Exhibit 10.39
WILLIAMS SCOTSMAN, INC.
$42,000,000
8 1/2% Senior Notes Due 2015
PURCHASE
AGREEMENT
September 20, 2005
Deutsche Bank Securities Inc.
60 Wall Street
New York, New York 10005
Ladies and Gentlemen:
Williams Scotsman, Inc., a
Maryland corporation (the “ Issuer ”), hereby
confirms its agreement with you (the “ Initial
Purchaser ”) as set forth below.
1.
The
Securities . Subject to the terms
and conditions herein contained, the Issuer proposes to issue and
sell to the Initial Purchaser $42,000,000 aggregate principal
amount of its 8 1/2% Senior Notes due 2015 (the “
Notes ”). The Notes will be guaranteed (the
“ Guarantees ”) on a senior basis by Williams
Scotsman International, Inc., a Delaware corporation and the
owner of all of the outstanding capital stock of the Issuer
(“ Williams Scotsman International ”), Evergreen
Mobile Company, a Washington corporation and a wholly owned
subsidiary of the Issuer, Space Master International, Inc., a
Georgia corporation and a wholly owned subsidiary of the Issuer,
Truck & Trailer Sales, Inc., a Missouri corporation
and a wholly owned subsidiary of the Issuer and Williams Scotsman
of Canada, Inc., a Canadian corporation and a wholly owned
subsidiary of the Issuer (each a “ Guarantor ”
and collectively, the “ Guarantors ”), and will
be guaranteed (the “ Subordinated Guarantee ”)
on a subordinated basis by Willscot Equipment, LLC, a Delaware
limited liability company and a wholly owned subsidiary of the
Issuer (the “ Subordinated Guarantor ”).
The Notes, the Guarantees and the Subordinated Guarantee are
collectively referred to herein as the “ Securities
.” The Securities are to be issued under an indenture
(as supplemented from time to time, the “ Indenture
”) dated as of September 29, 2005 by and among the
Issuer, the Guarantors, the Subordinated Guarantor and The Bank of
New York, as Trustee (the “ Trustee
”).
The Securities are being issued in
connection with (a) the initial public offering of the common stock
of Williams Scotsman International (the “ IPO
”), (b) the drawing of certain loans under the amended and
restated credit agreement dated as of June 28, 2005 among the
Issuer, Williams Scotsman International, Bank of America, N.A., as
administrative agent, and the lenders from time to time party
thereto (the “ Credit Agreement ”) and (c) the
repurchase
by the Issuer of its 9.875% senior notes due
2007 and its 10% senior secured notes due 2008 (together, the
“ Existing Notes ”) pursuant to tender offers
and consent solicitations (collectively, the “ Tender
Offer ”) and the documentation in respect thereof (the
“ Tender Offer Documentation ”).
The Securities will be offered and
sold to the Initial Purchaser without being registered under the
Securities Act of 1933, as amended (the “ Act
”), in reliance on exemptions therefrom.
In connection with the sale of the
Securities, the Issuer has prepared a preliminary offering
memorandum dated September 2, 2005 (the “ Preliminary
Memorandum ”) and a final offering memorandum dated
September 20, 2005 (the “ Final Memorandum
”; the Preliminary Memorandum and the Final Memorandum each
herein being referred to as a “ Memorandum
”).
The Initial Purchaser and its direct
and indirect transferees of the Securities will be entitled to the
benefits of the Registration Rights Agreement to be dated as of the
Closing Date (as defined) (the “ Registration Rights
Agreement ”), pursuant to which the Issuer, the
Guarantors and the Subordinated Guarantor will agree, among other
things, to file with the Securities and Exchange Commission (the
“ Commission ”), under the circumstances set
forth therein, (i) a registration statement under the Act (the
“ Exchange Offer Registration Statement ”)
relating to the 8 1/2% Senior Notes due 2015 of the Issuer (the
“ Exchange Notes ”) to be offered in exchange
(the “ Exchange Offer ”) for the Notes, and
(ii) as and to the extent required by the Registration Rights
Agreement, a shelf registration statement pursuant to Rule 415
under the Act (the “ Shelf Registration Statement
” and, together with the Exchange Offer Registration
Statement, the “ Registration Statements ”)
relating to the resale by certain holders of the Notes, and to
cause such Registration Statements to be declared effective in
accordance with the Registration Rights Agreement.
