning the Administrative
Agent) and Section 10.06 thereof concerning assignments
and participations. All references herein to the Administrative
Agent shall include any successor thereof.
18.
Guaranteed Cash Management Agreements and Guaranteed Hedging
Agreements . No Guaranteed Party (other than the
Administrative Agent) that obtains the benefit of this Guaranty
Agreement shall have any right to notice of any action or to
consent to, direct or object to any action hereunder (including the
release, impairment or modification of any Guarantors’
Obligations or security therefor) other than in its capacity as a
Lender and, in such case, only to the extent expressly provided in
the Loan Documents. Notwithstanding any other provision of this
Guaranty Agreement to the contrary, the Administrative Agent shall
only be required to verify the payment of, or that
other
satisfactory arrangements have been made with respect to, the
Guaranteed Obligations arising under Guaranteed Cash Management
Agreements and Guaranteed Hedge Agreements to the extent the
Administrative Agent has received written notice of such
Obligations, together with such supporting documentation as it may
request, from the applicable Cash Management Bank or Hedge Bank, as
the case may be. Each Guaranteed Party not a party to the Credit
Agreement that obtains the benefit of this Guaranty Agreement shall
be deemed to have acknowledged and accepted the appointment of the
Administrative Agent pursuant to the terms of the Credit Agreement,
and that with respect to the actions and omissions of the
Administrative Agent hereunder or otherwise relating hereto that do
or may affect such Guaranteed Party, the Administrative Agent and
each of its Related Parties shall be entitled to all the rights,
benefits and immunities conferred under Article IX of
the Credit Agreement.
19.
Severability . The provisions of this Guaranty Agreement
are independent of and separable from each other. If any provision
hereof shall for any reason be held invalid or unenforceable, such
invalidity or unenforceability shall not affect the validity or
enforceability of any other provision hereof, but this Guaranty
Agreement shall be construed as if such invalid or unenforceable
provision had never been contained herein.
20.
Counterparts . This Guaranty Agreement may be executed
in any number of counterparts each of which when so executed and
delivered shall be deemed an original, and it shall not be
necessary in making proof of this Guaranty Agreement to produce or
account for more than one such counterpart executed by the
Guarantors against whom enforcement is sought. Without limiting the
foregoing provisions of this Section 20 , the
provisions of Section 10.10 of the Credit Agreement
shall be applicable to this Guaranty Agreement.
21.
Termination . Subject to reinstatement pursuant to
Section 13 hereof, this Guaranty Agreement and each
Guaranty Joinder Agreement, and all of the Guarantors’
Obligations hereunder (excluding those Guarantors’
Obligations relating to Guaranteed Liabilities that expressly
survive such termination) shall terminate on the Facility
Termination Date.
22.
Remedies Cumulative; Late Payments . All remedies
hereunder are cumulative and are not exclusive of any other rights
and remedies of the Administrative Agent or any other Guaranteed
Party provided by law or under the Credit Agreement, the other
Related Agreements or other applicable agreements or instruments.
The making of the Loans and other credit extensions pursuant to the
Credit Agreement and other Related Agreements shall be conclusively
presumed to have been made or extended, respectively, in reliance
upon each Guarantor’s guaranty of the Guaranteed Liabilities
pursuant to the terms hereof. Any amounts not paid when due under
this Guaranty Agreement shall bear interest at the Default
Rate.
23.
Notices . Any notice required or permitted hereunder or
under any Guaranty Joinder Agreement shall be given, (a) with
respect to each Guarantor, at the address of the Borrower indicated
in Schedule 10.02 of the Credit Agreement and
(b) with respect to the Administrative Agent or any other
Guaranteed Party, at the Administrative Agent’s address
indicated in Schedule 10.02 of the Credit Agreement.
All such addresses may be modified, and
all such
notices shall be given and shall be effective, as provided in
Section 10.02 of the Credit Agreement for the giving
and effectiveness of notices and modifications of addresses
thereunder.
24.
Joinder . Each Person that shall at any time execute and
deliver to the Administrative Agent a Guaranty Joinder Agreement
substantially in the form attached as Exhibit A hereto shall
thereupon irrevocably, absolutely and unconditionally become a
party hereto and obligated hereunder as a Guarantor, and all
references herein and in the other Loan Documents to the Guarantors
or to the parties to this Guaranty Agreement shall be deemed to
include such Person as a Guarantor hereunder.
