UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 18, 2006
CLEAN
HARBORS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts |
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0-16379 |
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04-2997780 |
(State or other jurisdiction |
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(Commission |
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(IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
42 Longwater Drive, Norwell, |
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Massachusetts |
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02061-9149 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code (781) 792-5000
Not
Applicable
(Former name or former address, if changed since last
report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01 Completion of Acquisition or Disposition of Assets.
On August 18, 2006, Clean Harbors, Inc. (the Company) purchased from SITA U.S.A., Inc., a Delaware corporation (Seller), all of the membership interests in Teris L.L.C., a Delaware limited liability company (Teris). The purchase was made in accordance with the purchase and sale agreement which the Company and Seller had entered into on May 3, 2006. The purchase price was approximately $52.7 million in cash, subject to a post-closing adjustment based upon the amount by which Teris net working capital as of the closing date exceeded or was less than $10.3 million. The Company now anticipates that adjustment will be determined within 135 days after the closing date.
By acquiring all of the membership interests in Teris, the Company indirectly acquired ownership of two licensed hazardous waste management facilities which Teris owned as of the closing. These facilities consist of an incineration facility located in El Dorado, Arkansas, which has an annual practical capacity of approximately 80,000 tons, and a transportation, storage and disposal facility located in Wilmington, California.
The Companys press release dated August 21, 2006, entitled Clean Harbors Completes Acquisition of Teris L.L.C., including the Safe Harbor Statement contained therein, describe the acquisition and certain risks and uncertainties relevant to the acquisition. A copy of that press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The Company financed the acquisition of Teris using available cash and a $30.0 million term loan under the Companys existing credit agreement. That term loan bears interest, at the Companys option, at either the Eurodollar Rate (as defined in the credit agreement) plus 2.5% per annum or the base rate plus 1.50% per annum. The term loan will mature on December 1, 2010, and there will be no principal amortization prior to that date.
Other than in respect of the Companys purchase of Teris, there is no material relationship between the Company and Seller.
Item 9.01 Financial Statements and Exhibits.
(a) and (b) Financial statements of business acquired and pro forma financial information.
Financial statements of Teris L.L.C., and pro forma financial information giving effect to the acquisition, are not included herein but will be filed by an amendment to this report on Form 8-K not later than 71 days after the due date for the filing of this report.
(c) Shell company transactions.
Not applicable.
(d) Exhibits.
4.28 F |
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Term Loan Supplement dated as of August 18, 2006 among Clean Harbors, Inc. and the Subsidiaries party thereto, the Term Loan Lenders party thereto, Credit Suisse Securities (USA) LLC, as Arranger, Credit Suisse, as LC Facility Administrative Agent and LC Facility Collateral Agent, and the Guarantors party thereto |
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Filed herewith. |
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4.28 G |
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Joinder Agreement dated as of August 18, 2006, made by Clean Harbors El Dorado, LLC, and Clean Harbors Wilmington, LLC, in favor of (a) Credit Suisse, as LC Facility Collateral Agent and LC Facility Administrative Agent, and (b) Bank of America, N.A., as Administrative Agent for the Revolving Facility |
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Filed herewith. |
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4.28H |
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Assumption Agreement dated as of August 18, 2006 made by Clean Harbors El Dorado, LLC, and Clean Harbors Wilmington, LLC, in favor of Credit Suisse, as Collateral Agent and LC Facility Agent |
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Filed herewith. |
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4.32A |
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Supplemental Indenture dated as of August 18, 2006, among Clean Harbors, Inc., Clean Harbors El Dorado, LLC, Clean Harbors Wilmington, LLC, and U.S. Bank National Association, as Trustee |
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Filed herewith. |
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10.51 |
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Purchase and Sale Agreement by and between SITA U.S.A. Inc. and Clean Harbors, Inc. for all of the outstanding ownership interests in Teris L.L.C. dated as of May 3, 2006 |
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Incorporated by reference to the similarly numbered exhibit to the Companys Form 10-Q Quarterly Report for the Quarterly Period ended March 31, 2006. |
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99.1 |
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Press Release dated August 21, 2006 |
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Filed herewith. |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Clean Harbors, Inc. |
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(Registrant) |
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August 24, 2006 |
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/s/ James M. Rutledge |
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Executive Vice President and |
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Chief Financial Officer |
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Exhibit 4.28F
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$30,000,000
TERM LOAN SUPPLEMENT
dated as of August 18, 2006
among
CLEAN HARBORS, INC. AND THE SUBSIDIARIES PARTY HERETO
The TERM LOAN LENDERS Party Hereto
CREDIT SUISSE SECURITIES
(USA) LLC,
as Arranger
CREDIT SUISSE,
as LC Facility Administrative Agent and LC Facility Collateral Agent
and
The GUARANTORS Party Hereto
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TERM LOAN SUPPLEMENT
THIS TERM LOAN SUPPLEMENT (this Supplement) dated as of August 18, 2006, among CLEAN HARBORS, INC., a Massachusetts corporation (Parent), certain of its Subsidiaries party hereto that are US Borrowers under the Loan Agreement (as defined below) and that appear on the signature page hereof (such Subsidiaries, together with Parent, are collectively referred to as the US Borrowers), the Guarantors that are party to the Loan Agreement, the TERM LOAN LENDERS party hereto, CREDIT SUISSE SECURITIES (USA) LLC, as arranger (the Arranger) and CREDIT SUISSE, as LC Facility Administrative Agent and LC Facility Collateral Agent under the Loan Agreement.
Reference is made to that certain Loan and Security Agreement dated June 30, 2004 and amended and restated as of December 1, 2005 (as further amended, restated, modified, amended and restated or otherwise changed, the Loan Agreement), by and among Credit Suisse, as administrative agent for the LC Facility (in such capacity, the LC Facility Administrative Agent), Bank of America, N.A., as administrative agent for the Revolving Facility and as syndication agent for the LC Facility, Banc of America Securities LLC (BAS), as sole arranger under the Revolving Facility, Credit Suisse, as sole bookrunner under the LC Facility, Credit Suisse and BAS, as joint lead arrangers under the LC Facility, Parent, the Canadian Borrowers, and each of the other Subsidiaries of Parent from time to time a party thereto.
Section 2.10 of the Loan Agreement contemplates that Term Loans in an aggregate principal amount of up to $60.0 million may be borrowed by the US Borrowers upon the terms and subject to the satisfaction of the conditions set forth therein and one or more amendments and supplements to the Loan Agreement may be made in accordance therewith. This Supplement is being made to evidence Term Loans in an aggregate principal amount of $30.0 million being made on the Term Loan Effective Date referred to below. The Term Loan Lenders are willing to make the Term Loans in an aggregate principal amount of $30.0 million on such Term Loan Effective Date on the terms and conditions set forth below and in accordance with the applicable provisions of the Loan Agreement and this Supplement, and accordingly, the parties hereto hereby agree as follows:
Terms defined in the Loan Agreement are used herein as defined therein; provided that (a) notwithstanding the Loan Agreement, the term Reference Bank shall mean, for purposes of this Supplement and for all purposes in calculating interest or other amounts due on the Term Loans, Credit Suisse and (b) the definition of Term Loans in the Loan Agreement shall be deemed to be superseded by the definition of Term Loans in this Supplement. The following terms as used in this Supplement have the meanings specified below:
Additional Real Properties shall mean the Real Properties owned prior to the Term Loan Effective Date by Teris L.L.C. in El Dorado, Arkansas (which shall continue to be owned as of the Term Loan Effective Date by Teris L.L.C. under its new name of Clean Harbors El Dorado, LLC) and Wilmington, California (which shall be conveyed as of the Term Loan Effective Date by Teris L.L.C. to Clean Harbors Wilmington, LLC).
