Exhibit 10.3
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AMENDED AND RESTATED
GUARANTEE AND COLLATERAL AGREEMENT
made by
ALLIANCE LAUNDRY HOLDINGS LLC,
ALLIANCE LAUNDRY SYSTEMS LLC,
and certain of their Subsidiaries
in favor of
GENERAL ELECTRIC CAPITAL CORPORATION,
as Administrative Agent
Dated as of August 2, 2002
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TABLE OF CONTENTS
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Section I. DEFINED TERMS ..................................................................... 2
1.1. Definitions ....................................................................... 2
1.2. Other Definitional Provisions ..................................................... 7
Section II. GUARANTEE ......................................................................... 7
2.1. Guarantee ......................................................................... 7
2.2. Right of Contribution ............................................................. 8
2.3. No Subrogation .................................................................... 9
2.4. Amendments, etc. with respect to the Borrower Obligations ......................... 9
2.5. Guarantee Absolute and Unconditional .............................................. 10
2.6. Reinstatement ..................................................................... 11
2.7. Payments .......................................................................... 12
Section III. GRANT OF SECURITY INTEREST ........................................................ 12
Section IV. REPRESENTATIONS AND WARRANTIES .................................................... 13
4.1. Representations in Credit Agreement ............................................... 13
4.2. No Other Liens .................................................................... 13
4.3. Perfected First Priority Liens .................................................... 14
4.4. Jurisdiction of Organization; Chief Executive Office .............................. 14
4.5. Inventory and Equipment ........................................................... 14
4.6. Farm Products ..................................................................... 14
4.7. Investment Property ............................................................... 14
4.8. Receivables ....................................................................... 15
4.9. Contracts ......................................................................... 15
4.10. Intellectual Property ............................................................. 16
4.11. Commercial Tort Claims ............................................................ 16
Section V. COVENANTS ......................................................................... 16
5.1. Covenants in Credit Agreement ..................................................... 16
5.2. Delivery of Instruments, Certified Securities and Chattel Paper ................... 16
5.3. Maintenance of Insurance .......................................................... 17
5.4. Payment of Obligations ............................................................ 17
5.5. Maintenance of Perfected Security Interest; Further Documentation ................. 17
5.6. Changes in Locations, Name, etc. .................................................. 18
5.7. Notices ........................................................................... 18
5.8. Investment Property ............................................................... 19
5.9. Receivables ....................................................................... 20
5.10. Intellectual Property ............................................................. 20
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Section VI. REMEDIAL PROVISIONS ............................................................. 22
6.1. Certain Matters Relating to Receivables ......................................... 22
6.2. Communications with Obligors; Grantors Remain Liable ............................ 22
6.3. Pledged Stock ................................................................... 23
6.4. Proceeds to be Turned Over To Administrative Agent .............................. 24
6.5. Application of Proceeds ......................................................... 24
6.6. Code and Other Remedies ......................................................... 25
6.7. Registration Rights ............................................................. 26
6.8. Deficiency ...................................................................... 27
Section VII. THE ADMINISTRATIVE AGENT ........................................................ 27
7.1. Administrative Agent's Appointment as Attorney-in-Fact, etc. .................... 27
7.2. Duty of Administrative Agent .................................................... 29
7.3. Execution of Financing Statements ............................................... 29
7.4. Authority of Administrative Agent ............................................... 29
Section VIII. MISCELLANEOUS ................................................................... 30
8.1. Amendments in Writing ........................................................... 30
8.2. Notices ......................................................................... 30
8.3. No Waiver by Course of Conduct; Cumulative Remedies ............................. 30
8.4. Enforcement Expenses; Indemnification ........................................... 30
8.5. Successors and Assigns .......................................................... 31
8.6. Set-Off ......................................................................... 31
8.7. Counterparts .................................................................... 31
8.8. Severability .................................................................... 31
8.9. Section Headings ................................................................ 31
8.10. Integration ..................................................................... 32
8.11. GOVERNING LAW ................................................................... 32
8.12. Submission To Jurisdiction; Waivers ............................................. 32
8.13. Acknowledgments ................................................................. 32
8.14. Additional Grantors ............................................................. 33
8.15. Releases ........................................................................ 33
8.16. WAIVER OF JURY TRIAL ............................................................ 33
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SCHEDULES
Schedule 1 Notice Addresses
Schedule 2 Investment Property
Schedule 3 Perfection Matters
Schedule 4 Jurisdictions of Organization and Chief Executive Offices
Schedule 5 Inventory and Equipment Locations
Schedule 6 Intellectual Property
Schedule 7 Contracts
Schedule 8 Government Contracts
Schedule 9 Commercial Tort Claims
ANNEXES
Annex 1 Form of Assumption Agreement
Annex 2 Form of Perfection Certificate
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AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of August
2, 2002, made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, the "Grantors"), in favor of
General Electric Capital Corporation, as Administrative Agent (in such capacity,
the "Administrative Agent") for the benefit of the Secured Parties (as defined
below), including the banks and other financial institutions (the "Lenders")
from time to time parties to the Amended and Restated Credit Agreement, dated as
of August 2, 2002 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among Alliance Laundry Holdings LLC ("Holdings"),
Alliance Laundry Systems LLC (the "Borrower"), the Lenders, Xxxxxx Brothers,
Inc., as Arranger, Xxxxxx Commercial Paper Inc., as Syndication Agent, Fleet
National Bank and LaSalle Bank National Association, as Documentation Agents,
and the Administrative Agent.
W I T N E S S E T H:
WHEREAS, pursuant to the Credit Agreement, which amends and restates the
Credit Agreement, dated as of May 5, 1998 (as amended, supplemented or otherwise
modified up to the date hereof, the "Existing Credit Agreement"), the Lenders
party thereto have agreed to continue loans and other extensions of credit
heretofore made to the Borrower and to make loans and other extensions of credit
to the Borrower upon the terms and subject to the conditions set forth therein;
WHEREAS, the Borrower is a member of an affiliated group of companies that
includes each other Grantor;
WHEREAS, the proceeds of the extensions of credit under the Credit
Agreement will be used in part to enable the Borrower to make valuable transfers
to one or more of the other Grantors in connection with the operation of their
respective businesses;
WHEREAS, the Borrower and the other Grantors are engaged in related
businesses, and each Grantor will derive substantial direct and indirect benefit
from (i) the making of the extensions of credit under the Credit Agreement and
(ii) entering into the Specified Hedge Agreements; and
WHEREAS, it is a condition precedent to the obligation of (i) the Lenders
to make their respective extensions of credit to the Borrower under the Credit
Agreement and to continue the Loans made under the Existing Credit Agreement and
(ii) the Qualified Counterparties to enter into the Specified Hedge Agreements,
that the Grantors shall have executed and delivered this Agreement to the
Administrative Agent for the benefit of the Secured Parties and the Agents;
NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent and the Secured Parties to enter into the Credit Agreement
and the Specified Hedge Agreements and to induce the Secured Parties to make
their respective extensions of credit or financial accommodations to the
Borrower thereunder and to continue the Loans made pursuant to the Existing
Credit Agreement, each Grantor hereby agrees with the Administrative Agent, for
the benefit of the Secured Parties, as follows:
SECTION I. DEFINED TERMS
1.1. Definitions. (a) Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement, and the following terms are used herein as defined in the
New York UCC: Account, Certificated Security, Chattel Paper, Document,
Equipment, Farm Products, General Intangibles, Instrument, Inventory, Letter of
Credit Rights and Supporting Obligations.
(b) The following terms shall have the following meanings:
"Agreement": this Amended and Restated Guarantee and Collateral
Agreement, as the same may be amended, supplemented or otherwise modified
from time to time.
"Borrower Credit Agreement Obligations": the collective reference to
the unpaid principal of and interest on the Loans and Reimbursement
Obligations and all other obligations and liabilities of the Borrower
(including, without limitation, interest accruing at the then applicable
rate provided in the Credit Agreement after the maturity of the Loans and
Reimbursement Obligations and interest accruing at the then applicable rate
provided in the Credit Agreement after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to any
Agent or any Lender, whether direct or indirect, absolute or contingent,
due or to become due, or now existing or hereafter incurred, which may
arise under, out of, or in connection with, the Credit Agreement, this
Agreement, or the other Loan Documents, or any Letter of Credit, or any
other document made, delivered or given in connection therewith, in each
case whether on account of principal, interest, reimbursement obligations,
fees, indemnities, costs, expenses or otherwise (including, without
limitation, all fees and disbursements of counsel to the Agents or to the
Lenders that are required to be paid by the Borrower pursuant to the terms
of any of the foregoing agreements).
"Borrower Hedge Agreement Obligations": the collective reference to
all obligations and liabilities of the Borrower (including, without
limitation, interest accruing at the then applicable rate provided in any
Specified Hedge Agreement after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding,
relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) to any Qualified
Counterparty, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, any Specified Hedge Agreement or any other
document made, delivered or given in connection therewith, in each case
whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the relevant Qualified
Counterparty that are required to be paid by the Borrower pursuant to the
terms of any Specified Hedge Agreement).
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"Borrower Obligations": the collective reference to (i) the Borrower
Credit Agreement Obligations, (ii) the Borrower Hedge Agreement
Obligations, but only to the extent that, and only so long as, the Borrower
Credit Agreement Obligations are secured and guaranteed pursuant hereto,
and (iii) all other obligations and liabilities of the Borrower, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement (including, without limitation, all fees
and disbursements of counsel to the Agents or to the Secured Parties that
are required to be paid by the Borrower pursuant to the terms of this
Agreement).
"Collateral": as defined in Section 3.
"Collateral Account": any collateral account established by the
Administrative Agent as provided in Section 6.1 or 6.4.
"Commercial Tort Claim": as defined in the Uniform Commercial Code of
any applicable jurisdiction and, in any event, including, without
limitation, any claim arising in tort if the claim is generally assignable
under applicable law and (a) the claimant is an organization or (b) the
claimant is an individual, the claim does not include damages arising out
of bodily injury to or the death of an individual and the claim arose in
the course of the claimant's business or profession. It is understood that
no Grantor shall be required to perfect a security interest in any
Commercial Tort Claim owned by it except to the extent such security
interest may be perfected by filing a financing statement under the Uniform
Commercial Code as in effect in the applicable jurisdiction.
"Contracts": the contracts and agreements listed in Schedule 7, as the
same may be amended, supplemented or otherwise modified from time to time,
including, without limitation, (i) all rights of any Grantor to receive
moneys due and to become due to it thereunder or in connection therewith,
(ii) all rights of any Grantor to damages arising thereunder and (iii) all
rights of any Grantor to perform and to exercise all remedies thereunder.
"Copyrights": (i) all copyrights arising under the laws of the United
States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished (including,
without limitation, those listed in Schedule 6), all registrations and
recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to
obtain all renewals thereof.
"Copyright Licenses": any written agreement naming any Grantor as
licensor or licensee (including, without limitation, those listed in
Schedule 6), granting any right under any Copyright, including, without
limitation, the grant of rights to manufacture, distribute, exploit and
sell materials derived from any Copyright.
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"Deposit Account": as defined in the Uniform Commercial Code of any
applicable jurisdiction and, in any event, including, without limitation,
any demand, time, savings, passbook or like account maintained with a
depositary institution.
"Excluded Assets": the collective reference to (i) any Equipment,
contract, General Intangible, Copyright License, Patent License or
Trademark License, in each case to the extent the grant by the relevant
Grantor of a security interest pursuant to this Agreement in such Grantor's
right, title and interest in such asset (A) is prohibited by legally
enforceable provisions of any contract, agreement, instrument or indenture
governing such asset as permitted by the Credit Agreement, (B) would give
any other party to such contract, agreement, instrument or indenture a
legally enforceable right to terminate its obligations thereunder or (C) is
permitted only with the consent of another party, if the requirement to
obtain such consent is legally enforceable and such consent has not been
obtained; provided, that in any event any Receivable or any money or other
amounts due or to become due under any such contract, agreement, instrument
or indenture shall not be Excluded Assets to the extent that any of the
foregoing is (or if it contained a provision limiting the transferability
or pledge thereof would be) subject to Section 9-406 of the New York UCC,
and (ii) Foreign Subsidiary Voting Stock excluded from the definition of
"Pledged Stock" set forth in this Section 1.1.
"Foreign Subsidiary": any Subsidiary organized under the laws of any
jurisdiction outside the United States of America.
"Foreign Subsidiary Voting Stock": the voting Capital Stock of any
Foreign Subsidiary.
"Guarantor Hedge Agreement Obligations": the collective reference to
all obligations and liabilities of a Guarantor (including, without
limitation, interest accruing at the then applicable rate provided in any
Specified Hedge Agreement after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding,
relating to such Guarantor, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) to any Qualified
Counterparty, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, any Specified Hedge Agreement or any other
document made, delivered or given in connection therewith, in each case
whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the relevant Qualified
Counterparty that are required to be paid by such Guarantor pursuant to the
terms of any Specified Hedge Agreement).
"Guarantor Obligations": with respect to any Guarantor, the collective
reference to (i) any Guarantor Hedge Agreement Obligations of such
Guarantor, but only to the extent that, and only so long as, the other
Obligations of such Guarantor are secured and guaranteed pursuant hereto,
and (ii) all obligations and liabilities of such Guarantor which may arise
under or in connection with this Agreement (including, without
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limitation, Section 2) or any other Loan Document to which such Guarantor
is a party, in each case whether on account of guarantee obligations,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to
the Administrative Agent or to the Secured Parties that are required to be
paid by such Guarantor pursuant to the terms of this Agreement or any other
Loan Document).
