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EXHIBIT 10.19
$200,000,000.00
AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of December 20, 1999
among
PAN PACIFIC RETAIL PROPERTIES, INC.
as the Company,
BANK OF AMERICA, N.A., as successor to Bank of America
National Trust and Savings Association,
U.S. BANK NATIONAL ASSOCIATION, Co-Agent
KEYBANK NATIONAL ASSOCIATION, Co-Agent
THE BANK OF NOVA SCOTIA, Co-Agent
FIRST UNION NATIONAL BANK, as successor to Signet Bank
SANWA BANK CALIFORNIA,
and
DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES
(and any additional commercial institutions which from
time to time are a party to this Agreement),
as the Banks,
and
BANK OF AMERICA, N.A., as successor to Bank of
America National Trust and Savings Association,
as the Administrative Agent
and
Banc of America Securities LLC,
as Lead Arranger and Sole Bank Manager
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TABLE OF CONTENTS
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ARTICLE 1: DEFINITIONS AND ACCOUNTING TERMS..............................................1
1.1 Defined Terms.......................................................1
1.2 Use of Defined Terms...............................................20
1.3 Accounting Terms...................................................20
1.4 Exhibits...........................................................21
1.5 References.........................................................21
ARTICLE 2: RECITALS.....................................................................21
ARTICLE 3:BORROWING PROCEDURES AND LETTER OF
CREDIT SUBLIMIT..........................................................................21
3.1 Disbursement of Loan Proceeds......................................21
3.2 Reference Rate Borrowings..........................................22
3.3 LIBOR Borrowing....................................................23
3.4 Redesignation of Borrowings........................................24
3.5 Calculation of Borrowing Base......................................25
3.6 Availability Limits................................................29
3.7 Payments by the Banks to the Agent.................................29
3.8 Sharing of Payments, Etc...........................................29
3.9 Letter of Credit Sublimit..........................................30
3.9.1 Amount and Terms of the Credit.....................................30
3.9.2 Standby Letters of Credit..........................................30
3.9.3 Request for Credit.................................................31
3.9.4 Conditions Precedent to Issuance of Letters of Credit..............32
ARTICLE 4: PAYMENTS AND FEES............................................................32
4.1 Principal and Interest.............................................32
4.2 Facility Fee.......................................................35
4.3 Letter of Credit Annual Fees.......................................36
4.4 Late Payments......................................................36
4.5 Taxes..............................................................36
4.6 Illegality.........................................................36
4.7 Increased Costs and Reduction of Return............................37
4.8 Funding Losses.....................................................38
4.9 Inability to Determine Rates.......................................39
4.10 Reserves on LIBOR Rate Loans.......................................39
4.11 Certificates of Banks..............................................39
4.12 Substitution of Banks..............................................40
4.13 Survival...........................................................40
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4.14 Manner and Treatment of Payments...................................40
4.15 Change in Capital Requirements; Additional Costs...................40
4.16 Mandatory Prepayment...............................................41
4.17 Other Fees and Consideration Payable to Bank of America............41
4.18 Computation of Interest and Fees...................................41
ARTICLE 5: SECURITY.....................................................................42
5.1 Unsecured Credit...................................................42
ARTICLE 6: CONDITIONS...................................................................42
6.1 Conditions to Disbursement of First Borrowings.....................42
6.2 Conditions for Subsequent Borrowings or for a Redesignation of
Borrowings.........................................................42
6.3 Any Borrowing......................................................42
ARTICLE 7: REPRESENTATIONS AND WARRANTIES OF THE COMPANY................................43
7.1 Incorporation, Qualification, Powers and Capital Stock.............43
7.2 Execution, Delivery and Performance of Loan Documents..............43
7.3 Compliance with Laws and Other Requirements........................44
7.4 Subsidiaries.......................................................44
7.5 Affiliated Partnerships............................................45
7.6 Financial Statements of the Company and the Subsidiaries...........45
7.7 No Material Adverse Change.........................................45
7.8 Tax Liability......................................................46
7.9 Litigation.........................................................46
7.10 ERISA Compliance...................................................46
7.11 Regulations U and X; Investment Company Act........................47
7.12 No Default.........................................................47
7.13 Borrowing Base.....................................................48
7.14 Environmental Matters..............................................48
7.15 Insurance..........................................................49
7.16 No Burdensome Restrictions.........................................49
7.17 Full Disclosure....................................................49
7.18 Year 2000 Compliance...............................................49
ARTICLE 8: COVENANTS OF THE COMPANY.....................................................50
8.1 Consolidated Tangible Net Worth....................................50
8.2 Debt Service Coverage Ratio........................................50
8.3 Leverage Ratio.....................................................50
8.4 Secured Debt Ratio.................................................50
8.5 Unencumbered Asset Ratios..........................................51
8.6 Unencumbered Assets NOI to Total Unsecured Debt Service............51
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8.7 Limitations on Subsidiary Unsecured Indebtedness and Secured
