Exhibit 4.44
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Space above this line for recorder's use
DOCUMENT PREPARED BY AND
AFTER RECORDING RETURN TO:
Cleary, Gottlieb, Xxxxx & Xxxxxxxx
Xxx Xxxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxxx X. Xxxxx, Esq.
SUBORDINATION AGREEMENT
AGREEMENT made as of the 29th day of July, 1997, by and among STATE
STREET BANK AND TRUST COMPANY, solely in its capacity as trustee and
collateral agent under and pursuant to the Subordinated Creditor Indenture
(as hereinafter defined) with an address at Xxx Xxxxxxxxxxxxx Xxxxx, Xxxxxx,
Xxxxxxxxxxxxx 00000, Attention: Corporate Trust Department, Xxxx Xxx Xxxxxx,
Vice President (the "Subordinated Creditor"), XXXXXXXX'X CORPORATION, a
Delaware corporation, with an address at XxXxxxxx'x Xxxxx, Xxx Xxxxx,
Xxxxxxxx 00000, Attention: General Counsel ("McDonald's") and DISCOVERY ZONE,
INC., a Delaware corporation, successor by merger to Leaps & Bounds, Inc.,
having its principal place of business at One Corporate Center, 000 Xxxx
Xxxxxxx Xxxxxxxxx, Xxxx Xxxxxxxxxx, Xxxxxxx 00000 ("Borrower").
W I T N E S S E T H:
RECITALS
A. WHEREAS, Borrower is the successor in interest to Discovery
Zone, Inc., a Delaware corporation and debtor and debtor in possession ("Old
DZI"), and Old DZI's affiliated debtors and debtors in possession including
Leaps & Bounds, Inc. (the "Debtors"),
[SCHAUMBURG, ILLINOIS PROPERTY]
all in the chapter 11 proceedings captioned In re Discovery Zone, Inc., et
al., Case No. 96-411 (HSB) (Jointly Administered), before the United States
Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"); and
B. WHEREAS, pursuant to an Agreement and Plan of Merger, dated as
of August 30, 1994 (the "Merger Agreement"), by and among Old DZI, and two of
the Debtors, Discovery Zone International, Inc. and Leaps & Bounds, Inc. on
the one hand, and McDonald's on the other hand, and related documentation,
McDonald's was or is the sublessor to Leaps & Bounds, Inc. of certain
properties, and Old DZI agreed to defend, indemnify and hold McDonald's and
its affiliates harmless in respect of all expenses, losses, costs,
deficiencies, liabilities and damages (including related and reasonable
counsel fees and expenses, and compensatory and demonstrable consequential
damages) incurred or suffered by McDonald's as a direct result of, inter
alia, any breach that results in any payment by McDonald's in connection with
any guarantee by McDonald's relating to such properties (the "Agreement to
Indemnify"); and
C. WHEREAS, On November 18, 1996, the Bankruptcy Court entered the
Stipulation and Order Between Debtors and XxXxxxxx'x Corporation Providing
for the Resolution, Settlement and Compromise of Disputes and for Rent
Deferrals and Allowance of Certain Claims (the "Stipulation and Order"),
pursuant to which, inter alia, the Debtors assumed certain subleases relating
to properties subleased by McDonald's to the Debtors pursuant to 11 U.S.C.
Section 365 as to which the Agreement to Indemnify remains in full force and
effect, the Bankruptcy Court approved the allowance of certain claims of
McDonald's, including those claims based on the Agreement to Indemnify, and
the Bankruptcy Court approved the validity, perfection, priority and
enforceability of certain claims and liens of McDonald's against the Debtors,
including, without limitation, the validity, perfection, priority and
enforceability of the Senior Mortgages (as defined below) and the Stipulation
and Order was not appealed or otherwise challenged and remains in full force
and effect; and
D. WHEREAS, pursuant to the plan of reorganization for Old DZI and
its affiliated debtors confirmed by the Bankruptcy Court by order entered
July 18, 1997 (the "Plan"), and as required by the terms of the Stipulation
and Order, Borrower, as the reorganized successor of the Debtors, is
obligated to issue to McDonald's Secured Rent Deferral Notes in the aggregate
original principal amount of $266,466.24, which amount is subject to increase
each month in accordance with the terms thereof (the "Senior Secured Rent
Deferral Notes," and individually a "Senior Secured Rent Deferral Note") and
Secured Rejection Note in the aggregate original principal amount of
$4,416,237.90 (the "Senior Secured Rejection Note"); and
E. WHEREAS pursuant to the terms and conditions of the Stipulation
and Order, the Plan, the Agreement to Indemnify, the Senior Secured Rejection
Note and the Senior Secured Rent Deferral Notes and any related documentation
(the "McDonald's Documentation"), the repayment and performance of the
obligations of Borrower to McDonald's under the McDonald's Documentation
(including any contingent obligations under
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the Agreement to Indemnify, the Stipulation and Order, including Section 7
thereof, or otherwise) (the "Senior Obligations") is secured by certain
amended and restated first priority mortgages, deeds of trust and/or deeds to
secure debt described on Exhibit A attached hereto and made a part hereof
(collectively, including all modifications, extensions and additions thereto,
the "Senior Mortgages," and individually, a "Senior Mortgage"), including the
Senior Mortgage identified by the recording information set forth in Exhibit
A-1, reaffirming and creating, to the extent necessary, valid and perfected