25.
Governing Law; Venue; Waiver of Jury Trial .
(a) THIS
GUARANTY AGREEMENT AND EACH GUARANTY JOINDER AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY
PERFORMED, IN SUCH STATE.
(b) EACH
GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
GUARANTY AGREEMENT OR ANY GUARANTY JOINDER AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN MAY BE INSTITUTED IN
ANY STATE OR FEDERAL COURT SITTING IN THE COUNTY OF NEW YORK, STATE
OF NEW YORK, UNITED STATES OF AMERICA AND, BY THE EXECUTION AND
DELIVERY OF THIS GUARANTY AGREEMENT OR A GUARANTY JOINDER
AGREEMENT, SUCH GUARANTOR EXPRESSLY WAIVES ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN, OR TO THE
EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY, ANY SUCH
COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH GUARANTOR
HEREBY IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE
JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR
PROCEEDING.
(c) EACH
GUARANTOR AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL
SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL
PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR
CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS FOR NOTICES TO SUCH
GUARANTOR IN EFFECT PURSUANT TO SECTION 23 HEREOF, OR BY ANY
OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS IN
EFFECT IN THE STATE OF NEW YORK.
(d) NOTHING CONTAINED IN SUBSECTIONS (b) or
(c) HEREOF SHALL PRECLUDE THE ADMINISTRATIVE AGENT FROM
BRINGING ANY
SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY AGREEMENT
OR ANY GUARANTY JOINDER AGREEMENT OR ANY OTHER LOAN DOCUMENT IN THE
COURTS OF ANY JURISDICTION WHERE ANY GUARANTOR OR ANY OF SUCH
GUARANTOR’S PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO
THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH
JURISDICTION, EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES, IN RESPECT OF
ANY SUCH SUIT, ACTION OR PROCEEDING, OBJECTION TO THE EXERCISE OF
JURISDICTION OVER IT AND ITS PROPERTY BY ANY SUCH OTHER COURT OR
COURTS WHICH NOW OR HEREAFTER MAY BE AVAILABLE UNDER APPLICABLE
LAW.
(e) IN
ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR
REMEDIES UNDER OR RELATED TO THIS GUARANTY AGREEMENT OR ANY
GUARANTY JOINDER AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN
CONNECTION THEREWITH, EACH GUARANTOR AND THE ADMINISTRATIVE AGENT
ON BEHALF OF THE GUARANTEED PARTIES HEREBY AGREE, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION, SUIT OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND
HEREBY IRREVOCABLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT ANY SUCH PERSON MAY HAVE TO TRIAL BY JURY IN ANY
SUCH ACTION, SUIT OR PROCEEDING.
(f) EACH
GUARANTOR HEREBY EXPRESSLY WAIVES ANY OBJECTION IT MAY HAVE THAT
ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO THE
TERMS HEREOF IS AN INCONVENIENT FORUM.
[Signature page follows.]
IN WITNESS
WHEREOF , the parties hereto have duly executed and delivered
this Guaranty Agreement as of the day and year first written
above.
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GUARANTORS:
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By:
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Name:
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Title:
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ADMINISTRATIVE AGENT:
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BANK OF
AMERICA, N.A ., as
Administrative
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Agent
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By:
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Name:
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Title:
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13
Form of Guaranty Joinder
Agreement
GUARANTY JOINDER
AGREEMENT
THIS GUARANTY
JOINDER AGREEMENT dated as of
, 20 (this “ Guaranty Joinder
Agreement ”), is made by
, a
(the
“ Joining Guarantor ”), in favor of BANK OF
AMERICA, N.A. , in its capacity as Administrative Agent (the
“ Administrative Agent ”) for the Guaranteed
Parties (as defined in the Guaranty Agreement referenced below; all
capitalized terms used but not defined herein shall have the
meanings given to such terms in such Guaranty
Agreement).
A. Certain
Domestic Subsidiaries of Republic Services, Inc., a Delaware
corporation (the “ Borrower ”), are party to a
Guaranty Agreement dated as of
, 200 (as in effect on the date hereof, the “
Guaranty Agreement ”).
