LEASE GUARANTY
Exhibit
10.12
Pool
IX
THIS LEASE GUARANTY, dated as of April
30, 1998 (together with all amendments and supplements hereto, this "Guaranty")
made by ACCOR, a corporation duly organized under the laws of France (the
"Guarantor") in favor of M-SIX PENVEST II BUSINESS TRUST (together with each
Owner listed on Schedule I hereto through which it directly or indirectly holds
title to the Properties, as hereinafter defined and their respective successors
and assigns, collectively referred to herein as the "Owner"). Each Owner is
individually referred to herein as a "Beneficiary" and collectively as the
"Beneficiaries".
WITNESSETH:
WHEREAS, Universal Commercial Credit
Leasing Ill, Inc. a Delaware corporation (the "Lessee") is an indirect wholly
owned subsidiary of the Guarantor;
WHEREAS, in order to induce the
Beneficiaries to enter into the Operative Documents, the Guarantor is executing
and delivering this Guaranty to the Beneficiaries;
NOW, THEREFORE, for value received, the
Guarantor hereby agrees with and for the benefit of each of the Beneficiaries as
follows:
ARTICLE
I
SECTION
1.1 Definitions and Rules of
Usane. When used herein, each capitalized term shall have the meaning
assigned thereto in the Indenture of Mortgage, Deed of Trust, Security
Agreement, Fixture Filing, Financing Statement and Assignment of Rents and
Leases, of even date herewith (together with all amendments and supplements
thereto, the "Indenture"), from
Owner and the parties, if any, listed as Remainderman in Schedule I thereto
(collectively the "Remainderman") to NOMURA ASSET CAPITAL CORPORATION, a
Delaware corporation (together with its successors and assigns, the "Lender") or
to one or more trustees for the benefit of Lender and to Lender. The rules of
usage set forth in such Indenture shall apply hereto.
ARTICLE
II
SECTION
2.1 Guarantee of Obligations
Under Operative Documents. (a) The Guarantor absolutely, irrevocably and
unconditionally guarantees to the Beneficiaries the due, complete and punctual
performance and observance of all payment obligations of the Lessee under the
Operative Documents to which the Lessee is a party and the due, complete and
punctual performance of, and compliance with, all other covenants and agreements
of the Lessee under the Operative Documents to which the Lessee is a party (in
each case, including any and all other obligations, indebtedness and liabilities
(whether for fees or for breach of covenant or warranty) now or hereafter
incurred by the Lessee to the Beneficiaries arising pursuant or with respect to
such Operative Documents), in each case, strictly in accordance with the terms
thereof (all such payment obligations and other covenants and agreements being
referred to herein as the "Obligations") and agrees to pay upon demand any and
all expenses (including reasonable attorneys fees and disbursements) that may be
paid or incurred by any Beneficiary in enforcing any rights with respect to, or
collecting, any or all payments due from the Lessee pursuant to the terms of the
Operative Documents and/or enforcing any rights with respect to, or collecting
against, the Guarantor under this Guaranty.
(b) In
the event that: (1) the Lessee fails to pay, perform or observe duly, completely
and punctually any Obligation to pay the amount due under any Operative Document
or overdue interest on any of the foregoing, when and as the same shall be due
(whether at the stated maturity, by acceleration or otherwise) and payable,
or
required
to be performed, as the case may be, in accordance with the terms of such
Operative Document, the Guarantor shall upon five (5) Business Days prior
written notice, forthwith pay, perform and observe such Obligation or cause the
same forthwith to be paid, performed or observed, or (ii) the Lessee fails to
pay, perform or observe duly, completely and punctually any other Obligation
when and as the same shall be due (whether at stated maturity, by acceleration
or otherwise) and payable, or required to be performed or observed, as the case
may be, in accordance with the terms of such Operative Document, the Guarantor
shall upon five (5) Business Days prior written notice, forthwith pay, perform
or observe any other such Obligations or cause the same forthwith to be paid,
performed or observed, in each case, regardless of whether or not such
Beneficiary or anyone on its behalf shall have instituted any suit, action or
proceeding or exhausted its remedies or taken any steps to enforce any rights
against the Lessee or any other Person or entity to compel any such performance
or to collect all or any part of such amount pursuant to the provisions of such
Operative Document or at law or in equity, or otherwise, and regardless of any
other condition or contingency.
(c) In
addition, in case the Operative Documents to which Tenant is a party shall be
terminated, modified or in any way affected as a result of the rejection or
disaffirmance thereof by any trustee, receiver, liquidator, agent or other
representative of Lessee or any of the property of Lessee in any assignment for
the benefit of creditors or in any bankruptcy, insolvency, reorganization,
arrangement, readjustment, liquidation, dissolution or similar proceeding,
Guarantor's obligations hereunder shall continue to the same extent as if the
Operative Documents to which Tenant is a party had not been so rejected or
disaffirmed. Guarantor shall and does hereby waive all rights and benefits which
might accrue to it by reason of any such assignment or proceeding and Guarantor
agrees that it is and shall be liable for the full amount of the Obligations
irrespective of and without regard to any modification, limitation or discharge
of liability of Lessee that may result from or in connection with any such
assignment or proceeding.