first priority liens on the real properties described on Exhibit B attached
hereto and made a part hereof, and other collateral described in the Senior
Mortgages (collectively, the "Real Properties," and individually, a "Real
Property"); and
F. WHEREAS, Borrower and the Subordinated Creditor entered into an
Indenture, dated July 22, 1997 (the "Subordinated Creditor Indenture") and
certain other documents and instruments related thereto, pursuant to which
and upon the terms and conditions therein indebtedness and other obligations
were incurred by the Borrower (the "Subordinated Indenture Indebtedness"),
the repayment and performance of which are secured by, among other things,
certain subordinated mortgages, deeds of trust and/or deeds to secure debt
described on Exhibit C hereto and made a part hereof (collectively, including
all modifications, extensions and additions thereto, the "Subordinated
Mortgages," and individually, a "Subordinated Mortgage"), including the
Subordinated Mortgage identified by the recording information set forth in
Exhibit C-1, creating valid and perfected liens on the Real Properties
subordinate to the Senior Mortgages; and
G. WHEREAS, pursuant to the Senior Mortgages, the Borrower cannot
grant a subordinated lien on any of the Real Properties without the express
approval of McDonald's and the Subordinated Indenture Indebtedness will not
be able to be issued without the agreement of McDonald's to permit the
issuance of the Subordinated Mortgages; and
H. WHEREAS, McDonald's approval of the Borrower's granting of the
Subordinated Mortgages is conditioned on the entry into this Subordination
Agreement by the Subordinated Creditor, which hereby warrants and represents
that it has full power and authority under the Subordinated Creditor
Indenture to enter into this Subordination Agreement on behalf of all holders
of any securities or obligations whatsoever issued pursuant to the
Subordinated Creditor Indenture; and
I. WHEREAS, the Subordinated Creditor and McDonald's each desire
to enter into this Subordination Agreement to confirm the subordination of
the liens of the Subordinated Mortgages to the liens of the Senior Mortgages
in accordance with the terms of this Agreement;
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL BENEFITS accruing to
the parties hereto, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
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1. Consent. Pursuant and subject to the other terms of this
Agreement, McDonald's consents to the Subordinate Mortgages. This consent
shall not be deemed to (i) be a consent to any future encumbrances, (ii) be a
waiver of the limitation on future encumbrances contained in the Senior
Mortgages, (iii) be a consent to or waiver of any other term or condition of
the Senior Mortgages or (iv) prejudice any right or rights which McDonald's
may now or in the future have under or in connection with the Senior
Mortgages.
2. Priority of McDonald's.
(a) Subordination. The Subordinated Creditor hereby agrees
for itself and its successors and assigns that, except as otherwise expressly
provided herein, the terms, provisions and liens of the Subordinated
Mortgages, and any of the Subordinated Creditor's liens or security interests
in the Real Properties (but only to the extent of McDonald's interest in such
Real Properties), are hereby intentionally and unconditionally subordinated
to, and at all times shall be junior, subject and subordinate to the terms,
provisions and liens of the Senior Mortgages (including, without limitation,
the liens securing future optional and/or obligatory increases in the amount
of the Senior Obligations or advances by McDonald's to or for the benefit of
the Borrower, regardless of the use to which such advances are put), as well
as to any and all increases therein and all extensions, consolidations,
modifications, renewals, refinancings and supplements thereto. The
Subordinated Creditor hereby waives any right it may have to require that
XxXxxxxx'x xxxxxxx any assets of the Borrower in favor of the Subordinated
Creditor and the Subordinated Creditor agrees that it shall not acquire, by
subrogation or otherwise, any lien, estate, right or other interest in the
Real Properties which is or may be prior or superior in right to the Senior
Mortgages, including but not limited to advances for real estate taxes and
assessments. The rights and priorities set forth in this Paragraph 2(a) shall
be effective notwithstanding the order of creation, attachment, vesting or
perfection of the rights of McDonald's under the Senior Mortgages, or of the
Subordinated Creditor under the Subordinated Mortgages, the Subordinated
Creditor Indenture or any other documents executed in connection therewith
(including, without limitation, any UCC-1 financing statements or fixture
filings). The Subordinated Creditor shall be deemed to have consented (i) to
any action by Borrower to which McDonald's consents pursuant to the Senior
Mortgages and (ii) to each act of, or failure to act by, the Borrower that is
not prohibited by the Senior Mortgages, provided that, both with respect to
(i) and (ii), such deemed consent is applicable only to acts or failures to
act in connection with the sale, construction, restoration, insurance,
condemnation or alterations of, to or on, or with respect to the Real
Properties and any other matters relating to the Real Properties.