Concurrently with the execution of this Agreement, the parties
hereto will enter into a purchase agreement with respect to
$308,000,000 aggregate principal amount of Notes to be issued under
the Indenture (the “ First Purchase Agreement ”
and, collectively with this Purchase Agreement, the “
Purchase Agreements ”). This Purchase Agreement (this
“ Agreement ”), the First Purchase Agreement,
the Notes, the Guarantees, the Subordinated Guarantee, the Exchange
Notes, the Indenture and the Registration Rights Agreement are
hereinafter referred to collectively as the “ Operative
Documents .”
2.
Representations and
Warranties . The Issuer, the
Guarantors and the Subordinated Guarantor, jointly and severally,
represent and warrant to and agree with the Initial Purchaser
that:
(a)
Neither the
Preliminary Memorandum as of its date nor the Final Memorandum nor
any amendment or supplement thereto as of the date thereof and at
all times subsequent thereto up to the Closing Date (as defined in
Section 3 below)
2
contained or
contains any untrue statement of a material fact or omitted or
omits to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were
made, not misleading, except that the representations and
warranties set forth in this Section 2(a) do not apply to
statements or omissions made in reliance upon and in conformity
with information relating to the Initial Purchaser furnished to the
Issuer in writing by the Initial Purchaser expressly for use in
either the Preliminary Memorandum, the Final Memorandum or any
amendment or supplement thereto.
(b)
As of the Closing
Date, Williams Scotsman International will have the issued and
outstanding capitalization set forth in the Final Memorandum; all
of the outstanding capital stock or membership interests of the
Issuer and each of the subsidiaries of the Issuer (each, a “
Subsidiary ” and, collectively, the “
Subsidiaries ”), other than Williams Scotsman Mexico
S. de R.L. de C.V. (“ Williams Scotsman Mexico
”) and Williams Scotsman Europe, S.L. (“ Williams
Scotsman Europe ”), have been, and as of the Closing Date
will be, duly authorized and validly issued, are fully paid and
nonassessable and were not issued in violation of any preemptive or
similar rights; and except as set forth in the Final Memorandum,
all of the outstanding shares of capital stock of or membership
interests in the Issuer and the Subsidiaries will be free and clear
of all liens, encumbrances, equities and claims or restrictions on
transferability (other than those imposed by the Act and the
securities or “Blue Sky” laws of certain jurisdictions
and other than those created under the Credit Agreement and the
Existing Notes and related security agreements) or voting; except
as disclosed in the Final Memorandum, there are no
(i) options, warrants or other rights to purchase,
(ii) agreements or other obligations of the Issuer or the
Subsidiaries to issue, or (iii) other rights to convert any
obligation into, or exchange any securities for, shares of capital
stock of or membership interests in the Issuer or any of the
Subsidiaries outstanding. Except as disclosed in the Final
Memorandum, none of the Issuer or the Subsidiaries owns, directly
or indirectly, any shares of capital stock or any other equity or
long-term debt securities or have any equity interest in any firm,
partnership, joint venture or other entity.
(c)
Each of the
Issuer and the Subsidiaries (other than Williams Scotsman Mexico
and Williams Scotsman Europe) is duly incorporated (or in the case
of the Subordinated Guarantor, organized), validly existing and in
good standing as a corporation or limited liability company under
the laws of its respective jurisdiction of incorporation and has
all requisite corporate power and authority to own its properties
and conduct its business as now conducted and as described in the
Final Memorandum; each of the Issuer and the Subsidiaries is duly
qualified to do business as a foreign corporation in good standing
in all other jurisdictions where the ownership or leasing of its
properties or the conduct of its business requires such
qualification, except where the failure to be so qualified would
not, individually or in the aggregate,
3
have a material
adverse effect on the general affairs, business, condition
(financial or otherwise) or results of operations of the Issuer and
the Subsidiaries taken as a whole (any such event, a “
Material Adverse Effect ”).