Indebtedness.......................................................51
8.8 Payment of Taxes and Other Potential Liens.........................51
8.9 Preservation of Existence..........................................51
8.10 REIT Status; No Prohibited Transactions............................52
8.11 Maintenance of Properties..........................................52
8.12 Maintenance of Insurance...........................................52
8.13 Mergers............................................................53
8.14 Books and Records..................................................53
8.15 Inspection Rights..................................................53
8.16 Reporting Requirements.............................................53
8.17 Notices............................................................55
8.18 Liens..............................................................56
8.19 No Other Negative Pledge...........................................57
8.20 Prepayment of Indebtedness.........................................57
8.21 Loans and Investments..............................................57
8.22 Compliance with Laws and Other Requirements........................58
8.23 Change in Nature of Business.......................................58
8.24 Compliance with ERISA..............................................58
8.25 Dividends..........................................................59
8.26 Disposition of Properties..........................................59
8.27 Management; Ownership..............................................59
8.28 Compliance with Availability Limits................................59
8.29 Development Limitation.............................................59
8.30 Environmental Laws.................................................59
8.31 Use of Proceeds....................................................60
8.32 Transactions with Affiliates.......................................60
8.33 Accounting Changes.................................................60
ARTICLE 9: EVENTS OF DEFAULT AND REMEDIES UPON DEFAULT..................................60
9.1 Events of Default..................................................60
9.2 Remedies...........................................................63
9.3 Rights Not Exclusive...............................................63
ARTICLE 10: THE AGENT...................................................................64
10.1 Appointment and Authorization......................................64
10.2 Delegation of Duties...............................................64
10.3 Liability of Agent.................................................64
10.4 Reliance by Agent..................................................65
10.5 Notice of Default..................................................65
10.6 Credit Decision....................................................66
10.7 Indemnification....................................................66
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10.8 Agent in Individual Capacity.......................................67
10.9 Successor Agent....................................................67
10.10 Withholding Tax....................................................67
10.11 Collateral Matters.................................................69
10.12 Performance by the Agent...........................................70
10.13 Actions............................................................70
10.14 Co-Agent...........................................................70
ARTICLE 11: MISCELLANEOUS...............................................................70
11.1 Amendments and Waivers.............................................70
11.2 Costs, Expenses and Taxes..........................................71
11.3 No Waiver; Cumulative Remedies.....................................72
11.4 Payments Set Aside.................................................72
11.5 Successors and Assigns.............................................72
11.6 Assignments, Participations, etc...................................72
11.7 Set-off............................................................75
11.8 Automatic Debits...................................................76
11.9 Notification of Addresses, Lending Offices, Etc....................76
11.10 Survival of Representations, Warranties and Indemnifications.......76
11.11 Notices............................................................76
11.12 Indemnity by the Company...........................................77
11.13 Integration and Severability.......................................77
11.14 Counterparts.......................................................77
11.15 No Third Parties Benefitted........................................77
11.16 Section Headings...................................................78
11.17 Further Acts by the Company........................................78
11.18 Time of the Essence................................................78
11.19 Governing Law......................................................78
11.20 Reference and Arbitration..........................................78
11.21 Effectiveness of this Agreement....................................79
11.22 Possible Increase in the Total Aggregate Commitment................80
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LIST OF EXHIBITS
Exhibit "A" - Note
Exhibit "B" - Borrowing Base Certificate
Exhibit "C-1" - Request for Borrowing
Exhibit "C-2" - Request for Letter of Credit
Exhibit "D" - Request for Redesignation of Borrowing
Exhibit "E" - Subsidiaries
Exhibit "F" - Form of Legal Opinion
Exhibit "G" - Form of Assignment and Acceptance Agreement
LIST OF SCHEDULES
Schedule 1.1(A) - List of Assets
Schedule 1.1(B) - Designated Responsible Officials
Schedule 1.1(C) - Pricing Grid
Schedule 3.5(c) - Assets Initially Constituting The Borrowing Base
Properties Pool
Schedule 7.7 - Material Adverse Changes and Material Liabilities
Schedule 7.9 - Material Litigation and Other Actions
Schedule 7.14 - Environmental Matters
Schedule 8.21(e) - Description of Existing Partnerships
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AMENDED AND RESTATED CREDIT AGREEMENT
This Amended and Restated Credit Agreement (this "Agreement") is
entered into as of December 20, 1999, by and among PAN PACIFIC RETAIL
PROPERTIES, INC., a Maryland corporation (the "Company"), the several financial
institutions from time to time party to this Agreement (collectively, the
"Banks" and individually, a "Bank"), and BANK OF AMERICA, N.A., as successor to
Bank of America National Trust and Savings Association, a national banking
association, as agent for the Banks ("Bank of America" and the "Agent").