Additional US Borrowers shall mean Clean Harbors El Dorado, LLC (whose name is being changed from Teris L.L.C. as of the Term Loan Effective Date) and Clean Harbors Wilmington, LLC.
Teris Acquisition shall mean the acquisition by Parent of all of the outstanding membership interests in Teris L.L.C.
Teris Acquisition Agreement shall mean the Purchase and Sale Agreement by and between SITA U.S.A., Inc. and Parent for all of the outstanding membership interests in Teris L.L.C. dated as of May 3, 2006.
Term Loan shall mean a Loan made on the Term Loan Effective Date pursuant to Section 2.01(a).
Term Loan Applicable Rate shall be 1.50% per annum for Term Loans that are US Prime Rate Loans and 2.50% per annum for Term Loans that are Eurodollar Rate Loans.
Term Loan Commitment shall mean, with respect to each Term Loan Lender, the commitment of such Lender to make Term Loans on the Term Loan Effective Date hereunder. The amount of each Term Loan Lenders Term Loan Commitment is set forth on Schedule 1. The aggregate amount of the Term Loan Commitments is $30.0 million.
Term Loan Effective Date shall mean the date on which the conditions specified in Article IV are satisfied and the Term Loans are made, which date shall be August 18, 2006.
Term Loan Interest Payment Date shall mean (a) with respect to any Term Loans that are US Prime Rate Loans, the last Business Day of each March, June, September and December to occur during any period in which such Term Loans are outstanding (and if such Term Loans are converted to Eurodollar Rate Loans pursuant to Section 2.04, the effective date of such conversion), (b) with respect to any Term Loans that are Eurodollar Rate Loans, the last day of the Interest Period applicable to such Eurodollar Rate Loans and, in the case of Term Loans that are Eurodollar Rate Loans with an Interest Period of more than three months duration, each day prior to the last day of such Interest Period that occurs at intervals of three months duration after the first day of such Interest Period and (c) the Term Loan Maturity Date.
Term Loan Lender shall mean any Term Loan Lender as defined in the Loan Agreement and shall include for the purposes of this Supplement and the other Financing Agreements (a) as of the Term Loan Effective Date, a Lender having a Term Loan Commitment and (b) thereafter, the Lenders from time to time holding a Term Loan Commitment or Term Loan after giving effect to any assignments thereof pursuant to Section 12.6 of the Loan Agreement.
Term Loan Maturity Date shall mean December 1, 2010, or if such day is not a Business Day, the immediately preceding Business Day.
(i) Subject to and upon the terms and conditions contained herein, each of the Term Loan Lenders severally, but not jointly, agrees to, on the Term Loan Effective Date, make a Term Loan to the US Borrowers in an amount equal to such Term Loan Lenders Term Loan Commitment.
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(ii) All Term Loans shall be made on the Term Loan Effective Date.
(iii) Once prepaid or repaid, no Term Loan may be reborrowed.
(iv) All Term Loans shall be, as of the Term Loan Effective Date, US Prime Rate Loans, which may thereafter be converted to Eurodollar Rate Loans to the extent permitted by Section 2.04(b).
(v) Parent shall provide a written borrowing notice to the LC Facility Administrative Agent of the proposed Term Loan Effective Date no later than noon, New York City time, one Business Day prior to the proposed Term Loan Effective Date.
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deposits to fund the Eurodollar Rate Loans and (B) if an Event of Default has occurred and is continuing, the LC Facility Administrative Agent may require, by notice to Parent, that (i) no outstanding Term Loan may be converted to or continued as a Eurodollar Rate Loan and (ii) unless repaid, each Term Loan shall be converted to a US Prime Rate Loan at the end of the Interest Period applicable thereto.
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US Prime Rate Loans in the event that (i) any change in applicable law or regulation (or the interpretation or administration thereof) shall (A) make it unlawful for such Term Loan Lender, or any participant with such Term Loan Lender or Reference Bank to make or maintain Eurodollar Rate Loans or to comply with the terms hereof in connection with the Eurodollar Rate Loans, or (B) shall result in the increase in the costs to such Term Loan Lender or any participant with such Term Loan Lender or Reference Bank of making or maintaining any Eurodollar Rate Loans by an amount deemed by such Term Loan Lender to be material, or (C) reduce the amounts received or receivable by such Term Loan Lender in respect thereof, by an amount deemed by such Term Loan Lender to be material; or (ii) the cost to such Term Loan Lender, or any participant with such Term Loan Lender or Reference Bank of making or maintaining any Eurodollar Rate Loans shall otherwise increase by an amount deemed by such Term Loan Lender to be material. US Borrowers shall pay to such Term Loan Lender, upon demand by such Term Loan Lender (or such Term Loan Lender may, at its option, charge any loan account of US Borrowers) any amounts required to compensate such Term Loan Lender or any participant with such Term Loan Lender or Reference Bank for any loss (including loss of anticipated profits), cost or expense incurred by such person as a result of the foregoing, including, without limitation, any such loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such person to make or maintain the Eurodollar Rate Loans or any portion thereof. A certificate of such Term Loan Lender setting forth the basis for the determination of such amount necessary to compensate such Term Loan Lender as aforesaid shall be delivered to Parent and shall be conclusive, absent manifest error.
(a) such Term Loan Lender shall have received payment of an amount equal to the outstanding principal of its Term Loans, accrued interest thereon and all other amounts payable to it hereunder, under the Loan Agreement and under the other Financing Agreements, from the assignee (to the extent of such outstanding principal and accrued interest) or US Borrowers (in the case of all other amounts); and
(b) such assignment does not conflict with applicable law.
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A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling Parent to require such assignment and delegation cease to apply.
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Each US Credit Party consents to the foregoing and agrees, to the extent it may effectively do so under any and all applicable requirements of any Governmental Authority including any applicable law, regulation, order, judgment or decree of any Governmental Authority, that any Term Loan Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such US Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Term Loan Lender were a direct creditor of such US Credit Party in the amount of such participation.
The US Borrowers represent and warrant to the LC Facility Administrative Agent and the Lenders that each of the representations and warranties made by each of the US Borrowers in Section 8 of the Loan Agreement (as certain of the Schedules to such Section have been updated through the officers certificate being delivered pursuant to Section 4.01(f)), and by each Guarantor in the other Financing
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Agreements to which it is a party, is true and complete on and as of the date hereof with the same force and effect as if made on and as of the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date) and as if each reference therein to the Loan Agreement or Financing Agreements included reference to this Supplement.
(a) Counterparts of this Supplement. The LC Facility Administrative Agent shall have received duly executed and delivered counterparts of (i) this Supplement from each US Borrower, Guarantor and Term Loan Lender as of the Term Loan Effective Date and (ii) Term Loan Commitments from the Term Loan Lenders for aggregate Term Loan Commitments in an amount equal to $30,000,000.