(d)
Each of the
Issuer, the Guarantors and the Subordinated Guarantor has all
requisite corporate or similar power and authority to execute,
deliver and perform its respective obligations under this Agreement
and the other Operative Documents to which it is a party and to
consummate the transactions contemplated hereby and thereby,
including, without limitation, the power and authority to issue,
sell and deliver the Securities and the Exchange Notes (as defined
in the Registration Rights Agreement) as contemplated by this
Agreement.
(e)
This Agreement
has been duly and validly authorized, executed and delivered by the
Issuer, each of the Guarantors and the Subordinated
Guarantor.
(f)
Each of the
Issuer, the Guarantors and the Subordinated Guarantor has all
requisite corporate or similar power and authority to execute,
deliver and perform its obligations under the Indenture. The
Indenture has been duly and validly authorized by the Issuer, the
Guarantors and the Subordinated Guarantor and (assuming due
execution and delivery thereof by the Trustee) constitutes the
legally valid and binding agreement of each of the Issuer, the
Guarantors and the Subordinated Guarantor, enforceable against each
of them in accordance with its terms, except as such enforceability
may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium and other similar laws now or hereinafter in effect
relating to or affecting creditors’ rights generally and
(ii) general principles of equity and the discretion of the
court before which any proceeding therefor may be
brought.
(g)
The Notes have
been duly and validly authorized for issuance and sale to the
Initial Purchaser by the Issuer pursuant to this Agreement and,
when issued and authenticated in accordance with the terms of the
Indenture and delivered against payment therefor in accordance with
the terms hereof, the Notes will be the legally valid and binding
obligations of the Issuer, enforceable against the Issuer in
accordance with their terms and entitled to the benefits of the
Indenture, except as such enforceability may be limited by
(i) bankruptcy, insolvency, reorganization, moratorium and
other similar laws now or hereinafter in effect relating to or
affecting creditors’ rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought.
(h)
The Exchange
Notes have been duly and validly authorized for issuance by the
Issuer and, when issued and authenticated in accordance with the
terms of the Indenture, the Registration Rights Agreement and the
Exchange Offer, will be the legally valid and binding obligations
of the Issuer, enforceable against the Issuer in accordance with
their terms and entitled to the benefits of the Indenture, except
as
4
such
enforceability may be limited by (i) bankruptcy, insolvency,
reorganization, moratorium and other similar laws now or
hereinafter in effect relating to or affecting creditors’
rights generally and (ii) general principles of equity and the
discretion of the court before which any proceeding therefor may be
brought.
(i)
The Guarantees
and the Subordinated Guarantee have each been duly and validly
authorized for issuance and sale to the Initial Purchaser by the
Guarantors and the Subordinated Guarantor, as the case may
be. The guarantees of the Guarantors and the subordinated
guarantee of the Subordinated Guarantor each to be endorsed on the
Exchange Notes (the “ Exchange Guarantees ”)
have been duly and validly authorized by the Guarantors and the
Subordinated Guarantor, as the case may be. When the Notes
are duly and validly authorized, executed, issued and authenticated
in accordance with the terms of the Indenture and delivered against
payment therefor in accordance with the terms hereof, the
Guarantees and the Subordinated Guarantee will be the legally valid
and binding obligations of the Guarantors and the Subordinated
Guarantor, as the case may be, enforceable against the Guarantors
and the Subordinated Guarantor, as the case may be, in accordance
with their terms and entitled to the benefits of the Indenture,
except as such enforceability may be limited by
(i) bankruptcy, insolvency, reorganization, moratorium and
other similar laws now or hereinafter in effect relating to or
affecting creditors’ rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought. When the Exchange
Notes are duly executed, issued, authenticated and delivered in
accordance with the terms of the Indenture, the Exchange Guarantees
will be the legal, valid and binding obligations of the Guarantors
and the Subordinated Guarantor, as the case may be, enforceable
against the Guarantors and the Subordinated Guarantor, as the case
may be, in accordance with their terms and entitled to the benefits
of the Indenture, except as such enforceability may be limited by
(i) bankruptcy, insolvency, reorganization, moratorium and
other similar laws now or hereinafter in effect relating to or
affecting creditors’ rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought.