WHEREAS, the Banks, the Agent and the Company are parties to
that certain Credit Agreement dated as of August 13, 1997, as amended by that
certain Modification Agreement dated as of March 19, 1998 and that certain
Second Modification Agreement dated as of January 22, 1999 (collectively, the
"Prior Credit Agreement"). Bank of America previously assigned a portion of its
interest in the Prior Credit Agreement to Dresdner Bank AG pursuant to that
certain Assignment and Acceptance Agreement dated as of April 20, 1998, between
Bank of America and Dresdner Bank AG.
WHEREAS, the Banks, the Agent and the Company desire by this
Agreement to amend and restate the Prior Credit Agreement in its entirety.
WHEREAS, the "Tanasbourne Asset" (as defined in the Prior Credit
Agreement) is now wholly owned by the Company. Further, all Existing Pan
Pacific/BofA Credit Facilities (as defined in the Prior Credit Agreement) were
paid in full in accordance with the provisions of Section 11.21 of the Prior
Credit Agreement.
WHEREAS, the Banks have agreed to make available to the Company
an unsecured revolving credit facility upon the terms and conditions set forth
in this Agreement;
NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained herein, the parties agree as follows:
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ARTICLE 1: DEFINITIONS AND ACCOUNTING TERMS.
1.1 Defined Terms. As used in this Agreement, the following
terms shall have the meanings set forth respectively after each:
"Account" means the Company's general account no. 1423100780
maintained with Bank of America, and any future similar account with
Bank of America.
"Actual Debt Service" means for any period, without duplication,
the sum of (a) the aggregate amount of interest which, in conformity
with GAAP, would be set opposite the caption "interest expense" or any
like caption on an income statement for the Company and consolidated
Subsidiaries, whether expensed directly, or included as a component of
cost of goods sold, or allocated to joint ventures, or otherwise
(including without limitation imputed interest on Capitalized Lease
Obligations, all commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers' acceptance financing, the
net costs associated with Rate Hedging Obligations, amortization of
other financing fees and expenses, the interest portion of any deferred
payment obligation, amortization of discount or premiums, in any, and
all non-cash interest expense other than interest and other charges
amortized to cost of sales), plus (b) the aggregate amount of all
principal and other payments due during such period with respect to
Indebtedness of the Company or any of its consolidated Subsidiaries
(excluding, however, any principal "balloon pay ments" paid or payable
by the Company or any consolidated Subsidiaries during such period),
plus (c) cash dividends paid on any preferred stock of the Company.
"Adjusted Current Value" means, for any Asset, as of any date,
the Net Operating Income for such Asset as of such date divided by the
Applicable Cap Rate; provided, however, that if the Agent has not
received quarterly operating statements for such Asset for each of the
immediately preceding four calendar quarters (whether because the
Company has owned such Asset for less than four calendar quarters, or
otherwise), then the "Adjusted Current Value" for such Asset shall be
the lesser of (a) the Adjusted Current Value as calculated above, or (b)
the purchase price paid by the Company upon acquiring such Asset, net of
all brokerage commissions, finder's fees and other closing costs or
expenses incurred by the Company in connection with the acquisition of
such Asset.
"Adjusted EBITDA" means, for any period, without duplication,
(a) the sum of the following amounts attributable to such period and
calculated
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on a consolidated basis for the Company and consolidated Subsidiaries:
(i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii)
charges against income for all federal, state and local taxes, (iv)
depreciation expense, (v) amortization expense, (vi) other non-cash
charges and expenses, and (vii) any losses arising outside of the
ordinary course of business which have been included in the
determination of Consolidated Net Income, less (b) any gains arising
outside the ordinary course of business which have been included in the
determination of Consolidated Net Income, as determined on a
consolidated basis for the Company and consolidated Subsidiaries, less
(c) net income (determined in accordance with GAAP) of, loans or
contributions to, and other cash investments in any Affiliated
Partnership (provided that such net income shall be included to the
extent of the Company's direct or indirect proportionate interest in the
net income of such Affiliated Partnership), less (d) the aggregate
amount of all actual expenditures made by the Company during such period
for replacements or substitutions to improvements to any of the
Company's Assets, including remediation of deferred maintenance, which,
in accordance with GAAP, would be treated as a capital expense, plus (e)
net losses (determined in accordance with GAAP) of, and dividends,
distributions, loan payments or other cash return on investments from,
any Affiliated Partnership (provided that such net losses shall be
included to the extent of the Company's direct or indirect proportionate
interest in the net losses of such Affiliated Partnership).