"Guarantors": the collective reference to each Grantor other than the
Borrower.
"Hedge Agreements": as to any Person, all interest rate swaps, caps or
collar agreements or similar arrangements entered into by such Person
providing for protection against fluctuations in interest rates or currency
exchange rates or the exchange of nominal interest obligations, either
generally or under specific contingencies.
"Intellectual Property": the collective reference to all rights,
priorities and privileges relating to intellectual property, whether
arising under United States, multinational or foreign laws or otherwise,
including, without limitation, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks and the Trademark Licenses,
and all rights to xxx at law or in equity for any infringement or other
impairment thereof, including the right to receive all proceeds and damages
therefrom.
"Intercompany Note": any promissory note evidencing loans made by any
Grantor to Holdings or any of its Subsidiaries.
"Investment Property": the collective reference to (a) all "investment
property" as such term is defined in Section 9-102(a)(49) of the New York
UCC in effect on the date hereof or at any time hereafter (other than any
Foreign Subsidiary Voting Stock excluded from the definition of "Pledged
Stock") and (b) whether or not constituting "investment property" as so
defined, all Pledged Notes and all Pledged Stock.
"Issuers": the collective reference to each issuer of any Investment
Property pledged hereunder.
"New York UCC": the Uniform Commercial Code as from time to time in
effect in the State of New York.
"Obligations": (i) in the case of the Borrower, the Borrower
Obligations, and (ii) in the case of each Guarantor, its Guarantor
Obligations.
"Patents": (i) all letters patent of the United States, any other
country or any political subdivision thereof, all reissues and extensions
thereof and all goodwill associated therewith, including, without
limitation, any of the foregoing referred to in Schedule 6, (ii) all
applications for letters patent of the United States or any other country
and all divisions, continuations and continuations-in-part thereof,
including, without limitation, any of the foregoing referred to in Schedule
6, and (iii) all rights to obtain any reissues or extensions of the
foregoing.
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"Patent License": all agreements, whether written or oral, providing
for the grant by or to any Grantor of any right to manufacture, use or sell
any invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 6.
"Pledged Notes": all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (including promissory
notes issued in connection with loans or advances made by any Grantor to
its customers but excluding promissory notes issued in connection with
extensions of trade credit by any Grantor in the ordinary course of
business).
"Pledged Stock": the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options or rights of
any nature whatsoever in respect of the Capital Stock of any Person that
may be issued or granted to, or held by, any Grantor while this Agreement
is in effect; provided that in no event shall more than 65% of the total
outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be
required to be pledged hereunder.
"Proceeds": all "proceeds" as such term is defined in Section
9-102(64) of the New York UCC and, in any event, shall include, without
limitation, all dividends and other income from the Investment Property,
collections thereon and distributions or payments with respect thereto.
"Qualified Counterparty": with respect to any Specified Hedge
Agreement, any counterparty thereto that, at the time such Specified Hedge
Agreement was entered into, was a Lender or an affiliate of a Lender.
"Receivable": any right to payment for goods sold or leased or for
services rendered, whether or not such right is evidenced by an Instrument
or Chattel Paper and whether or not it has been earned by performance
(including, without limitation, any Account), to the extent such right is
owned by such Grantor. A Receivable shall not be considered to be owned by
a Grantor if it has been transferred by such Grantor in a transaction which
is intended to constitute a sale or which results in derecognition of such
Receivable from the financial statements of such Grantor.
"Secured Parties": the collective reference to the Agents, the Lenders
(including any Issuing Lender in its capacity as Issuing Lender) and any
Qualified Counterparty.
"Securities Act": the Securities Act of 1933, as amended.
"Specified Hedge Agreement": any Hedge Agreement entered into by (a)
the Borrower or any of its subsidiaries and (b) any Qualified Counterparty.
"Trademarks": (i) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade styles,
service marks, logos and other
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source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the
United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and all common-law rights
related thereto, including, without limitation, any of the foregoing
referred to in Schedule 6, and (ii) the right to obtain all renewals
thereof.
"Trademark License": any agreement, whether written or oral, providing
for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedule
6.
1.2. Other Definitional Provisions. (a) The words "hereof," "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.
(b) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.
(c) Where the context requires herein, terms relating to the
Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor's Collateral or the relevant part thereof.
(d) Where the context requires, any Hedge Agreement entered into by
any Grantor with any Lender or any Affiliate of any Lender shall, for purposes
of this Agreement, be a "Loan Document" and any such Affiliate of a Lender
shall, for purposes of this Agreement, be a "Lender" for purposes of this
Agreement.
(e) The Agents and the Arranger are collectively referred to herein
as the "Agents".
SECTION II. GUARANTEE
2.1. Guarantee. (a) (i) The Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantee to the Administrative Agent, for the
ratable benefit of the Secured Parties and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and
performance by the Borrower when due (whether at stated maturity, by
acceleration or otherwise) of the Borrower Obligations (other than, in the case
of each Guarantor, Borrower Obligations arising pursuant to clause (ii) of this
Section 2.1(a) in respect of Guarantor Hedge Agreement Obligations in respect of
which such Guarantor is a primary obligor).
(ii) The Borrower hereby unconditionally and irrevocably
guarantees to the Administrative Agent, for the ratable benefit of the Secured
Parties and their respective successors, endorsees, transferees and assigns, the
prompt and complete payment and
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performance by each Guarantor when due (whether at stated maturity, by
acceleration or otherwise) of the Guarantor Hedge Agreement Obligations of such
Guarantor (other than any such obligation for which the Borrower is the primary
obligor).
(b) Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under the
other Loan Documents shall in no event exceed the amount which can be guaranteed
by such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).
(c) (i) Each Guarantor agrees that the Borrower Obligations may at
any time and from time to time exceed the amount of the liability of such
Guarantor hereunder without impairing the guarantee of such Guarantor contained
in this Section 2 or affecting the rights and remedies of the Administrative
Agent or any Secured Party hereunder.
(ii) The Borrower agrees that the Guarantor Hedge Agreement
Obligations may at any time and from time to time exceed the amount of the
liability of the Borrower under this Section 2 without impairing the guarantee
of the Borrower contained in this Section 2 or affecting the rights and remedies
of the Administrative Agent or any Secured Party hereunder.
(d) The guarantee contained in this Section 2 shall remain in full
force and effect until all the Borrower Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, no Letter of Credit shall be outstanding and the
Commitments shall have been terminated, notwithstanding that from time to time
during the term of the Credit Agreement the Borrower may be free from any
Borrower Obligations and any or all of the Guarantors may be free from their
respective Guarantor Hedge Agreement Obligations.
(e) No payment made by the Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by any Agent or any
Secured Party from the Borrower, any of the Guarantors, any other guarantor or
any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or
in payment of the Borrower Obligations or the Guarantor Hedge Agreement
Obligations shall be deemed to modify, reduce, release or otherwise affect the
liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made in respect of the Borrower Obligations or
the Guarantor Hedge Agreement Obligations, respectively, or any payment received
or collected in respect of the Borrower Obligations or the Guarantor Hedge
Agreement Obligations, respectively), remain liable for their respective
Borrower Obligations and the Guarantor Hedge Agreement Obligations up to the
maximum liability of such Guarantor hereunder until the Borrower Obligations and
the Guarantor Hedge Agreement Obligations are paid in full, no Letter of Credit
shall be outstanding and the Commitments are terminated.
2.2. Right of Contribution. (a) Each Subsidiary Guarantor hereby
agrees that to the extent that a Subsidiary Guarantor shall have paid more than
its proportionate share of any
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payment made hereunder or in respect of Borrower Obligations, such Subsidiary
Guarantor shall be entitled to seek and receive contribution from and against
any other Subsidiary Guarantor hereunder which has not paid its proportionate
share of such payment.
(b) The Borrower and each Guarantor agrees that to the extent that
the Borrower or any Guarantor shall have paid more than its proportionate share
of any payment made hereunder in respect of any Guarantor Hedge Agreement
Obligation of any other Guarantor, the Borrower or such Guarantor, as the case
may be, shall be entitled to seek and receive contribution from and against the
Borrower and any other Guarantor which has not paid its proportionate share of
such payment.
(c) The Borrower's and each Guarantor's right of contribution under
this Section 2.2 shall be subject to the terms and conditions of Section 2.3.
The provisions of this Section 2.2 shall in no respect limit the obligations and
liabilities of the Borrower or any Guarantor to the Agents and the Secured
Parties, and the Borrower and each Guarantor shall remain liable to the Agents
and the Secured Parties for the full amount guaranteed by the Borrower or such
Guarantor hereunder.
2.3. No Subrogation. Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by any Agent
or any Secured Party, no Guarantor shall be entitled to be subrogated to any of
the rights of any Agent or any Secured Party against the Borrower or any other
Guarantor or any collateral security or guarantee or right of offset held by any
Agent or any Secured Party for the payment of the Borrower Obligations or the
Guarantor Hedge Agreement Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Agents and the Secured Parties by the Borrower on
account of the Borrower Obligations and the Guarantor Hedge Agreement
Obligations are paid in full, no Letter of Credit shall be outstanding and the
Commitments are terminated. If any amount shall be paid to any Guarantor on
account of such subrogation rights at any time when the Commitments shall not
have terminated, any Letter of Credit shall be outstanding or any amounts owing
in respect of the Borrower Obligations or the Guarantor Hedge Agreement
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Agents and the Secured Parties, segregated from other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the Administrative Agent in the exact form received by such
Guarantor (duly indorsed by such Guarantor to the Administrative Agent, if
required), to be applied against the Borrower Obligations or the Guarantor Hedge
Agreement Obligations, whether matured or unmatured, in such order as the
Administrative Agent may determine.
2.4. Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations or Guarantor Hedge Agreement Obligations made by any Agent or any
Secured Party may be rescinded by such Agent or such Secured Party and any of
the Borrower Obligations or Guarantor Hedge Agreement Obligations continued, and
the Borrower Obligations or Guarantor Hedge Agreement Obligations, or the
9
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by any Agent or any
Secured Party, and the Credit Agreement and the other Loan Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the requisite Lenders, as the case may be) may deem advisable from
time to time, and any collateral security, guarantee or right of offset at any
time held by any Agent or any Secured Party for the payment of the Borrower
Obligations or Guarantor Hedge Agreement Obligations may be sold, exchanged,
waived, surrendered or released. No Agent or Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or the Guarantor Hedge Agreement
Obligations or for the guarantee contained in this Section 2 or any property
subject thereto.
2.5. Guarantee Absolute and Unconditional. (a) Each Guarantor waives
any and all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations (other than any notice with respect to any Guarantor Hedge
Agreement Obligation with respect to which such Guarantor is a primary obligor
and to which it is entitled pursuant to the applicable Specified Hedge
Agreement) and notice of or proof of reliance by any Agent or any Secured Party
upon the guarantee contained in this Section 2 or acceptance of the guarantee
contained in this Section 2; the Borrower Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this
Section 2; and all dealings between the Borrower and any of the Guarantors, on
the one hand, and the Agents and the Secured Parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower or any of the Guarantors with respect to the
Borrower Obligations (other than any diligence, presentment, protest, demand or
notice with respect to any Guarantor Hedge Agreement Obligation with respect to
which such Guarantor is a primary obligor and to which it is entitled pursuant
to the applicable Specified Hedge Agreement). Each Guarantor understands and
agrees that the guarantee contained in this Section 2 shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to
(a) the validity or enforceability of the Credit Agreement or any other Loan
Document, any Specified Hedge Agreement, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by any Agent or any Secured Party,
(b) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by the
Borrower or any other Person against any Agent or any Secured Party, or (c) any
other circumstance whatsoever (with or without notice to or knowledge of the
Borrower or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower from the Borrower
Obligations, or of such Guarantor under the guarantee contained in this Section
2, in bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, any
Agent or any Secured Party may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as it may have
against the Borrower, any other
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Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by any Agent or any Secured Party to make any such demand, to pursue
such other rights or remedies or to collect any payments from the Borrower, any
other Guarantor or any other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of
the Borrower, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of any Agent
or any Secured Party against any Guarantor. For the purposes hereof "demand"
shall include the commencement and continuance of any legal proceedings.
(b) The Borrower waives any and all notice of the creation, renewal,
extension or accrual of any of the Guarantor Hedge Agreement Obligations (other
than any notice with respect to any Guarantor Hedge Agreement Obligation with
respect to which the Borrower is a primary obligor and to which it is entitled
pursuant to the applicable Specified Hedge Agreement) and notice of or proof of
reliance by any Agent or any Secured Party upon the guarantee by the Borrower
contained in this Section 2 or acceptance of the guarantee by the Borrower
contained in this Section 2; the Guarantor Hedge Agreement Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee by the Borrower contained in this Section 2; and all dealings between
the Borrower and any of the Guarantors, on the one hand, and the Agents and the
Secured Parties, on the other hand, with respect to any Guarantor Hedge
Agreement Obligation likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee by the Borrower contained in this
Section 2. The Borrower waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower with respect
to the Guarantor Hedge Agreement Obligations (other than any diligence,
presentment, protest, demand or notice with respect to any Guarantor Hedge
Agreement Obligation with respect to which the Borrower is a primary obligor and
to which it is entitled pursuant to the applicable Specified Hedge Agreement).