SECTION
2.2 Unconditional
Obligations. This Guaranty is a primary obligation of the Guarantor and
is an unconditional, absolute, present and continuing obligation and guarantee
of payment and performance (and not merely of collection) and the validity and
enforceability of this Guaranty shall be absolute and unconditional and shall
not be impaired, affected or in any way conditioned or contingent upon, nor
subject to any reduction, limitation, impairment, termination, defense (other
than the defense of prior payment or performance), offset, counterclaim or
recoupment whatsoever (all of which are hereby expressly waived by Guarantor)
irrespective of (a) the making of a demand, the institution of suit or the
taking of any other action to enforce performance, or observance by the Lessee
of the Obligations, (b) the validity, regularity or enforceability of any
Operative Document or any of the Obligations or any collateral security, other
guarantee, if any, or credit support therefor or right to offset with respect
thereto at any time or from time to time held by any Beneficiary, (c) any
defense, set-off or counterclaim (other than the defense of prior payment or
performance) that may at any time be available to or be asserted by the Lessee
or the Guarantor against such Beneficiary, (d) any attempt to collect from the
Lessee or any other entity or to perfect or enforce any security or (e) upon any
other action, occurrence or circumstances whatsoever. The Guarantor waives any
requirement that the Beneficiaries shall have instituted any suit, action or
proceeding or exhausted their remedies or taken any steps to enforce any rights
against the Lessee or any other Person or entity to compel any such performance
or to collect all or any part of such amount pursuant to the provisions of the
Operative Documents or at law or in equity, or otherwise, and regardless of any
other condition or contingency.
SECTION
2.3 Amendments, etc., with
Respect to the Obligations. The Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against
Guarantor and without notice to or further assent by Guarantor, (a) any demand
for payment or performance of any of the Obligations made by any Beneficiary may
be rescinded by such Beneficiary and any of the other Obligations continue to be
in effect; (b) the Obligations, or the liability of any other party upon or for
any part thereof, and any collateral security or guarantee therefor or right of
offset with respect thereto, may be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Beneficiaries;
(c) any Operative Document, or any collateral security document or other
guarantee or document executed and delivered in connection therewith or related
thereto may be amended, modified, supplemented or terminated, in accordance with
its terms, as the parties thereto may deem advisable; and (d) any collateral
security, guarantee or right to offset held by any Beneficiary for the payment
or performance of the Obligations may be sold, exchanged, waived, surrendered or
released. The Beneficiaries shall not have any obligation to protect, secure,
perfect or insure any Lien at any time held as security for the Obligations or
for this Guaranty or any property subject thereto. For purposes hereof, "demand"
shall include the commencement and continuance of any legal
proceedings.
SECTION
2.4 The Guarantor's Obligations
Not Affected.. The Guarantor expressly agrees that the duties and
obligations of the Guarantor under this Guaranty shall remain in full force and
effect, without the necessity of any reservation of rights against the Guarantor
or notice (other than the notice referred to in Section. 2. 1 (b))
to or further assent by the Guarantor at any time and from time to time, in
whole or in part, and without regard to, and shall not be impaired, released,
discharged, terminated or affected by:
(a) any
extension, modification or renewal of, termination, addition or supplement to,
or deletion from, any of the terms of or indulgence with respect to, or
substitutions for, the Obligations or any part thereof or any agreement relating
thereto at any time;
(b) any
failure, refusal or omission to enforce any right, power or remedy with respect
to the Obligations or any part thereof or any agreement relating
thereto;
(c) any
waiver of any right, power or remedy or of any default with respect to the
Obligations or any part thereof or any agreement relating thereto;
(d) any release, surrender, compromise,
settlement, waiver, subordination or modification, with or without
consideration, of any other guarantees with respect to the Obligations or any
part thereof, or any other obligation of any Person with respect to the
Obligations or any part thereof;
(e) the lack of genuineness,
unenforceability or invalidity of the Obligations or any part thereof or the
lack of genuineness, unenforceability or invalidity of any agreement relating
thereto;
(f) any
change in the ownership of the Lessee or the insolvency, bankruptcy or any other
change in the legal status of the Lessee, Owner or Guarantor or any rejection or
modification of the Obligations of the Lessee or those of any Person under the
Operative Documents as a result of any bankruptcy, reorganization, insolvency or
similar proceeding;
(g) the
change in or the imposition of any applicable laws and regulations or other
governmental act that does or might impair, delay or in any way affect the
validity, enforceability, or the payment when due, of the Obligations to the
extent not prohibited by Applicable Laws and Regulations or
otherwise;
(h) the
existence of any claim, set off or other rights or defenses (other than the
defense of prior payment or performance) that the Guarantor may have at any time
against the Lessee or any Beneficiary or any other Person in connection herewith
or with an unrelated transaction and the existence of any claim, setoff or other
rights or defenses that the Lessee may have against Guarantor, any Beneficiary
or any other Person in connection with the Operative Documents or with an
unrelated transaction;
(i) any
merger or consolidation of the Lessee or the Guarantor into or with any other
Person, or any sale, lease or transfer of any or all of the assets of the Lessee
or the Guarantor to any other Person;
(j) the
rights, powers or privileges the Beneficiaries may now or hereafter have against
any Person or collateral;
(k) any
defect in title, condition, operation or fitness of use of any Property, any
casualty or condemnation affecting any Property or any sublease, assignment,
renewal, extension or other transfer or continuation of the Lessee's rights
under the Master Lease or any other Obligations, whether in accordance with the
terms of the Operative Documents or otherwise; or
(1) any
other action, omission, occurrence or circumstance whatsoever which may in any
manner or to any extent vary the risk or effect a legal or equitable defense or
discharge of the Guarantor hereunder as a matter of law or
otherwise.