(b) Acquisition. The Teris Acquisition shall be consummated simultaneously with the initial funding of the Term Loans in accordance with applicable law and the Teris Acquisition Agreement in accordance with the terms thereof without waiver unless consented to by the LC Facility Administrative Agent.
(c) Additional Borrowers. Each Additional US Borrower shall, by its execution and delivery of this Supplement and a joinder agreement in form and substance satisfactory to each Administrative Agent, have been added as a US Borrower under Section 9.26(a) of the Loan Agreement and shall have delivered (A) a signed counterpart of an assumption agreement in form and substance satisfactory to the LC Facility Collateral Agent pursuant to which each Additional US Borrower will agree to be bound by all of the terms of the Amended and Restated Security Agreement as an Assignor, (B) an Opinion of Counsel in form and substance satisfactory to each Administrative Agent as to the due execution and delivery of the Loan Agreement and the Amended and Restated Security Agreement, the ability of each Additional US Borrower to perform all of its obligations hereunder and thereunder and perfection and creation of Liens on Collateral as such Administrative Agent may reasonably request, and (C) such other agreements, instruments, approvals, legal opinions or other documents reasonably requested by any such Agent in order to create, perfect, establish the first priority of or otherwise protect any Lien purported to be covered by any such Financing Agreement or otherwise to effect the intent that each Additional US Borrower shall become bound by all of the terms, covenants and agreements contained in the Financing Agreements applicable to a US Credit Party. All assets acquired in the Teris Acquisition shall be owned by a US Borrower after giving effect to the consummation of the Acquisition.
(d) UCC; Lien Searches. The LC Facility Administrative Agent shall have received and be satisfied with the results of a recent UCC lien searches for all of the US Borrowers and tax and judgment lien searches for Clean Harbors El Dorado, LLC and Clean Harbors Wilmington, LLC.
(e) Organizational Documents. Such organizational documents (including, without limitation, board of director and shareholder resolutions, member approvals and evidence of incumbency, including specimen signatures, of officers of each of the US Borrowers (including the
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Guarantors) with respect to the execution, delivery and performance of this Supplement and each other document to be delivered by such US Borrower or Guarantor from time to time in connection herewith and the extensions of credit hereunder as the LC Facility Administrative Agent may reasonably request (and the LC Facility Administrative Agent and each Lender may conclusively rely on such certificate until it receives notice in writing from any of the US Borrowers or any of the Guarantors to the contrary).
(f) Officers Certificate. A certificate of the chief executive office or chief financial officer of the US Borrowers, dated as of the Term Loan Effective Date, to the effect that (i) the representations and warranties made by the US Borrowers in Article III hereof, and by each Guarantor in the other Financing Agreements to which it is a party, are true and complete on and as of the date hereof with the same force and effect as if made on and as of such date (or, if any such representation and warranty is expressly stated to have been made as of a specific date, as of such specific date) and (ii) all conditions set forth in Section 2.10(b) of the Loan Agreement with respect to the Term Loans to be made on the Term Loan Effective Date are satisfied as of the Term Loan Effective Date, which shall include that (a) Section 4.2(b) and (c) of the Loan Agreement shall be satisfied as if the Term Loans to be made on the Term Loan Effective Date were Revolving Loans, (b) no Default shall have occurred and be continuing or would result from the borrowings of the Term Loans to be made on the Term Loan Effective Date and (c) the US Borrowers shall be in compliance with the terms of the definition of Permitted Acquisition with respect to the Teris Acquisition as of the Term Loan Effective Date.
(g) Closing Date Certificate. The US Borrowers shall have delivered to the LC Facility Administrative Agent an originally executed Closing Date Certificate, together with all attachments thereto.
(h) Real Property. The LC Facility Collateral Agent shall have received:
(i) with respect to each Additional Real Property, a Mortgage encumbering such Additional Real Property executed and acknowledged by the applicable Credit Party, and in form for recording in the appropriate recording office for the jurisdiction where such Additional Real Property is located, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law, in each case in form and substance reasonably satisfactory to the LC Facility Collateral Agent;
(ii) with respect to each Additional Real Property, an opinion of local counsel (which counsel shall be reasonably satisfactory to such Collateral Agent) in the state in which such Additional Real Property is located with respect to the validity and enforceability of the form of Mortgage to be recorded in such state and such other matters as such Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to such Collateral Agent;
(iii) with respect to each Additional Real Property, such consents, approvals, amendments, supplements, estoppels, tenant subordination agreements or other instruments as shall reasonably be deemed necessary to such Collateral Agent in order for the owner or holder of the fee or leasehold interest constituting such Additional Real Property to grant the Lien contemplated by the Mortgage with respect to such Additional Real Property;
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(iv) with respect to each Mortgage on Additional Real Property, a policy of title insurance (or marked-up title insurance commitment having the effect of a policy of title insurance) insuring the Lien of such Mortgage as a valid first mortgage lien on the Mortgaged Property and fixtures described therein, which policy (or unconditioned commitment therefor having the effect of a title insurance policy) (each, a Title Insurance Policy) shall (A) be issued by the Title Company, (B) to the extent necessary, include such reinsurance arrangements (with provisions for direct access, if necessary) as shall be reasonably acceptable to such Collateral Agent, (C) contain a tie-in or cluster endorsement, if available under applicable law (i.e., policies which insure against losses regardless of location or allocated value of the insured property up to a stated maximum coverage amount), (D) have been supplemented by such endorsements (or where such endorsements are not available, opinions of special counsel, architects or other professionals reasonably acceptable to such Collateral Agent) as shall be reasonably requested by such Collateral Agent (including endorsements on matters relating to usury, first loss, last dollar, zoning, contiguity, revolving credit, doing business, non-imputation, public road access, survey, variable rate, environmental lien, address, subdivision, separate tax lot and so-called comprehensive coverage over covenants and restrictions), and (E) contain no exceptions to title other than exceptions acceptable to such Collateral Agent;
(v) with respect to each Additional Real Property, such affidavits, certificates, information (including financial data) and instruments of indemnification (including a so-called gap indemnification) as shall be required to induce the Title Company to issue the Title Insurance Policy/ies and endorsements contemplated above;
(vi) with respect to each Additional Real Property, evidence reasonably acceptable to such Collateral Agent of payment by the applicable Credit Party of all Title Insurance Policy premiums, search and examination charges, escrow charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgage and issuance of the Title Policy referred to above;
(vii) with respect to each Additional Real Property, copies of all Leases in which Parent or any Subsidiary holds the lessors interest or other agreements relating to possessory interests, if any. To the extent any of the foregoing affect any Additional Real Property, such agreement shall be subordinate to the Lien of the Mortgage to be recorded against such Additional Real Property, either expressly by its terms or pursuant to a subordination, non-disturbance and attornment agreement, and shall otherwise be acceptable to such Collateral Agent;
(viii) with respect to each Additional Real Property, each Credit Party shall have made all notifications, registrations and filings, to the extent required by, and in accordance with, all Governmental Real Property Disclosure Requirements applicable to such Additional Real Property;
(ix) with respect to each Additional Real Property, a Survey except for any such Additional Real Property for which the LC Facility Administrative Agent shall consent to the delivery of a Survey following the Term Loan Effective Date or waive the requirement for a Survey;
(x) a completed Federal Emergency Management Agency Standard Flood Hazard Determination, in form and substance reasonably satisfactory to the LC Facility Administrative Agent, with respect to each Additional Real Property; and
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(xi) with respect to each Mortgage Amendment previously delivered by the US Credit Parties under the Loan Agreement with respect to any Real Property (other than the Additional Real Properties), opinions of local counsel to the Credit Parties, which opinions (x) shall be addressed to the LC Facility Collateral Agent and the Lenders, (y) shall cover the enforceability of the respective Mortgage as amended by the Mortgage Amendment and such other matters incident to the transactions contemplated herein as the LC Facility Collateral Agent may reasonably request and (z) shall be in form and substance reasonably satisfactory to the LC Facility Collateral Agent.
