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Exhibit 4(e)
EXECUTION COPY
WAIVER, dated as of January 19, 1999 (this "Waiver"), to the
Credit Agreement, dated as of December 4, 1998 (the "Credit Agreement"; terms
defined in the Credit Agreement shall have such defined meanings when used
herein unless otherwise defined herein), among THE SCOTTS COMPANY, an Ohio
corporation (the "Borrower" or "Scotts"), OM Scott International Investments
Ltd., Miracle Garden Care Limited, Scotts Holdings Limited, Hyponex Corporation,
Scotts' Miracle-Gro Products, Inc., Scotts-Sierra Horticultural Products
Company, Republic Tool & Manufacturing Corp., Scotts-Sierra Investments, Inc.,
Scotts France Holdings SARL, Scotts Holding GmbH, Scotts Celaflor GmbH & Co. KG,
Scotts France SARL, Scotts Belgium 2 BVBA, The Scotts Company (UK) Ltd. and the
other subsidiaries of the Borrower who are also borrowers from time to time
hereunder (the "Subsidiary Borrowers"), the several banks and other financial
institutions from time to time parties to this Agreement (the "Lenders"), THE
CHASE MANHATTAN BANK, a New York banking corporation (together with its banking
affiliates, "Chase"), as agent for the Lenders hereunder (in such capacity, the
"Administrative Agent"), SALOMON SMITH BARNEY, INC., as syndication agent (the
"Syndication Agent"), CREDIT LYONNAIS CHICAGO BRANCH (together with its banking
affiliates, "Credit Lyonnais") and NBD BANK, as co-documentation agents (the
"Co-Documentation Agents"), and Chase Securities Inc., as lead arranger (the
"Lead Arranger") and as the book manager (the "Book Manager").
W I T N E S S E T H :
WHEREAS, the Borrower has notified the Administrative Agent
and the Lenders that the Borrower intends to issue up to $330 million of senior
unsecured subordinated notes (including the Senior Subordinated Notes, the
"Ortho Notes") as permitted under subsection 7.6(e) of the Credit Agreement, the
Net Cash Proceeds of which to be used to refinance the Existing Subordinated
Notes, to finance the Ortho Acquisition and to repay certain outstanding
Revolving Credit Loans;
WHEREAS, the Borrower has requested that the Required
Prepayment Lenders waive the requirement under subsection 2.12(c) of the Credit
Agreement that the portion of the Net Cash Proceeds of the Ortho Notes
attributable to clause (iii) of subsection 7.6(e) be applied on the date of
incurrence to prepay the Term Loans or reduce the Revolving Credit Commitments
in accordance with the terms of the Credit Agreement; and
WHEREAS, the Required Prepayment Lenders have agreed to waive
any such mandatory prepayment as a result of the issuance of the Ortho Notes but
only on the terms and subject to the conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:
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1. Compliance with Subsection 2.12(c) (Mandatory Prepayments).
Notwithstanding anything to the contrary in subsection 2.12(c) of the Credit
Agreement, the Required Prepayment Lenders hereby waive (a) any requirement
under the Credit Agreement for a mandatory prepayment of the Term Loans or
reduction of the Revolving Credit Commitments with up to $330 million of the Net
Cash Proceeds of the Ortho Notes provided that such Net Cash Proceeds will be
used solely to refinance the Existing Subordinated Notes, to finance the Ortho
Acquisition and to repay outstanding Revolving Credit Loans and for no other
purpose and (b) any Default or Event of Default that would otherwise occur under
the Credit Agreement or any other Loan Document as a result of such
noncompliance with any such mandatory Term Loan prepayment or Revolving Credit
Commitment reduction requirement.
2. Representations and Warranties. On and as of the date
hereof and after giving effect to this Waiver, each of the Borrower and each
applicable Subsidiary Borrower hereby confirms, reaffirms and restates the
representations and warranties set forth in Section 4 of the Credit Agreement
mutatis mutandis, and to the extent that such representations and warranties
expressly relate to a specific earlier date in which case each of the Borrower
and each applicable Subsidiary Borrower hereby confirms, reaffirms and restates
such representations and warranties as of such earlier date.
3. Conditions to Effectiveness. This Waiver shall become
effective as of the date hereof upon receipt by the Administrative Agent of
counterparts of this Waiver, duly executed and delivered by the Borrower, each
Subsidiary Borrower and the Required Prepayment Lenders.
4. Continuing Effect; No Other Amendments. Except as expressly
amended or waived hereby, all of the terms and provisions of the Credit
Agreement are and shall remain in full force and effect. The waivers provided
for herein are limited to the specific subsections of the Credit Agreement
specified herein and shall not constitute an amendment or waiver of, or an
indication of any Lender's willingness to amend or waive, any other provisions
of the Credit Agreement or the same subsections for any other date or time
period (whether or not such other provisions or compliance with such subsections
for another date or time period are affected by the circumstances addressed in
this Waiver).