"Affiliate" means any Person (a) which directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is
under common control with, the Company or any Subsidiary, as the context
may require, or (b) which owns beneficially or of record 10% or more of
the voting stock of the Company. The term "control" means the
possession, directly or indirectly, of the power to cause the direction
of the management and policies of a Person, whether through the
ownership of voting securities or partnership interests, by contract,
family relationship or otherwise.
"Affiliated Partnership" means any general or limited
partnership or joint venture in which the Company, any Subsidiary, or
any other Affiliate is a partner or joint venturer.
"Agent" means Bank of America when acting in its capacity as the
Agent under any of the Loan Documents, and any successor agent.
"Agent-Related Persons" means the Agent and any successor agent
(pursuant to the terms of Section 10.9) together with their respective
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Affiliates and the directors, officers, agents, employees and
attorneys-in-fact of such Persons and Affiliates.
"Aggregate Adjusted Current Value" means, as of any date of
determination, the sum of the Adjusted Current Values as of such date
for all Assets.
"Agreement" means this Credit Agreement, either as originally
executed or as it may from time to time be supplemented, modified or
amended.
"Applicable Cap Rate" means 9.50% for all Assets; provided,
however, that the Majority Banks shall have the right, at the end of any
calendar year, to review and adjust in their sole and absolute
discretion, the Applicable Cap Rate, which change shall become effective
immediately upon written notice by Agent to Company.
"Assets" means, as of any date, all real estate assets of the
Company as of such date. As of the Closing Date, "Assets" consist of the
real estate assets described in Schedule 1.1(A).
"Assignee" shall have the meaning set forth in Section 11.6.
"Assignment and Acceptance" shall have the meaning set forth in
Section 11.6.
"Attorney Costs" means and includes all reasonable fees and
disbursements of any law firm or other external counsel, the allocated
reasonable cost of internal legal services and all reasonable
disbursements of internal legal counsel.
"Banking Day" means any Monday, Tuesday, Wednesday, Thursday or
Friday on which banks (including the Banks) are open for business in
California.
"Banks" means Bank of America, N.A., as successor to Bank of
America National Trust and Savings Association, a national banking
association ("Bank of America"), U.S. Bank National Association (FKA
First Bank National Association) ("U.S. Bank"), KeyBank National
Association ("KeyBank"), The Bank of Nova Scotia ("Bank of Nova
Scotia"), First Union National Bank, as successor to Signet Bank ("First
Union"), Sanwa Bank California, a California corporation ("Sanwa Bank"),
and Dresdner Bank AG, New York and Grand Cayman Branches ("Dresdner")
and the additional
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financial institutions (if any) from time to time party to this
Agreement, any of their successors and assigns (including any Assignee),
or any one or more of them.
"Borrowing" means each of the Loans to be made by the Banks to
the Company as provided in Article 3.
"Borrowing Base" has the meaning set forth in Section 3.5(b).
"Borrowing Base Certificate" means a written calculation of the
Borrowing Base, substantially in the form of Exhibit "B" attached hereto
and made a part hereof, signed by a Responsible Official of the Company
and properly completed to provide all information required to be
included thereon.
"Borrowing Base Properties Pool" has the meaning set forth in
Section 3.5(c) hereof.
"Capital Adequacy Regulation" means any guideline, request or
directive of any central bank or other Governmental Authority, or any
other law, rule or regulation, whether or not having the force of law,
in each case, regarding capital adequacy of any bank or of any
corporation controlling a bank.
"Capitalized Lease Obligations" means any obligations under a
lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.
"CERCLA" has the meaning specified in the definition of
"Environmental Laws."
"Closing Date" means the time and Banking Day on which the
conditions precedent specified in Section 11.21 are satisfied or waived
as provided therein, or shall be as otherwise specified in Section
11.21.
"Co-Agent" means each of the Banks which is designated in
writing by the Agent to receive the title of Co-Agent hereunder (subject
to Section 10.14 hereof).
"Code" means the Internal Revenue Code of 1986, and regulations
promulgated thereunder.