SECTION
2.5 Waiver by the
Guarantor. The Guarantor unconditionally waives and releases, to the
fullest extent permitted by applicable laws and regulations, any and all (a)
notice of the acceptance of this Guaranty and of any change in the Lessee's
financial condition; (b) notices of the creation, renewal, extension or accrual
of any Obligation or any of the matters referred to in Section 2.04 hereof or
any notice of or proof of reliance by the Beneficiaries upon this Guaranty or
acceptance of this Guaranty (the Obligations, and any of them, shall
conclusively be deemed to have been created, contracted, incurred, renewed,
extended, amended or waived in reliance upon this Guaranty and all dealings
between the Lessee, the Sellers or the Guarantor and the Beneficiaries shall be
conclusively presumed to have been had or consummated in reliance upon this
Guaranty); (c) notices which may be required by statute, rule of law or
otherwise, now or hereafter in effect, to preserve intact any rights of the
Beneficiaries against the Guarantor; (d) the right to interpose all substantive
and procedural defenses of the law of guaranty, indemnification and suretyship,
except the defenses of prior payment or prior performance by the Lessee or the
Guarantor of the Obligations; (e) all rights and remedies accorded by applicable
laws and regulations to guarantors or sureties, including any extension of time
conferred by any law now or hereafter in effect; (f) any right or claim of right
to cause a marshaling of the Lessee's assets or to cause the Beneficiaries to
proceed against the Lessee or any collateral held by the Beneficiaries at any
time or in any particular order; (g) rights to the endorsement, assertion or
exercise by the Beneficiaries of any right, power, privilege or remedy conferred
herein or in any Operative Document or otherwise; (h) requirements of promptness
or diligence on the part of the Beneficiaries; (i) any sublease, assignment,
renewal, extension or continuation of the Lessee's rights under the Master Lease
or any notices of the sale, transferor other disposition of any right, title to
or interest in the Properties or any Operative Document; 0) rights and defenses
arising out of an election of remedies by the Beneficiaries, or any of them,
even though that election of remedies has destroyed the Guarantor's rights of
subrogation and reimbursement against Lessee by operation of law or otherwise;
or (k) other circumstances whatsoever (except the defenses of prior payment or
prior performance by the Lessee or the Guarantor of the Obligations) which might
otherwise constitute a legal or equitable discharge, release or defense of a
guarantor or surety, or which might otherwise limit recourse against
the-Guarantor. No failure to exercise and no delay in exercising, on the part of
the Beneficiaries, any right, power or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power or
privilege preclude any other or further exercise thereof, or the exercise of any
other power or right. The rights and remedies herein provided are cumulative and
not exclusive of any rights or remedies provided by law.
SECTION
2.6 Payments. All
payments hereunder shall be made in compliance with Sections 5.14 and
5.16
SECTION 2.7 R Reinstatement. This
Guaranty shall continue to be effective, or be reinstated, as the case may be,
if at any time payment, in whole or in part, of any of the Obligations (i) is
rescinded or must otherwise be restored or returned by a Beneficiary upon the
bankruptcy, insolvency, reorganization, arrangement, adjustment, composition,
dissolution, liquidation, or the like, of the Lessee or the Guarantor, or as a
result of, the appointment of a custodian, receiver, trustee or other officer
with similar powers with respect to the Lessee or the Guarantor or any
substantial part of either Person's respective property, or otherwise, or (ii)
is returned to Tenant or Guarantor by reason of a decree, moratorium or other
sovereign act of any governmental authority, in each case, all as though such
payment had not been made notwithstanding any termination of this Guaranty or
any Operative Document.
ARTICLE
III
SECTION
3.1 Representations and
Warranties of the Guarantor. The Guarantor hereby represents and warrants
to the Beneficiaries as of the Closing Date that:
(a) Status. It is duly
incorporated and validly existing under the laws of France and is fully
qualified and empowered to own its assets and carry out its business wheresoever
situated.
(b) Powers. It has the
corporate power to enter into this Guaranty and to exercise its rights and
perform its obligations hereunder, and has taken all necessary corporate and
other action to authorize the execution, delivery and performance of
this Guaranty (including, without imitation, any authorization
required to be passed by the Supervisory Board of the Guarantor pursuant to
Article 113 of the Decree n°67-236 of 23rd March 1967).
(c) Authorizations. All
acts, conditions, authorizations and other things required to be done, fulfilled
and performed by it in order:
(i) to
enable it lawfully to enter into, exercise its rights under and perform and
comply with the obligations expressed to be assumed by it in this
Guaranty;
(ii) to
ensure that the obligations expressed to be assumed by it in this Guaranty are
legal, valid and binding and enforceable against it in accordance with the
respective terms thereof; and
(iii) to make this Guaranty admissible
in evidence in the United States and in France;
have been
done, fulfilled and performed and are in full force and effect.
(d) No Filing. Under the
laws of the United States, the State of New York and France in force at the date
hereof, it is not necessary that this Guaranty be filed, recorded or enroled
with any court or other authority in the United States, the State of New York or
in France or that any stamp, registration or similar tax be paid on or in
relation to this Guaranty (or where it is so required, this Guaranty has been so
filed, recorded or enroled or such stamp, registration or other tax has been
paid or will be paid within due times).
(e) Legal Validity. This
Guaranty has been duly executed and delivered by Guarantor. The obligations
expressed to be assumed by it in this Guaranty are legal and valid obligations
binding on it and enforceable in accordance with the terms of this Guaranty
except as such enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors generally and by general
equitable principles. This Guaranty is in full force and effect as of the
Closing Date, not subject to any right of rescission, setoff, counterclaim or
defense by Guarantor nor will the operation of any of the terms of the Guaranty
or the exercise of any right thereunder, render this Guaranty unenforceable
against Guarantor, in whole or in part, or subject to any right of rescission,
setoff, counterclaim or defense by Guarantor and Guarantor has not asserted any
right of rescission, setoff, counterclaim or defense with respect
thereto.