(b) Insurance; Condemnation Awards. The Subordinated Creditor
hereby assigns and releases unto McDonald's, until payment in full of the
Senior Obligations:
(i) all of its right, title, interest or claim, if any,
in and to the proceeds of all policies of insurance
covering the Real Properties, for application in
accordance with the provisions of the Senior
Mortgages or as the Borrower and McDonald's may
otherwise agree; and
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(ii) all of its right, title and interest or claim, if
any, in and to all awards or other compensation made
for any taking of any part of the Real Properties for
application in accordance with the provisions of the
Senior Mortgages or as the Borrower and McDonald's
may otherwise agree.
All such insurance proceeds or awards which may become due and
payable to the Subordinated Creditor shall be payable directly to McDonald's,
and the Subordinated Creditor directs any insurance company or governmental
authority to make payment thereof directly to McDonald's for application in
accordance with the Senior Mortgages. In the event that any such insurance
proceeds or awards are made payable to the Subordinated Creditor despite such
direction, the Subordinated Creditor shall promptly transfer the same, or
promptly cause the same to be transferred, to McDonald's.
(c) Assignment of Leases and Rents. Any assignment in favor
of the Subordinated Creditor of any Leases or Rents (as such terms are
defined in the Senior Mortgages) contained in the Subordinated Mortgages or
the Subordinated Creditor Indenture, or in any other document or instrument
related thereto or delivered in connection therewith, and all rights of the
Subordinated Creditor thereunder, are hereby intentionally and
unconditionally subordinated to, and shall be in all respects junior, subject
and subordinate to any assignment of rents, leases or other agreements
relating to the Real Properties contained in (i) the Senior Mortgages, and
(ii) any other document now in existence or hereafter made by the Borrower to
secure the Senior Obligations, and to all rights of McDonald's thereunder.
Without limiting the foregoing provisions of this Paragraph 2(c), from and
after the execution and delivery of the Subordinated Mortgages to the
Subordinated Creditor, the Subordinated Creditor shall not be entitled to
receive or retain any Rents or other amounts assigned to the Subordinated
Creditor under any such document or instrument until such time as the Senior
Obligations shall have been completely paid in full.
(d) Non-Disturbance Agreements. The Subordinated Creditor
shall be required to give a non-disturbance agreement to any lessee or tenant
of the Real Properties with respect to whose lease McDonald's, as holder of
the Senior Mortgages, shall have executed a non-disturbance agreement, and,
if the Subordinated Creditor fails to give any such non-disturbance
agreement, the Subordinated Creditor nevertheless agrees not to disturb the
possession, occupancy or rights of any such lessee or tenant without the
prior written consent of McDonald's in each instance.
(e) Further Assurances. To further evidence the subordination
hereinabove provided for, the Subordinated Creditor agrees that, within 30
days after request by McDonald's, it will, at the Subordinated Creditor's
sole cost and expense, do, execute, acknowledge and deliver all and every
such further acts, deeds, conveyances and instruments as McDonald's may
reasonably request for the better assuring and evidencing of this
subordination (including, without limitation, further affirmation of the
application of this
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Agreement to future optional and/or obligatory increases in the amount of the
Senior Obligations or advances, regardless of the use to which such increases
or advances are put).
(f) Release or Subordination of Lien. If McDonald's shall at
any time release its lien on the Real Properties (or any part thereof) in
connection with a sale or refinancing of the Real Properties or any part
thereof, the Subordinated Creditor shall, without any payment to it, be
deemed to have consented to such sale or refinancing and shall release the
lien of the Subordinated Mortgages thereon at the same time that McDonald's
releases the lien of the Senior Mortgages thereon, and, in the event that the
Subordinated Creditor has not executed a release within seven (7) business
days of being requested to do so by Borrower of McDonald's in connection with
such sale or refinancing, the Subordinated Creditor hereby irrevocably
appoints McDonald's as its attorney in fact (coupled with an interest) to
execute in the name of the Subordinated Creditor or without the signature of
the Subordinated Creditor to the extent McDonald's may lawfully do so, one or
more releases or reconveyances of mortgages/deeds of trust or other documents
to evidence such release of the lien of the Subordinated Mortgages. Until
the Senior Obligations have been completely paid in full (including, without
limitation, any obligations which may arise under the Agreement to
Indemnify), all proceeds from or with respect to the sale, refinancing or
other disposition of the Real Properties or any part thereof shall be paid to
McDonald's (or placed into escrow for the benefit of McDonald's pursuant to
the terms of the Senior Mortgages) in satisfaction of the Senior Obligations
pursuant to the terms of the Senior Mortgages and the McDonald's
Documentation, and the Subordinated Creditor shall have no right, claim or
interest in or to any such proceeds.