(i) Personal Property Collateral. In order to create in favor of LC Facility Collateral Agent, for the benefit of Secured Parties, a valid, perfected first priority security interest in the personal property Collateral, LC Facility Collateral Agent shall have received:
(i) evidence satisfactory to LC Facility Collateral Agent of the compliance by each Credit Party of their obligations under the Amended and Restated Security Agreement and the other Security Documents (including, without limitation, their obligations to execute and deliver UCC financing statements, originals of securities, instruments and chattel paper and any agreements governing deposit and/or securities accounts as provided therein); and
(ii) a Perfection Certificate Supplement dated as of the Term Loan Effective Date.
(j) Insurance. The US Borrowers shall have insurance complying with the requirement of Section 9.5 of the Loan Agreement in place and in full force and effect, and the LC Facility Administrative Agent shall each have received a certificate from the US Borrowers insurance broker reasonably satisfactory to them stating that such insurance is in place and in full force and effect, including insurance coverage of the Additional US Borrowers.
(k) Opinions of Counsel to US Borrowers and the Guarantors. The LC Facility Administrative Agent shall have received (i) an opinion, dated the Term Loan Effective Date, of Davis, Malm & DAgostine, P.C., counsel to the US Borrowers and each Guarantor, covering such matters as the LC Facility Administrative Agent may reasonably request, and (ii) opinions of such other local counsel to the US Credit Parties as the LC Facility Administrative Agent shall reasonably deem appropriate.
(l) Fees and Expenses. The LC Facility Administrative Agent and the Arranger shall have received all fees and other amounts due and payable on or prior to the Term Loan Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including, without limitation, the fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for the LC Facility Administrative Agent and the Arranger and all local counsel) required to be reimbursed or paid by the US Borrowers hereunder or under the Loan Agreement.
(m) Other Documents. Such other documents as the LC Facility Administrative Agent, any Term Loan Lender or the Arranger may reasonably request.
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IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly executed and delivered as of the day and year first above written.
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CLEAN HARBORS, INC. |
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ALTAIR DISPOSAL SERVICES, LLC |
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BATON ROUGE DISPOSAL, LLC |
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BRIDGEPORT DISPOSAL, LLC |
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CH INTERNATIONAL HOLDINGS, INC. |
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CLEAN HARBORS ANDOVER, LLC |
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CLEAN HARBORS ANTIOCH, LLC |
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CLEAN HARBORS ARAGONITE, LLC |
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CLEAN HARBORS ARIZONA, LLC |
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CLEAN HARBORS OF BALTIMORE, INC. |
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CLEAN HARBORS BATON ROUGE, LLC |
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CLEAN HARBORS BDT, LLC |
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CLEAN HARBORS BUTTONWILLOW, LLC |
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CLEAN HARBORS CHATTANOOGA, LLC |
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CLEAN HARBORS COFFEYVILLE, LLC |
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CLEAN HARBORS COLFAX, LLC |
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CLEAN HARBORS DEER PARK, L.P. |
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CLEAN HARBORS DEER TRAIL, LLC |
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CLEAN HARBORS DISPOSAL SERVICES, INC. |
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CLEAN HARBORS FINANCIAL SERVICES |
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COMPANY |
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CLEAN HARBORS FLORIDA, LLC |
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CLEAN HARBORS GRASSY MOUNTAIN, LLC |
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CLEAN HARBORS KANSAS, LLC |
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CLEAN HARBORS LAPORTE, L.P. |
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CLEAN HARBORS LAUREL, LLC |
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CLEAN HARBORS LONE MOUNTAIN, LLC |
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CLEAN HARBORS LONE STAR CORP. |
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CLEAN HARBORS LOS ANGELES, LLC |
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CLEAN HARBORS (MEXICO), INC. |
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CLEAN HARBORS OF TEXAS, LLC |
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CLEAN HARBORS PECATONICA, LLC |
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CLEAN HARBORS PLAQUEMINE, LLC |
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CLEAN HARBORS PPM, LLC |
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CLEAN HARBORS REIDSVILLE, LLC |
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CLEAN HARBORS SAN JOSE, LLC |
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CLEAN HARBORS TENNESSEE, LLC |
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CLEAN HARBORS WESTMORLAND, LLC |
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CLEAN HARBORS WHITE CASTLE, LLC |
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CROWLEY DISPOSAL, LLC |
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DISPOSAL PROPERTIES, LLC |
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GSX DISPOSAL, LLC |
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HARBOR MANAGEMENT CONSULTANTS, INC. |
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HARBOR INDUSTRIAL SERVICES TEXAS, L.P. |
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HILLIARD DISPOSAL, LLC |
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NORTHEAST CASUALTY REAL PROPERTY, LLC |
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ROEBUCK DISPOSAL, LLC |
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SAWYER DISPOSAL SERVICES, LLC |
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SERVICE CHEMICAL, LLC |
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TULSA DISPOSAL, LLC |
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CLEAN HARBORS
ENVIRONMENTAL SERVICES, |
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CLEAN HARBORS OF BRAINTREE, INC. |
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CLEAN HARBORS OF NATICK, INC. |
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CLEAN HARBORS SERVICES, INC. |
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MURPHYS WASTE OIL SERVICE, INC. |
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CLEAN HARBORS KINGSTON FACILITY CORPORATION |
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CLEAN HARBORS OF CONNECTICUT, INC. |
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SPRING GROVE RESOURCE RECOVERY, INC. |
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CLEAN HARBORS EL DORADO, LLC |
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CLEAN HARBORS WILMINGTON, LLC |
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By: |
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/s/ Stephen Moynihan |
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Title: |
Senior Vice President |
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Address for Notices to the US Credit Parties: |
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42 Longwater Drive |
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CREDIT SUISSE, Cayman Islands Branch, |
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as LC Facility
Administrative Agent and LC Facility |
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By: |
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/s/ Phillip Ho |
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Name: |
Phillip Ho |
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Title: Director |
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By: |
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/s/ Karim Blasetti |
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Name: |
Karim Blasetti |
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Title: Associate |
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CREDIT SUISSE, Cayman Islands Branch, |
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as a Term Loan Lender |
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By: |
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/s/ Phillip Ho |
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Name: |
Phillip Ho |
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Title: Director |
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By: |
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/s/ Karim Blasetti |
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Name: |
Karim Blasetti |
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Title: Associate |
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Acknowledged by: |
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BANK OF AMERICA,
N.A., as Revolving Facility |
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By: |
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/s/ Christopher M. OHalloran |
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Name: |
Christopher M. OHalloran |
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Title: Vice President |
16
Exhibit 4.28G
JOINDER AGREEMENT
JOINDER AGREEMENT, dated as of August 18, 2006, made by CLEAN HARBORS EL DORADO, LLC, a Delaware limited liability company, and CLEAN HARBORS WILMINGTON, LLC, a Delaware limited liability company, (each an Additional US Borrower) in favor of (a) CREDIT SUISSE, as LC Facility Collateral Agent and LC Facility Administrative Agent (in such capacity, the LC Facility Administrative Agent) for the benefit of the LC Facility Secured Parties (as defined in the Credit Agreement (as defined below)) and (b) BANK OF AMERICA, N.A., as administrative agent for the Revolving Facility (in such capacity, the Revolving Administrative Agent and together with the LC Facility Administrative Agent, the Administrative Agents) for the benefit of the Revolving Secured Parties (as defined in the Credit Agreement). All capitalized terms not defined herein shall have the meanings given to them in such Credit Agreement.
