Repayment of Certain Indebtedness. Wellsford covenants that on the Closing Date it shall cause Newco and its Subsidiaries to repay all loans made to any of them by Wellsford or the other Wellsford Subsidiaries and to procure on the Closing Date the unconditional and irrevocable release of Wellsford and such other Wellsford Subsidiaries from any guaranties of the obligations of Newco and its Subsidiaries (whether effected directly or indirectly through the repayment of the indebtedness so guaranteed), other than the guaranties contemplated under the Credit Enhancement Agreement and the Palomino Agreement. Wellsford covenants that it shall cause Newco to apply the Contribution Funds (as defined in the Contribution Agreement) and shall cause Newco to request purchases of shares of Newco under the Newco Stock Purchase Agreement to the extent that Newco does not repay such indebtedness from other sources and obtain such releases by other means.
Appears in 4 contracts
Samples: Merger Agreement (Equity Residential Properties Trust), Merger Agreement (Wellsford Residential Property Trust), Merger Agreement (Equity Residential Properties Trust)