(g) Enforcement. The Subordinated Creditor agrees that no
remedies provided for under the Subordinated Mortgages or other documents (to
the extent relating to the Real Properties in which McDonald's has an
interest) executed in connection with the Subordinated Creditor Indenture
shall be exercised with respect to the Real Properties, including, without
limitation, the commencement or prosecution of foreclosure proceedings, the
exercise of any power of sale, or the appointment of a receiver (or the
Subordinated Creditor as mortgagee in possession), without obtaining the
prior written consent of McDonald's. The Subordinated Creditor hereby
consents and agrees that any lawful action taken by or on behalf of
McDonald's in the exercise of McDonald's rights and/or remedies under the
Senior Mortgages (including, without limitation, any foreclosure or
acquisition of title to a Real Property by deed in lieu of foreclosure or
otherwise) are hereby deemed to be consented to by the Subordinated Creditor
in all respects.
(h) No Third-Party Beneficiaries. The provisions of clauses
(a)-(g) of this Paragraph 2 are solely for the benefit of the holder of the
Senior Mortgages and shall not create any rights in the Borrower or any other
person.
3. Bankruptcy. The provisions of this Agreement shall continue in
full force and effect notwithstanding the occurrence of any proceeding under
Title 11 of the United States Code (11 U.S.C. Sec. 101 et seq.) or any other
bankruptcy, insolvency, liquidation, reorganization, dissolution, winding up,
liquidation, readjustment or other similar proceeding
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relating to the Borrower or to its property (whether voluntary or
involuntary, partial or complete, and whether in bankruptcy, insolvency or
receivership, or upon a general assignment for the benefit of creditors, or
any other marshaling of the assets and liabilities of the Borrower, or any
sale of all or substantially all of the assets of the Borrower, or otherwise)
(each, an "Insolvency Proceeding"). Without limiting the generality of the
foregoing, in the event of an Insolvency Proceeding, (i) the Senior
Obligations (including post-petition interest on the Senior Obligations,
whether or not such interest is allowable under Section 502 or 506 of the
United States Bankruptcy Code) shall first be completely paid in full before
the Subordinated Creditor shall be entitled to receive or retain any proceeds
from or relating to the sale, refinancing or other disposition of the Real
Properties or any portion thereof in respect of the Subordinated Indenture
Indebtedness; and (ii) the Subordinated Creditor shall not object to or
oppose any efforts by McDonald's to obtain relief from the automatic stay
with respect to the Real Properties under Xxxxxxx 000 xx xxx Xxxxxx Xxxxxx
Bankruptcy Code.
4. Payments Received by the Subordinated Creditor. In the event
that the Subordinated Creditor receives any payment or other distribution of
any kind or character from the Borrower or from any other source whatsoever
in respect of any of the Subordinated Indenture Indebtedness, or receives any
security therefor, whether by way of agreement or compromise or otherwise,
which it is not entitled to retain pursuant to the terms of this Agreement,
the Subordinated Creditor shall immediately deliver the same to McDonald's,
in the form received, together with any necessary endorsements, in each case
for application on account of the Senior Obligations, but until so received
by McDonald's, the same shall be held in trust by the Subordinated Creditor
as the property of McDonald's.
5. No Consent Required. The Subordinated Creditor hereby agrees
that McDonald's may, from time to time, at its sole discretion and without
notice to or consent of or from the Subordinated Creditor, and without
affecting the obligations of the Subordinated Creditor herein or the
subordination provided for hereunder, take any or all of the following
actions:
(a) retain or obtain a lien or security interest in any
property to secure all or any part of the Senior Obligations;
(b) retain, obtain or permit the release of the primary or
secondary obligations of any other obligor or obligors with
respect to all or any part of the Senior Obligations;
(c) fail to perfect, or release XxXxxxxx'x xxxx or security
interest in, or surrender, release or permit any substitution or exchange
for, all or any part of any property (including, without limitation, the Real
Properties) securing all or any part of the Senior Obligations;
(d) change the manner, place or terms of payments, and/or
change or extend the time of payment of, renew or alter, all or any part of
the Senior Obligations, any security therefor, or any liability incurred
directly or indirectly in respect thereof, and the
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provisions hereof shall apply to the Senior Obligations as so changed,
extended, renewed or altered;
(e) sell, exchange, release, surrender, realize upon or
otherwise deal with in any manner and in any order the Real Properties or any
part thereof;
(f) exercise or refrain from exercising or release any rights
and/or remedies against the Borrower or others (including, without
limitation, any guarantor of all or a portion of the Senior Obligations) or
otherwise act or refrain from acting; and/or
(g) settle or compromise the Senior Obligations or any part
thereof or any security therefor, or any liability incurred directly or
indirectly in respect thereof or hereof.