(j)
Each of the
Issuer, the Guarantors and the Subordinated Guarantor has all
requisite corporate or similar power and authority to execute,
deliver and perform its obligations under the Registration Rights
Agreement. The Registration Rights Agreement has been duly
and validly authorized by the Issuer, the Guarantors and the
Subordinated Guarantor and, when duly executed and delivered by
each of the Issuer, the Guarantors and the Subordinated Guarantor,
will be the legally valid and binding obligation of the Issuer, the
Guarantors and the Subordinated Guarantor, enforceable against each
of them in accordance with its terms, except as such enforceability
may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium and other similar laws now or hereinafter in effect
relating to or affecting creditors’ rights
generally,
5
(ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought and (iii) as to rights
of indemnification and contribution, by principles of public policy
or federal and state securities laws relating thereto.
(k)
Assuming the
representations and warranties of the Initial Purchaser contained
in Section 8 hereof are true and correct and that the
representations and warranties of the initial purchasers contained
in Section 8 of the First Purchase Agreement are true and
correct, no consent, waiver, approval, authorization or order of or
filing, registration, qualification, license or permit of or with
any court or governmental agency or body, or third party is
required by the Issuer or any of the Subsidiaries for (i) the
issuance and sale by the Issuer of the Notes to the Initial
Purchaser, (ii) the issuance by the Guarantors of the
Guarantees, (iii) the issuance by the Subordinated Guarantor
of the Subordinated Guarantee and (iv) the execution by the
Issuer of the Operative Documents and the consummation by the
Issuer, the Guarantors and the Subordinated Guarantor of each of
the transactions contemplated hereby and by the Operative
Documents, except for the registration of the Securities,
the Exchange Notes and Exchange Guarantees under the Registration
Statements and the filing of any Current Reports on Form 8-K
with the Commission disclosing any aspect of the Operative
Documents and the transactions contemplated thereby and, in each
case, such as have been or, prior to the Closing Date, will be
obtained and such as may be required under applicable state
securities or “Blue Sky” laws in connection with the
purchase and resale of the Securities by the Initial
Purchaser. None of the Issuer nor any of the Subsidiaries is
(A) in violation of its charter or bylaws (or similar
organizational document), (B) in breach or violation of any
statute, judgment, decree, order, rule or regulation
applicable to any of them or any of their respective properties or
assets, except for any such breach or violation which would not,
individually or in the aggregate, have a Material Adverse Effect,
or (C) in breach of or default under (nor has any event
occurred which, with notice or passage of time or both, would
constitute a default under) or in violation of any of the terms or
provisions of any indenture, mortgage, deed of trust, loan
agreement, note, lease, license, permit, certificate, contract or
other agreement or instrument to which any of them is a party or to
which any of them or their respective properties or assets is
subject (collectively, “ Contracts ”), except
for any such breach, default, violation or event which would not,
individually or in the aggregate, have a Material Adverse
Effect.