The Borrower understands and agrees that the guarantee by the Borrower contained
in this Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity or enforceability of the
Guarantor Hedge Agreement Obligations or any other collateral security therefor
or guarantee or right of offset with respect thereto at any time or from time to
time held by any Agent or any Secured Party, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by any Person against any Agent or any
Secured Party, or (c) any other circumstance whatsoever (with or without notice
to or knowledge of the Borrower or any Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the applicable
Guarantor for the applicable Guarantor Hedge Agreement Obligations, or of the
Borrower under its guarantee contained in this Section 2, in bankruptcy or in
any other instance. When making any demand under this Section 2 or otherwise
pursuing its rights and remedies under this Section 2 against the Borrower, any
Agent or any Secured Party may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as it may have
against any Guarantor or any other Person or against any collateral security or
guarantee for the Guarantor Hedge Agreement Obligations or any right of offset
with respect thereto, and any
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failure by any Agent or any Secured Party to make any such demand, to pursue
such other rights or remedies or to collect any payments from any Guarantor or
any other Person or to realize upon any such collateral security or guarantee or
to exercise any such right of offset, or any release of any Guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve the Borrower of any obligation or liability under this Section
2, and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of any Agent or any Secured Party
against the Borrower under this Section 2. For the purposes hereof "demand"
shall include the commencement and continuance of any legal proceedings.
2.6. Reinstatement. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations or Guarantor
Hedge Agreement Obligations is rescinded or must otherwise be restored or
returned by any Agent or any Secured Party upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Borrower or any Guarantor, or
upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, the Borrower or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had
not been made.
2.7. Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim (i) in the case of obligations in respect of Borrower Obligations
arising under the Credit Agreement or any other Loan Document in Dollars at the
Payment Office specified in the Credit Agreement and (ii) in the case of
obligations in respect of any Borrower Hedge Agreement Obligations or any
Guarantor Hedge Agreement Obligations, in the currency and at the place
specified in the applicable Specified Hedge Agreement.
SECTION III. GRANT OF SECURITY INTEREST
Each Grantor hereby assigns and transfers as collateral security to the
Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Agents and the Secured Parties, a security interest in,
all of the following property now owned or at any time hereafter acquired by
such Grantor or in which such Grantor now has or at any time in the future may
acquire any right, title or interest (collectively, the "Collateral"), as
collateral security for the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of such Grantor's
Obligations:
(a) all Accounts;
(b) all Chattel Paper;
(c) all Commercial Tort Claims;
(d) all Contracts;
(e) all Deposit Accounts;
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(f) all Documents;
(g) all Equipment;
(h) all General Intangibles;
(i) all Instruments;
(j) all Intellectual Property;
(k) all Inventory;
(l) all Investment Property;
(m) all Letter of Credit Rights;
(n) all books and records pertaining to the Collateral; and
(o) to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing;
provided that (i) the Collateral shall not include any Excluded Assets and (ii)
no Lien shall be granted in any Property upon which a Lien is not required to be
granted pursuant to Section 6.10 of the Credit Agreement.
SECTION IV. REPRESENTATIONS AND WARRANTIES
To induce the Agents and the Secured Parties to enter into the Credit
Agreement and the Specified Hedge Agreements and to induce the Secured Parties
to make their respective extensions of credit or financial accommodations to the
Borrower thereunder, each Grantor hereby represents and warrants to each Agent
and each Secured Party that:
4.1. Representations in Credit Agreement. In the case of each
Guarantor, the representations and warranties set forth in Section 4 of the
Credit Agreement as they relate to such Guarantor or to the Loan Documents to
which such Guarantor is a party, each of which representations and warranties is
hereby incorporated herein by reference, are true and correct in all material
respects, and each Agent and each Lender shall be entitled to rely on each of
them as if they were fully set forth herein, provided that each reference in
each such representation and warranty to the Borrower's knowledge shall, for the
purposes of this Section 4.1, be deemed to be a reference to such Guarantor's
knowledge.
4.2. No Other Liens. Except for the security interest granted to the
Administrative Agent for the ratable benefit of the Agents and the Secured
Parties pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Credit Agreement, all of such Grantor's Collateral is free and
clear of any and all Liens or claims of others.
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4.3. Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Administrative Agent in
completed and duly executed form) will constitute valid perfected security
interests in all of the UCC Filing Collateral in favor of the Administrative
Agent, for the ratable benefit of the Agents and the Secured Parties, as
collateral security for such Grantor's Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons
purporting to purchase any such Collateral from such Grantor and (b) are prior
to all other Liens on such Collateral other than Liens permitted under Section
7.3 of the Credit Agreement (except Section 7.3(j)).
4.4. Jurisdiction of Organization; Chief Executive Office. On the date
hereof, such Grantor's jurisdiction of organization, identification number from
the jurisdiction of organization (if any), and the location of such Grantor's
chief executive office or sole place of business or principal residence, as the
case may be, are specified on Schedule 4. Such Grantor has furnished to the
Administrative Agent a certified charter, certificate of incorporation or other
organization document and long-form good standing certificate as of a date which
is recent to the date hereof.
4.5. Inventory and Equipment. On the date hereof, such Grantor's
Inventory and Equipment (other than motor vehicles and mobile goods) are kept at
the locations listed on Schedule 5.
4.6. Farm Products. None of the Collateral constitutes, or is the
Proceeds of, Farm Products.
4.7. Investment Property. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer (other than Alliance Commercial
Appliances Receivables LLC and Alliance Commercial Appliances Finance LLC) owned
by such Grantor or, in the case of Foreign Subsidiary Voting Stock, if less, 65%
of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.
(b) All the shares of the Pledged Stock have been duly and validly
issued and are fully paid and nonassessable.
(c) To the best of such Grantor's knowledge, each of the Pledged
Notes constitutes the legal, valid and binding obligation of the obligor with
respect thereto, enforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.
(d) Such Grantor is the record and beneficial owner of, and has good
and marketable title to, the Investment Property pledged by it hereunder, free
of any and all Liens or options in favor of, or claims of, any other Person,
except the security interest created by this
14
Agreement and other Liens permitted under Section 7.3 of the Credit Agreement
(except Section 7.3(j)).
4.8. Receivables. (a) No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
(to the extent the aggregate amount of such Instruments and Chattel Paper
exceeds $100,000) which has not been delivered to the Administrative Agent,
except for Receivables which such Grantor expects to transfer within 90 days of
the date of the origination of such Receivables pursuant to a Permitted
Receivables Financing.
(b) Except as set forth on Schedule 8, as of the date hereof, none of
the obligors on any Receivables is a Governmental Authority.
(c) The amounts represented by such Grantor to the Agents and the
Secured Parties from time to time as owing to such Grantor in respect of the
Receivables will at such times be accurate in all material respects.
4.9. Contracts. (a) No consent of any party (other than such Grantor)
to any Contract is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement.
(b) Each Contract is in full force and effect and constitutes a valid
and legally enforceable obligation of the Grantors party thereto, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.
(c) No material consent or material authorization of, filing with, or
other act by or in respect of, any Governmental Authority is required in
connection with the execution, delivery, performance, validity or enforceability
of any of the Contracts by any Grantor party thereto other than those which have
been duly obtained, made or performed, are in full force and effect and do not
subject the scope of any such Contract to any material adverse limitation,
either specific or general in nature.
(d) As of the Effective Date, neither such Grantor nor (to the best
of such Grantor's knowledge) any of the other parties to the Contracts is in
default in the performance or observance of any of the terms thereof in any
manner that, in the aggregate, could reasonably be expected to have a Material
Adverse Effect.
(e) The right, title and interest of such Grantor in, to and under
the Contracts are not subject to any defenses, offsets, counterclaims or claims
that, in the aggregate, could reasonably be expected to have a Material Adverse
Effect.
(f) As of the date hereof, such Grantor has delivered to the
Administrative Agent a complete and correct copy of each Contract, including all
amendments, supplements and other modifications thereto.
15
(g) No amount payable to such Grantor under or in connection with
any Contract is evidenced by any Instrument or Chattel Paper (to the extent the
aggregate amount of such Instruments and Chattel Paper exceeds $100,000) which
has not been delivered to the Administrative Agent.
(h) None of the parties to any Contract is a Governmental Authority.
4.10. Intellectual Property. (a) Schedule 6 lists all registered
Intellectual Property owned by such Grantor in its own name on the date hereof.
(b) On the date hereof, all material Intellectual Property owned by
such Grantor is valid, subsisting, unexpired and enforceable, has not been
abandoned and, to such Grantor's knowledge, does not infringe the intellectual
property rights of any other Person.
(c) Except as set forth in Schedule 6, on the date hereof, none of
the material Intellectual Property used by such Grantor in its business is the
subject of any licensing or franchise agreement pursuant to which such Grantor
is the licensor or franchisor.
(d) No holding, decision or judgment has been rendered by any
Governmental Authority which would directly limit, cancel or question the
validity of, or such Grantor's rights in, any Intellectual Property in any
respect that could reasonably be expected to have a Material Adverse Effect.
(e) No action or proceeding is pending, or, to the knowledge of such
Grantor, threatened, on the date hereof (i) seeking to limit, cancel or question
the validity of any Intellectual Property owned by such Grantor or such
Grantor's ownership interest therein, and (ii) which, if adversely determined,
would have a material adverse effect on the value of any Intellectual Property
owned by such Grantor.
4.11. Commercial Tort Claims. Schedule 9 is a complete and correct
description of all Commercial Tort Claims owned by such Grantor on the date
hereof.
SECTION V. COVENANTS
Each Grantor covenants and agrees with the Agents and the Secured
Parties that, from and after the date of this Agreement until the Obligations
shall have been paid in full, no Letter of Credit shall be outstanding and the
Commitments shall have terminated:
5.1. Covenants in Credit Agreement. In the case of each Guarantor,
such Guarantor shall take, or shall refrain from taking, as the case may be,
each action that is necessary to be taken or not taken, as the case may be, so
that no Default or Event of Default is caused by the failure to take such action
or to refrain from taking such action by such Guarantor or any of its
Subsidiaries.
5.2. Delivery of Instruments, Certificated Securities and Chattel
Paper. Except as provided in Section 4.8, if any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any
Instrument, Certificated Security or Chattel
16
Paper (to the extent that the aggregate amount of such Chattel Paper exceeds
$100,000), such Instrument, Certificated Security or Chattel Paper shall be
immediately delivered to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, to be held as Collateral pursuant to
this Agreement.
5.3. Maintenance of Insurance. (a) Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory and Equipment against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Administrative Agent and
(ii) to the extent requested by the Administrative Agent, insuring such Grantor,
the Agents and the Secured Parties against liability for personal injury and
property damage relating to such Inventory and Equipment, such policies to be in
such form and amounts and having such coverage as may be reasonably satisfactory
to the Administrative Agent.
(b) All such insurance shall (i) provide that no cancellation,
material reduction in amount or material change in coverage thereof shall be
effective until at least 30 days after receipt by the Administrative Agent of
written notice thereof, (ii) name the Administrative Agent as insured party or
loss payee, (iii) if reasonably requested by the Administrative Agent, include a
breach of warranty clause and (iv) be reasonably satisfactory in all other
respects to the Administrative Agent.
(c) The Borrower shall deliver to the Administrative Agent and the
Lenders a report of a reputable insurance broker with respect to such insurance
as the Administrative Agent may from time to time reasonably request.
5.4. Payment of Obligations. Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed
upon the Collateral, as well as all claims of any kind (including, without
limitation, claims for labor, materials and supplies) against or with respect to
the Collateral, except (a) that no such charge need be paid if the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings, reserves in conformity with GAAP with respect thereto have been
provided on the books of such Grantor or (b) where the failure to pay, discharge
or otherwise satisfy such obligations could not, individually or in the
aggregate, reasonably be expected to result in the sale, forfeiture or loss of
any material portion of the Collateral or any interest therein, other than as a
result of a Lien permitted under Section 7.3 of the Credit Agreement.
5.5. Maintenance of Perfected Security Interest; Further
Documentation. (a) Such Grantor shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority
described in Section 4.3 and shall defend such security interest against the
claims and demands of all Persons whomsoever.
(b) Such Grantor will furnish to the Administrative Agent and the
Lenders from time to time statements and schedules further identifying and
describing the assets and property of such Grantor and such other reports in
connection therewith as the Administrative Agent may reasonably request, all in
reasonable detail.
17
(c) At any time and from time to time, upon the written request of
the Administrative Agent, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) the filing of any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property, Deposit Accounts, Letter of Credit
Rights and any other relevant Collateral, taking any actions necessary to enable
the Administrative Agent to obtain "control" (within the meaning of the
applicable Uniform Commercial Code) with respect thereto, provided that no such
action shall be required with respect to Deposit Accounts unless an Event of
Default shall have occurred and be continuing.
5.6. Changes in Locations, Name, etc. Such Grantor will not, except
upon 15 days' prior written notice to the Administrative Agent and delivery to
the Administrative Agent of (a) all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein
and (b) if applicable, a written supplement to Schedule 5, showing any
additional location at which Inventory or Equipment shall be kept:
(i) permit any of the Inventory or Equipment to be kept at a
location other than those listed on Schedule 5 and other than
temporary transfers (for a period not to exceed three months in any
event) of Equipment from any location set forth in Schedule 5 to
another location if done for the limited purpose of repairing,
refurbishing, or overhauling such Equipment in the ordinary course of
business;
(ii) change its jurisdiction of organization or the location of
its chief executive office, sole place of business or principal
residence from that referred to in Section 4.4; or
(iii) change its name.