(f) Insolvency. It has
not taken any corporate action nor have any other steps been taken or legal
proceedings been started or threatened against it pursuant to any redressement judiciare or liquidation judiciare
or otherwise for its winding-up, dissolution or re-organization or for the
appointment of a receiver, administrator, administrative receiver, trustee or
similar officer of it or of any or all of its revenues or assets; it is not
insolvent nor in a state of "Cessatation de Paiements"; nor has it entered into
any accord
amiable i.e. an out of court
settlement with its creditors relating to a restructuring of a substantial part
of its indebtedness), any plan de continuation or plan de cession
totale or partielle de
l'enterprise.)
(g) Litigation. No
action, suit, arbitration, governmental investigation, or administrative
proceeding of or before any court, tribunal, agency or other governmental
authority, is current, pending or to be the best of the Guarantor's knowledge
and belief threatened which might, if adversely determined, (i) have a material
adverse affect on its business, or financial condition or its ability to perform
its obligations hereunder or (ii) restrain it from entering into, exercising any
of its rights tinder or performing, enforcing or complying with any of its obligations
hereunder.
(h) Original Accounts.
Its consolidated, certified and audited balance sheet ("bilan") as of 31st
December 1997 and the related statement of profit and loss ("compte de
Resultat") (the "Original Accounts") were prepared in accordance with accounting
principles and practices generally accepted in France and consistently applied
and present fairly and accurately (in conjunction with the notes ("annexis")
thereto) the financial condition of it at the date to which they were drawn up
and the results of its operations during the financial year then
ended.
(i) No Change From Date of
Original Accounts. Since publication of the Original Accounts, there has
been no material adverse change in its business or
financial condition of the Guarantor.
(j) No Undisclosed
Liabilities. As at the date as of which the Original Accounts were
prepared it had no liabilities (contingent or otherwise) which were not
disclosed thereby (or by the notes thereto, or reserved against therein) nor any
unrealized or anticipated losses arising from commitments entered into by it or
obligations imposed upon it which would have a material adverse effect on its
overall financial condition which were not so disclosed or reserved against
except as disclosed in the Original Accounts, no security interest exists over
all or any of its present revenues or assets which should be disclosed under
accounting principles in accordance with which the Original Accounts were
prepared.
(k) Ownership of Lessee.
The Lessee is an indirect wholly owned subsidiary of the Guarantor.
(1) Non-conflict. The
execution, delivery and performance of this Guaranty will not constitute to the
best of Guarantor's knowledge any breach of, or default under, any contractual,
governmental or public obligation binding upon it.
(m) Consents. Guarantor
is not required to obtain any consent, permit, license, approval, order or
authorization from, or to file any declaration or statement with, any
governmental authority or any waiver of any right of any Person, in connection
with or as a condition to the execution, delivery or performance of or as a
condition to the validity of this Guaranty other than those obtained by
Guarantor which are in full force and effect.
(n) Consent to Jurisdiction,
Admissibility, etc. (i) The Guarantor has properly consented to the
jurisdiction of the state and Federal courts located within the Country of New
York, State of New York. Guarantor has also properly consented to service of
process of writs, summons and other legal process by mail as provided herein,
which consent to service of process will be effective against Guarantor and the
choice of law provision of Section 5.12 hereof that provides that this Guaranty
is governed by the laws of the State of New York is valid and will be endorsed
in the courts of France;
(ii) The
Guarantor is not aware of any reason why a judgment obtained against the
Guarantor in the state or Federal courts located within the County of New York,
State of New York (the "Judgment") should not be enforceable in France by means
of commencing an action on the Judgment in the Paris Court subject to the
plaintiff proving to the satisfaction of the Court that:
(A) Such
state or Federal Court had jurisdiction according to the French private
international law concept of jurisdiction:
(B) The
Judgment was final and conclusive and was not obtained by fraud:
(C) The
Judgment was for a fixed term and not directly or indirectly in respect of penal
laws, taxes, fees, penalties or multiple (punitive) damages or similar
charges:
(D) The
French rules of natural justice were not breached in the New York proceedings:
and
(E) It
is not otherwise contrary in French public policy to enforce the
Judgment.
(iii) This
Guaranty is in proper legal form under French law for the enforcement hereof
under French law and to ensure the legality, validity, priority, enforceability
or admissibility into evidence of this Guaranty in the courts of France, it is
not necessary that this Guaranty, or any of the Operative Documents or any other
documents be registered, notarized, filed or recorded with any court or other
authority in France or that any French stamp or similar tax be paid with respect
to this Guaranty or any other document; and
(iv) Assuming
proper filing of appropriate applications for exemption from withholding tax
with French regulatory bodies, neither the execution and the delivery of the
Guaranty nor the performance by the Guarantor thereof is subject to any tax,
duty, documentary, tax or similar levy, imposed by or within France or any
political subdivision or taxing authority thereof.
(o) Pari Passu.
The obligations of the Guarantor under this Guaranty, when executed and
delivered, will rank at least pari passu with all
other unsecured indebtedness of the Guarantor.
(p) Guaranteed Amount Not in
Excess of Maximum. This Guaranty by itself and taking into account all
other guaranties issued by the Guarantor does not cause the limitation upon
guaranties set by the supervisory board of the Guarantor to be
exceeded.
(q) Rating. Guarantor has
a long-term debt rating from Standard & Poor's Ratings Group of BBB (or its
equivalent) and no notice has been received by Guarantor which indicates that
such rating may be the subject of downgrade or that Guarantor is on
"credit-watch" by such rating agency.