(l)
The execution,
delivery and performance by the Issuer, the Guarantors and the
Subordinated Guarantor of this Agreement and each of the other
Operative Documents (to the extent a party thereto) and the
consummation of the transactions contemplated hereby and thereby
(including, without limitation, the issuance and sale of the
Securities to the Initial Purchaser and the issuance of the
Exchange Notes in the Exchange Offer) will not violate, conflict
with or constitute or result in a breach of or a default under (or
constitute an event which with notice or passage of time or
both
6
would constitute
a default under) or cause an acceleration of any obligation under
or result in the imposition or creation of any lien or encumbrance
(a “ Lien ”) on any properties or assets of the
Issuer or any Subsidiary with respect to (A) the terms or
provisions of any Contract, except for any conflict, breach,
violation, default or event which would not, individually or in the
aggregate, have a Material Adverse Effect, (B) the charter or
bylaws (or similar organizational document) of the Issuer or any of
the Subsidiaries, or (C) (assuming compliance with all
applicable state securities or “Blue Sky” laws and
assuming the accuracy of the representations and warranties of the
Initial Purchaser in Section 8 hereof are true and correct and
that the representations and warranties of the initial purchasers
contained in Section 8 of the First Purchase Agreement are
true and correct) any statute, judgment, decree, order,
rule or regulation applicable to the Issuer or any of the
Subsidiaries or any of their respective properties or assets,
except for any such conflict, breach or violation which would not,
individually or in the aggregate, have a Material Adverse
Effect.
(m)
Ernst &
Young LLP, who is reporting on the audited consolidated financial
statements of Williams Scotsman International in the Final
Memorandum, is an independent registered public accounting firm
within the meaning of the Act and the rules and regulations
promulgated thereunder. The audited consolidated financial
statements of Williams Scotsman International and related notes
thereto included in the Final Memorandum present fairly in all
material respects the financial position of Williams Scotsman
International as of the dates indicated and the results of its
respective operations and the changes in the financial position for
the periods specified, in accordance with generally accepted
accounting principles (“ GAAP ”) consistently
applied throughout such periods, except as otherwise stated
therein. The summary and selected financial and statistical
data included in the Final Memorandum present fairly in all
material respects the information shown therein and have been
prepared and compiled on a basis consistent with the audited
financial statements included therein, except as stated
therein.
(n)
There is not
pending or, to the knowledge of the Issuer, the Guarantors or the
Subordinated Guarantor, threatened any action, suit, proceeding,
inquiry or investigation to which the Issuer or any of the
Subsidiaries is a party, or to which the property or assets of the
Issuer or any of the Subsidiaries is subject, before or brought by
any court, arbitrator or governmental agency or body which could
reasonably be expected to, individually or in the aggregate, have a
Material Adverse Effect or which seeks to restrain, enjoin, prevent
the consummation of or otherwise challenge the issuance or sale of
the Securities to be sold hereunder or the consummation of the
other transactions contemplated in the Operative
Documents.
(o)
Each of the
Issuer and the Subsidiaries possesses all material licenses,
permits, certificates, consents, orders, approvals and other
authorizations from, and
7
has made all
declarations and filings with, all federal, provincial, state,
local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals, presently
required or necessary to own or lease, as the case may be, and to
operate its respective properties and to carry on its respective
businesses as now or proposed to be conducted as set forth in the
Final Memorandum (“ Permits ”), except where the
failure to obtain such Permits would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect; each of the Issuer and the Subsidiaries has fulfilled and
performed all of its obligations with respect to such Permits and
no event has occurred which allows, or after notice or lapse of
time would allow, revocation or termination thereof or results in
any other material impairment of the rights of the holder of any
such Permit, except where the failure to perform such obligations
or the occurrence of such event would not have a Material Adverse
Effect; and none of the Issuer or the Subsidiaries has received any
notice of any proceeding relating to revocation or modification of
any such Permit.
(p)
Since the date of
the most recent financial statements appearing in the Final
Memorandum, except as described in the Final Memorandum or as
provided in or contemplated by the Operative Documents,
(i) none of the Issuer or any of the Subsidiaries has incurred
any liabilities or obligations, direct or contingent, or entered
into or agreed to enter into any transactions or contracts (written
or oral) not in the ordinary course of business, or which
liabilities, obligations, transactions or contracts would,
individually or in the aggregate, be material to the business,
condition (financial or otherwise) or results of operations of the
Issuer and the Subsidiaries, taken as a whole, (ii) none of
the Issuer or any of the Subsidiaries has purchased any of its
outstanding capital stock, nor declared, paid or otherwise made any
dividend or distribution of any kind on its capital stock and
(iii) there shall not have been any change in the capital
stock or long-term indebtedness (excluding up to $2,500,000 of
additional capital leases) of the Issuer or Subsidiaries except, in
each case, repayments or additional borrowings under the revolving
portion of the Issuer’s existing credit facility.