5.7. Notices. Such Grantor will advise the Administrative Agent and
the Lenders promptly, in reasonable detail, of:
(a) any Lien (other than security interests created hereby or Liens
permitted under the Credit Agreement) on any of the Collateral which would
adversely affect the ability of the Administrative Agent to exercise any of
its remedies hereunder; and
(b) the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.
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5.8. Investment Property. (a) If such Grantor shall become entitled to
receive or shall receive any stock certificate (including, without limitation,
any certificate representing a stock dividend or a distribution in connection
with any reclassification, increase or reduction of capital or any certificate
issued in connection with any reorganization), option or rights in respect of
the Capital Stock of any Issuer, whether in addition to, in substitution of, as
a conversion of, or in exchange for, any shares of the Pledged Stock, or
otherwise in respect thereof, such Grantor shall accept the same as the agent of
the Agents and the Secured Parties, hold the same in trust for the Agents and
the Secured Parties and deliver the same forthwith to the Administrative Agent
in the exact form received, duly indorsed by such Grantor to the Administrative
Agent, if required, together with an undated stock power covering such
certificate duly executed in blank by such Grantor and with, if the
Administrative Agent so requests, signature guaranteed, to be held by the
Administrative Agent, subject to the terms hereof, as additional collateral
security for the Obligations. Any sums paid upon or in respect of the Investment
Property upon the liquidation or dissolution of any Issuer (other than a
liquidation or dissolution permitted under the Credit Agreement) shall be paid
over to the Administrative Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of capital
shall be made on or in respect of the Investment Property or any property shall
be distributed upon or with respect to the Investment Property, in either case,
pursuant to the recapitalization or reclassification of the capital of any
Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected security interest in favor of the
Administrative Agent, be delivered to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations. If any sums of
money or property so paid or distributed in respect of the Investment Property
shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Administrative Agent, hold such money or
property in trust for the Agents and the Secured Parties, segregated from other
funds of such Grantor, as additional collateral security for the Obligations.
(b) Without the prior written consent of the Administrative Agent,
such Grantor will not (i) vote to enable, or take any other action to permit,
any Issuer to issue any stock or other equity securities of any nature or to
issue any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any Issuer
unless such stock or other securities are subject to a perfected security
interest hereunder, (ii) sell, assign, transfer, exchange, or otherwise dispose
of, or grant any option with respect to, the Investment Property or the Proceeds
thereof (except pursuant to a transaction expressly permitted by the Credit
Agreement), (iii) create, incur or permit to exist any Lien or option in favor
of, or any claim of any Person with respect to, any of the Investment Property
or the Proceeds thereof, or any interest therein, except for the security
interests created by this Agreement or as otherwise permitted under Section 7.3
of the Credit Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to
sell, assign or transfer any of the Investment Property or the Proceeds thereof,
other than the Senior Subordinated Note Indenture (or any other indenture
governing Indebtedness permitted under Section 7.2(f) of the Credit Agreement)
or any agreement entered into in connection with a sale of the Capital Stock of
any Subsidiary permitted under the Credit Agreement.
19
(c) In the case of each Grantor which is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement relating to the
Investment Property issued by it and will comply with such terms insofar as such
terms are applicable to it, (ii) it will notify the Administrative Agent
promptly in writing of the occurrence of any of the events described in Section
5.8(a) with respect to the Investment Property issued by it, (iii) the terms of
Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all
actions that may be required of it pursuant to Section 6.3(c) or 6.7 with
respect to the Investment Property issued by it and (iv) it will comply with
instructions originated by the Administrative Agent with respect to Investment
Property issued by it without any further consent of the owner thereof.
(d) No Grantor shall permit any other Person (other than the
Administrative Agent) to exercise or obtain "control" (within the meaning of
Section 8-106 of the New York UCC in effect on the date hereof or at any time
hereafter) in connection with any Lien of any of its Investment Property
(including Cash Equivalents) in connection with the grant of a Lien by such
Grantor to or for the benefit of such Person or any other Person (other than the
Administrative Agent) except as otherwise permitted under Section 7.3 of the
Credit Agreement.
5.9. Receivables. (a) Other than in the ordinary course of business
consistent with its past practice, such Grantor will not (i) grant any extension
of the time of payment of any material Receivable, (ii) compromise or settle any
material Receivable for a materially lesser amount thereof, (iii) release,
wholly or partially in any material respect, any Person liable for the payment
of any material Receivable, (iv) allow any material credit or discount
whatsoever on any material Receivable or (v) amend, supplement or modify any
material Receivable in any manner that could materially adversely affect the
value thereof.
(b) Such Grantor will deliver to the Administrative Agent a copy of
each material demand, notice or document received by it that questions or calls
into doubt the validity or enforceability of more than 5% of the aggregate
amount of the then outstanding Receivables.
(c) Such Grantor shall maintain a serial number tracking system on
finished goods inventory, as maintained by it prior to the date hereof.
5.10. Intellectual Property. (a) Such Grantor (either itself or
through licensees) will (i) subject to such Grantor's reasonable business
judgment, continue to use each material Trademark on each and every trademark
class of goods applicable to its current line as reflected in its current
catalogs, brochures and price lists in order to maintain such Trademark in full
force free from any claim of abandonment for non-use, (ii) subject to such
Grantor's reasonable business judgment, maintain as in the past the quality of
products and services offered under such Trademark, (iii) use such Trademark
with the appropriate notice of registration and all other notices and legends
required by applicable Requirements of Law, (iv) not adopt or use any xxxx which
is confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Agents and the Secured
Parties, shall obtain a perfected security interest in such xxxx pursuant to
this Agreement, and (v) subject to such Grantor's reasonable business judgment,
not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such Trademark may become invalidated or
impaired in any way.
20
(b) Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any material Patent may become forfeited,
abandoned or dedicated to the public.
(c) Subject to such Grantor's reasonable business judgment, such
Grantor (either itself or through licensees) (i) will employ each material
Copyright and (ii) will not (and will not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby any material
portion of the Copyrights may become invalidated or otherwise impaired. Subject
to such Grantor's reasonable business judgment, such Grantor will not (either
itself or through licensees) do any act whereby any material portion of the
Copyrights may fall into the public domain.
(d) Such Grantor (either itself or through licensees) will not do any
act that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person.
(e) Such Grantor will notify the Administrative Agent and the Lenders
promptly if it knows, or has reason to know, that any application or
registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal in
any country) regarding such Grantor's ownership of, or the validity of, any
material Intellectual Property or such Grantor's right to register the same or
to own and maintain the same.
(f) Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Intellectual Property with the United States Patent and Trademark Office,
the United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within ten Business Days after the last day
of the fiscal quarter in which such filing occurs. Upon request of the
Administrative Agent, such Grantor shall execute and deliver, and have recorded,
any and all agreements, instruments, documents, and papers as the Administrative
Agent may request to evidence the Administrative Agent's and the Secured
Parties' security interest in any Copyright, Patent or Trademark and the
goodwill and General Intangibles of such Grantor relating thereto or represented
thereby.
(g) Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.
(h) In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take such
actions as such
21
Grantor shall reasonably deem appropriate under the circumstances to protect
such Intellectual Property and (ii) if such Intellectual Property is of material
economic value, promptly notify the Administrative Agent after it learns thereof
and in its reasonable business judgment xxx for infringement, misappropriation
or dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution.
SECTION VI. REMEDIAL PROVISIONS
6.1. Certain Matters Relating to Receivables. (a) After the occurrence
and during the continuation of any Event of Default, the Administrative Agent
shall have the right to make test verifications of the Receivables in any manner
and through any medium that it reasonably considers advisable, and each Grantor
shall furnish all such assistance and information as the Administrative Agent
may require in connection with such test verifications. At any time and from
time to time, upon the Administrative Agent's request and at the expense of the
relevant Grantor, such Grantor shall cause independent public accountants or
others satisfactory to the Administrative Agent to furnish to the Administrative
Agent reports showing reconciliations, aging and test verifications of, and
trial balances for, the Receivables.
(b) The Administrative Agent hereby authorizes each Grantor to
collect such Grantor's Receivables, and the Administrative Agent may curtail or
terminate said authority at any time after the occurrence and during the
continuance of an Event of Default. If required by the Administrative Agent at
any time after the occurrence and during the continuance of an Event of Default,
any payments of Receivables, when collected by any Grantor, (i) shall be
forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the
Administrative Agent if required, in a Collateral Account maintained under the
sole dominion and control of the Administrative Agent, subject to withdrawal by
the Administrative Agent for the account of the Agents and the Secured Parties
only as provided in Section 6.5, and (ii) until so turned over, shall be held by
such Grantor in trust for the Agents and the Secured Parties, segregated from
other funds of such Grantor. Each such deposit of Proceeds of Receivables shall
be accompanied by a report identifying in reasonable detail the nature and
source of the payments included in the deposit.
(c) At the Administrative Agent's request, each Grantor shall deliver
to the Administrative Agent all original and other documents evidencing, and
relating to, the agreements and transactions which gave rise to the Receivables,
including, without limitation, all original orders, invoices and shipping
receipts.
6.2. Communications with Obligors; Grantors Remain Liable. (a) The
Administrative Agent in its own name or in the name of others may at any time
after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables to verify with them to the
Administrative Agent's satisfaction the existence, amount and terms of any
Receivables.
(b) Upon the request of the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
notify obligors on the Receivables that the Receivables have been assigned to
the Administrative Agent for the ratable
22
benefit of the Agents and the Secured Parties and that payments in respect
thereof shall be made directly to the Administrative Agent.
(c) Anything herein to the contrary notwithstanding, each Grantor
shall remain liable under each of the Receivables to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in
accordance with the terms of any agreement giving rise thereto. Neither any
Agent nor any Secured Party shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) by reason of or arising out of
this Agreement or the receipt by any Agent or any Secured Party of any payment
relating thereto, nor shall any Agent or any Secured Party be obligated in any
manner to perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto) to make any payment, to make
any inquiry as to the nature or the sufficiency of any payment received by it or
as to the sufficiency of any performance by any party thereunder, to present or
file any claim, or to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to it or to which it may
be entitled at any time or times.
6.3. Pledged Stock. (a) Unless an Event of Default shall have
occurred and be continuing and the Administrative Agent shall have given notice
to the relevant Grantor of the Administrative Agent's intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted
to receive all cash dividends and distributions paid in respect of the Pledged
Stock and other Investment Property and all payments made in respect of the
Pledged Notes, in each case paid in the normal course of business of the
relevant Issuer and consistent with past practice, to the extent permitted in
the Credit Agreement, and to exercise all voting and corporate rights with
respect to the Investment Property; provided, however, that no vote shall be
cast or corporate right exercised or other action taken which, in the
Administrative Agent's reasonable judgment, would impair the Collateral or which
would be inconsistent with or result in any violation of any provision of the
Credit Agreement, this Agreement or any other Loan Document.
(b) If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the
Obligations in the order set forth in Section 6.5 and (ii) any or all of the
Investment Property shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders, partners or members of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee,
23
depositary, transfer agent, registrar or other designated agency upon such terms
and conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.
(c) Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with any
instruction received by it from the Administrative Agent in writing that (x)
states that an Event of Default has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that each Issuer
shall be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the Administrative Agent.
6.4. Proceeds to be Turned Over To Administrative Agent. In addition
to the rights of the Administrative Agent and the Secured Parties specified in
Section 6.1 with respect to payments of Receivables, if an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor consisting
of cash, checks and other near-cash items shall be held by such Grantor in trust
for the Agents and the Secured Parties, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Administrative Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Administrative Agent, if required). All Proceeds
received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion
and control. All Proceeds while held by the Administrative Agent in a Collateral
Account (or by such Grantor in trust for the Administrative Agent and the
Secured Parties) shall continue to be held as collateral security for all the
Obligations and shall not constitute payment thereof until applied as provided
in Section 6.5.
6.5. Application of Proceeds. At such intervals as may be agreed upon
by the Borrower and the Administrative Agent or, if an Event of Default shall
have occurred and be continuing, at any time at the Administrative Agent's
election, the Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the Obligations
in the following order:
First, to pay incurred and unpaid fees and expenses of the
Administrative Agent under the Loan Documents;
Second, to the Administrative Agent, for application by it
towards payment of amounts then due and owing and remaining unpaid in
respect of the Obligations, pro rata among the Agents and the Secured
Parties according to the amounts of the Obligations then due and owing
and remaining unpaid to the Agents and the Secured Parties;
24
Third, to the Administrative Agent, for deposit in a cash
collateral account opened by the Administrative Agent an amount
equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit for all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of
application of Proceeds pursuant to this Section 6.5 and with
respect to which the Borrower is not under an obligation under
Section 8 of the Credit Agreement to make deposits into a cash
collateral account;
Fourth, to the Administrative Agent, for application by it
towards prepayment of the Obligations, pro rata (i) with respect
to prepayment of the Obligations, among the Agents and the Secured
Parties according to the amounts of the Obligations then held by
the Agents and the Secured Parties and (ii) with respect to the
cash collateral account, among the Lenders according to their
respective Revolving Credit Percentages; and
Fifth, any balance of such Proceeds remaining after the
then outstanding Obligations shall have been paid in full, no
Letters of Credit shall be outstanding and the Commitments shall
have terminated shall be paid over to the Borrower or to
whomsoever may be lawfully entitled to receive the same.