(r) Tenant
Representations. Guarantor hereby confirms the accuracy of each of the
representations and warranties made by Lessee in the Tenant's Certificate
delivered pursuant to the Operative Documents on the Closing Date.
ARTICLE
IV
Covenants
The Guarantor hereby covenants, for the
benefit of each Beneficiary, as follows:
SECTION
4.1
Reports and Rights of
Inspection. It will keep and will cause the Lessee to keep, proper books
of record and account in which full and correct
entries will be made of all dealings or transactions of, or in relation to, the
business and affairs of the Guarantor and the Lessee in each case in accordance
with generally accepted accounting principles in France and the United States of
America, respectively consistently applied and will furnish to each
Beneficiary:
(a) Financial
Statements.
(i) as soon
as published, but not later than 180 days after the end of the first six months
of each fiscal year of the Guarantor, a consolidated balance sheet of the
Guarantor and its consolidated subsidiaries prepared by it as of the close of
such period, together with the related consolidated statements of sources and
uses of funds of the Guarantor and its consolidated subsidiaries, setting forth
in each case in comparative from the corresponding figures for the prior year in
reasonable detail and scope and prepared in accordance with generally accepted
accounting principles in France consistently applied (subject to customary
year-end adjustments); and
(ii) within
180 days after the close of each fiscal year of the Guarantor, a consolidated
balance sheet of the Guarantor and its consolidated subsidiaries prepared by it
as of the close of such fiscal year, together with the related consolidated
statements of profits and loss for such fiscal year together with a statement of
sources and uses of funds of the Guarantor and its consolidated subsidiaries for
such fiscal year setting forth in each case in comparative form the figures for
the previous fiscal year end accompanied by a report thereon by such independent
public accountants of recognized national standing as the Guarantor may select,
stating that in their opinion such consolidated financial statements present
fairly the financial position of the Guarantor and its consolidated subsidiaries
as of the dates indicated and the results of their operations and sources and
uses of funds for the period indicated, in conformity with such generally
accepted accounting principles applied on a basis consistent with the prior year
and that such audit has been performed in accordance with generally accepted
auditing standards.
(b) Other Information.
From time to time at the reasonable request of any Beneficiary, the Guarantor
will promptly, but in no event later than thirty (30) days after such request,
furnish such Beneficiary with such information about the business and financial
condition of the Guarantor (excluding any confidential or non-public information
or any proprietary technical records and information (whether maintained on
computers or otherwise) and any customer lists) as such Beneficiary may
reasonably require, including, without limitation, the following:
(i) Guarantor
shall promptly, but in no event later than thirty (30) days after request by any
Beneficiary), execute, acknowledge and deliver to or at the direction of such
Person a certificate stating that this Guaranty is unmodified and in full force
and effect (or if there have been modifications, that this Guaranty is in full
force and effect as modified, and identifying the modifications thereto), and
that no default exists hereunder by Guarantor (or if any such default exists,
specifying the nature thereof and what action, if any, is being taken by
Guarantor with respect thereto);
(ii) Guarantor
shall provide in a timely fashion to the requesting Beneficiary such information
(subject to the exclusion set forth in the first paragraph of this Section
4.1(b) above), certificates, securities law indemnification agreements and legal
opinions, if any, as are required by the requesting Beneficiary to satisfy the
market standards to which it adheres and as are required by the Rating Agencies
rating Securities issued in Secondary Market Transactions in which the Loan is
included and shall execute modifications to this Guaranty if required by such
Rating Agencies provided that no such modification shall change the economic
terms of this Guaranty or of the Operative Documents to which Tenant is a party
(such as the amount and timing of payment of Basic Rent, Stipulated Loss Values
and purchase prices under the Master Lease) or which would impose additional
financial covenants on Guarantor or Tenant under this Guaranty or the Operative
Documents to which Tenant is a party or which, in the reasonable judgment
exercised in good faith by Guarantor would materially impair the rights of or
materially increase the obligations of Guarantor under this Guaranty or the
Operative Documents to which Tenant is a party;
(iii) Guarantor
will give prompt written notice to the Beneficiaries of (A) any material adverse
change in Guarantor's financial condition which would prevent Guarantor from
fulfilling its obligations hereunder, (B) default by Guarantor in the
performance of any of its obligations under this Guaranty and of any insolvency,
liquidation or dissolution filing by or against Guarantor and (iii) notice of
change in solicited credit rating issued by any rating agency with respect to
Guarantor,
SECTION
4.2 Affirmative
Covenants. The Guarantor shall:
(a) subject
to Section 4.4 hereof, preserve and keep in full force and effect its corporate
existence and all material licenses and permits necessary to the proper conduct
of its business;
(b) obtain,
comply with the terms of and do all that is necessary to maintain in full force
and effect all authorizations, approvals, licenses and consents required in or
by the laws and regulations of its jurisdiction of incorporation to enable it
lawfully to enter into and perform its obligations under this Guaranty or to
ensure the legality, validity, enforceability or admissibility in evidence in
its jurisdiction of incorporation of this Guaranty;
(c) ensure
that at all times the claims of the Beneficiary against it under this Guaranty
rank at least pari passu in right of payment with the claims of all its other
unsecured creditors except those whose claims are preferred as "privileges"
under French bankruptcy law; and
(d) so
long as the Lease Term is in effect, the Guarantor will (i) own directly or
indirectly at least f fty-one percent (51 %) of the issued share capital of the
Lessee and (ii) own directly or indirectly at least 19.9% of the issued share
capital of the sub-lessee and cause the Properties to be under management
control and management or operation of the Lessee or sub-lessee or another
affiliate of the Guarantor. Prior written approval of the Beneficiaries will be
required in all other circumstances).