W I T N E S S E T H:
WHEREAS, Clean Harbors, Inc., a Massachusetts corporation (the Parent), the other Credit Parties, the LC Facility Administrative Agent, Bank of America, N.A. (BANA), as Revolving Administrative Agent, Banc of America Securities LLC, as sole arranger under the Revolving Facility, BANA, as syndication agent under the LC Facility, Credit Suisse, as sole bookrunner under the LC Facility, and Credit Suisse and BAS, as joint lead arrangers under the LC Facility, have entered into an Amended and Restated Loan and Security Agreement, dated as of June 30, 2004, amended as of July 20, 2005 and amended and restated as of December 1, 2005 (as the same may be further amended, restated, modified and/or supplemented from time to time, the Credit Agreement);
WHEREAS, in connection with the Credit Agreement, the Parent, the other Assignors, the LC Facility Administrative Agent and U.S. Bank National Association, as trustee for the Second Lien Note Creditors have entered into the Amended and Restated Security Agreement, dated as of June 30, 2004 and amended and restated as of December 1, 2005 (as the same may be further amended, restated, modified and/or supplemented from time to time, the Security Agreement); in favor of the LC Facility Administrative Agent for the benefit of the Secured Parties;
WHEREAS, simultaneously herewith, pursuant to the Credit Agreement, the Parent, each Additional US Borrower, the other US Credit Parties and the LC Facility Administrative Agent are entering into a Term Loan Supplement whereby, pursuant to Section 2.10 of the Credit Agreement, certain Term Loan Lenders are willing to make Term Loans in an aggregate principal amount of $30.0 million to the US Borrowers, which shall include each Additional US Borrower;
WHEREAS, each Additional US Borrower hereby confirms the grant to the Accounts Collateral Agent of the security interests in Accounts Collateral for the benefit of itself and each other Secured Party pursuant to Section 5.1 of the Credit Agreement;
1
WHEREAS, simultaneously herewith, pursuant to the Security Agreement, the Additional US Borrowers and the LC Facility Administrative Agent are entering into an Assumption Agreement, whereby, pursuant to Section 10.13 of the Security Agreement, each Additional US Borrower is to become an Assignor under the Security Agreement from and after the date hereof; and
WHEREAS, this Joinder Agreement is executed and delivered pursuant to the Credit Agreement;
NOW, THEREFORE, IT IS AGREED:
1. Credit Agreement. (a) In accordance with Section 9.26 of the Credit Agreement, by executing and delivering this Joinder Agreement, each Additional US Borrower hereby becomes a US Borrower under the Credit Agreement from and after the date hereof with the same force and effect as if originally a US Borrower under the Credit Agreement. Without limiting the generality of the foregoing, each Additional US Borrower hereby expressly agrees to observe and perform and be bound by all of the terms, covenants, representations, warranties, and agreements contained in the Credit Agreement which are binding upon, and to be observed or performed by, a US Borrower.
(b) All Term Loans made pursuant to the Term Loan Supplement are made to or for the mutual benefit, directly and indirectly, of each of the US Borrowers and in consideration of the agreement of the other US Borrowers to accept joint and several liability for the Obligations. Each Additional US Borrower jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several and direct and primary liability for the full and indefeasible payment when due and performance of all Obligations and for the prompt and full payment and performance of all of the promises, covenants, representations, and warranties made or undertaken by any Credit Party under the Financing Agreements and each Additional US Borrower agrees that such liability is independent of the duties, obligations, and liabilities of each of the joint and several US Borrowers. In furtherance of the foregoing, each Additional US Borrower jointly and severally, absolutely and unconditionally guarantees to (i) the Revolving Secured Parties the full and indefeasible payment and performance when due of all Revolving Obligations and (ii) LC Facility Secured Parties the full and indefeasible payment and performance when due of all LC Facility Obligations.
(c) Any Secured Party may enforce its rights under the Credit Agreement independently as to each Credit Party and independently of any other remedy or security. Any Secured Party at any time may have or hold in connection with the Obligations, and it shall not be necessary for any Secured Party to marshal assets in favor of any Credit Party or to proceed upon or against or exhaust any security or remedy before proceeding to enforce the Credit Agreement. Each Additional US Borrower expressly waives any right to require any Secured Party to marshal assets in favor of any Credit Party of the Obligations of such Additional US Borrower or to proceed against any other US Credit Party, and agrees that Accounts Collateral Agent may proceed against US Credit Parties or any US Accounts Collateral in such order as Accounts Collateral Agent shall determine in its sole and absolute discretion.
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(d) Any Secured Party may each file a separate action or actions against any Credit Party with respect to such Credit Partys Obligations, whether such action is brought or prosecuted with respect to any security or against any guarantor of such Credit Party, or whether any other person is joined in any such action or actions. Each Additional US Borrower agrees that any of the Secured Parties and any Credit Party and any affiliate of any Credit Party may deal with each other in connection with the Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between any of them, in any manner whatsoever, all without in any way altering or affecting the continuing efficacy of this Agreement. Each Additional US Borrower, as a joint and several Credit Party and guarantor hereunder with respect to such Additional US Borrowers Obligations, expressly waives the benefit of any statute of limitations affecting its joint and several liability and guarantee hereunder (but not its primary liability) or the enforcement of the Obligations of such Additional US Borrower or any rights of any Secured Party created or granted herein.
(e) Each Additional US Borrower acknowledges that the obligations of such US Credit Party undertaken herein might be construed to consist, at least in part, of the guarantee of obligations of persons other than such US Credit Party (including the other US Credit Parties) and, in full recognition of that fact and in full recognition of the joint and several and direct and primary liability of each Additional US Borrower hereunder for the Obligations, each Additional US Borrower consents and agrees that (A) in the case of the US Revolving Obligations, the Revolving Administrative Agent and Revolving Lenders, (B) in the case of the Canadian Obligations, the Canadian Agent and the Canadian Lender and (C) in the case of LC Facility Obligations, the LC Facility Administrative Agent, LC Facility Lenders and Term Loan Lenders, may, at any time and from time to time, without notice or demand (except as provided in and in accordance with the terms of the Credit Agreement), whether before or after any actual or purported termination, repudiation or revocation of the Credit Agreement by any US Credit Party, and without affecting the enforceability or continuing effectiveness of the Credit Agreement as to each US Credit Party (including each Additional US Borrower): (i) increase, extend, or otherwise change the time for payment or the terms of the Obligations or any part thereof; (ii) supplement, restate, modify, amend, increase, decrease, or waive, or enter into or give any agreement, approval or consent with respect to any of the Obligations or any part thereof, or any of the Financing Agreements or any additional security or guarantees, or any condition, covenant, default, remedy, right, representation, or term thereof or thereunder; (iii) accept new or additional instruments, documents, or agreements in exchange for or relative to any of the Financing Agreements or the Obligations or any part thereof; (iv) accept partial payments on any of the Obligations; (v) receive and hold additional security or guarantees for the Obligations or any part thereof; (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer, or enforce any security or guarantees, and apply any security and direct the order or manner of sale thereof as such Administrative Agent in its sole and absolute discretion may determine; (vii) release any person from any personal liability with respect to the Obligations or any part thereof; (viii) settle, release on terms satisfactory to such Administrative Agent or by operation of applicable laws or otherwise liquidate or enforce any Obligations and any security therefor or guaranty thereof, respectively, in any manner, consent to the transfer of any security and bid and purchase at any sale; or (ix) consent to the merger, change, or any other restructuring or termination of the corporate or partnership existence of any US Credit Party,
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and correspondingly restructure the Obligations, and any such merger, change, restructuring, or termination shall not affect the liability of any US Credit Party or the continuing effectiveness hereof, or the enforceability hereof with respect to all or any part of the Obligations.