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"Commitment" means, with respect to the Loans, the following
initial percentage obligations and initial aggregate dollar amounts as
to each of the following Banks, subject to adjustment as provided below:
Percentage Aggregate Dollar
Bank Obligation Amount
1. Bank of America 16.0 $32,000,000
2. U.S. Bank 15.5 $31,000,000
3. KeyBank 15.5 $31,000,000
4. Bank of Nova Scotia 15.5 $31,000,000
5. First Union 15.0 $30,000,000
6. Sanwa Bank 10.0 $20,000,000
7. Dresdner 12.5 $25,000,000
As (i) Banks are added to this Agreement or withdraw from this
Agreement, (ii) assignments are made by the Banks in accordance with
Section 11.6 hereof, and/or (iii) the Total Aggregate Commitment is
increased in accordance with Section 11.22 hereof, the above figures
shall be appropriately adjusted. The Assignment and Acceptances executed
by the Banks, and the records maintained by the Agent, shall be
presumptive evidence of each Bank's Commitment, as each such Bank's
Commitment may change from time to time in accordance with the terms of
this Agreement.
"Company" means Pan Pacific Retail Properties, Inc., a Maryland
corporation, and its successors and assigns.
"Consolidated Net Income" means, for any period, the net income
(or loss) of the Company and consolidated Subsidiaries determined in
accordance with GAAP.
"Consolidated Tangible Net Worth" means, as of any time of
determination, (a) the total assets of the Company and consolidated
Subsidiaries, minus (b) the carrying value of all intangible assets of
the Company and consolidated Subsidiaries, including deferred costs
associated with goodwill, patents, franchises, organizational expense
and the like, minus (c) the total liabilities of the Company and
consolidated Subsidiaries, all determined in accordance with GAAP
consistently applied.
"Contingent Obligation" means, as to any Person, any direct or
indirect liability of that Person, whether or not contingent, with or
without recourse, (a) with respect to any Indebtedness, lease, dividend,
letter of credit or
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other obligation (the "primary obligations") of another Person (the
"primary obligor"), including any obligation of that Person (i) to
purchase, repurchase or otherwise acquire such primary obligations or
any security therefor, (ii) to advance or provide funds for the payment
or discharge of any such primary obligation, or to maintain working
capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet item, level of
income or financial condition of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation, or (iv) otherwise to
assure or hold harmless the holder of any such primary obligation
against loss in respect thereof (each, a "Guaranty Obligation"); (b)
with respect to any Surety Instrument issued for the account of that
Person or as to which that Person is otherwise liable for reimbursement
of drawings or payments; (c) to purchase any materials, supplies or
other property from, or to obtain the services of, another Person if the
relevant contract or other related document or obligation requires that
payment for such materials, supplies or other property, or for such
services, shall be made regardless of whether delivery of such
materials, supplies or other property is ever made or tendered, or such
services are ever performed or tendered, or (d) in respect of any Rate
Hedging Obligation. The amount of any Contingent Obligation shall, in
the case of Guaranty Obligations, be deemed equal to the stated or
determinable amount of the primary obligation in respect of which such
Guaranty Obligation is made or, if not stated or if indeterminable, the
maximum reasonably anticipated liability in respect thereof, and in the
case of other Contingent Obligations, shall be equal to the maximum
reasonably anticipated liability in respect thereof.
"Contractual Obligation" means, as to any Person, any provision
of any security issued by such Person or of any agreement, undertaking,
contract, indenture, mortgage, deed of trust or other instrument,
document or agreement to which such Person is a party or by which it or
any of its property is bound.
"Designated Responsible Official" means a responsible official
of the Company that is specifically authorized to execute Requests for
Borrowings and Requests for Letters of Credit and to otherwise request
Borrowings or the issuance of Letters of Credit hereunder, request and
accept interest rate quotes and designate and redesignate LIBOR
Borrowings, LIBOR Periods and otherwise act for the Company in
connection with borrowing funds under this Agreement and establishing or
reestablishing applicable interest rates with respect thereto. As of the
date of this Agreement, the Designated Responsible Officials are set
forth in Schedule 1.1(B) hereto. The Company, by written
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notice to Agent in accordance with the notice provisions of this
Agreement, may, with the written consent of the Agent (not to be
unreasonably withheld) change the persons who constitute Designated
Responsible Officials hereunder.
"Dollars" or "$" means United States dollars.
"Eligible Assignee" means (i) a commercial bank organized under
the laws of the United States, or any state thereof, and having a
combined capital and surplus of at least $100,000,000, (ii) a commercial
bank organized under the laws of any other country which is a member of
the Organization for Economic Cooperation and Development, or a
political subdivision of any such country, and having a combined capital
and surplus of at least $100,000,000, provided that such bank is acting
through a branch or agency located in the United States, or (iii) a
Person that is primarily engaged in the business of commercial banking
and that is (A) a Subsidiary of a Bank, (B) a Subsidiary of a Person of
which a Bank is a Subsidiary, or (C) a Person of which a Bank is a
Subsidiary.