SECTION
4.3 Merger Covenant. It
will not consolidate with or merge into any corporation, or engage in any other
corporate reorganization involving all or substantially all of. its assets, or
sell, convey, transfer or lease all or substantially all of its assets, or
engage in any other corporate reorganization involving all or substantially all
of its assets in a single transaction or a series of transactions,
unless:
(a) the
successor corporation formed by such consolidation or into which the Guarantor
shall be merged or the Person that shall acquire by sale, conveyance, transfer
or lease all or substantially all of the assets of the Guarantor shall have a
net worth equal to or greater than the Guarantor's net worth immediately prior
to such merger, sale, conveyance or transfer, and a solicited long term
unsecured debt rating issued by a Rating Agency of not less than investment
grade, and shall execute and deliver to the Beneficiaries (in a form reasonably
acceptable thereto) an assumption agreement by such successor corporation of the
due and punctual performance of each covenant and condition of this Guaranty to
be performed or observed by the Guarantor;
(b) no
default then exists by Guarantor under this Guaranty and no insolvency,
dissolution or liquidation filing has been made by or against Guarantor;
and
(c) the
Guarantor shall have delivered to the Beneficiaries prior to or
contemporaneously with any such consolidation, merger, sale, conveyance,
transfer, lease or other corporate reorganization (i) a written certification
from the chief financial officer of Guarantor that the provisions of this
Section 4.3 have been satisfied and (ii) an opinion of counsel reasonably
satisfactory to the Beneficiaries addressed to and in form and substance
satisfactory to each such Beneficiary regarding the due authorization,
execution, delivery, validity and enforceability of the assumption agreement
referred to in Section 4.3(a) hereof). Upon any such consolidation or merger, or
any sale, conveyance, transfer or lease of all or substantially all of the
assets of the Guarantor in accordance with this Section 4.3 the successor
corporation formed by such consolidation or into which the Guarantor shall be
merged or to which such sale, conveyance, transfer or lease shall be made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Guarantor under this Guaranty.
SECTION
4.4 Maintenance of Process
Agent. Guarantor shall maintain in the State of New York a Person acting
as agent to receive on its behalf and on behalf of its property service of
process in accordance with Section 5.8 hereof.
ARTICLE
V
Miscellaneous
SECTION
5.1 No Waiver; Cumulative
Remedies. The failure or delay of any Beneficiary in exercising any right
or remedy granted it hereunder shall not operate as a waiver of such right or
remedy or be construed to be a waiver of any breach of any of the terms and
conditions hereof or to be an acquiescence therein. Each and every right, power
and remedy herein specifically given to the Beneficiaries shall be cumulative
and shall be in addition to every other right, power and remedy herein
specifically given or now or hereafter existing at law, in equity or by statute
and the exercise or the beginning of the exercise of any right, power or remedy
shall not be construed as a waiver of the right to exercise at the same time or
thereafter any other right, power or remedy. A waiver by the Beneficiaries of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy that the Beneficiaries would otherwise
have.
SECTION
5.2 Notices. All notices,
demands, declarations, consents, directions, approvals, instructions, requests
and other communications required or permitted by the terms hereof shall be in
writing and shall be given in accordance with Section 5.1 of the Indenture and,
in the case of the Guarantor, shall be addressed and sent to ACCOR, Tour Maine
Montparnasse, 00 Xxxxxx xx Xxxx, 00000 Xxxxx, Xxxxxx Attention: Executive Vice
President-Finance and Investments, telecopy number 00(0)00-00-00-00, with a copy
to the Lessee.
SECTION
5.3 Amendments and Waivers:
Successors and Assigns. (a) Neither this Guaranty nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified orally, but
only by an instrument in writing signed by the Guarantor and the
Beneficiaries.
(b) This
Guaranty shall be binding upon the Guarantor and its successors and permitted
assigns and shall inure to the benefit of the Beneficiaries and their respective
successors and assigns permitted under the Operative Documents.
SECTION
5.4 Severability. Any
provision of or obligation under this Guaranty that is determined by competent
authority to be prohibited and unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision or obligation in any other jurisdiction. To the
extent permitted by applicable laws and regulations, the Guarantor hereby waives
any provision of law that renders any provision or obligation hereof prohibited
or unenforceable in any respect.
SECTION
5.5 Termination. Subject
to the provisions of Section 2.7 hereof, this Guaranty and the Guarantor's
duties and obligations hereunder shall remain in full force and effect and be
binding in accordance with its terms, until the date on which all Obligations
and the obligations of the Guarantor hereunder shall have been satisfied by
indefeasible payment and performance in full.
SECTION
5.6 Entire Agreement.
This Guaranty constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral between or among the
Guarantor, the Lessee and the Beneficiaries with respect to the, subject matter
hereof.
SECTION
5.7 Article Headings. The
headings of the various Articles and Sections of this Guaranty are for
convenience of reference only and shall not modify, define, expand or limit any
of the terms of provisions hereof.