(q)
Each of the
Issuer and the Subsidiaries has filed all necessary federal, state
and foreign income and franchise tax returns, except where the
failure to so file such returns would not, individually or in the
aggregate, have a Material Adverse Effect, and has paid all taxes
shown as due thereon except as to taxes being contested in good
faith, or where the failure to pay any such taxes would not,
individually or in the aggregate, have a Material Adverse Effect;
and other than tax deficiencies which the Issuer or any of the
Subsidiaries is contesting in good faith and for which the Issuer
or such Subsidiary has provided adequate reserves in accordance
with GAAP, there is no tax deficiency that has been asserted
against the Issuer or any Subsidiary that would have, individually
or in the aggregate, a Material Adverse Effect.
8
(r)
The statistical
and market-related data included in the Final Memorandum are based
on or derived from sources which the Issuer, the Guarantors and the
Subordinated Guarantor believe to be reliable and accurate in all
material respects.
(s)
None of the
Issuer, the Guarantors or the Subordinated Guarantor or any agent
acting on its behalf has taken or will take any action that might
cause this Agreement or the sale of the Securities to violate
Regulation T, U or X of the Board of Governors of the Federal
Reserve System, in each case as in effect, or as the same may
hereafter be in effect, on the Closing Date.
(t)
Each of the
Issuer and the Subsidiaries has good and marketable title to all
real property and good title to all personal property described in
the Final Memorandum as being owned by it and good and marketable
title to a leasehold estate in the real and personal property
described in the Final Memorandum as being leased by it free and
clear of all Liens, except as described in the Final
Memorandum or to the extent the failure to have such title or the
existence of such Liens would not, individually or in the
aggregate, have a Material Adverse Effect or except such Liens
created pursuant to the Issuer’s existing credit
facility. All leases, contracts and agreements to which any
of the Issuer or the Subsidiaries is a party or by which any of
them is bound are valid and enforceable against each of the Issuer
or such Subsidiary, as the case may be, and to the knowledge of
each of the Issuer, the Guarantors and the Subordinated Guarantor,
as the case may be, are valid and enforceable against the other
party or parties thereto and are in full force and effect with only
such exceptions as would not, individually or in the aggregate,
have a Material Adverse Effect, except, in each case, as such
enforceability may be limited by (i) bankruptcy, insolvency,
reorganization, moratorium and other similar laws now or
hereinafter in effect relating to or affecting creditors’
rights generally and (ii) general principles of equity and the
discretion of the court before which any proceeding therefor may be
brought. The Issuer and the Subsidiaries own or possess
adequate licenses or other rights to use all patents, trademarks,
service marks, trade names, copyrights and know-how necessary to
conduct the businesses now or proposed to be operated by them as
described in the Final Memorandum, except where the failure to own,
possess or have the right to use would not have a Material Adverse
Effect, and none of the Issuer or any of the Subsidiaries has
received any notice of infringement of or conflict with (or knows
of any such infringement of or conflict with) asserted rights of
others with respect to any patents, trademarks, service marks,
trade names, copyrights or know-how which, if such assertion of
infringement or conflict were sustained, would have a Material
Adverse Effect.
(u)
There are no
legal or governmental proceedings involving or affecting any of the
Issuer or any Subsidiary or any of their respective properties or
assets which would be required to be described in a prospectus
pursuant to the Act that are not so described in the Final
Memorandum.