6.6. Code and Other Remedies. If an Event of Default shall occur
and be continuing, the Administrative Agent, on behalf of the Agents and the
Secured Parties, may exercise, in addition to all other rights and remedies
granted to them in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Obligations, all rights and remedies of
a secured party under the New York UCC or any other applicable law. Without
limiting the generality of the foregoing, the Administrative Agent, without
demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law referred to below) to or
upon any Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Administrative Agent or any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
Any Agent or any Secured Party shall have the right upon any such public sale or
sales, and, to the extent permitted by law, upon any such private sale or sales,
to purchase the whole or any part of the Collateral so sold, free of any right
or equity of redemption in any Grantor, which right or equity is hereby waived
and released. Each Grantor further agrees, at the Administrative Agent's
request, to assemble the Collateral and make it available to the Administrative
Agent at places which the Administrative Agent shall reasonably select, whether
at such Grantor's premises or elsewhere. The Administrative Agent shall apply
the net proceeds of any action taken by it pursuant to this Section 6.6, after
deducting all reasonable costs and expenses of every kind incurred in connection
therewith or incidental to the care or safekeeping of any of the Collateral or
in any way relating to the Collateral or the rights of the Agents and the
Secured Parties hereunder,
25
including, without limitation, reasonable attorneys' fees and disbursements, to
the payment in whole or in part of the Obligations, in such order as the
Administrative Agent may elect, and only after such application and after the
payment by the Administrative Agent of any other amount required by any
provision of law, including, without limitation, Section 9-615(a)(3) of the New
York UCC, need the Administrative Agent account for the surplus, if any, to any
Grantor. To the extent permitted by applicable law, each Grantor waives all
claims, damages and demands it may acquire against any Agent or any Secured
Party arising out of the exercise by it of any rights hereunder. If any notice
of a proposed sale or other disposition of Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.
6.7. Registration Rights. (a) If the Administrative Agent shall
determine to exercise its right to sell any or all of the Pledged Stock pursuant
to Section 6.6, and if in the opinion of the Administrative Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as may
be, in the opinion of the Administrative Agent, necessary or advisable to
register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of
the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to
cause such Issuer to comply with the provisions of the securities or "Blue Sky"
laws of any and all jurisdictions which the Administrative Agent shall designate
and to make available to its security holders, as soon as practicable, an
earnings statement (which need not be audited) which will satisfy the provisions
of Section 11(a) of the Securities Act.
(b) Each Grantor recognizes that the Administrative Agent may be
unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.
(c) Each Grantor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the
26
Pledged Stock pursuant to this Section 6.7 valid and binding and in compliance
with any and all other applicable Requirements of Law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7 will
cause irreparable injury to the Agents and the Secured Parties, that the Agents
and the Secured Parties have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section
6.7 shall be specifically enforceable against such Grantor, and such Grantor
hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants except for a defense that no Event of
Default has occurred under the Credit Agreement.
6.8. Deficiency. Each Grantor shall remain liable for any deficiency
if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by any Agent or any Secured Party to collect such deficiency.
Section VII. THE ADMINISTRATIVE AGENT
7.1. Administrative Agent's Appointment as Attorney-in-Fact, etc. (a)
Each Grantor hereby irrevocably constitutes and appoints the Administrative
Agent and any officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of such Grantor and in the name of such Grantor or in its
own name, for the purpose of carrying out the terms of this Agreement, to take
any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Agreement in each case after the occurrence and during the continuation of
an Event of Default, and, without limiting the generality of the foregoing, each
Grantor hereby gives the Administrative Agent the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any or all of
the following:
(i) in the name of such Grantor or its own name, or otherwise,
take possession of and indorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under
any Receivable or with respect to any other Collateral and file any
claim or take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Administrative Agent for
the purpose of collecting any and all such moneys due under any
Receivable or with respect to any other Collateral whenever payable;
(ii) in the case of any Intellectual Property, execute and
deliver, and have recorded, any and all agreements, instruments,
documents and papers as the Administrative Agent may request to
evidence the Administrative Agent's and the Secured Parties' security
interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;
(iii) pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral, effect any repairs or any insurance
called for by the terms
27
of this Agreement and pay all or any part of the premiums
therefor and the costs thereof;
(iv) execute, in connection with any sale provided for in
Section 6.6 or 6.7, any indorsements, assignments or other
instruments of conveyance or transfer with respect to the
Collateral; and
(v) (a) direct any party liable for any payment under any of
the Collateral to make payment of any and all moneys due or to
become due thereunder directly to the Administrative Agent or as
the Administrative Agent shall direct; (b) ask or demand for,
collect, and receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time
in respect of or arising out of any Collateral; (c) sign and
indorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in
connection with any of the Collateral; (d) commence and prosecute
any suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect the Collateral or any
portion thereof and to enforce any other right in respect of any
Collateral; (e) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral; (f) settle,
compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate; (g) assign any
Copyright, Patent or Trademark (along with the goodwill of the
business to which any such Copyright, Patent or Trademark
pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Administrative Agent shall
in its sole discretion determine; and (h) generally, sell,
transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely
as though the Administrative Agent were the absolute owner
thereof for all purposes, and do, at the Administrative Agent's
option and such Grantor's expense, at any time, or from time to
time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and
the Administrative Agent's and Secured Parties' security
interests therein and to effect the intent of this Agreement, all
as fully and effectively as such Grantor might do.
Anything in this Section 7.1(a) to the contrary notwithstanding,
the Administrative Agent agrees that it will not exercise any rights under the
power of attorney provided for in this Section 7.1(a) unless an Event of Default
shall have occurred and be continuing.
(b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Administrative Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.
(c) The expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per
28
annum equal to the rate per annum at which interest would then be payable on
past due Revolving Credit Loans that are Base Rate Loans under the Credit
Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.
(d) Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.
7.2. Duty of Administrative Agent. The Administrative Agent's sole
duty with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. No Agent or Secured Party
nor any of their respective officers, directors, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or any other Person or
to take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Agents and the Secured Parties hereunder
are solely to protect the Agents' and the Secured Parties' interests in the
Collateral and shall not impose any duty upon any Agent or any Secured Party to
exercise any such powers. The Agents and the Secured Parties shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct.
7.3. Execution of Financing Statements. Pursuant to any applicable
law, each Grantor authorizes the Administrative Agent to file or record
financing statements and other filing or recording documents or instruments with
respect to the Collateral without the signature of such Grantor in such form and
in such offices as the Administrative Agent determines appropriate to perfect
the security interests of the Administrative Agent under this Agreement. Each
Grantor authorizes the Administrative Agent to use the collateral description
"all personal property" in any such financing statements. Each Grantor hereby
ratifies and authorizes the filing by the Administrative Agent of any financing
statement with respect to the Collateral made prior to the date hereof.
7.4. Authority of Administrative Agent. Each Grantor acknowledges that
the rights and responsibilities of the Administrative Agent under this Agreement
with respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Administrative Agent and the Secured
Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no
29
Grantor shall be under any obligation, or entitlement, to make any inquiry
respecting such authority.
SECTION VIII. MISCELLANEOUS
8.1. Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 10.1 of the Credit Agreement.
8.2. Notices. All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 10.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor (other than Holdings) shall
be addressed to such Guarantor at its notice address set forth on Schedule 1.
8.3. No Waiver by Course of Conduct; Cumulative Remedies. No Agent or
Secured Party shall by any act (except by a written instrument pursuant to
Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy hereunder or to have acquiesced in any Default or Event of
Default. No failure to exercise, nor any delay in exercising, on the part of any
Agent or any Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by any Agent or
any Secured Party of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy which any Agent or any Secured
Party would otherwise have on any future occasion. The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any other rights or remedies provided by law.
8.4. Enforcement Expenses; Indemnification. (a) Each Guarantor agrees
to pay or reimburse each Secured Party and each Agent for all its reasonable
costs and expenses incurred in collecting against such Guarantor under the
guarantee contained in Section 2 or otherwise enforcing or preserving any rights
under this Agreement and the other Loan Documents to which such Guarantor is a
party, including, without limitation, the reasonable fees and disbursements of
counsel (including the allocated fees and expenses of in-house counsel) to each
Secured Party and of counsel to each Agent.
(b) Each Guarantor agrees to pay, and to save the Agents and the
Secured Parties harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other
similar taxes which may be payable or determined to be payable with respect to
any of the Collateral or in connection with any of the transactions contemplated
by this Agreement.
(c) Each Guarantor agrees to pay, and to save the Agents and the
Secured Parties harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the
30
extent the Borrower would be required to do so pursuant to Section 10.5 of the
Credit Agreement.
(d) The agreements in this Section shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreement and the
other Loan Documents.
8.5. Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Agents and the Secured Parties and their successors and assigns; provided that
no Grantor may assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of the Administrative
Agent.
8.6. Set-Off. Each Grantor hereby irrevocably authorizes each Agent
and each Secured Party at any time and from time to time while an Event of
Default pursuant to Section 8(a) of the Credit Agreement shall have occurred and
be continuing, without notice to such Grantor or any other Grantor, any such
notice being expressly waived by each Grantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Agent or such Secured
Party to or for the credit or the account of such Grantor, or any part thereof
in such amounts as such Agent or such Secured Party may elect, against and on
account of the obligations and liabilities of such Grantor to such Agent or such
Secured Party hereunder and claims of every nature and description of such Agent
or such Secured Party against such Grantor, in any currency, whether arising
hereunder, under the Credit Agreement, any other Loan Document or otherwise, as
such Agent or such Secured Party may elect, whether or not any Agent or any
Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. Each Agent and each
Secured Party shall notify such Grantor promptly of any such set-off and the
application made by it of the proceeds thereof, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of the Agents and each Secured Party under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Agents or such Secured Party may have.
8.7. Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
8.8. Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
8.9. Section Headings. The Section headings used in this Agreement are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.
31
8.10. Integration. This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Agents and the Secured Parties with
respect to the subject matter hereof and thereof, and there are no promises,
undertakings, representations or warranties by any Agent or any Secured Party
relative to subject matter hereof and thereof not expressly set forth or
referred to herein or in the other Loan Documents.
8.11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
8.12. Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which
it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of
the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to such
Grantor at its address referred to in Section 8.2 or at such other address
of which the Administrative Agent shall have been notified pursuant
thereto;
(d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the
right to xxx in any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred
to in this Section any special, exemplary, punitive or consequential
damages.
8.13. Acknowledgments. Each Grantor hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents to which it is a
party;
(b) no Agent or Secured Party has any fiduciary relationship with or
duty to any Grantor arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between the Grantors,
on the one hand, and the Agents
32
and Secured Parties, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and
(c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Grantors
and the Secured Parties.
8.14. Additional Grantors. Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 6.10 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex 1 hereto.
8.15. Releases. (a) At such time as the Loans, the Reimbursement
Obligations and the other Obligations (other than (i) Borrower Hedge Agreement
Obligations and Guarantor Hedge Agreement Obligations and (ii) unasserted
contingent indemnity and other obligations which expressly survive the
termination of the Credit Agreement and are not then due and payable) shall have
been paid in full, the Commitments have been terminated and no Letters of Credit
shall be outstanding which have not been fully cash collateralized in accordance
with the Credit Agreement or otherwise collateralized in a manner satisfactory
to the Issuing Lender in its sole discretion, the Collateral shall be released
from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the Administrative
Agent and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to such Grantor any Collateral held by the Administrative Agent hereunder, and
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such termination.
(b) If any of the Collateral (including transfers of Receivables and
related assets in a Permitted Receivables Financing) shall be sold, transferred
or otherwise disposed of by any Grantor in a transaction permitted by the Credit
Agreement, such Collateral shall be automatically released from the Lien of this
Agreement and the other Loan Documents without further action on the part of any
Grantor, any Agent or the Lenders, and shall cease to constitute Collateral
hereunder, and then the Administrative Agent, at the request and sole expense of
such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created
hereby on such Collateral. At the request and sole expense of the Borrower, a
Subsidiary Guarantor shall be released from its obligations hereunder in the
event that all the Capital Stock of such Subsidiary Guarantor shall be sold,
transferred or otherwise disposed of in a transaction permitted by the Credit
Agreement.
8.16. WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
33
IN WITNESS WHEREOF, each of the undersigned has caused this
Agreement to be duly executed and delivered as of the date first above written.
ALLIANCE LAUNDRY HOLDINGS LLC
By: ____________________
Title:
ALLIANCE LAUNDRY SYSTEMS LLC
By: ____________________
Title:
ALLIANCE LAUNDRY CORPORATION
By: ____________________
Title:
Schedule 1
NOTICE ADDRESSES OF GUARANTORS
Schedule 2
DESCRIPTION OF INVESTMENT PROPERTY
Pledged Stock:
________________ __________________ _______________________ _______________
Issuer Class of Stock Stock Certificate No. No. of Shares
Pledged Notes:
___________________________ _______________________ _____________________
Issuer Payee Principal Amount
Schedule 3
FILINGS AND OTHER ACTIONS
REQUIRED TO PERFECT SECURITY INTERESTS
Uniform Commercial Code Filings
[List each office where a financing statement is to be filed]
Patent and Trademark Filings
[List all filings]
Actions with respect to Pledged Stock
Other Actions
[Describe other actions to be taken]
Schedule 4
JURISDICTION OF ORGANIZATION, LOCATION OF CHIEF EXECUTIVE OFFICE AND
IDENTIFICATION NUMBER
Grantor Jurisdiction of Location of Chief Identification Number
------- --------------- ----------------- ---------------------
Organization Executive Office
------------ ----------------
Schedule 5
LOCATION OF INVENTORY AND EQUIPMENT
Grantor Locations
------- ---------
Schedule 6
COPYRIGHTS AND COPYRIGHT LICENSES
PATENTS AND PATENT LICENSES
TRADEMARKS AND TRADEMARK LICENSES
Schedule 7
CONTRACTS
1. Merger Agreement.
2. All Hedge Agreements to which the Grantor is a party.
Schedule 8
GOVERNMENT CONTRACTS
Schedule 9
COMMERCIAL TORT CLAIMS
Schedule 9
ACKNOWLEDGMENT AND CONSENT*
The undersigned hereby acknowledges receipt of a copy of the Amended
and Restated Guarantee and Collateral Agreement, dated as of ________ __, 2002
(the "Agreement"), made by the Grantors parties thereto in favor of General
Electric Capital Corporation, as Administrative Agent. The undersigned agrees
for the benefit of the Agents and the Lenders as follows:
1. The undersigned will be bound by the terms of the Agreement and
will comply with such terms insofar as such terms are applicable to the
undersigned.