(f) Each Additional US Borrower (as a Credit Party) expressly waives any and all defenses now or hereafter arising or asserted by reason of (i) any disability or other defense of any other Credit Party with respect to such Credit Partys Obligations; (ii) the unenforceability or invalidity of any security or guaranty for such Credit Partys Obligations or the lack of perfection or continuing perfection or failure of priority of any security for such Credit Partys Obligations; (iii) the cessation for any cause whatsoever of the liability of such Credit Party (other than by reason of the full payment and performance of all of such Credit Partys Obligations); (iv) any failure of any Secured Party to marshal assets in favor of any Credit Party; (v) any failure of any Secured Party to give notice to any Credit Party of sale or other disposition of Collateral of another Credit Party or any defect in any notice that may be given in connection with any such sale or disposition of Collateral of any Credit Party securing the Obligations of such Credit Party; (vi) any failure of any Secured Party to comply with applicable law in connection with the sale or other disposition of any Collateral or other security of any Credit Party, for any Obligations of such Credit Party, including any failure of any Secured Party to conduct a commercially reasonable sale or other disposition of any Collateral or other security of any other Credit Party for any Obligations of such Credit Party; (vii) any act or omission of any Secured Party or others that directly or indirectly results in or aids the discharge or release of any other Credit Party or any Obligations of any other Credit Party or any security or guaranty therefor by operation of law or otherwise; (viii) any law which provides that the obligation of a surety or guarantor must neither be larger in amount nor in other respects more burdensome than that of the principal or which reduces a suretys or guarantors obligation in proportion to the principal obligation; (ix) any failure of any Secured Party to file or enforce a claim in any bankruptcy or other proceeding with respect to any Credit Party; (x) the avoidance of any Lien or security interest in assets of any other Credit Party in favor of any Secured Party for any reason; or (xi) any action taken by any Secured Party that is authorized by this section or any other provision of any Financing Agreement. Until such time, if any, as all of the Obligations of any Additional US Borrower have been indefeasibly paid and performed in full and no portion of any commitment of any Secured Party to such Credit Party under any Financing Agreement remains in effect (or in the case of the Canadian Borrowers, prior to the Discharge of Revolving Obligations), such Credit Partys rights of subrogation, contribution, reimbursement, or indemnity against the other Credit Parties shall be fully and completely subordinated to the indefeasible repayment in full of all such Credit Parties Obligations, and each Additional US Borrower expressly waives any right to enforce any remedy that it now has or hereafter may have against any other Person and waives the benefit of, or any right to participate in, any Collateral now or hereafter held by any Secured Party.
(g) To the fullest extent permitted by applicable law, each Additional US Borrower expressly waives and agrees not to assert, any and all defenses in its favor based upon an election of remedies by any Secured Party which destroys, diminishes, or affects such Additional US Borrowers subrogation rights against the other Credit Parties and/or (except as explicitly provided for herein) any rights to proceed against each other Credit Party, or any
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other party liable to any Secured Party, for reimbursement, contribution, indemnity, or otherwise.
(h) Each Additional US Borrower warrants and agrees that each of the waivers and consents set forth herein are made after consultation with legal counsel and with full knowledge of their significance and consequences, with the understanding that events giving rise to any defense or right waived may diminish, destroy, or otherwise adversely affect rights which such Additional US Borrower otherwise may have against the other Credit Parties or the Secured Parties, or others, or against the Collateral, and that, under the circumstances, the waivers and consents herein given are reasonable. If any of the waivers or consents herein are determined to be contrary to any applicable law or public policy, such waivers and consents shall be limited to the extent required in order to be enforceable under applicable law.
(i) The foregoing affirmations and covenants of each Additional US Borrower are in addition to, and not in lieu of, those set forth in the Credit Agreement, including, without limitation, Section 14 thereof.
2. Effect on the Credit Agreement. On and after the effectiveness of this Joinder Agreement, each reference in the Credit Agreement and the other Financing Agreements to the US Borrowers, or words to that effect shall mean and be a reference to the Parent, each of the Credit Parties signatory to the Credit Agreement and each Additional US Borrower for all purposes of the Credit Agreement and each Financing Agreement.
3. Grant of Security Interests in Accounts Collateral. To secure payment and performance of all Obligations, each Additional US Borrower hereby confirms the grant to the Accounts Collateral Agent for the benefit of itself and each other Secured Party pursuant to Section 5 of the Credit Agreement and in furtherance thereof hereby grants, subject to the terms and conditions of such Section 5, to the Accounts Collateral Agent for the benefit of itself and each other Secured Party, a continuing security interest in, a Lien upon, and a right of set off against, all right, title and interest of such Additional US Borrower in all of the Accounts Collateral, whether now owned or hereafter acquired or existing, and wherever located.
4. Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver. The validity, interpretation and enforcement of this Joinder Agreement and the other Financing Agreements (except as otherwise expressly provided therein) and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of The State of New York (without giving effect to principles of conflicts of law).
Each Additional US Borrower and each Administrative Agent irrevocably consents and submits to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, whichever the Administrative Agents may elect, and in addition, each Additional US Borrower irrevocably consents and submits to the non-exclusive jurisdiction of the Ontario Superior Court of Justice, in each
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case, whichever the Administrative Agents may elect and waive any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Joinder Agreement or any of the other Financing Agreements or in any way connected with or related or incidental to the dealings of the parties hereto in respect of this Joinder Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to any such matters shall be heard only in the courts described above (except that Accounts Collateral Agent (with respect to the Accounts Collateral) and LC Facility Collateral Agent (with respect to the Non-Accounts Collateral) and Lenders shall have the right to bring any action or proceeding against any Credit Party or its property in the courts of any other jurisdiction which such Collateral Agent deems necessary or appropriate in order to realize on the applicable Collateral or to otherwise enforce its rights against any Credit Party or its property).
Each Additional US Borrower hereby waives personal service of any and all process upon it and consents that all such service of process may be made by certified mail (return receipt requested) directed to its address set forth herein and service so made shall be deemed to be completed five (5) days after the same shall have been so deposited in the US mails, or, at an Administrative Agents option, by service upon such Additional US Borrower in any other manner provided under the rules of any such courts. Within thirty (30) days after such service, Additional US Borrowers shall appear in answer to such process, failing which such Additional US Borrower shall be deemed in default and judgment may be entered by Lender against such Additional US Borrower for the amount of the claim and other relief requested.