SECTION
5.8 Jurisdiction, Agent for
Service of Process. Any suit, action or proceeding, whether at law or in
equity, including any declaratory judgment or similar suit or action, instituted
by or against the Guarantor arising out of or relating in any way to this
Guaranty may be brought and enforced in the courts of the State of New York or
of the United States for the Southern District of New York, and the Guarantor
irrevocably consents and submits to the jurisdiction of each such court in
respect of any suit, action or proceeding. The Guarantor further irrevocably
consents to the service of process in any such suit, action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid,
return receipt requested, to the Guarantor or to its agent at its address as set
forth in Section 5.2 or as set forth below, respectively. The Guarantor hereby
irrevocably appoints X'Xxxxxxxx Graev & Karabell L.L.P., with an office on
the date hereof at 00 Xxxxxxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000 as its agent
for the purpose of accepting service of any process within the State of New York
and the Guarantor hereby irrevocably and unconditionally authorizes and directs
such Person to accept such service on its behalf. The foregoing shall not limit
the right of the Beneficiary to serve process in any other manner permitted by
law or to bring any action or proceeding, or to obtain execution of any
judgment, in any other jurisdiction.
SECTION
5.9 Waiver of Venue. The
Guarantor hereby irrevocably waives any option or objection that it may now or
hereafter have to the laying of venue of any such action or proceeding arising
under or relating to this Guaranty in any court located in the country of New
York, State of New York, and hereby further irrevocably waives any claim that a
court located in the County of New York, State of New York is not a convenient
forum for any such action or proceeding. The Guarantor agrees that, to the
fullest extent permitted by applicable laws and regulations, a final,
non-appealable judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.
SECTION
5.10 WAIVER OF JURY TRIAL.
GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY.
SECTION
5.11 Waiver of Immunity.
The Guarantor hereby irrevocably waives, to the fu lest extent permitted by
applicable United States federal and state law, all immunity (whether
on the basis of
sovereignty or otherwise) from jurisdiction, service of process, attachment
(both before and after judgment) and execution to which it might otherwise be
entitled in any action or proceeding relating in any way to this Guaranty in the
courts in the State of New York, of the United States or of any other country or
jurisdiction, and the Guarantor hereby waives any right it might otherwise have
to raise or claim or cause to be pleaded any such immunity at or in respect of
any such action or proceeding.
SECTION
5.12 GOVERNING LAW. THIS
GUARANTY SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF
LAW RULES.
SECTION
5.13 Subrogation. During
the continuation of this Guaranty the Guarantor shall not, by virtue of any
payment made, security realized or moneys received for or on account of the
Obligations:
(a) be
subrogated to any rights, security or moneys held, received or receivable by the
Beneficiaries or be entitled to any right of contribution or
indemnity;
(b) demand,
accept, assign, charge or otherwise dispute of any moneys, obligations or
liabilities now or hereafter due or owing to the Guarantor from the Lessee or
take any step to enforce any right against the Lessee;
(c) claim
or rank as creditor against the estate or in the bankruptcy or liquidation of
the Lessee;
(d) receive, claim or have the benefit
of any payment, distribution or security from or on account of the Lessee or
exercise any right of set-off or counterclaim as against the Lessee or any other
person or claim the benefit of the security or moneys held by or for the account
of the Beneficiaries;
(d) claim
or endorse any right of contribution against any co-surety (whether another
joint guarantor hereunder or a co-surety in connection with any other
transaction).
The Guarantor shall forthwith pay to
the Beneficiaries in proportion to the Obligations then due to such
Beneficiaries an amount equal to any amount recovered from the exercise of any
right referred to above and shall forthwith pay or transfer, as the case may be,
to and pending such payment or transfer shall hold in trust for the
Beneficiaries any of such payment or distribution or benefit of security in fact
received by it.
SECTION
5.14 Gross-Up. All
payments by the Guarantor under or in connection with this Guaranty shall be
made without set-off or counterclaim, free and clear of and without deduction
for or on account of all taxes. All taxes in respect of this Guaranty and
payments hereunder shall be for the account of and shall be paid by the
Guarantor for its own account prior to the date on which penalties attach
thereto. If the Guarantor is compelled by law to make payment subject to any tax
and any Beneficiary does not receive for its own benefit on the due date a net
amount equal to the full amount of the Obligations due to it the Guarantor will
pay all necessary additional amounts to ensure receipt by such Beneficiary of
the full amount of the Obligations. The Guarantor will indemnify the
Beneficiaries in respect to all such amounts. Any additional payment made under
this sub-clause shall not be treated as interest but as agreed
compensation.
SECTION
5.15 Survival. All
warranties, representations and covenants made by the Guarantor herein or in any
certificate or other instrument delivered by it under this Guaranty shall be
considered to have been relied upon by the Beneficiaries and shall survive the
execution and delivery of this Guaranty and the termination of the Lease and the
other Operative Documents, regardless of any investigation made by the
Beneficiaries. All statements in any such certificate or other instrument shall
constitute warranties and representations by the Guarantor
hereunder.
SECTION
5.16 Currency
(a) Amounts
payable hereunder shall be paid in lawful currency of the United States of
America.
(b) If
any sum due from the Guarantor under this Guaranty or any order or judgment
given or made in relation hereto has to be converted from the currency ("the
first currency") in which the same is payable under this Guaranty or under such
order or judgment into another currency (the "second currency") for the purposes
of (i) making or filling a claim or proof against the Guarantor, (ii) obtaining
an order or judgment in any court or other tribunal or (iii) enforcing any order
or judgment given or made in relation to this Guaranty, the Guarantor shall
indemnify and hold harmless the Beneficiaries from and against any loss suffered
as a result of any difference between (a) the rate of exchange used for such
purpose to convert the sum in question from the first currency into the second
currency and (b) the rate or rates of exchange at which the Beneficiaries may in
the ordinary course of business purchase the first currency with the second
currency upon receipt of a sum paid to it in satisfaction, in whole or in part,
of any such order judgment claim or proof. Any amount due from the Guarantor
under this Section 5.16 shall be due as a separate debt and shall not be
affected by judgment being obtained for any other sums due under or in respect
of this Guaranty and shall survive any such judgment and the term "rate of
exchange" includes with any premium and costs of exchange payable in connection
with the. purchase of the first currency with the second currency.