B. The
Joining Guarantor is a Domestic Subsidiary and is required by the
terms of the Credit Agreement to be joined as a party to the
Guaranty Agreement as a Guarantor.
C. The
Joining Guarantor will materially benefit directly and indirectly
from the making and maintenance of the extensions of credit made
from time to time under the Credit Agreement, Guaranteed Cash
Management Agreements and Guaranteed Hedge Agreements.
In order to induce
the Guaranteed Parties to from time to time make and maintain
extensions of credit under the Credit Agreement, Guaranteed Cash
Management Agreements and Guaranteed Hedge Agreements, the Joining
Guarantor hereby agrees as follows:
1.
Joinder . The Joining Guarantor hereby irrevocably,
absolutely and unconditionally becomes a party to the Guaranty
Agreement as a Guarantor and bound by all the terms, conditions,
obligations, liabilities and undertakings of each Guarantor or to
which each Guarantor is subject thereunder, including without
limitation the joint and several, unconditional, absolute,
continuing and irrevocable guarantee to the Administrative Agent
for the benefit of the Guaranteed Parties of the payment and
performance in full of the Guaranteed Liabilities whether now
existing or hereafter arising, all with the same force and effect
as if the Joining Guarantor were a signatory to the Guaranty
Agreement.
2.
Affirmations . The Joining Guarantor hereby acknowledges
and reaffirms as of the date hereof with respect to itself, its
properties and its affairs each of the waivers, representations,
warranties, acknowledgements and certifications applicable to any
Guarantor contained in the Guaranty Agreement.
14
3.
Severability . The provisions of this Guaranty Joinder
Agreement are independent of and separable from each other. If any
provision hereof shall for any reason be held invalid or
unenforceable, such invalidity or unenforceability shall not affect
the validity or enforceability of any other provision hereof, but
this Guaranty Joinder Agreement shall be construed as if such
invalid or unenforceable provision had never been contained
herein.
4.
Counterparts . This Guaranty Joinder Agreement may be
executed in any number of counterparts each of which when so
executed and delivered shall be deemed an original, and it shall
not be necessary in making proof of this Guaranty Joinder Agreement
to produce or account for more than one such counterpart executed
by the Joining Guarantor. Without limiting the foregoing provisions
of this Section 4 , the provisions of
Section 10.10 of the Credit Agreement shall be
applicable to this Guaranty Joinder Agreement.
5.
Delivery . The Joining Guarantor hereby irrevocably
waives notice of acceptance of this Guaranty Joinder Agreement and
acknowledges that the Guaranteed Liabilities are and shall be
deemed to be incurred, and credit extensions under the Loan
Documents, Guaranteed Cash Management Agreements and Guaranteed
Hedge Agreements made and maintained, in reliance on this Guaranty
Joinder Agreement and the Joining Guarantor’s joinder as a
party to the Guaranty Agreement as herein provided.
6.
Governing Law; Venue; Waiver of Jury Trial . The
provisions of Section 25 of the Guaranty Agreement are
hereby incorporated by reference as if fully set forth
herein.
[Signature page
follows.]
15
IN WITNESS
WHEREOF , the Joining Guarantor has duly executed and delivered
this Guaranty Joinder Agreement as of the day and year first
written above.
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JOINING
GUARANTOR:
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By:
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Name:
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16
As used below,
the term, “ Transaction Documents ” means the
following:
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1.
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the
Amendment;
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2.
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the
Credit Agreement (as amended by the Amendment);
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3.
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the
Notes
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4.
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the
Guaranty; and
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5.
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the
Guaranty Joinder Agreement.
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The following
opinions shall be delivered on the Initial Funding Date by Akerman
Senterfitt limited, in the cases of 1, 2(a), 2(b) and 3 to the laws
of the States of California, Florida, Maryland, New York and
Virginia and the Delaware limited liability company act and general
corporation law. Local counsel shall deliver 1, 2(a), 2(b), and 3
with respect to other jurisdictions not .
Each Loan Party is
a corporation, limited liability company or limited partnership, as
the case may be, validly existing and in good standing under the
laws of the jurisdiction of its organization.