5. Expenses. The Borrower agrees to pay and reimburse the
Administrative Agent for all its reasonable costs and expenses incurred in
connection with the preparation and delivery of this Waiver, including, without
limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.
6. GOVERNING LAW. THIS WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
7. Counterparts. This Waiver may be executed by the parties
hereto in any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Waiver
to be duly executed and delivered by their proper and duly authorized officers
as of the day and year first above written.
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THE SCOTTS COMPANY
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
OM SCOTT INTERNATIONAL INVESTMENTS LTD.
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
MIRACLE GARDEN CARE LIMITED
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS HOLDINGS LIMITED
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
HYPONEX CORPORATION
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS' MIRACLE-GRO PRODUCTS, INC.
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By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS-SIERRA HORTICULTURAL PRODUCTS COMPANY
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
REPUBLIC TOOL & MANUFACTURING CORP.
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS-SIERRA INVESTMENTS, INC.
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS FRANCE HOLDINGS SARL
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS FRANCE SARL
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
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Title: Vice President, Corporate Treasurer
SCOTTS HOLDING GMBH
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS CELAFLOR GMBH & CO. KG
By: /s/ Rebecca J. Bruening
---------------------------------------------
Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
SCOTTS BELGIUM 2 BVBA
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
THE SCOTTS COMPANY (UK) LTD.
By: /s/ Rebecca J. Bruening
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Name: Rebecca J. Bruening
Title: Vice President, Corporate Treasurer
CITICORP USA INC.
Syndication Agent and as a Lender
By: /s/ Nicolas Erni
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Name: Nicolas Erni
Title: Attorney in fact
CREDIT LYONNAIS CHICAGO BRANCH, as Co-Documentation
Agent and as a Lender
By: /s/ Mary Ann Klemm
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Name: Mary Ann Klemm
Title: Vice President
NBD BANK, as Co-Documentation Agent and as a Lender
By: /s/ Gary C. Wilson
---------------------------------------------
Name: Gary C. Wilson
Title: First Vice President
THE CHASE MANHATTAN BANK, as Administrative Agent
and as a Lender
By: /s/ Randolph E. Cates
--------------------------------------------
Name: Randolph E. Cates
Title: Vice President
ABN AMRO BANK N.V., Pittsburgh
By: /s/ Patrick M. Pastore /s/ Gregory D. Amonia
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Name: Patrick M. Pastore Gregory D. Amonia
Title: Vice President Group Vice President
AERIES FINANCE LTD.
By: /s/ Andrew Ian Wignall
---------------------------------------------
Name: Andrew Ian Wignall
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Title: Director
ALLIANCE INVESTMENT OPPORTUNITIES
By: /s/ Andrew Ian Wignall
---------------------------------------------
Name: Andrew Ian Wignall
Title: Director
ALLSTATE LIFE INSURANCE CO.
By:
---------------------------------------------
Name:
Title:
ARES LEVERAGED INVESTMENT FUND II
By: /s/ David A. Sachs
---------------------------------------------
Name: David A. Sachs
Title: Vice President
ATHENA CDO, LIMITED
By: Pacific Investment Management Company as its
investment advisor
By: PIMCO Management Inc., a general partner
By: /s/ Bradley W. Paulson
---------------------------------------------
Name: Bradley W. Paulson
Title: Vice President
BHF BANK AKTIENGESELLSCHAFT
By: /s/ John Sykes
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Name: John Sykes
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Title: Vice President
BALANCED HIGH YIELD FUND II
By: /s/ John Sykes
---------------------------------------------
Name: John Sykes
Title: Vice President
BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION
By: /s/ Gretchen Spoo
---------------------------------------------
Name: Gretchen Spoo
Title: Vice President
BANK OF HAWAII
By: /s/ Mark C. Joseph
---------------------------------------------
Name: Mark C. Joseph
Title:
THE BANK OF NEW YORK
By: /s/ Ray Joyner
---------------------------------------------
Name: Ray Joyner
Title: Vice President
THE BANK OF NOVA SCOTIA
By: /s/ F.C.H. Ashby
---------------------------------------------
Name: F.C.H. Ashby
Title: Senior Manager Loan Operations
BANK OF TOKYO-MITSUBISHI TRUST COMPANY
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By:
---------------------------------------------
Name:
Title:
BANQUE NATIONALE DE PARIS
By: /s/ Arnaud Collin du Bocage
---------------------------------------------
Name: Arnaud Collin du Bocage
Title: Executive Vice President and
General Manager
BOEING CAPITAL CORPORATION
By:
---------------------------------------------
Name:
Title:
CIT GROUP/EQUIPMENT FINANCING, INC.