2. The undersigned will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.8(a) of
the Agreement.
3. The terms of Sections 6.3(a) and 6.7 of the Agreement shall apply
to it, mutatis mutandis, with respect to all actions that may be required of it
pursuant to Section 6.3(a) or 6.7 of the Agreement.
4. The undersigned agrees to comply with instructions originated by
the Administrative Agent with respect to Investment Property issued by it
without further consent of the owner thereof.
[NAME OF ISSUER]
_____________________________
By: _____________________________
Title:
_____________________________
Address for Notices:
________________________________
________________________________
Fax: __________________________
______________________
* This consent is necessary only with respect to any Issuer which is not also
a Grantor.
ANNEX 1 TO
GUARANTEE AND COLLATERAL AGREEMENT
ASSUMPTION AGREEMENT, dated as of ________________, made by
______________________________, a ______________ (the "Additional Grantor"), in
favor of General Electric Capital Corporation, as administrative agent (in such
capacity, the "Administrative Agent") for the benefit of the Secured Parties (as
defined in the Guarantee and Collateral Agreement referred to below), including
the banks and other financial institutions (the "Lenders") parties to the Credit
Agreement referred to below. All capitalized terms not defined herein shall have
the meaning ascribed to them in such Credit Agreement.
W I T N E S S E T H :
WHEREAS, Alliance Laundry Systems LLC (the "Borrower"), Alliance
Laundry Holdings LLC, the Lenders, the Administrative Agent, Xxxxxx Brothers
Inc., as Arranger, Fleet National Bank and LaSalle Bank National Association, as
Documentation Agents, and Xxxxxx Commercial Paper Inc., as Syndication Agent,
have entered into an Amended and Restated Credit Agreement, dated as of August
2, 2002 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement");
WHEREAS, in connection with the Credit Agreement, the Borrower and
certain of its Affiliates (other than the Additional Grantor) have entered into
the Amended and Restated Guarantee and Collateral Agreement, dated as of August
2, 2002 (as amended, supplemented or otherwise modified from time to time, the
"Guarantee and Collateral Agreement") in favor of the Administrative Agent for
the benefit of the Agents (as defined therein) and the Secured Parties;
WHEREAS, the Credit Agreement requires the Additional Grantor to
become a party to the Guarantee and Collateral Agreement; and
WHEREAS, the Additional Grantor has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee and Collateral
Agreement;
NOW, THEREFORE, IT IS AGREED:
1. Guarantee and Collateral Agreement. By executing and delivering
this Assumption Agreement, the Additional Grantor, as provided in Section 8.14
of the Guarantee and Collateral Agreement, hereby becomes a party to the
Guarantee and Collateral Agreement as a Grantor thereunder with the same force
and effect as if originally named therein as a Grantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Grantor thereunder. The information set forth in Annex 1-A
hereto is hereby added to the information set forth in Schedules ____________**
to the Guarantee and Collateral Agreement. The Additional Grantor hereby
represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) with respect to such Grantor as if made on and as of such date.
__________________________________
** Refer to each Schedule which needs to be supplemented.
2
2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.
[ADDITIONAL GRANTOR]
By: _________________________________
Name:
Title:
[FORM OF]
PERFECTION CERTIFICATE
Reference is made to (a) the Amended and Restated Credit Agreement
dated as of August 2, 2002 (as amended, supplemented or otherwise modified from
time to time, the "Credit Agreement"), among Alliance Laundry Holdings LLC
("Holdings"), Alliance Laundry Systems LLC (the "Borrower"), the Lenders, Xxxxxx
Brothers, Inc., as Arranger, Xxxxxx Commercial Paper Inc., as Syndication Agent,
Fleet National Bank and LaSalle Bank National Association, as Documentation
Agents, and the Administrative Agent and (b) the Amended and Restated Guarantee
and Collateral Agreement dated as of August 2, 2002 (as amended, supplemented or
otherwise modified from time to time, the "Guarantee and Collateral Agreement"),
among the Grantors parties thereto and the Administrative Agent. Capitalized
terms used herein and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement, the Security Documents referred to therein
or the Uniform Commercial Code, as applicable.
The undersigned, a financial officer of the Borrower, hereby
certifies to the Administrative Agent and each other Secured Party as follows:
SECTION 1. NAMES.
(a) The exact legal name of each Grantor, as such name appears in its
respective certificate of formation, is as follows:
(b) Set forth below is each other legal name each Grantor has had since
the Original Closing Date, together with the date of the relevant change:
(c) Except as set forth in Schedule 1 hereto, no Grantor has changed
its identity or corporate structure in any way since the Original Closing Date.
Changes in identity or corporate structure would include mergers, consolidations
and acquisitions, as well as any change in the form, nature or jurisdiction of
corporate organization. If any such change has occurred, include in Schedule 1
the information required by Sections 1 and 2 of this certificate as to each
acquired or constituent party to a merger or consolidation.
(d) The following is a list of all other names (including trade names
or similar appellations) used by each Grantor or any of its divisions or other
business units in connection with the conduct of its business or the ownership
of its properties at any time since the Original Closing Date:
(e) Set forth below is the organizational identification number, if
any, issued by the jurisdiction of formation of each Grantor that is a
registered organization:
2
Organizational
Grantor Identification Number
------- ---------------------
(f) Set forth below is the Federal Taxpayer Identification Number of each
Grantor:
Organizational
Grantor Identification Number
------- ---------------------
SECTION 2. CURRENT LOCATIONS.
(a) The chief executive office of each Grantor is located at the address
set forth opposite its name below:
Grantor Mailing Address County State
------- --------------- ------ -----
(b) Set forth below opposite the name of each Grantor are all locations
where such Grantor maintains any books or records relating to any accounts
receivable or General Intangibles (with each location at which Chattel Paper, if
any, is kept being indicated by an "*"):
Grantor Mailing Address County State
------- --------------- ------ -----
(c) The jurisdiction of formation of each Grantor that is a registered
organization is set forth opposite its name below:
Grantor Jurisdiction
------- ------------
SECTION 3. ADVANCES.
Attached hereto as Schedule 2 is (a) a true and correct list of all
advances made by Holdings, the Borrower or any Subsidiary of the Borrower to any
of Holdings, the Borrower or any Subsidiary of the Borrower (other than those
identified on Schedule 4), with notations indicating those advances which are or
will be on and after the date hereof evidenced by one or more intercompany notes
pledged to the Administrative Agent under the Guarantee and
3
Collateral Agreement and (b) a true and correct list of all unpaid intercompany
transfers of goods sold and delivered by or to Holdings, the Borrower or any
Subsidiary of the Borrower.
SECTION 4. DEPOSIT ACCOUNTS.
Attached hereto as Schedule 3 is a true and correct list of deposit
accounts maintained by each Grantor, including the name and address of the
depositary institution, the type of account, and the account number.
4
IN WITNESS WHEREOF, the undersigned has duly executed this
certificate on August 2, 2002.
ALLIANCE LAUNDRY SYSTEMS LLC
By
____________________________________
Name:
Title:
5
SCHEDULE 1
Changes in Corporate Identity
6
SCHEDULE 2
Advances
7
SCHEDULE 3
Deposit Accounts
Schedule 1
NOTICE ADDRESSES OF GUARANTORS
Alliance Laundry Holdings LLC
XX Xxx 000
Xxxxxxx Xxxxxx
Xxxxx, XX 00000-0000
Atten: Chief Financial Officer
Alliance Laundry Systems LLC
XX Xxx 000
Xxxxxxx Xxxxxx
Xxxxx, XX 00000-0000
Atten: Chief Financial Officer
Alliance Laundry Corporation
XX Xxx 000
Xxxxxxx Xxxxxx
Xxxxx, XX 00000-0000
Atten: Chief Financial Officer
Schedule 2
DESCRIPTION OF INVESTMENT PROPERTY
1. Promissory Notes Issued to Grantors
The following executives issued promissory notes to Holdings in connection with
the May 1998 merger of RCL Acquisitions, L.L.C. with and into Raytheon
Commercial Laundry LLC. The value of the promissory notes to Holdings as of May
2002 are as follows:
Management Executive Loan Amt.
.. Xxxxxx L'Esperance $905,974
.. Xxxxxxx Xxxxxxxx $154,957
.. R. Xxxxx Xxxxxx $165,918
.. Xxxxx Xxxxxx $150,800
.. Xxxxxx Xxxxxxx $127,871
.. Xxx Xxxxxx $ 58,581
.. Xxxxxxx Xxxxx $ 47,825
.. Xxx XxXxxxxx $ 45,928
.. Xxx Shady $ 37,840
.. Xxxxxxx Xxxx $ 41,687
.. Xxxxx Xxxxxxxx-Xxxx $ 40,947
Note: Interest is calculated on a monthly basis
2. Pledged Securities
Alliance Laundry Holdings LLC
.. Alliance Laundry Systems LLC (100%)
Alliance Laundry Systems LLC
.. Alliance Laundry Corporation (100%)
.. Alliance Laundry Receivables Warehouse LLC (100%)
.. Alliance Commercial Appliances Finance LLC (100%)
.. Alliance Laundry Equipment Receivables LLC (100%)
.. Alliance Laundry S.A. (65%)
Schedule 3
FILINGS AND OTHER ACTIONS
REQUIRED TO PERFECT SECURITY INTERESTS
Actions with respect to Pledged Stock
Certificate representing Capital Stock of Alliance Laundry Corporation will be
delivered, together with endorsements executed in blank. Certificates
representing 65% of Alliance Laundry S.A. will be delivered, together with
endorsements executed in blank. UCC filings will be done with regard to the
membership interests of Alliance Laundry Systems LLC, Alliance Laundry
Receivables Warehouse LLC, Alliance Commercial Appliances Finance LLC and
Alliance Laundry Equipment Receivables LLC.
Uniform Commercial Code Filings
UCC filings will be done with regard to all remaining collateral.
Schedule 4
JURISDICTION OF ORGANIZATION, LOCATION OF CHIEF EXECUTIVE OFFICE AND
IDENTIFICATION NUMBER
Grantor Jurisdiction of Location of Chief Identification Number
------- --------------- ----------------- ---------------------
Organization Executive Office
------------ ----------------
Alliance Laundry Delaware Xxxxxxx Street 52-2055893
Holdings LLC Xxxxx, Xxxxxxxxx 00000
Alliance Laundry Delaware Xxxxxxx Street 39-1927923
Systems LLC Xxxxx, Xxxxxxxxx 00000
Alliance Laundry Delaware Xxxxxxx Street 39-1928505
Corporation Xxxxx, Xxxxxxxxx 00000
Schedule 5
LOCATION OF INVENTORY AND EQUIPMENT
Grantor Locations
------- ---------
Alliance Laundry Holdings LLC None
Alliance Laundry Systems LLC Xxxxxxx Xxxxxx
Xxxxx, XX 00000
0000 Xxxxxxxxxx Xxxx Xxxxx
Xxxxxxxx, Xxxxxxx 00000
Alliance Laundry Corporation None
Various customer, supplier locations and space leased in various warehouses are
used for inventory storage by Alliance Laundry Systems LLC. These facilities are
in the following locations:
Richmond, British Columbia
Gardena, California
Atlanta, Georgia
Charlotte, North Carolina
Woodale, Illinois
Chester, Virginia
Perth, Australia
Melbourne, Australia
Sydney, Australia
Brisbane, Australia
Adelaide, Australia
Dothan, Alabama
Arab, Alabama (Xxxx Manufacturing)
Schedule 6
COPYRIGHTS AND COPYRIGHT LICENSES
There are no Registered Copyrights
PATENTS AND PATENT LICENSES
--------------------------------------------------------------------------------------------------------------------------
Alliance Laundry Systems LLC PATENTS
--------------------------------------------------------------------------------------------------------------------------
Country Inventor(s) Patent Issue Title
No. Date
--------------------------------------------------------------------------------------------------------------------------
Taiwan 57509 01/12/91
--------------------------------------------------------------------------------------------------------------------------
XX Xxxxxxxxx 0573166
--------------------------------------------------------------------------------------------------------------------------
AU Hossfield 660082 09/26/95
--------------------------------------------------------------------------------------------------------------------------
AU Hossfield et al. 660084 09/26/95
--------------------------------------------------------------------------------------------------------------------------
CA Altnau 1,111,669 11/03/81
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 4,240,277 12/23/80 2- pc. Fabric Softener Dispenser - (screws together)
--------------------------------------------------------------------------------------------------------------------------
U.S. Altnau 4,250,724 02/17/81 Suspension System for Tub Ass'y (CW Washer)
--------------------------------------------------------------------------------------------------------------------------
U.S. Altnau 4,289,320 09/15/81 Face Seal for Washer Pump & Water Pump
--------------------------------------------------------------------------------------------------------------------------
U.S. Clawson et al. 4,669,199 06/02/87 Clothes Dryer w/ Lint Incinerator (lint burning dryer)
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 4,798,424 01/17/89 Reversible Control Console (1987 Line Plastic Hood)
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 4,843,745 07/04/89 Press & Method of Making Same
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 4,860,791 08/29/89 Strain Relief Clamp for Drain Hose - Washers
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 4,934,559 06/19/90 Door Bar Handle for Glass Door of Clothes Dryer
--------------------------------------------------------------------------------------------------------------------------
U.S. Altnau 4,936,421 06/26/90 Conical Spring Braking Mechanism (8-Pc. Brake)
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 4,982,606 01/08/91 Fluid Level Sensor & Controller
--------------------------------------------------------------------------------------------------------------------------
U.S. Clawson et al. 5,005,383 04/09/91 Washing Machine Motor with High Rotor Resistance
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxx et al. 5,007,254 04/16/91 Additive Fluid Viewing (indicator of liquid detergent)
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 5,012,962 05/07/91 Indexing System for a Mannequin Carriage w/ fluid
--------------------------------------------------------------------------------------------------------------------------
U.S. Altnau, Sr. 5,018,372 05/28/91 Lint Filter ( plastic - hidden under spin tub)
--------------------------------------------------------------------------------------------------------------------------
U.S. Hossfield et al. 5,033,278 07/23/91 Brake & Release Mechanism (Discriminator NGHW)
--------------------------------------------------------------------------------------------------------------------------
U.S. Altnau, Sr. 5,044,178 09/03/91 Rinse Aid Dispenser (3 pc. compact - snaps together)
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxxx et al. 5,046,336 09/10/91 Battery Powered Dispenser
----------------------------------- -------------------------------------------------------------------------------------
U.S. Wild 5,050,407 09/24/91 Combination Unbalanced Load & Lid Switch Ass'y
--------------------------------------------------------------------------------------------------------------------------
U.S Xxxx et al. 5,065,535 11/19/91 Indexing System for a Rotary Garment Press
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxx 5,092,141 03/03/92 Additive Fluid Dispenser Nozzle
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 5,101,645 04/07/92 Suspension System (Pivot & Translation Springs)
--------------------------------------------------------------------------------------------------------------------------
U.S. Bisplinghoff et 5,117,658 06/02/92 Improved Out-of-Balance Performance Washer
al.