Each Loan Party
has the requisite corporate, limited liability company or limited
partnership power and authority, as the case may be, to execute,
deliver and perform its obligations under each of the Transaction
Documents to which it is a party. Such execution and delivery, and
the repayment of its obligations thereunder:
has
been duly authorized by all necessary and proper corporate, limited
partnership or limited liability company action, as the case may
be, of such Loan Party;
does
not violate the Organizational Documents of such Loan Party or
require any approval of such Loan Party’s shareholders,
members, managers, limited partners or general partners, as the
case may be, which has not been obtained;
will
not violate any law or regulation of the State of New York or any
law or regulation of the United States of America (including,
without limitation, Regulations T, U or X), in each case,
applicable to such Loan Party; and
will
not (i) conflict with, violate or constitute a breach of any
contract, agreement, indenture, lease, instrument, commitment,
judgment, writ, determination, order, decree or arbitral award to
which such Loan Party is a party or by which such Loan Party or any
of its properties is bound and which is specifically identified to
us in the Officers’ Certificates as material to the Credit
Parties, taken as a whole, or (ii) to our actual knowledge,
without independent
17
investigation,
result in the creation or imposition of any lien, pledge, charge or
encumbrance of any nature upon or with respect to any of the
properties of such Loan Party.
Each of the
Transaction Documents has been duly executed and delivered by a
duly authorized officer or signatory of the Loan Party delivering
the same.
No approval by,
authorization of, or filing with any agency or instrumentality of
the United States or the State of New York is necessary in
connection with the execution and delivery by each of the Credit
Parties of the Transaction Documents to which it is a party or each
Loan Party’s performance of its obligations thereunder,
except for approvals or authorizations which have been obtained and
filings which have been made.
Each of the
Transaction Documents constitutes the valid and binding obligation
of each Loan Party that is a party thereto, enforceable against
such Loan Party in accordance with its terms.
To our actual
knowledge, without independent investigation, and based solely on
our review of the Officers’ Certificates, there is no pending
or threatened in writing, action, suit, investigation or proceeding
before or by any court, or governmental department, commission,
board, bureau, instrumentality, agency or arbitral authority, which
calls into question the validity or enforceability of any of the
Transaction Documents.
No documentary
stamp, intangible, excise or other tax is payable to any
governmental authority of the State of Florida in connection with
the execution and delivery of any of the Transaction
Documents.
You also have
requested our opinion as to the enforceability under Florida law of
the Florida choice of law provisions contained in the Transaction
Documents. We note that as of the date hereof, the Company has its
principal place of business and chief executive office in Florida
and that the loan documents evidencing the Loans (including the
Transaction Documents) have been negotiated by the Company in
Florida. In addition, we note that by their terms the Transaction
Documents expressly select the laws of the State of Florida as the
law governing their interpretation. Based upon the foregoing facts,
it is our opinion that it is more likely than not that a
“normal” and “reasonable” relationship
exists between the transaction evidenced by the Transaction
Documents and the State of Florida, and therefore, under the
holding of Continental Mortgage Investors v. Sailboat Key,
Inc. , 395 So. 2d. 507 (Fla. 1981), and the line of subsequent
related decisions, while the matter is not free from doubt, it is
our opinion that, if the matter were properly presented today to a
court in Florida having jurisdiction, and assuming interpretation
of the relevant law on a basis consistent with existing authority,
it is more likely than not that a Florida court (or a federal court
applying Florida choice of law rules) would conclude as binding the
designation of Florida as the jurisdiction whose law is to govern
the provisions of the Transaction Documents.