6. Transfer. McDonald's may, from time to time, without notice to
Subordinated Creditor, assign or transfer any or all of the Senior
Obligations or any interest therein or any security therefor.
Notwithstanding any such assignment or transfer or any subsequent assignment
or transfer thereof, the holders of the Senior Obligations and the holders of
any interest therein shall be entitled to the benefits of this Agreement to
the same extent as if such holders were McDonald's specifically named in this
Agreement.
7. Other Liens. Nothing in this Agreement shall prohibit, prevent
or otherwise impede the Subordinated Creditor from exercising any rights,
remedy or power which it may have against the Borrower and/or its
subsidiaries with respect to any collateral other than the Real Properties,
which secures the Subordinated Indenture Indebtedness, provided, however,
that the Subordinated Creditor shall not take any action which could impair
the lien of the Senior Mortgages or the ability of McDonald's to foreclose or
otherwise enforce its security interests or liens thereunder.
8. Termination. This Agreement shall in all respects be a
continuing agreement and shall remain in full force and effect until (a) the
complete payment in full of all of the Senior Obligations, and (b) the
execution by McDonald's of releases of all of the Senior Mortgages and the
recording of such releases in the appropriate real property records.
9. Miscellaneous.
(a) No Waiver. No delay on the part of McDonald's in the
exercise of any right or remedy shall operate as a waiver thereof, and no
single or partial exercise by McDonald's of any right or remedy shall
preclude any other or further exercise thereof or the exercise of any other
right or remedy, nor shall any modification, waiver or discharge of any of
the provisions of this Agreement be binding upon McDonald's except as
expressly set forth in a writing duly signed and delivered by McDonald's.
(b) Obligations Absolute. The obligations of the Subordinated
Creditor herein shall be absolute and unconditional, and the subordination of
the lien of the Subordinated Mortgages herein contained shall be effective
with respect to the Senior
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Obligations, notwithstanding any right or power of the Borrower or anyone
else to assert any claim or defense as to the invalidity or unenforceability
of any such obligation and/or any lien securing the same, in whole or in
part, or any determination of such invalidity or unenforceability and no such
event shall affect or impair the agreements and obligations of the
Subordinated Creditor hereunder. In the event that any of the Senior
Obligations and/or any lien securing the same is determined to be invalid or
unenforceable, in whole or in part, the Subordinated Creditor agrees that, as
between McDonald's and the Subordinated Creditor, the Senior Obligations and
such lien shall be deemed valid and enforceable, and the obligations of the
Subordinated Creditor hereunder with respect thereto shall not be affected by
any such determination but shall continue in full force and effect.
(c) Sole Discretion. It is understood and agreed that in the
event of any dissolution, winding up, liquidation, readjustment,
reorganization or other similar proceedings relating to the Borrower or to
its property, McDonald's may use its sole discretion with respect to the
enforcement of the Senior Mortgages, or in otherwise exercising or refraining
from exercising any rights or in taking or refraining from taking any action
which it may be entitled to take or assert hereunder; and that McDonald's
shall not be under any liability for doing or refraining from doing anything
relative thereto in the exercise of its own reasonable judgment or which it
may deem necessary or desirable.
(d) Waiver of Notice and Diligence. The Subordinated Creditor
hereby waives: (i) notice of acceptance by McDonald's of this Agreement; (ii)
notice of the existence or creation or nonpayment of all or any of the Senior
Obligations; and (iii) all diligence in collection or protection of or
realization upon the Senior Obligations or any security therefor.
(e) Reinstatement. If, as a result of, or arising from, any
bankruptcy, insolvency or similar proceeding, claim is ever made upon
McDonald's or any participant in the Senior Obligations for repayment or
recovery of any amount or amounts received by it in payment or on account of
the Senior Obligations from the proceeds of the sale, refinancing or other
disposition of all or a portion of the Real Properties and McDonald's or such
participant repays the Borrower or its legal representative or a trustee in
bankruptcy, all or part of such amount by reason of (i) any judgment, decree
or order of any court or administrative body having jurisdiction or (ii) any
settlement or compromise of any such claim effected by McDonald's or such
participant with any such claimant (including the Borrower or any guarantor),
then in such event the Subordinated Creditor agrees that it shall be and
remain obligated hereunder with respect to the amount so repaid or recovered
to the same extent as if such amount had never originally been received by
McDonald's or such participant and to the extent the Subordinated Creditor
has received payments or distributions in respect of the Subordinated
Indenture Indebtedness from the proceeds of the sale, refinancing or other
disposition of the Real Properties.
10. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective
successors and assigns.
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11. Notices. Any notices or other communications required or
permitted hereunder shall be in writing, and shall be sufficiently given if
made by hand delivery, by telecopier or registered or certified mail, postage
prepaid, return receipt requested, to the addresses listed in the first
paragraph of this Agreement. Each party may designate additional or
different addresses for notices to such party. Any notice or communication
to either party hereto shall be deemed to have been given or made as of the
date so delivered if personally delivered; when receipt is acknowledged
electronically (with copy by U.S. mail), if faxed (the fax number for the
Subordinated Creditor is (000) 000-0000; the fax number for McDonald's is
(000) 000-0000; and five (5) calendar days after mailing if sent by
registered or certified mail, postage prepaid (except that a notice of change
of address shall not be deemed to have been given until actually received by
the addressee).
12. Representations by the Subordinated Creditor. The Subordinated
Creditor has the power, authority and legal right pursuant to the
Subordinated Creditor Indenture to execute, deliver and perform this
Agreement. The Subordinated Creditor has been duly authorized pursuant to
the Subordinated Creditor Indenture to enter into this Subordination
Agreement on behalf of the Holders (as defined in the Subordinated Creditor
Indenture) and this Subordination Agreement constitutes the valid and binding
obligations of the Subordinated Creditor on behalf of such Holders
enforceable against the Subordinated Creditor on behalf of such Holders in
accordance with its terms.
13. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York including both
matters of internal law and conflicts of law, except that matters as to the
priority of liens on the Real Properties and remedies and procedural matters
relating thereto shall be governed by the laws of the State in which the Real
Properties is located.
14. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart.
15. Singular and Plural. Words used in this Agreement in the
singular, where the context so permits, shall be deemed to include the plural
and vice versa. The definitions of words in the singular in this Agreement
shall apply to such words when used in the plural where the context so
permits and vice versa.
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IN WITNESS WHEREOF, this Agreement has been duly executed by the
parties hereto as of the date first above written.
STATE STREET BANK AND TRUST COMPANY, solely in its
capacity as trustee and collateral agent under and
pursuant to the Subordinated Creditor Indenture
By: /s/ Xxxx Xxx Xxxxxx
------------------------------------------------
Name: Xxxx Xxx Xxxxxx
Title: Vice President
XXXXXXXX'X CORPORATION
By: /s/ Xxxxxx Xxxxxxx
------------------------------------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President, Deputy General Counsel
and Secretary
DISCOVERY ZONE, INC.
By: /s/ Xxxxxx Xxxxxx
------------------------------------------------
Name: Xxxxxx Xxxxxx
Title: Sr VP
STATE OF MASSACHUSETTS)
COUNTY OF SUFFOLK )
On this 31 day of July, 1997, before me, the undersigned, a Notary
Public in and for the State of Pennsylvania, personally appeared Xxxx Xxx
Xxxxxx, to me personally known, who, being by me duly sworn, did say that
[s]he is a Vice President of STATE STREET BANK AND TRUST COMPANY, a
Massachusetts trust company; that the instrument was signed on behalf of the
trust company, by authority of the trust company's Board of Directors; and
that Xxxx Xxx Xxxxxx as that officer acknowledged execution of the instrument
to be the voluntary act and deed of the trust company by it and by the
officer voluntarily executed.
/s/ Xxxxx X. Xxxxxx
-------------------------------------------
Notary Public in the State of Massachusetts
Xxxxx X. Xxxxxx
My Commission Expires 5/15/2003
[Notarial Seal]
STATE OF ILLINOIS )
COUNTY OF DUPAGE )
------
On this __ day of July, 1997, before me, the undersigned, a Notary
Public in and for the State of Illinois, personally appeared Xxxxxx Xxxxxxx,
to me personally known, who, being by me duly sworn, did say that [s]he is
the Vice President, Deputy General Counsel and Secretary of XxXXXXXX'X
CORPORATION, a Delaware corporation; that the instrument was signed on behalf
of the corporation, by authority of the corporation's Board of Directors; and
that Xxxxxx Xxxxxxx as that officer acknowledged execution of the instrument
to be the voluntary act and deed of the corporation by it and by the officer
voluntarily executed.