EACH ADDITIONAL US BORROWER AND EACH ADMINISTRATIVE AGENT HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS JOINDER AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH ADDITIONAL US BORROWER AND EACH ADMINISTRATIVE AGENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY CREDIT PARTY OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS JOINDER AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
5. Financing Agreement. This Joinder Agreement shall constitute a Financing Agreement.
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IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written.
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CLEAN HARBORS EL DORADO, LLC |
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CLEAN HARBORS WILMINGTON, LLC |
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By: |
/s/ Stephen Moynihan |
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Name: |
Stephen Moynihan |
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Title: |
Senior Vice President |
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Acknowledged: |
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REVOLVING ADMINISTRATIVE AGENT, |
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ACCOUNTS COLLATERAL AGENT AND |
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US REVOLVING LENDER |
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BANK OF AMERICA, N.A., |
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Individually and as Agent |
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By: |
/s/ Christopher M. OHalloran |
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Name: Christopher M. OHalloran |
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Title: Vice President |
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CANADIAN COLLATERAL AGENT AND |
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CANADIAN LENDER: |
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BANK OF AMERICA,
N.A., Canada Branch, as |
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Individually and as Agent |
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By: |
/s/ Nelson Lam |
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Name: Nelson Lam |
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Title: Vice President |
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LC FACILITY ADMINISTRATIVE AGENT |
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AND LC FACILITY COLLATERAL AGENT |
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CREDIT SUISSE, Cayman Islands Branch |
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By: |
/s/ Phillip Ho |
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Name: Phillip Ho |
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Title: Director |
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By: |
/s/ Karim Blasetti |
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Name: Karim Blasetti |
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Title: Associate |
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CREDIT SUISSE, Cayman Islands Branch, in |
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By: |
/s/ Phillip Ho |
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Name: Phillip Ho |
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Title: Director |
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By: |
/s/ Karim Blasetti |
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Name: Karim Blasetti |
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Title: Associate |
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9
Exhibit 4.28H
ASSUMPTION AGREEMENT
ASSUMPTION AGREEMENT, dated as of August 18, 2006, made by CLEAN HARBORS EL DORADO, LLC, a Delaware limited liability company, and CLEAN HARBORS WILMINGTON, LLC, a Delaware limited liability company, (each an Additional US Borrower) in favor of CREDIT SUISSE, as Collateral Agent and LC Facility Administrative Agent (in such capacity, the LC Facility Administrative Agent) for the benefit of the Secured Creditors (as defined in the Security Agreement (as defined below). All capitalized terms not defined herein shall have the meanings given to them in such Security Agreement.
W I T N E S S E T H:
WHEREAS, Clean Harbors, Inc., a Massachusetts corporation (the Company), the other Assignors, the LC Facility Administrative Agent, Bank of America, N.A. (BANA), as Revolving Administrative Agent, Banc of America Securities LLC, as sole arranger under the Revolving Facility, BANA, as syndication agent under the LC Facility, Credit Suisse, as sole bookrunner under the LC Facility, and Credit Suisse and BAS, as joint lead arrangers under the LC Facility, have entered into an Amended and Restated Loan and Security Agreement, dated as of June 30, 2004, amended as of July 20, 2005 and amended and restated as of December 1, 2005 (as the same may be further amended, restated, modified and/or supplemented from time to time, the Credit Agreement);
WHEREAS, in connection with the Credit Agreement, the Company, the other Assignors, the LC Facility Administrative Agent and U.S. Bank National Association, as trustee for the Second Lien Note Creditors have entered into the Amended and Restated Security Agreement, dated as of June 30, 2004 and amended and restated as of December 1, 2005 (as the same may be further amended, restated, modified and/or supplemented from time to time, the Security Agreement); in favor of the LC Facility Administrative Agent for the benefit of the Secured Parties;
WHEREAS, simultaneously herewith, pursuant to the Credit Agreement, the Company, each Additional US Borrower, the other US Credit Parties (as defined in the Credit Agreement) and the LC Facility Administrative Agent are entering into (a) a Term Loan Supplement whereby, pursuant to Section 2.10 of the Credit Agreement, certain Term Loan Lenders are willing to make Term Loans in an aggregate principal amount of $30.0 million to the US Borrowers, which shall include each Additional US Borrower and (b) a Joinder Agreement whereby, pursuant to Section 9.26 of the Credit Agreement, each Additional US Borrower will become bound by all of the terms, covenants and agreements contained in the Credit Agreement applicable to a US Credit Party; and
WHEREAS, this Assumption Agreement is executed and delivered pursuant to the Security Agreement;
NOW, THEREFORE, IT IS AGREED:
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1. Security Agreement. In accordance with Section 10.13 of the Security Agreement, by executing and delivering this Assumption Agreement, each Additional US Borrower hereby becomes an Assignor under the Security Agreement from and after the date hereof with the same force and effect as if originally an Assignor under the Security Agreement. Without limiting the generality of the foregoing, each Additional US Borrower hereby expressly agrees to observe and perform and be bound by all of the terms, covenants, representations, warranties, and agreements contained in the Security Agreement which are binding upon, and to be observed or performed by, a US Borrower, and which are incorporated herein by reference as if fully set forth herein.
2. Effect on the Security Agreement. On and after the effectiveness of this Assumption Agreement, each reference in the Security Agreement to the Assignors, or words to that effect shall mean and be a reference to the Company, each of the assignors signatory to the Security Agreement and each Additional US Borrower for all purposes of the Security Agreement.
3. Grant of Security Interests. As security for the prompt and complete payment and performance when due of all of its Obligations, each Additional US Borrower hereby (A) subject to clause (e) of Section 1.1 of the Security Agreement, confirms the pledge and grant to the Collateral Agent for the benefit of the Bank Creditors pursuant to the Original Security Agreement, and in furtherance thereof, assigns and transfer unto the Collateral Agent for the benefit of the Bank Creditors, and does hereby pledge and grant to the Collateral Agent for the benefit of the Bank Creditors, a continuing security interest in, all of the right, title and interest of such Additional US Borrower in, to and under all of the following personal property and fixtures (and all rights therein) of such Additional US Borrower, or in which or to which such Additional US Borrower has any rights, in each case, whether now existing or hereafter from time to time acquired, and (B) subject to clauses (d) and (e) of Section 1.1 of the Security Agreement, separately confirms the pledge and grant to the Collateral Agent for the benefit of the Senior Second Lien Notes Creditors pursuant to the Original Security Agreement, and in furtherance thereof, assigns and transfers unto the Collateral Agent for the benefit of the Senior Second Lien Notes Creditors, and does hereby separately pledge and grant to the Collateral Agent for the benefit of the Senior Second Lien Notes Creditors, a separate continuing security interest in all of the right, title and interest of such Additional US Borrower in, to and under all personal property and fixtures (and all rights therein) of such Additional US Borrower, or in which or to which such Additional US Borrower has any rights, in each case, whether now existing or hereafter from time to time acquired, including without limitation, the Collateral.