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
Alliance Laundry Systems LLC PATENTS
--------------------------------------------------------------------------------------------------------------------------
Country Inventor(s) Patent Issue Title
No. Date
--------------------------------------------------------------------------------------------------------------------------
U.S. Bisplinghoff et 5,119,645 06/09/92 Washing Machine w/ Improved Suspension & Manuf
al.
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 5,211,037 05/18/93 Controller w/ Alternating Reversing Drive Motor
--------------------------------------------------------------------------------------------------------------------------
U.S. Hossfield et al. 5,249,440 10/05/93 Washing Machine ("Space-Frame Suspension")
--------------------------------------------------------------------------------------------------------------------------
U.S. Hossfield 5,257,516 11/02/93 Washing Machine
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 5,361,439 11/08/94 Method & Apparatus For Spinning & Draining
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxxx et al. 5,392,891 02/28/95 Discrimination of Coins Based on Metal Content
--------------------------------------------------------------------------------------------------------------------------
U.S. Hossfield et al. 5,404,986 04/11/95 Method & Apparatus for Discriminating Coins
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 5,524,362 06/11/96 Method of Wire Harness to Select Controller Mode
--------------------------------------------------------------------------------------------------------------------------
U.S. Hossfield et al. 5,684,597 11/04/97 Method & Device for Coin Diameter Discrimination
--------------------------------------------------------------------------------------------------------------------------
U.S Mohan et al. 5,692,326 12/02/97 Shirt Pressing Apparatus w/ Moveable Cuff
--------------------------------------------------------------------------------------------------------------------------
U.S. White et al. 5,782,112 07/21/98 Auto Injection Siphon Break for Washers
--------------------------------------------------------------------------------------------------------------------------
U.S. Ferragut 5,822,819 10/20/98 Ultrasonic Water Level Detection System
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 5,850,747 12/22/98 Pressure Vessel Temperat Compensating Compressor
--------------------------------------------------------------------------------------------------------------------------
U.S. Moline et al. 5,879,036 03/09/99 Door Interlock for an Appliance
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 5,883,802 03/16/99 Energy Usage Controller for an Appliance
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 5,946,945 09/07/99 Frame for High Pressure Liquid Gas Storage
--------------------------------------------------------------------------------------------------------------------------
U.S. Mohan et al. 5,970,637 10/26/99 Automatic Shirt Pressing Systems w/ Vacuum Syst
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 6,012,307 01/11/00 Controlled Agitation System for Drycleaner
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 6,021,652 02/08/00 Control Valve w/ Valve Member Position Sensor
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 6,050,112 04/18/00 Detection of Liquid Level in Sealed Storage Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx 6,053,541 04/25/00 Auto Safety Lock
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 6,070,440 06/06/00 Space-Saving Door Opening / Closing Apparatus
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 6,085,935 07/11/00 Quick-Opening Door Apparatus for Filter
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 6,182,318 02/06/01 Temperature Compensating Compressor
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 6,233,980 05/22/01 Door w/ Self-Aligning, Stress Reduced Locking Lugs
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 6,237,373 05/29/01 Self-Contained Front Access Lint Panel for Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx et al. 6,237,374 05/29/01 Space-Saving Door Opening Apparatus for Vessel
--------------------------------------------------------------------------------------------------------------------------
U.S. XxXxxxxxxx et al. 6,324,771 12/04/01 Perforated Baffle Ribs for Temp. Limiting Air Flow
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxx et al. 6,334,340 01/01/02 Convertible Installation Configuration for CO\\2\\ Dry
--------------------------------------------------------------------------------------------------------------------------
U.S. Xxxxxxx 6,360,392 03/26/02 Improved Agitation System for CO\\2\\ Drycleaner
--------------------------------------------------------------------------------------------------------------------------
August 1, 2002
TRADEMARKS AND TRADEMARK LICENSES
Intellectual Property Owned by Alliance
Registered Foreign Trademarks
------------------------------------------------------------------------------------------------------------------------------
Country Trademark Reg. No. Reg. Date Ren. Due
------- --------- -------- --------- --------
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Argentina SPEED QUEEN 1421851 2/26/93 2/26/03
------------------------------------------------------------------------------------------------------------------------------
LAUNDROMAT 1313192 10/3/88 10/3/98
------------------------------------------------------------------------------------------------------------------------------
MARATHON 1743496 1/6/99 7/6/99
------------------------------------------------------------------------------------------------------------------------------
DESIGN 1419656 2/26/93 2/26/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1458845 7/30/93 7/30/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1487563 11/30/93 11/30/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1487564 11/30/93 11/30/03
------------------------------------------------------------------------------------------------------------------------------
LR 1487565 11/30/93 11/30/03
------------------------------------------------------------------------------------------------------------------------------
DESIGN 1487566 11/30/93 11/30/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465733 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465734 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465735 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465736 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465737 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465738 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465739 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1465741 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
PLANCHERAP 1465742 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
PLANCHERAP 1465743 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
PLANCHERAP 1465744 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1466115 8/31/93 8/31/03
------------------------------------------------------------------------------------------------------------------------------
VIDEO RAP 1518033 4/29/94 4/29/04
------------------------------------------------------------------------------------------------------------------------------
NOTI RAP 1518034 4/29/94 4/29/04
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1498150 12/1/93 12/1/03
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1545670 11/30/94 11/30/04
------------------------------------------------------------------------------------------------------------------------------
SUPERAP 1563597 5/31/95 5/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1563933 5/31/95 5/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551423 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551424 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551425 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551426 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551427 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551428 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551429 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551430 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551458 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551459 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Country Trademark Reg. No. Reg. Date Ren. Due
------- --------- -------- --------- --------
------------------------------------------------------------------------------------------------------------------------
LAVERAP 1551460 1/31/95 1/31/05
------------------------------------------------------------------------------------------------------------------------
DRYMAT 1331040 2/8/89 2/8/99
------------------------------------------------------------------------------------------------------------------------
ANERA 1419656 2/26/03
------------------------------------------------------------------------------------------------------------------------
SANI RAP 1933272 Abandoned
------------------------------------------------------------------------------------------------------------------------
LAVE RAP 1563597 5/31/07
------------------------------------------------------------------------------------------------------------------------
(ANEXA) 1567433 7/4/05
------------------------------------------------------------------------------------------------------------------------
(ANEXA) 1567475 7/4/05
------------------------------------------------------------------------------------------------------------------------
(ANEXA) 1567477 7/4/05
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 2047214
------------------------------------------------------------------------------------------------------------------------
EXTRARAP 165051
------------------------------------------------------------------------------------------------------------------------
LAVE RAP (FOAM) 1742898 7/2/09
------------------------------------------------------------------------------------------------------------------------
LAVERAP 1742903 7/2/09
------------------------------------------------------------------------------------------------------------------------
LAVERAP (FOAM) 2055048
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 2055059
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 2054990
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 2055060
------------------------------------------------------------------------------------------------------------------------
LAVE RAP 1753763 9/23/99
------------------------------------------------------------------------------------------------------------------------
LAUNDROMAT 2084175/1237907
------------------------------------------------------------------------------------------------------------------------
LAVERAP 2086293 8/28/10
------------------------------------------------------------------------------------------------------------------------
LAVERAP 2086294 8/28/10
------------------------------------------------------------------------------------------------------------------------
LAVERAP 2086295 8/28/10
------------------------------------------------------------------------------------------------------------------------
LAVERAP 2086296 8/28/10
------------------------------------------------------------------------------------------------------------------------
LAVERAP 2086297 8/28/10
------------------------------------------------------------------------------------------------------------------------
Australia XXXXXXX A324984 12/12/99 12/12/99
------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN A124753 9/12/97 9/12/97
------------------------------------------------------------------------------------------------------------------------
UNIMAC A626329 3/29/94 3/29/01
------------------------------------------------------------------------------------------------------------------------
Austria SPEED QUEEN 58023 X 9/30/06
------------------------------------------------------------------------------------------------------------------------
AJAX 61629 5/31/98 5/31/08
------------------------------------------------------------------------------------------------------------------------
Bahrain SPEED QUEEN TM3733 11/24/06
------------------------------------------------------------------------------------------------------------------------
Benelux XXXXXXX 357323 12/12/08
------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 44314 6/24/09
------------------------------------------------------------------------------------------------------------------------
UNIMAC 456960 3/6/09
------------------------------------------------------------------------------------------------------------------------
AJAX 436924 10/9/07
------------------------------------------------------------------------------------------------------------------------
Brazil SPEED QUEEN 003320952 10/21/86 10/21/96
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & design 820107778 Opp-Apl fld
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & design 820107760 Opp-Neg Wdrwal
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624462
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624489 Rej-appl fld
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 820107727 Opp-apl fld
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624497 Rej-aplf fld
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624470
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624454
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 819624446 1/27/97
------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 820107751 Opp-Neg.Wdrwal
------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Country Trademark Reg. No. Reg. Date Ren. Due
------- --------- -------- --------- --------
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 820107735 Opp-apl fld
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 820107743 Opp-neg. Wdrwal
--------------------------------------------------------------------------------------------------------------------
XXXXXXX ORIG. 816198136
--------------------------------------------------------------------------------------------------------------------
Canada XXXXXXX 280137 6/10/98 6/10/13
--------------------------------------------------------------------------------------------------------------------
RSPC 278487 3/31/98 3/31/13
--------------------------------------------------------------------------------------------------------------------
AJAX 293,609 8/3/99 8/3/14
--------------------------------------------------------------------------------------------------------------------
UNIMAC 367233 3/23/90 3/23/05
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 389438 7/27/92 7/27/02
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 342415/546666 8/24/99 8/24/09
--------------------------------------------------------------------------------------------------------------------
LAVE RAP 504.629
--------------------------------------------------------------------------------------------------------------------
LAVE RAP 504.637
--------------------------------------------------------------------------------------------------------------------
LAVE RAP 504.638
--------------------------------------------------------------------------------------------------------------------
China SPEED QUEEN 206349 3/30/94 3/29/04
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 381326 3/30/94 3/29/04
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN (Chinese) 930161 1/14/97 1/13/07
--------------------------------------------------------------------------------------------------------------------
AJAX 856311 7/20/06
--------------------------------------------------------------------------------------------------------------------
UNIMAC 860359 8/7/96 7/6/06
--------------------------------------------------------------------------------------------------------------------
Colombia SPEED QUEEN 70027 11/5/99 11/5/99
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 161576 8/11/04
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 197525 12/18/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 197709 12/18/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 198326 12/18/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 197523 12/18/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 197524 12/18/07
--------------------------------------------------------------------------------------------------------------------
Costa Rica SPEED QUEEN 34366/2302 11/2/91 11/2/01
--------------------------------------------------------------------------------------------------------------------
Denmark XXXXXXX 3122/1980 8/22/00
--------------------------------------------------------------------------------------------------------------------
Egypt SPEED QUEEN 52262 10/5/86 10/5/96
--------------------------------------------------------------------------------------------------------------------
Finland UNIMAC 142830 3/5/96 3/5/06
--------------------------------------------------------------------------------------------------------------------
France XXXXXXX 1498023 11/10/98 11/10/08
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 1494832 10/21/98 10/20/98
--------------------------------------------------------------------------------------------------------------------
UNIMAC 1524684 4/14/99 4/13/99
--------------------------------------------------------------------------------------------------------------------
AJAX 94549085 12/13/04
--------------------------------------------------------------------------------------------------------------------
AJAX (EAGLE) 94549086 12/13/04
--------------------------------------------------------------------------------------------------------------------