"Environmental Claims" means all claims, however asserted, by
any Governmental Authority or other Person alleging potential liability
or responsibility for violation of any Environmental Law, or for release
or injury to the environment or threat to public health, personal injury
(including sickness, disease or death), property damage, natural
resources damage, or otherwise alleging liability or responsibility for
damages (punitive or otherwise), cleanup, removal, remedial or response
costs, restitution, civil or criminal penalties, injunctive relief, or
other type of relief, resulting from or based upon the presence,
placement, discharge, emission or release (including intentional and
unintentional, negligent and non-negligent, sudden or non-sudden,
accidental or non-accidental, placement, spills, leaks, discharges,
emissions or releases) of any Hazardous Material at, in, or from any
property, whether owned by the Company or any other Person.
"Environmental Laws" means all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any
Governmental Authorities, in each case relating to environmental,
health, safety and land use matters; including the Comprehensive
Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), the Clean Air Act, the Federal Water Pollution Control Act
of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation
and Recovery Act, the Toxic Substances Control Act, the Emergency
Planning and Community Right-to-Know Act, the California Hazardous Waste
Control
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Law, the California Solid Waste Management, Resource, Recovery and
Recycling Act, the California Water Code, the California Health and
Safety Code and any other similar laws or other environmental, health or
safety laws of other states.
"ERISA" means the Employee Retirement Income Security Act of
1974, and any regulations issued pursuant thereto, as now or from time
to time hereafter in effect.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Company within the meaning
of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the
Code for purposes of provisions relating to Section 412 of the Code).
"ERISA Event" means (a) a Reportable Event with respect to a
Pension Plan; (b) a withdrawal by the Company or any ERISA Affiliate
from a Pension Plan subject to Section 4063 of ERISA during a plan year
in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations which is treated as such a
withdrawal under Section 4062(e) of ERISA; (c) a complete or partial
withdrawal by the Company or any ERISA Affiliate from a Multiemployer
Plan or notification that a Multiemployer Plan is in reorganization; (d)
the filing of a notice of intent to terminate, the treatment of a Plan
amendment as a termination under Section 4041 or 4041A of ERISA, or the
commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan; (e) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any
liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Company or any ERISA
Affiliate.
"Events of Default" has the meaning set forth for that term in
Section 9.1.
"Exchange Act" means the Securities Exchange Act of 1934, and
regulations promulgated thereunder.
"Facility Fee" has the meaning set forth in Section 4.2.
"FDIC" means the Federal Deposit Insurance Corporation, and any
Governmental Authority succeeding to any of its principal functions.
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"Federal Funds Rate" means, for any day, the rate set forth in
the weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Bank of New York
(including any such successor, "H.15(519)") on the preceding Banking Day
opposite the caption "Federal Funds (Effective)"; or, if for any
relevant day such rate is not so published on any such preceding Banking
Day, the rate for such day will be the arithmetic mean as determined by
the Agent of the rates for the last transaction in overnight Federal
funds arranged prior to 9:00 a.m. (New York City time) on that day by
each of three leading brokers of Federal funds transactions in New York
City selected by the Agent.
"Fee Letter Agreement" has the meaning set forth in Section
4.17.
"Fixed Rate Option Requests" means the combined number of LIBOR
Borrowings made in any specified period of time.
"FRB" means the Board of Governors of the Federal Reserve
System, and any Governmental Authority succeeding to any of its
principal functions.
"Funds From Operations" means net income (loss), computed in
accordance with GAAP, excluding gains (or losses) from debt
restructuring and sales of property, plus real estate related
depreciation and amortization and after adjustments for unconsolidated
partnerships and joint ventures.
"GAAP" means, as of any date, generally accepted accounting
principals set forth in the then current opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified
Public Accountants and the then current statements and pronouncements of
the Financial Accounting Standards Board (or agency with similar
functions of comparable stature and authority within the United States
accounting profession).
"Government Securities" means readily marketable direct
obligations of the United States of America or obligations fully
guaranteed by the United States of America.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof, any central bank (or
similar monetary or regulatory authority) thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions
of or pertaining to
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17
government, and any corporation or other entity owned or controlled,
through stock or capital ownership or otherwise, by any of the
foregoing.
"Guarantor" means any Person who hereafter guarantees repayment
of all or part of the Loans (it being understood that as of the date of
this Agreement there is no Guarantor) and such Person's successors and
assigns.
"Guaranty" means any guaranty hereafter executed by a Guarantor
and approved by Agent.
"Hazardous Materials" means all those substances that are
regulated by, or which may form the basis of liability under, any
Environmental Law, including all substances identified under any
Environmental Law as a pollutant, contaminant, hazardous waste,
hazardous constituent, special waste, hazardous substance, hazardous
material, or toxic substance, or petroleum or petroleum derived
substance or waste.