SECTION
5.17 Counterparts, This
Guaranty may be executed simultaneously in two or more counterparts each of
which shall be deemed an original, and it shall not be necessary in making proof
of this Guaranty to produce or account for more than one such
counterpart.
SECTION
5.18 Guarantor Consent and
Agreement Regarding Assignment of Guaranty by Owner to
Lender. Each Owner hereby notifies Guarantor that each Owner has assigned
its rights in and to this Guaranty as a Beneficiary hereunder to Lender pursuant
to the Master Lease Assignment and the Indenture. Guarantor hereby acknowledges
the foregoing including, without limitation, the assignment to Lender of all
amounts to be paid by Guarantor to any Beneficiary under this Guaranty, and all
other rights, powers and remedies, but none of the obligations, of any
Beneficiary under this Guaranty and confirms that this Guaranty does and shall
remain in full force and effect.
(a) Owner
has irrevocably authorized and directed Guarantor in the Master Lease
Assignment, and Guarantor hereby agrees:
(i) to
pay to Lender all amounts due or to become due and payable by Guarantor to any
Beneficiary under this Guaranty in immediately available United States Dollar
denominated fiends by wire transfer into the account referenced in Schedule 1
hereto or to such other account as Lender shall specify by notice to Guarantor
not less than five (5) Business Days prior to the effectiveness.of any such
change of account;
(ii) to
provide to Lender in the manner and at the address specified in or pursuant to
Section 5.2 hereof, simultaneously with delivery thereof to any Beneficiary,
duplicate originals of any and all notices, financial statements, information,
certificates, opinions of counsel and other similar communications of any nature
which Guarantor is permitted or required to give or furnish to any Beneficiary
pursuant to this Guaranty; and
(iii) to
accept any notices, waivers or consents given and actions taken on behalf of any
Beneficiary by Lender, and Guarantor agree that: (A) notices, waivers and
consents given on behalf of any Beneficiary by Lender shall have the same force
and effect as notices, waivers and consents given by such Beneficiary, and (B)
in the event of inconsistent notices, waivers or consents from Owner and Lender,
notices, waivers and consents from Lender shall control. In no event shall
Guarantor have any liability to any Owner based upon any action taken or omitted
to be taken by Guarantor in reliance upon any notice, waiver or consent received
by Guarantor from Lender. Guarantor shall have the right to act in reliance upon
any notice, waiver, consent or other instrument or writing given to Guarantor by
Lender and shall have no obligation to make any investigation or to determine
any facts in connection therewith.
(b) Guarantor
acknowledges and agrees that, so long as the Indenture has not been discharged,
Owner shall not have the authority to receive, collect or acquit for any amounts
directed to be paid to Lender pursuant to Section 5.18(a)(i).
(c) Guarantor
agrees that:
(i) this
Guaranty shall not be changed, amended, altered, modified or terminated without
the prior written consent of Lender and, if requested by Lender, evidence in
writing from the Rating Agencies that any such action shall not result in a
withdrawal, qualification or downgrade of the then current ratings for any
Securities issued in connection with any Secondary Market Transaction in which
the Loan is included;
(ii) any
consent, approval, agreement or waiver provided by Owner pursuant to the
Guaranty shall not be valid unless consented to in writing by
Lender;
(iii) Lender
shall not, by reason of the Indenture, the Master Lease Assignment or otherwise,
be subject to any obligation, duty, or liability under this Guaranty, and Owner
shall remain liable with respect to its obligations hereunder; and
(d) Guarantor
agrees that if Lender acquires title to a Property or the Properties, Owner's
interest thereunder is freely assignable by Lender to any Person without the
consent of Guarantor and, upon any such assignment, Lessee shall recognize such
assignee as landlord under the Master Lease and Guarantor shall affirm its
obligations under this Guaranty in writing upon reasonable prior request by
Lender.
(b) Guarantor
acknowledges and agrees that, so long as the Indenture has not been discharged,
Owner shall not have the authority to receive, collect or acquit for any amounts
directed to be paid to Lender pursuant to Section 5.18(a)(i).
(c) Guarantor
agrees that:
(i) this
Guaranty shall not be changed, amended, altered, modified or terminated without
the prior written consent of Lender and, if requested by Lender, evidence in
writing from the Rating Agencies that any such action shall not result in a
withdrawal, qualification or downgrade of the then current ratings for any
Securities issued in connection with any Secondary Market Transaction in which
the Loan is included;
(ii) any
consent, approval, agreement or waiver provided by Owner pursuant to the
Guaranty shall not be valid unless consented to in writing by
Lender;
(iii) Lender shall not, by reason of
the Indenture, the Master Lease Assignment or otherwise, be subject to any
obligation, duty, or liability under this Guaranty, and Owner shall remain
liable with respect to its obligations hereunder; and
(d) Guarantor
agrees that if Lender acquires title to a Property or the Properties, Owner's
interest thereunder is freely assignable by Lender to any Person without the
consent of Guarantor and, upon any such assignment, Lessee shall recognize such
assignee as landlord under the Master Lease and Guarantor shall affirm its
obligations under this Guaranty in writing upon reasonable prior request by
Lender.
IN
WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed as of the
day and year first set forth above.
ACCOR
By:
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/s/ Name Not
Legible
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