Germany XXXXXXX DD653588 9/28/00 9/28/00
--------------------------------------------------------------------------------------------------------------------
UNIMAC STYLIZED 1145143 3/1/99 2/28/09
--------------------------------------------------------------------------------------------------------------------
AJAX 1129715 10/31/97 10/31/07
--------------------------------------------------------------------------------------------------------------------
E. Germany SPEED QUEEN 653886 9/28/90 9/28/00
--------------------------------------------------------------------------------------------------------------------
W. Germany SPEED QUEEN 772352 6/30/91 6/30/01
--------------------------------------------------------------------------------------------------------------------
AJAX 1,129,715 10/9/07
--------------------------------------------------------------------------------------------------------------------
Greece SPEED QUEEN 59642 9/8/97 9/8/97
--------------------------------------------------------------------------------------------------------------------
AJAX 32,296 9/29/04
--------------------------------------------------------------------------------------------------------------------
Guatemala SPEED QUEEN 17951 2/28/97 2/27/97
--------------------------------------------------------------------------------------------------------------------
Honduras SPEED QUEEN 15680 12/14/98 12/14/08
--------------------------------------------------------------------------------------------------------------------
Hong Kong SPEED QUEEN 435/1967 7/9/87 7/9/01
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Country Trademark Reg. No. Reg. Date Ren. Due
------- --------- -------- --------- --------
--------------------------------------------------------------------------------------------------------------------
AJAX 305 OF 1965 9/29/13
--------------------------------------------------------------------------------------------------------------------
India SPEED QUEEN 405479 5/2/97 5/12/04
--------------------------------------------------------------------------------------------------------------------
Indonesia SPEED QUEEN 210552/361875 11/3/96 5/3/96
--------------------------------------------------------------------------------------------------------------------
Ireland SPEED QUEEN B70745 6/27/87 6/27/01
--------------------------------------------------------------------------------------------------------------------
Israel SPEED QUEEN 34862 1/12/93 1/12/07
--------------------------------------------------------------------------------------------------------------------
Italy SPEED QUEEN 439969 6/27/81 6/27/01
--------------------------------------------------------------------------------------------------------------------
UNIMAC 601400 9/25/90 9/25/00
--------------------------------------------------------------------------------------------------------------------
Jamaica SPEED QUEEN B15813 6/18/92 6/18/06
--------------------------------------------------------------------------------------------------------------------
Japan XXXXXXX & KATAKANA 700440 3/3/96 3/3/06
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 718776 9/5/96 9/5/06
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 1351949 10/31/88 10/31/98
--------------------------------------------------------------------------------------------------------------------
AJAX 607,471 3/25/03
--------------------------------------------------------------------------------------------------------------------
Jordan SPEED QUEEN 14457 3/9/98 3/9/98
--------------------------------------------------------------------------------------------------------------------
Korea XXXXXXX 76759 6/20/91 6/19/01
--------------------------------------------------------------------------------------------------------------------
UNIMAC 248774 9/4/92 9/3/02
--------------------------------------------------------------------------------------------------------------------
Kuwait SPEED QUEEN 5435 11/8/93 1/7/03
--------------------------------------------------------------------------------------------------------------------
Malaya XXXXXXX M/89205 6/8/88 1/8/02
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN M/88687 11/19/87 11/19/01
--------------------------------------------------------------------------------------------------------------------
Xxxxxx XXXXXXX 000000 12/8/91 12/8/01
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 240836 4/30/94 4/30/04
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 552730 12/10/96 12/10/06
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 539620 12/10/96 12/10/06
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 540644 12/10/96 12/10/06
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 539619 12/10/96 12/10/06
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 539618 12/10/96 12/10/06
--------------------------------------------------------------------------------------------------------------------
LAVERAP & DESIGN 555159 6/10/97 6/10/07
--------------------------------------------------------------------------------------------------------------------
LAVERAP & DESIGN 555676 6/10/97 60/10/07
--------------------------------------------------------------------------------------------------------------------
LAVERAP & DESIGN 553905 6/10/97 6/10/07
--------------------------------------------------------------------------------------------------------------------
LAVERAP & DESIGN 553906 6/10/97 6/10/07
--------------------------------------------------------------------------------------------------------------------
LAVERAP & DESIGN 553907 6/10/97 6/10/97
--------------------------------------------------------------------------------------------------------------------
AJAX 505411 4/16/01
--------------------------------------------------------------------------------------------------------------------
CARDMATE 647821 12/16/99 12/16/09
--------------------------------------------------------------------------------------------------------------------
Xxx Xxxxxxx XXXXX XXXXX 00000 4/5/95 4/5/09
--------------------------------------------------------------------------------------------------------------------
UNIMAC 235530 3/28/94 3/28/01
--------------------------------------------------------------------------------------------------------------------
Nigeria SPEED QUEEN 31429 9/1/84 9/1/98
--------------------------------------------------------------------------------------------------------------------
OAPI SPEED QUEEN 18899 11/5/77 11/5/97
--------------------------------------------------------------------------------------------------------------------
Pakistan SPEED QUEEN 110098 (App.) 3/19/91 3/19/98
--------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 109730 (App.) 2/20/91 2/20/98
--------------------------------------------------------------------------------------------------------------------
Panama SPEED QUEEN 27361 10/20/91 10/20/01
--------------------------------------------------------------------------------------------------------------------
Paraguay SPEED QUEEN 149609 12/31/91 12/31/01
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 198009 12/17/97 12/17/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 198008 12/17/97 12/17/07
--------------------------------------------------------------------------------------------------------------------
LAVE-RAP 198007 12/17/97 12/17/07
--------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Country Trademark Reg. No. Reg. Date Ren. Due
------- --------- -------- --------- --------
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 199.509 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 199.510 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 196862 9/8/97 12/31/07
----------------------------------------------------------------------------------------------------------------------------------
Peru SPEED QUEEN 10927 11/7/92 11/7/02
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 10416 4/29/92 4/29/02
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 34218 3/18/97 3/18/07
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 34117 3/18/97 3/18/07
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 34782 4/4/97 4/4/07
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 10469 4/21/97 4/21/07
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 10447 4/17/97 4/17/07
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & DESIGN 041468 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & DESIGN 041469 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & DESIGN 041581 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & DESIGN 012825 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP & DESIGN 012826 1/6/98 1/6/08
----------------------------------------------------------------------------------------------------------------------------------
Philippines SPEED QUEEN 13931 6/6/88 6/6/08
----------------------------------------------------------------------------------------------------------------------------------
Xxxxx XXXXXXX S/27305 1/8/88 1/8/02
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN S/27077 11/19/87 11/19/01
----------------------------------------------------------------------------------------------------------------------------------
Sarawak XXXXXXX SAR/22596 1/17/88 1/17/02
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN SAR/82235 11/21/87 11/21/01
----------------------------------------------------------------------------------------------------------------------------------
Saudi Arabia SPEED QUEEN 47/56 10/8/91 6/18/01
----------------------------------------------------------------------------------------------------------------------------------
XXXXXXX Originators 243/62 3/30/91 12/10/00
----------------------------------------------------------------------------------------------------------------------------------
Singapore XXXXXXX B54/81 1/6/88 0/0/00
----------------------------------------------------------------------------------------------------------------------------------
Xxxxx Xxxxxx XXXXXXX B6176/78 12/27/88 12/27/98
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 6723/83 9/20/93 9/20/03
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 461/39/1 4/15/97 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 461/39/2 4/15/97 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 461/39/3 4/15/97 4/15/07
----------------------------------------------------------------------------------------------------------------------------------
AJAX 64/3796 9/29/04
----------------------------------------------------------------------------------------------------------------------------------
SWA (Namibia) SPEED QUEEN 0150/84 (SWA) 3/16/94 3/6/04
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 0151/84 (SWA) 3/6/94 3/6/04
----------------------------------------------------------------------------------------------------------------------------------
Spain SPEED QUEEN 508897 12/30/88 12/30/08
----------------------------------------------------------------------------------------------------------------------------------
UNIMAC 1589365 9/20/90 9/20/00
----------------------------------------------------------------------------------------------------------------------------------
Switzerland XXXXXXX 306061 8/18/80 8/18/00
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN 347773 7/4/86 7/4/06
----------------------------------------------------------------------------------------------------------------------------------
AJAX 334,587 9/8/04
----------------------------------------------------------------------------------------------------------------------------------
UNIMAC 391934 7/30/91 7/30/11
----------------------------------------------------------------------------------------------------------------------------------
Taiwan SPEED QUEEN 479488 3/16/90 3/15/00
----------------------------------------------------------------------------------------------------------------------------------
Thailand SPEED QUEEN 115723/73167 12/24/90 12/23/00
----------------------------------------------------------------------------------------------------------------------------------
UNIMAC 258130/KOR24124 12/29/93 12/29/03
----------------------------------------------------------------------------------------------------------------------------------
XXXXXXX 115938/72996 12/24/90 12/23/00
----------------------------------------------------------------------------------------------------------------------------------
UAE SPEED QUEEN 5112 Pending 1/15/04
----------------------------------------------------------------------------------------------------------------------------------
U.K. XXXXXXX B1106325 12/14/85 12/14/99
----------------------------------------------------------------------------------------------------------------------------------
SPEED QUEEN B822545 6/30/96 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Country Trademark Xxx.Xx. Reg. Date Ren. Due
------- --------- ------- --------- --------
----------------------------------------------------------------------------------------------------------------------------------
UNIMAC 1375639 3/4/96 3/4/06
----------------------------------------------------------------------------------------------------------------------------------
Uruguay LAVE-RAP 4722 3/2/94 3/2/04
----------------------------------------------------------------------------------------------------------------------------------
LAVE-RAP 291258
----------------------------------------------------------------------------------------------------------------------------------
LAVE RAP 291259 9/15/99 9/15/09
----------------------------------------------------------------------------------------------------------------------------------
LAVE RAP & DESIGN 291260
----------------------------------------------------------------------------------------------------------------------------------
Venezuala SPEED QUEEN 42880F Pending 1/17/93
----------------------------------------------------------------------------------------------------------------------------------
US Registered Trademarks
-----------------------------------------------------------------------------------------------------
TRADEMARK REG NO. GOODS
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Registered Marks:(R)
--------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Ajax 1500201
-----------------------------------------------------------------------------------------------------
Cardmate 647821 Mag. & elect. Coded store-value
-----------------------------------------------------------------------------------------------------
Drystar 01193008 Laundry Equipment
-----------------------------------------------------------------------------------------------------
Econ-O-Wash 1201795 Laundry Equipment - Washers & Dryers
-----------------------------------------------------------------------------------------------------
Eversmooth 1205146 Laundry Washing Machine Transmissions
-----------------------------------------------------------------------------------------------------
Fast Back 863105
-----------------------------------------------------------------------------------------------------
Horizon 2439774
-----------------------------------------------------------------------------------------------------
Xxxxxxx 00937549 Laundry Equipment
-----------------------------------------------------------------------------------------------------
Loadstar 00845408 Drying Tumbler & Parts Therefor Xxxxxxx
-----------------------------------------------------------------------------------------------------
Nofuss 01199323 Laundry Washing Machines Lint Filters
-----------------------------------------------------------------------------------------------------
"Q" Stylized" 00738991 Washers & Dryers
-----------------------------------------------------------------------------------------------------
Routemaster 00847837 24 lb. Tumbler Dryers
-----------------------------------------------------------------------------------------------------
RSPC 01268908 Parts and Accessories for Laundry Equipment
-----------------------------------------------------------------------------------------------------
Searchit 2515079
-----------------------------------------------------------------------------------------------------
Speed Queen 353190
-----------------------------------------------------------------------------------------------------
Speed Queen 765440
-----------------------------------------------------------------------------------------------------
UltraDry 2334735
-----------------------------------------------------------------------------------------------------
Unimac 1479347
-----------------------------------------------------------------------------------------------------
Unimat 1479346
-----------------------------------------------------------------------------------------------------
Uniwash 1473932 Exchange System
-----------------------------------------------------------------------------------------------------
Vent-Pak 861021 Exhaust System
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Schedule 7
CONTRACTS
None.
Schedule 8
GOVERNMENT CONTRACTS
.. General Services Administration (U.S. Government entity) contract number
GS-21F-97011 (awarded to solicitation number 6FES-B1-96-B102S) with
Raytheon Appliances - Commercial Laundry, dated (by amendment PC01) May 1,
1997
.. Air Force Non-Appropriated Funds ("AFNAF") Agreement, dated May 1, 1995,
between Raytheon Appliances, Inc. and AFNAF (U.S. Government entity)
.. Agreement, dated April 10, 1995, between AAFES and Raytheon Appliances,
Inc.
.. Agreement, dated June 16, 1992, between NEXCOM and RCL
.. U.S. Army Soldier Systems Command, Contract No. DAAN02-98-P-8319, with
Raytheon Appliances - Commercial Laundry, dated February 13, 1998
Schedule 9
COMMERCIAL TORT CLAIMS
None