/s/ Xxxxxxx Xxxxxxxxxx
-----------------------------------------
Notary Public in the State of Illinois
[Notarial Seal] -----------------------------------
"OFFICIAL SEAL"
Xxxxxxx Xxxxxxxxxx
Notary Public, State of Illinois
My Commission Expires 02/15/99
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STATE OF NEW YORK )
COUNTY OF WESTCHESTER )
On this 28 day of July, 1997, before me, the undersigned, a Notary
Public in and for the State of New York, personally appeared Xxxxxx Xxxxxx,
to me personally known, who, being by me duly sworn, did say that [s]he is
the Sr. VP of DISCOVERY ZONE, INC., a Delaware corporation; that the
instrument was signed on behalf of the corporation, by authority of the
corporation's Board of Directors; and that Xxxxxx Xxxxxx as that officer
acknowledged execution of the instrument to be the voluntary act and deed of
the corporation by it and by the officer voluntarily executed.
/s/ Xxxx X. Xxxxxxxx
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Notary Public in the State of New York
[Notarial Seal]
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Xxxx X. Xxxxxxxx
Notary Public State of New York
Lic. 4397846
Qualified in New York County
Commission Expires June 15, 1998
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EXHIBIT A
DESCRIPTIONS OF SENIOR MORTGAGES
The following is a list of the amended and restated first priority
mortgages, deeds of trust and/or deeds to secure debt entered executed by
Borrower, on behalf of McDonald's, pursuant to the terms and conditions of
the McDonald's Documentation:
1. Amended and Restated Deed To Secure Debt and Security Agreement, made as
of July 29, 1997, by Borrower to McDonald's, relating to mortgaged
property located in Kennesaw, in the County of Xxxx, in the State of
Georgia.
2. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to Chicago Title Insurance Company, a Missouri Corporation, as
trustee, for the benefit of McDonald's, relating to trust property
located in Vancouver, in the County of Xxxxx, in the State of Washington.
3. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to Xxxxxxx X. Xxxxxxx, as trustee, to and for the benefit of
McDonald's, relating to trust property located in Xxxx Valley, in the
County of Bexar, in the State of Texas.
4. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to Xxxxxxx X. Xxxxxxx, as trustee, for the benefit of
McDonald's, relating to trust property located in Arlington, in the
County of Tarrant, in the State of Texas.
5. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to Xxxxxxx X. Xxxxxxx, as trustee, for the benefit of
McDonald's, relating to trust property located in San Antonio, in the
County of Bexar, in the State of Texas.
6. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to The Public Trustee of the County of Xxxxxxx, Colorado, as
trustee, to and for the benefit of McDonald's, relating to trust
property located in Littleton, in the County of Xxxxxxx, in the State of
Colorado.
7. Amended and Restated Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to The Public Trustee of the County of Arapahoe, Colorado, as
trustee, to and for the benefit of McDonald's, relating to trust
property located in Aurora, in the County of Arapahoe, in the State of
Colorado.
8. Amended and Restated Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing, made as of July 29, 1997, by Borrower to
McDonald's, relating to mortgaged property located in Schaumburg, in the
County of Xxxx, in the State of Illinois.
9. Amended and Restated Mortgage, made as of July 29, 1997, by Borrower to
McDonald's, relating to mortgaged property located in Sterling Heights,
in the County of Macomb, in the State of Michigan.
10. Open-End Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing (Amended and Restated), made as of July 29, 1997, by
Borrower to McDonald's, relating to mortgaged property located in Forest
Park, in the County of Xxxxxxxx, in the State of Ohio.
11. Open-End Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing (Amended and Restated), made as of July 29, 1997, by
Borrower to McDonald's, relating to mortgaged property located in
Columbus, in the County of Franklin, in the State of Ohio.
12. Amended and Restated Open-End Mortgage, Assignment of Leases and Rents,
Security Agreement and Fixture Filing, made as of July 29, 1997, by
Borrower to McDonald's, relating to mortgaged property located in
Philadelphia, in the County of Philadelphia, in the State of
Pennsylvania.
13. Amended and Restated Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing, made as of July 29, 1997, by Borrower to
McDonald's, relating to mortgaged property located in Blaine, in the
County of Anoka, in the State of Minnesota.
14. Amended and Restated Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing, made as of July 29, 1997, by Borrower to
McDonald's, relating to mortgaged property located in Washington
Township, in the County of Marion, in the State of Indiana.
EXHIBIT A-1
RECORDING INFORMATION FOR SENIOR MORTGAGE IN FAVOR OF MCDONALD'S
County Book Volume
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Senior Mortgage (Schaumburg)
Schaumburg
Xxxx County, Illinois
PIN: 07-19-105-003-0000
Address: 0000 Xxxx Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, XX
EXHIBIT B
PARCEL 1:
LOT 3 IN PRAIRIE TOWNE CENTER, BEING A SUBDIVISION OF THAT PART OF THE
NORTHWEST FRACTIONAL QUARTER OF SECTION 19, TOWNSHIP 41 NORTH, RANGE 10, EAST
OF THE THIRD PRINCIPAL MERIDIAN, IN XXXX COUNTY, ILLINOIS.