4. Governing Law. THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE ADDITIONAL US BORROWERS AND SECURED CREDITORS HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. EACH ADDITIONAL US BORROWER AND EACH SECURED CREDITOR IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
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OTHER SECURITY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
5 Security Document. This Assumption Agreement shall constitute a Security Document.
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IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.
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CLEAN HARBORS EL DORADO, LLC |
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CLEAN HARBORS WILMINGTON, LLC, |
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as Additional US Borrowers |
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By: |
/s/ Stephen Moynihan |
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Name: |
Stephen Moynihan |
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Title: |
Senior Vice President |
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Acknowledged: |
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CREDIT SUISSE, Cayman Islands branch, |
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as Collateral Agent, as Assignee, and as |
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LC Facility Administrative Agent |
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By: |
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Phillip Ho |
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Name: |
Phillip Ho |
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Title: Director |
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By: |
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Karim Blasetti |
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Name: |
Karim Blasetti |
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Title: Associate |
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4
Exhibit 4.32A
SUPPLEMENTAL INDENTURE
Supplemental Indenture (this Supplemental Indenture), dated as of August 18, 2006, among Clean Harbors, Inc., a Massachusetts corporation (the Company), Clean Harbors El Dorado, LLC, a Delaware limited liability company formerly known as Teris L.L.C. (CH El Dorado), Clean Harbors Wilmington, LLC, a Delaware limited liability company (CH Wilmington, and together with CH El Dorado, the New Guarantors), and U.S. Bank National Association, as trustee (the Trustee) under the Indenture as defined below. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.
WITNESSETH
WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the Indenture), dated as of June 30, 2004, providing for the issuance of an aggregate principal amount of $150,000,000 of 11¼% Senior Secured Notes due 2012 (the Securities), and substantially all of the Companys Domestic Restricted Subsidiaries have unconditionally guaranteed the Companys obligations under the Securities and the Indenture;
WHEREAS, Sections 4.15 and 4.20(a) of the Indenture provide that under certain circumstances the Company is required to cause any New Domestic Restricted Subsidiary to execute and deliver to the Trustee a supplemental indenture pursuant to which such New Domestic Restricted Subsidiary shall unconditionally guarantee all of the Companys obligations under the Securities and the Indenture on the terms and conditions set forth herein; and
WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without notice to or consent of any Securityholder;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the New Guarantors and the Trustee mutually agree for the benefit of the Holders of the Securities as follows:
2
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed all as of the date first written above.
CLEAN HARBORS, INC. |
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Name: Stephen H. Moynihan |
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Title: Senior Vice President |
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CLEAN HARBORS EL DORADO, LLC CLEAN HARBORS
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Name: Stephen H. Moynihan |
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Title: Senior Vice President |
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U.S. BANK
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/s/ John A. Brennan |
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Name: John A. Brennan |
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Title: Officer |
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3
Exhibit 99.1
Press Release
Clean Harbors Completes Acquisition of Teris L.L.C.
Transaction Expected to be Accretive by Year-End
Norwell, MA August 21, 2006 Clean Harbors, Inc. (Clean Harbors) (NASDAQ: CLHB), the leading provider of environmental and hazardous waste management services throughout North America, today announced that on August 18, 2006, it completed the acquisition of Teris L.L.C., an environmental services company based in Dallas, Texas. Clean Harbors acquired all of the membership interests in Teris for approximately $52.7 million in cash, including $10.3 million in net working capital, from SITA U.S.A., Inc., a subsidiary of Suez Environnement, S.A.
Teris operations represent an ideal fit with our existing disposal facilities, said Alan S. McKim, Chairman and Chief Executive Officer. Our investment in Teris further improves our ability to service our customers and demonstrates our commitment to maintaining the largest array of service offerings in our industry. We believe that we can leverage our North American network of waste collection and routing capabilities and underutilized rail assets to achieve substantial cost efficiencies and dramatic gains in productivity at Teris operations.
Teris operates an incineration facility in El Dorado, Arkansas and a treatment, storage and disposal facility located in Wilmington, California. The company currently has more than 550 employees and several field locations. In 2005, Teris reported revenue of approximately $95 million. Clean Harbors expects some limited customer attrition. The transaction offers several opportunities for synergies, particularly in the area of outsourced transportation, and is expected to be accretive by year-end. In the coming weeks, Clean Harbors will begin a comprehensive evaluation of Teris operations to better gauge the revenue contribution going forward and level of operating costs required by the acquisition.
We have commenced the integration process and anticipate completing the implementation of our primary processes and systems in a relatively short period of time, said McKim. We are pleased to welcome the Teris team to Clean Harbors. Working together, we believe this transaction will be beneficial to both Teris employees and the existing customers of both companies.
Clean Harbors, Inc. is North Americas leading provider of environmental and hazardous waste management services. With an unmatched infrastructure of 50 waste management facilities, including nine landfills, six incineration locations and seven wastewater treatment centers, the Company provides essential services to over 45,000 customers, including more than 175 Fortune 500 companies, thousands of smaller private entities and numerous federal, state and local governmental agencies. Headquartered in Norwell, Massachusetts, Clean Harbors has more than 100 locations strategically positioned throughout North America in 37 U.S.
42 Longwater Drive · P.O. Box 9149 · Norwell, Massachusetts 02061-9149 · 781.792.5000 · www.cleanharbors.com
states, six Canadian provinces, Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These forward-looking statements are generally identifiable by use of the words believes, expects, intends, anticipates, plans to, estimates, projects, or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect managements opinions only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its various filings with the Securities and Exchange Commission.
A variety of factors beyond the control of the Company may affect the Companys performance, including, but not limited to:
· The Companys ability to successfully integrate Teris operations and assets into its existing network of services and disposal facilities;
· The Companys ability to manage the significant environmental liabilities which it assumed in connection with the CSD acquisition;
· The availability and costs of liability insurance and financial assurance required by governmental entities relating to our facilities;
· The effects of general economic conditions in the United States, Canada and other territories and countries where the Company does business;
· The effect of economic forces and competition in specific marketplaces where the Company competes;
· The possible impact of new regulations or laws pertaining to all activities of the Companys operations;
· The outcome of litigation or threatened litigation or regulatory actions;
· The effect of commodity pricing on overall revenues and profitability;
· Possible fluctuations in quarterly or annual results or adverse impacts on the Companys results caused by the adoption of new accounting standards or interpretations or regulatory rules and regulations;
· The effect of weather conditions or other aspects of the forces of nature on field or facility operations;
· The effects of industry trends in the environmental services and waste handling marketplace; and
· The effects of conditions in the financial services industry on the availability of capital and financing.
Any of the above factors and numerous others not listed nor foreseen may adversely impact the Companys financial performance. Additional information on the potential factors that could affect the Companys actual results of operations is included in its filings with the Securities and Exchange Commission, which may be viewed on the Investor portal of the Companys Web Page at www.cleanharbors.com.
Contacts: |
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James M. Rutledge |
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Bill Geary |
Executive Vice President and Chief Financial Officer |
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Executive Vice President and General Counsel |
Clean Harbors, Inc. |
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Clean Harbors, Inc. |
781-792-5100 |
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781-792-5130 |
InvestorRelations@cleanharbors.com |
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Jim Buckley |
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Executive Vice President |
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Sharon Merrill Associates, Inc. |
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617-542-5300 |
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clhb@investorrelations.com |
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