Exhibit 2.2
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH
LAWS.
SUBORDINATED PROMISSORY
NOTE
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$3,971,901.64
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June 8, 2009
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FOR VALUE RECEIVED, the undersigned,
WM Coffman LLC, a Delaware limited liability company (including its
successors, the “ Borrower ”), hereby promises
to pay to the order of Coffman Stairs LLC, a Delaware limited
liability company (the “ Holder ”), in lawful
money of the United States of America and in immediately available
funds the principal sum of Three Million Nine Hundred Seventy-One
Thousand Nine Hundred One and Sixty-Four Hundredths ($3,971,901.64)
Dollars , together with interest on the unpaid principal balance at
the rate and on the terms and conditions provided in this
subordinated promissory note (the “ Note
”).
1.
Acquisition Agreement
. This Note
evidences payment of a portion of the purchase price payable under
the Asset Purchase Agreement, dated on or about the date hereof,
between the Borrower and the Holder (the “ APA
”). This Note is the Seller Note referred to in the APA.
Unless otherwise defined herein, capitalized terms used in this
Note have the same meanings set forth in the APA.
2.
Interest; Principal
. Interest
on the unpaid principal balance of this Note shall accrue
(i) from the date hereof at the rate of six and one-half
(6.5%) percent per annum, (ii) from and after the Maturity
Date, as defined herein, or during the continuance of an Event of
Default, as defined herein, at the rate set forth in (i) plus
two (2.0%) percent, or (iii) if less than the rates applicable
under (i) and (ii), the maximum rate permitted by law.
Interest shall be calculated on the basis of a 360 day year for the
actual days elapsed. The Borrower shall pay to the Holder all
accrued interest on: (i) March 31, June 30,
September 30 and December 31 of each year (each, a
“ Quarterly Payment Date ”);
or (ii) if any such interest payment is not permitted to
be made under the Subordination Agreement (as defined below), the
first Business Day that such payment is permitted to be
made under the Subordination Agreement, provided such Business
Day occurs not later than one year after the
scheduled Quarterly Payment Date for such payment. To
the extent all or any portion of any interest payment is
not permitted to be made under the Subordination Agreement for a
period of one year after the scheduled Quarterly Payment Date for
such payment, such amount shall be added to the principal
hereunder, shall accrue interest as provided in the first
sentence of this Section 2 and shall be paid on the
Maturity Date. The Borrower shall pay to the Holder all
outstanding principal and accrued interest on the date (the
“Maturity Date”) that is the latter of: (i) the
last day of the Contingency Period; or (ii) the earlier of
(a) the date that is 3 years and 90 days after the date hereof
or (b) the date that all obligations under the Credit
Agreement (as defined below) are satisfied in full.
3.
Manner and Application of
Payment . If a payment to be
made by the Borrower hereunder shall become due on a Saturday,
Sunday or bank holiday in New York City, New York, such payment
shall be made on the next succeeding business day. All
payments of principal and interest shall be made to the Holder in
immediately available funds to an account designated by the Holder
in writing. Any payment made hereunder shall be applied first to
costs and expenses due hereunder, then to accrued interest and
thereafter to principal. All payments under this Note shall
be made in accordance with the applicable provisions of the APA,
including APA Section 2.2.7.
4.
Prepayment . The Borrower may at
its option, after payment of all obligations of the Borrower to PNC
Bank, National Association, as Agent under the Revolving Credit,
Term Loan and Security Agreement dated on or about the date hereof
(the “Credit Agreement”), prepay the outstanding
principal balance of this Note, in whole or in part, at any time
or, from time to time, without premium or penalty; provided
, that any such prepayment shall also include all accrued but
unpaid interest on the Note through the repayment date.
5.
Right of Setoff. The Borrower shall be
entitled to set off against the unpaid principal and interest
balance of this Note, provided such setoff is conducted in
accordance with the applicable provisions of the APA, including APA
Section 7.4.
6.
Subordination . ALL OBLIGATIONS UNDER
THIS NOTE ARE SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT,
DATED ON OR ABOUT THE DATE HEREOF, AMONG THE BORROWER, THE HOLDER
AND PNC BANK, NATIONAL ASSOCIATION (THE “ SUBORDINATION
AGREEMENT ”).
7.
Default. Each of the following
events shall be an “ Event of Default ”
hereunder:
(a)
the Borrower
fails to pay any of the principal, interest or any other amounts
payable under this Note when and as the same becomes due and
payable, except to the extent such payment is not permitted under
the Subordination Agreement;
(b)
the Borrower
files any petition or action for relief under any bankruptcy,
reorganization, insolvency or moratorium law or any other law for
the relief of, or relating to, debtors, now or hereafter
i
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