9
(v)
Except as
described in the Final Memorandum or as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect, (A) each of the Issuer and the Subsidiaries is in
compliance with and not subject to any known liability under
applicable Environmental Laws (as defined below), (B) each of
the Issuer and the Subsidiaries has made all filings and provided
all notices required under any applicable Environmental Law, and
has, and is in compliance with, all Permits required under any
applicable Environmental Laws and each of them is in full force and
effect, (C) there is no civil, criminal or administrative
action, suit, demand, claim, hearing, notice of violation or, to
the knowledge of the Issuer, the Guarantors and the Subordinated
Guarantor, investigation, proceeding, notice or demand letter or
request for information pending or threatened against any of the
Issuer or any of the Subsidiaries under any Environmental Law,
(D) no lien, charge, encumbrance or restriction has been
recorded under any Environmental Law with respect to any assets,
facility or property owned, operated, leased or controlled by any
of the Issuer or any Subsidiary, (E) none of the Issuer or any
Subsidiaries has received notice that it has been identified as a
potentially responsible party under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended
(“ CERCLA ”), or any comparable state law and
(F) no property or facility of any of the Issuer or any
Subsidiary is (i) listed or, to the knowledge of the Issuer,
the Guarantors or the Subordinated Guarantor proposed for listing
on the National Priorities List under CERCLA or (ii) listed in
the Comprehensive Environmental Response, Compensation, Liability
Information System List promulgated pursuant to CERCLA, or on any
comparable list maintained by any state or local governmental
authority.
For purposes of this Agreement,
“ Environmental Laws ” means the common law and
all applicable federal, provincial, state and local laws or
regulations, codes, orders, decrees, judgments or injunctions
issued, promulgated, approved or entered thereunder, relating to
pollution or protection of public or employee health and safety or
the environment, including, without limitation, laws relating to
(i) emissions, discharges, releases or threatened releases of
hazardous materials into the environment (including, without
limitation, ambient air, surface water, ground water, land surface
or subsurface strata), (ii) the manufacture, processing,
distribution, use, generation, treatment, storage, disposal,
transport or handling of hazardous materials, and
(iii) underground and above ground storage tanks and related
piping, and emissions, discharges, releases or threatened releases
therefrom.
(w)
There is no
strike, labor dispute, slowdown or work stoppage with the
employees of any of the Issuer or the Subsidiaries which is pending
or, to the knowledge of the Issuer, the Guarantors and the
Subordinated Guarantor, as the case may be, threatened which, in
either case, could reasonably be expected to have a Material
Adverse Effect.
10
(x)
None of the
Issuer or any of the Subsidiaries has incurred any liability for
any prohibited transaction or funding deficiency or any complete or
partial withdrawal liability with respect to any pension, profit
sharing or other plan which is subject to the Employee Retirement
Income Security Act of 1974, as amended (“ ERISA
”), to which any of the Issuer or the Subsidiaries makes or
ever has made a contribution and in which any employee of any of
the Issuer or any such Subsidiary is or has ever been a
participant, which in the aggregate could have a Material Adverse
Effect. With respect to such plans, each of the Issuer and
the Subsidiaries is in compliance in all respects with all
applicable provisions of ERISA, except where the failure to so
comply would not, individually or in the aggregate, have a Material
Adverse Effect.
(y)
Each of the
Issuer and the Subsidiaries (i) makes and keeps accurate books
and records and (ii) maintains internal accounting controls
which provide reasonable assurance that (A) transactions are
executed in accordance with management’s general or specific
authorizations, (B) transactions are recorded as necessary to
permit preparation of its financial statements and to maintain
accountability for its assets, (C) access to its assets is
permitted only in accordance with management’s general or
specific authorizations and (D) the reported accountability
for its assets is compared with existing assets at reasonable
intervals.
(z)
None of the
Issuer, the Guarantors or the Subordinated Guarantor is, or
immediately after the sale of the Notes to be sold hereunder and
the application of the proceeds from such sale (as described in the
Final Memorandum under the caption “Use of Proceeds”),
will be required to be, registered as an “investment
company” as such term is defined in the Investment Company
Act of 1940, as amended, and the rules and regulations
thereunder.
(aa)
The Notes, the
Guarantees, the Subordinated Guarantee, the Exchange Notes, the
Ind
|