By:
---------------------------------------------
Name:
Title:
CAPTIVA II FINANCE LTD.
By:
---------------------------------------------
Name:
Title:
CAPTIVA III FINANCE LTD.
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By:
Name:
Title:
CARAVELLE INVESTMENT FUND, L.L.C.
By:
---------------------------------------------
Name:
Title:
CERES FINANCE LTD.
By: /s/ John H. Cullinane
---------------------------------------------
Name: John H.Cullinane
Title: Director
COMERICA BANK, Detroit
By: /s/ Anthony L. Davis
---------------------------------------------
Name: Anthony L. Davis
Title: Account Officer
CREDIT AGRICOLE INDOSUEZ, Chicago
By: /s/ W. Leroy Startz /s/ Katherine L. Abbott
----------------------------------------------------------
Name: W. Leroy Startz Katherine L. Abbott
Title: First Vice President First Vice President
CYPRESS TREE INVESTMENT PARTNERS
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By:
---------------------------------------------
Name:
Title:
CYPRESSTREE INSTITUTIONAL FUND, LLC
By:
---------------------------------------------
Name:
Title:
CYPRESSTREE INVESTMENT FUND, LLC
By:
---------------------------------------------
Name:
Title:
CYPRESSTREE SENIOR FLOATING RATE FUND
By:
---------------------------------------------
Name:
Title:
DELANO COMPANY
By: Pacific Investment Management Company as its
investment advisor
By: PIMCO Management Inc., a general partner
By: /s/ Bradley W. Paulson
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Name: Bradley W. Paulson
Title: Vice President
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DRESDNER BANK, AG
By: /s/ Ken Hamilton
---------------------------------------------
Name: Ken Hamilton
Title: First Vice President
/s/ Deborah Slusarczyk
---------------------------------------------
Name: Deborah Slusarczyk
Title: Vice President
ELC (Cayman) LTD.
First Union Corporation
By: /s/ illegible
---------------------------------------------
Name: Illegible
Title: Managing partner
ERSTE BANK
By:
---------------------------------------------
Name:
Title:
FIFTH THIRD BANK OF COLUMBUS
By: /s/ Mark Ransom
---------------------------------------------
Name: Mark Ransom
Title: Vice President
FLEET NATIONAL BANK
By:
---------------------------------------------
Name:
Title:
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FOOTHILL INCOME TRUST, L.P.
By:
---------------------------------------------
Name:
Title:
FRANKLIN FLOATING RATE TRUST
By:
---------------------------------------------
Name:
Title:
GENERAL ELECTRIC CAPITAL CORPORATION
By /s/ Janet K. Williams
---------------------------------------------
Name: Janet K. Williams
Title: Duly Authorized Signator
GOLDMAN SACHS CREDIT PARTNERS L.P.
By /s/ Stephen J. McGuinness
---------------------------------------------
Name: Stephen J. McGuinness
Title: Authorized Signatory
HARRIS TRUST AND SAVINGS BANK
By: /s/ Julie K. Hossack
---------------------------------------------
Name: Julie K. Hossack
Title: Vice President
HELLER FINANCIAL INC.
By: /s/ Linda W. Wolf
---------------------------------------------
Name: Linda W. Wolf
Title: Senior Vice President
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THE HUNTINGTON NATIONAL BANK
By: /s/ Julie Giancola
---------------------------------------------
Name: Julie Giancola
Title: Commercial Lending Officer
KZH APPALOOSA LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH BDC LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH CRESCENT-3 LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH ING-3 LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH RIVERSIDE LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
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KZH WATERSIDE LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH CNC LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KZH CYPRESSTREE-1 LLC
By:
---------------------------------------------
Name:
Title:
KZH ING-2 LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
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KZH SOLEIL-2 LLC
By: /s/ Virginia Conway
---------------------------------------------
Name: Virginia Conway
Title: Authorized Agent
KEY BANK NATIONAL ASSOCIATION
By: /s/ Illegible
---------------------------------------------
Name: Illegible
Title: Senior Vice President
LEHMAN COMMERCIAL PAPER INC.
By:
---------------------------------------------
Name:
Title:
ML CBO IV (CAYMAN) LTD.
By:
---------------------------------------------
Name:
Title:
ML CLO XII PILGRIM AMERICA (CAYMAN) LTD.
By: Pilgrim Investments, Inc.,
as its investment manager
By: /s/ Robert L. Wilson
---------------------------------------------
Name: Robert L. Wilson
Title: Vice President
ML CLO XX PILGRIM AMERICA (CAYMAN) LTD.