PARCEL 2:
ALL THOSE CERTAIN RIGHTS, BENEFITS AND EASEMENTS AS CREATED PURSUANT TO THE
EASEMENT AGREEMENT MADE BY AND BETWEEN K-MART CORPORATION, LEAPS AND BOUNDS
INC., AND KOHL'S DEPARTMENT STORES RECORDED MAY 20, 1993 AS DOCUMENT
93382707, AS AMENDED BY AMENDMENT TO OPERATION AND EASEMENT AGREEMENT DATED
MARCH 16, 1994, RECORDED MARCH 22, 1994 AS DOCUMENT 94259759, AS FURTHER
AMENDED BY DECLARATION RECORDED JANUARY 31, 1995 AS DOCUMENT 95072883
EXHIBIT C
DESCRIPTIONS OF SUBORDINATED MORTGAGES
The following is a list of the subordinated mortgages, deeds of trust
and/or deeds to secure debt entered executed by Borrower, on behalf of the
Subordinated Creditor, pursuant to the terms and conditions of the McDonald's
Documentation:
1. Deed To Secure Debt and Security Agreement, made as of July 29, 1997, by
Borrower to Subordinated Creditor, relating to mortgaged property
located in Kennesaw, in the County of Xxxx, in the State of Georgia.
2. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to Chicago Title
Insurance Company, a Missouri corporation, as trustee, for the benefit
of Subordinated Creditor, relating to trust property located in
Vancouver, in the County of Xxxxx, in the State of Washington.
3. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to Xxxxxxx X.
Xxxxxxx, as trustee, to and for the benefit of Subordinated Creditor,
relating to trust property located in Xxxx Valley, in the County of
Bexar, in the State of Texas.
4. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to Xxxxxxx X.
Xxxxxxx, as trustee, for the benefit of Subordinated Creditor, relating
to trust property located in Arlington, in the County of Tarrant, in the
State of Texas.
5. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to Xxxxxxx X.
Xxxxxxx, as trustee, for the benefit of Subordinated Creditor, relating
to trust property located in San Antonio, in the County of Bexar, in the
State of Texas.
6. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to The Public
Trustee of the County of Xxxxxxx, Colorado, as trustee, to and for the
benefit of Subordinated Creditor, relating to trust property located in
Littleton, in the County of Xxxxxxx, in the State of Colorado.
7. Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, made as of July 29, 1997, by Borrower to The Public
Trustee of the County of Arapahoe, Colorado, as trustee, to and for the
benefit of Subordinated Creditor, relating to trust property located in
Aurora, in the County of Arapahoe, in the State of Colorado.
8. Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture
Filing, made as of July 29, 1997, by Borrower to Subordinated Creditor,
relating to mortgaged property located in Schaumburg, in the County of
Xxxx, in the State of Illinois.
9. Mortgage, made as of July 29, 1997, by Borrower to Subordinated
Creditor, relating to mortgaged property located in Sterling Heights, in
the County of Macomb, in the State of Michigan.
10. Open-End Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing, made as of July 29, 1997, by Borrower to
Subordinated Creditor, relating to mortgaged property located in Forest
Park, in the County of Xxxxxxxx, in the State of Ohio.
11. Open-End Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing, made as of July 29, 1997, by Borrower to
Subordinated Creditor, relating to mortgaged property located in
Columbus, in the County of Franklin, in the State of Ohio.
12. Open-End Mortgage, Assignment of Leases and Rents, Security Agreement
and Fixture Filing, made as of July 29, 1997, by Borrower to
Subordinated Creditor, relating to mortgaged property located in
Philadelphia, in the County of Philadelphia, in the State of
Pennsylvania.
13. Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture
Filing, made as of July 29, 1997, by Borrower to Subordinated Creditor,
relating to mortgaged property located in Blaine, in the County of
Anoka, in the State of Minnesota.
14. Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture
Filing, made as of July 29, 1997, by Borrower to Subordinated Creditor,
relating to mortgaged property located in Washington Township, in the
County of Marion, in the State of Indiana.
EXHIBIT C-1
RECORDING INFORMATION FOR SUBORDINATED MORTGAGE IN FAVOR OF STATE STREET BANK
AND TRUST COMPANY (SOLELY IN ITS CAPACITY AS TRUSTEE AND COLLATERAL AGENT
UNDER AND PURSUANT TO THE SUBORDINATED CREDITOR INDENTURE)
County Book Volume
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Subordinated Mortgage
(Schaumburg)