"Indebtedness" of any Person means, without duplication, (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken
or assumed as the deferred purchase price of property or services (other
than trade payables entered into in the ordinary course of business on
ordinary terms); (c) all non-contingent reimbursement or payment
obligations with respect to Surety Instruments; (d) all obligations
evidenced by notes, bonds, debentures or similar instruments, including
obligations so evidenced incurred in connection with the acquisition of
property, assets or businesses; (e) all indebtedness created or arising
under any conditional sale or other title retention agreement, or
incurred as financing, in either case with respect to property acquired
by the Person (even though the rights and remedies of the seller or bank
under such agreement in the event of default are limited to repossession
or sale of such property); (f) all obligations with respect to capital
leases; (g) all Rate Hedging Obligations; (h) all indebtedness referred
to in clauses (a) through (g) above secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien upon or in property (including accounts and
contracts rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness; and (i)
all Guaranty Obligations in respect of indebtedness or obligations of
others of the kinds referred to in clauses (a) through (g) above.
"Indebtedness" does not include, however, security deposits, accounts
payable, accrued liabilities and any prepaid rents (as such terms are
defined in accordance with GAAP).
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"Interest Differential" means, with respect to any prepayment or
redesignation of a LIBOR Rate Loan on a day other than the last day of
the applicable LIBOR Period and with respect to any failure to borrow a
LIBOR Rate Loan on the date or in the amount specified in any Request
for Borrowing or any Request for Redesignation of Borrowing, (a) the
LIBOR Rate payable (or, with respect to a failure to borrow, the LIBOR
Rate which would have been payable) with respect to the LIBOR Rate Loan
minus (b) the LIBOR Rate on, or as near as practicable to the date of,
the prepayment or failure to borrow for a LIBOR Rate Loan with a LIBOR
Period commencing on such date and ending on the last day of the LIBOR
Period of the LIBOR Borrowing so prepaid or which would have been
borrowed on such date. The determination of the Interest Differential by
the Agent shall be conclusive in the absence of manifest error.
"Interest Payment Date" means the first day of any month.
"IRS" means the Internal Revenue Service, and any Governmental
Authority succeeding to any of its principal functions under the Code.
"Issuing Bank" means Bank of America in its individual capacity
as a bank issuing Letters of Credit under this Agreement.
"Laws" means, collectively, all international, foreign, federal,
state and local statutes, treaties, rules, regulations, ordinances,
codes and administrative or judicial precedents.
"L/C Commitment" has the meaning set forth in Section 3.9.1.
"L/C Commitment Termination Date" has the meaning set forth in
Section 3.9.1.
"L/C Obligations" has the meaning set forth in Section 3.9.1.
"Letters of Credit" has the meaning set forth in Section
3.9.2(a).
"Leverage Ratio" has the meaning set forth in Section 8.3
"LIBOR Banking Day" means any Banking Day on which banks are
open for business in London, England.
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"LIBOR Base Rate" means the offered rate (determined solely by
the Agent) for a period of time comparable to the number of days in the
applicable LIBOR Period for deposits in United States Dollars, as shown
on Telerate Page 3750 as of 11:00 a.m. London time two (2) LIBOR Banking
Days prior to the first day of the applicable LIBOR Period, or if
Telerate Page 3750 is unavailable, the rate for such deposits determined
by the Agent at such time based on such other published service of
general application as shall be selected by the Agent for such purpose.
The determination of the LIBOR Base Rate by the Agent shall be
conclusive in the absence of manifest error. "Telerate Page 3750" means
the display designated as such on Teleratesystem Incorporated (or such
other page as may replace page 3750 on that service for the purpose of
displaying London interbank offered rates of major banks for United
States Dollar deposits).
"LIBOR Borrowing" means any portion of the Loan Proceeds
designated or redesignated by the Company as a LIBOR Borrowing pursuant
to Article 3.
"LIBOR Lending Office" means the office or branch of each Bank
so designated on the signature pages of this Agreement, or such other
office or branch of each Bank as it may hereafter designate, by written
notice to the Company, as its LIBOR Lending Office.
"LIBOR Period" means, as to each LIBOR Borrowing, the period
commencing on the date specified by the Company pursuant to Sections 3.3
or 3.4 and ending at least seven days but not more than one month
thereafter, or ending two, three, six, nine or twelve months thereafter,
as designated by the Company in the applicable Request for Borrowing or
Request for Redesignation of Borrowing, provided that:
(a) the first day in any LIBOR Period shall be a LIBOR
Banking Day;
(b) any LIBOR Period that would otherwise end on a day
that is not a LIBOR Banking Day shall be extended to the next
succeeding LIBOR Banking Day unless such LIBOR Banking Day falls
in another calendar month, in which case such LIBOR Period shall
end on the next preceding LIBOR Banking Day; and
(c) No LIBOR Period shall extend beyond the Maturity
Date.