By: Pilgrim Investments, Inc.,
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as its investment manager
By: /s/ Robert L. Wilson
---------------------------------------------
Name: Robert L. Wilson
Title: Vice President
MSDW PRIME INCOME TRUST
By:
---------------------------------------------
Name:
Title:
MERRILL LYNCH PRIME RATE PORTFOLIO
By: Merrill Lynch Asset Management, L.P.,
as Investment Advisor
By: /s/George D. Pelose
---------------------------------------------
Name: George D. Pelose
Title: Authorized Signatory
MERRILL LYNCH SENIOR FLOATING RATE FUND, INC.
By: /s/George D. Pelose
---------------------------------------------
Name: George D. Pelose
Title: Authorized Signatory
METROPOLITAN LIFE INSURANCE CO.
By: Illegible
---------------------------------------------
Name: Illegible
Title: Director
MONUMENTAL LIFE INSURANCE COMPANY
By: /s/ Gregory W. Theobald
---------------------------------------------
Name: Gregory W. Theobald
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Title: Vice President & Assistant Secretary
NATIONAL CITY BANK
By: /s/ David B. Yates
---------------------------------------------
Name: David B. Yates
Title: Vice President
NATIONAL WESTMINSTER BANK, PLC
By:
---------------------------------------------
Name:
Title:
NORSE CBO, LTD.
By: /s/ Timothy S. Peterson
---------------------------------------------
Name: Timothy S. Peterson
Title: President
NORTH AMERICAN SENIOR FLOATING RATE FUND
By:
---------------------------------------------
Name:
Title:
ORIX USA CORPORATION
By: /s/ Illegible
---------------------------------------------
Name: Illegible
Title: Executive Vice President
OAK HILL SECURITIES FUND, L.P.
By: Oak Hill Securities GenPar, L.P.
its General Partner
By: Oak Hill Securities MGP, Inc.
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its General Partner
By /s/ Scott D. Krase
---------------------------------------------
Name: Scott D. Krase
Title: Vice President
OASIS COLLATERALIZED HIGH INCOME PORTFOLIOS-I, LTD.
By: /s/ Andrew Ian Wignall
---------------------------------------------
Name: Andrew Ian Wignall
Title: Director
OCTAGON LOAN TRUST
By: Octagon Credit Investors as Manager
By: /s/ Richard W. Stewart
---------------------------------------------
Name: Richard W. Stewart
Title: Managing Director
OSPREY INVESTMENTS PORTFOLIO
By: /s/ Hans L. Christensen
---------------------------------------------
Name: Hans L. Christensen
Title: Vice President
Oxford Strategic Income Fund
By: /s/ Andrew Ian Wignall
---------------------------------------------
Name: Andrew Ian Wignall
Title: Director
PACIFICA PARTNERS I, L.P.
By: /s/ Michael J. Bacevich
---------------------------------------------
Name: Michael J. Bacevichl
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Title: Senior Vice President
PARIBAS
By: /s/ Ann B. McAloon /s/ Brian F. Hewett
--------------------------------------------------
Name: Anne B. McAloon Brian F. Hewett
Title: Vice President Vice President
PINEHURST TRADING, INC.
By: /s/ Allen D. Shifflet
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Name: Allen D. Shifflet
Title: President
COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
B.A., "RABOBANK NEDERLAND", New York Branch
By: /s/ W. Pieter C. Kodde /s/ M. Christina Debler
--------------------------------------------------
Name: W. Pieter C. Kodde M. Christina Debler
Title: Vice President Vice President
SANKATY HIGH YIELD ASSET PARTNERS
By:
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Name:
Title:
SCOTIABANC, INC.
By:
---------------------------------------------
Name:
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Title:
SUNTRUST BANK, CENTRAL FLORIDA, N.A.
By: /s/ Stephen L. Leister
---------------------------------------------
Name: Stephen L. Leister
Title: Vice President
TORONTO DOMINION (New York), INC.
By: /s/ Jorge A. Garcia
---------------------------------------------
Name: Jorge A. Garcia
Title: Vice President
TORONTO DOMINION (TEXAS) INC.
By: /s/ Mark A. Baird
---------------------------------------------
Name: Mark A. Baird
Title: Vice President
THE TRAVELERS INSURANCE COMPANY
By: /s/ Allen R. Cantrell
---------------------------------------------
Name: Allen R. Cantrell
Title: Investment Officer
VAN KAMPEN CLO I, LIMITED
By: Van Kampen Management Inc.,
as Collateral Manager
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By: /s/ Jeffrey W. Maillet
---------------------------------------------
Name: Jeffrey W. Maillet
Title: Senior Vice President & Director