18
Exhibit A to
Amendment No. 1
Published CUSIP Number:
760760AA6
Dated as of April 26, 2007
as amended by
Amendment No. 1 to Credit Agreement dated September 18,
2008
(effective as of the Allied
Acquisition Date defined therein)
REPUBLIC SERVICES,
INC.,
as the Borrower,
BANK OF AMERICA, N.A.,
as Administrative Agent, Swing Line Lender
and
L/C Issuer,
CITIBANK, N.A.,
as Syndication Agent
JPMORGAN CHASE BANK,
N.A. ,
BARCLAYS BANK PLC and
SUNTRUST BANK ,
as Co-Documentation Agents
The Other Lenders Party
Hereto
BANC OF AMERICA SECURITIES
LLC
and
CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arrangers and Joint Book Managers
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Section
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Page
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1
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1.02 Other Interpretive Provisions
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1.06 Letter of Credit Amounts
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2.02 Borrowings, Conversions and Continuations
of Committed Loans
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2.06 Termination or Reduction of
Commitments
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2.10 Computation of Interest and Fees
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2.12 Payments Generally; Administrative
Agent’s Clawback
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2.13 Sharing of Payments by Lenders
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2.14 Increase in Commitments
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3.03 Inability to Determine Rates
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3.05 Compensation for Losses
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3.06 Mitigation Obligations; Replacement of
Lenders
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4.01 Conditions of Initial Credit
Extension
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4.02 Conditions to all Credit
Extensions
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5.01 Corporate Existence and Power
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Section
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5.02 Corporate Authorization; No
Contravention
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5.03 Governmental Authorization
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59
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59
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59
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60
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|
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|
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|
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60
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5.08 Use of Proceeds; Margin
Regulations
|
|
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60
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|
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|
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61
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61
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61
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5.12 Environmental Matters
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61
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61
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5.14 No Burdensome Restrictions
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62
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5.15 Copyrights, Patents, Trademarks and
Licenses, Etc
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62
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62
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62
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62
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62
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6.01 Financial Statements
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63
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6.02 Certificates; Other Information
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63
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65
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6.04 Preservation of Corporate Existence,
Etc
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66
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6.05 Maintenance of Property
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66
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66
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67
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6.08 Compliance with Laws; Contractual
Obligations
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67
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|
6.09 Compliance with ERISA
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67
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6.10 Inspection of Property and Books and
Records
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67
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67
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68
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6.13 Additional Guarantors
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68
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ii
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Section
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Page
|
7.01 Financial Condition Covenants
|
|
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68
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68
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7.03 Disposition of Assets
|
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70
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7.04 Consolidations and Mergers
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71
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|
7.05 Loans and Investments
|
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71
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7.06 Limitation on Secured
Indebtedness
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72
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|
7.07 Transactions with Affiliates
|
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73
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73
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73
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74
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74
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|
7.12 Burdensome Agreements
|
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|
74
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|
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|
74
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76
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8.03 Rights Not Exclusive
|
|
|
77
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|
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|
8.04 Application of Receipts
|
|
|
77
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|
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|
|
9.01 Appointment and Authority
|
|
|
78
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|
|
78
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|
9.03 Exculpatory Provisions
|
|
|
79
|
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|
9.04 Reliance by Administrative Agent
|
|
|
79
|
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|
9.05 Delegation of Duties
|
|
|
80
|
|
|
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|
|
|
9.06 Resignation of Administrative
Agent
|
|
|
80
|
|
|
|
|
|
|
|
9.07 Non-Reliance on Administrative Agent and
Other Lenders
|
|
|
81
|
|
|
|
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|
|
9.08 No Other Duties, Etc
|
|
|
81
|
|
|
|
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|
|
|
9.09 Administrative Agent May File Proofs of
Claim
|
|
|
81
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|
|
|
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|
|
|
|
|
|
|
82
|
|
|
|
|
|
|
|
9.11 Guaranteed Cash Management Agreements and
Guaranteed Hedge Agreements
|
|
|
82
|
|
|
|
|
|
|
|
9.12 Release of Guarantors
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
10.02 Notices; Effectiveness; Electronic
Communication
|
|
|
84
|
|
|
|
|
|
|
|
10.03 No Waiver; Cumulative Remedies
|
|
|
86
|
|
|
|
|
|
|
|
iii
|
|
|
|
|
|
|
Section
|
|
Page
|
10.04 Expenses; Indemnity; Damage
Waiver
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
89
|
|
|
|
|
|
|
|
10.06 Successors and Assigns
|
|
|
89
|
|
|
|
|
|
|
|
10.07 Treatment of Certain Information;
Confidentiality
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
|
|
|
|
10.09 Interest Rate Limitation
|
|
|
94
|
|
|
|
|
|
|
|
10.10 Counterparts; Integration;
Effectiveness
|
|
|
95
|
|
|
|
|
|
|
|
10.11 Survival of Representations and
Warranties
|
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
95
|
|
|
|
|
|
|
|
10.13 Replacement of Lenders
|
|
|
95
|
|
|
|
|
|
|
|
10.14 Governing Law; Jurisdiction;
Etc
|
|
|
96
|
|
|
|
|
|
|
|
10.15 Waiver of Jury Trial
|
|
|
97
|
|
|
|
|
|
|
|
10.16 No Advisory or Fiduciary
Responsibility
|
|
|
98
|
|
|
|
|
|
|
|
10.17 USA PATRIOT Act Notice
|
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-1
|
|
iv
|
|
|
|
|
|
|
|
|
|
|
|
1.01
|
(a)
|
|
Allied
Unrestricted Subsidiaries
|
|
|
|
|
1.01
|
(b)
|
|
Excluded
Subsidiaries
|
|
|
|
|
2.01
|
|
|
Commitments and
Applicable Percentages
|
|
|
|
|
2.03
|
|
|
Existing
Letters of Credit
|
|
|
|
|
5.07
|
|
|
ERISA
Matters
|
|
|
|
|
5.12
|
|
|
Environmental
Matters
|
|
|
|
|
5.16
|
|
|
Subsidiaries
and Minority Interests
|
|
|
|
|
7.02
|
|
|
Existing
Liens
|
|
|
|
|
7.05
|
(b)
|
|
Permitted RMI
Investments
|
|
|
|
|
7.06
|
|
|
Existing
Secured Indebtedness
|
|
|
|
|
7.12
|
|
|
Existing
Burdensome Agreements
|
|
|
|
|
10.02
|
|
Administrative
Agent’s Office; Certain Addresses for Notices
|
|
|
|
|
|
|
|
|
|
|
|
Form
of
|
|
|
|
|
|
|
|
|
|
A
|
|
Committed Loan
Notice
|
|
|
|
B
|
|
Swing Line Loan
Notice
|
|
|
|
C
|
|
Note
|
|
|
|
D
|
|
Compliance
Certificate
|
|
|
|
E-1
|
|
Assignment and
Assumption
|
|
|
|
E-2
|
|
Administrative
Questionnaire
|
|
|
|
F
|
|
Opinion
Matters
|
|
|
|
G
|
|
Guaranty
|
|
|
|
H
|
|
Report of
Letter of Credit Information
|
v
This CREDIT
AGREEMENT (this “ Agreement ”) is entered into
as of April 26, 2007, among REPUBLIC SERVICES, INC. , a
Delaware corporation (the “ Borrower ”), each
lender from time to time party hereto (collectively, the “
Lenders ” and individually, a “ Lender
”), and BANK OF AMERICA, N.A. , as Administrative
Agent, Swing Line Lender and an L/C Issuer.
The Borrower has
requested that the Lenders provide a revolving credit facility, and
the Lenders are willing to do so on the terms and conditions set
forth herein.
In consideration
of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:
ARTICLE I.
DEFINITIONS AND ACCOUNTING TERMS
1.01 Defined
Terms . As used in this Agreement, the following terms shall
have the meanings set forth below:
“
Acquired Plan ” means any Plan which was originally
established and maintained by a Person other than the Borrower or
an ERISA Affiliate and which became, or hereafter becomes, a Plan
as a result of an Acquisition by the Borrower or any
Subsidiary.
“
Acquisition ” means any transaction or series of
related transactions for the purpose of or resulting, directly or
indirectly, in (a) the acquisition of all or substantially all
of the assets of a Person, or of all or substantially all of any
business or division of a Person, (b) the acquisition of in
excess of 50% of the capital stock, partnership interests,
membership interests or equity of any Person, or otherwise causing
any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person (other
than a Person that is a Subsidiary) provided that the Borrower or
the Subsidiary is the surviving entity.
“
Administrative Agent ” means Bank of America in its
capacity as administrative agent under any of the Loan Documents,
or any successor administrative agent.
“
Administrative Agent’s Office ” means the
Administrative Agent’s address and, as appropriate, account
as set forth on Schedule 10.02 , or such other address
or account as the Administrative Agent may from time to time notify
to the Borrower and the Lenders.
“
Administrative Questionnaire ” means an Administrative
Questionnaire in substantially the form of Exhibit E-2
or any other form approved by the Administrative Agent.
“
Affiliate ” means, with respect to any Person, another |