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"LIBOR Rate" means, for any LIBOR Period for any LIBOR
Borrowing, the rate (rounded upward, if necessary, to the next 1/100 of
1%) obtained by dividing (i) the LIBOR Base Rate for such LIBOR Period,
by (ii) a percentage equal to 100% minus the LIBOR Reserve Percentage
for such LIBOR Period.
"LIBOR Rate Spread" means the additional component of interest,
expressed as a percentage per annum, to be added to the LIBOR Rate in
determining the applicable rate of interest for LIBOR Borrowings. The
applicable LIBOR Rate Spread shall be determined in accordance with the
pricing grid and guidelines set forth in Schedule 1.1(C).
"LIBOR Reserve Percentage" means the total of the maximum
reserve percentages for determining the reserves to be maintained by
member banks of the Federal Reserve System for Eurocurrency Liabilities,
as defined in Regulation D. The Reserve Percentage shall be expressed as
a decimal and rounded upward, if necessary, to the nearest 1/100th of
one percent, and shall include marginal, emergency, supplemental,
special and other reserve percentages.
"Lien" means any security interest, mortgage, deed of trust,
pledge, hypothecation, assignment, charge or deposit arrangement,
encumbrance, lien (statutory or other) or preferential arrangement of
any kind or nature whatsoever in respect of any property (including
those created by, arising under or evidenced by any conditional sale or
other title retention agreement, the interest of a lessor under a
capital lease, any financing lease having substantially the same
economic effect as any of the foregoing, or the filing of any financing
statement naming the owner of the asset to which such lien relates as
debtor, under the Uniform Commercial Code or any comparable law) and any
contingent or other agreement to provide any of the foregoing, but not
including the interest of a lessor under an operating lease.
"Loan" or "Loans" means each of the loans and Borrowings under
this Agreement.
"Loan Documents" means, collectively, this Agreement, each Note,
and any Guaranty.
"Loan Proceeds" means the proceeds of the Loans, in the
aggregate principal amount of up to $200,000,000 (subject to increase in
accordance with Section 11.22 below).
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"Majority Banks" means, at any time, if Bank of America is the
only Bank, Bank of America, and, if there is more than one Bank, at
least two Banks then holding in excess of 66 2/3% of the then aggregate
unpaid principal amount of the Loans, or, if no such principal amount is
then outstanding, at least two Banks then having in excess of 66 2/3% of
the Total Aggregate Commitment.
"Material" means, in connection with the Company, its
Subsidiaries, and the Loan and the Loan Documents, such circumstances or
facts which the Banks in the exercise of their discretion could be
expected to rely upon in determining whether to enter into or to
continue lending under this Agreement or which could have a bearing on
any actions undertaken by the Banks. Such Material circumstances or
facts shall include, without limitation, such circumstances or facts as
would alter, enlarge, restrict or otherwise affect the rights and
liabilities otherwise existing between the parties to the Agreement or
any other Loan Document.
"Maturity Date" means December 20, 2002.
"Multiemployer Plan" means a "multiemployer plan", within the
meaning of Section 4001(a)(3) of ERISA, to which the Company or any
ERISA Affiliate makes, is making, or is obligated to make contributions
or, during the preceding three calendar years, has made, or been
obligated to make, contributions.
"Net Operating Income" means, for any Asset, as of any date and
calculated on a cash basis, (a) the gross rental income of such Asset
for the immediately preceding four consecutive calendar quarters, less
(b) the aggregate amount of all actual operating expenses (excluding
capital expenditures) for such Asset during such period, less (c) an
imputed capital expenditures amount equal to 3.5% of the difference
between (a) and (b) above. In the event the Agent receives operating
statements covering only a portion of the relevant four calendar quarter
period (whether because the Asset has been owned for less than four
calendar quarters, or otherwise), the Agent shall calculate Net
Operating Income for such Asset on the basis of the operating statements
which have been provided, subject to such adjustments as the Agent deems
appropriate in its sole discretion to accurately reflect anticipated
annual operating results. In the event (a) the Company has, within the
two calendar quarters preceding the date of calculation, completed the
build-out of additional in-line shop space or pad space on any Asset,
(b) such additional space has been leased to tenants who have commenced
paying rent, are in occupancy and have opened for business, and (c) the
Agent determines that, as a result of the
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leasing of such additional space, annual Net Operating Income for such
Asset will increase by at least $250,000, then Net Operating Income for
such Asset shall be calculated based upon the operating statement for
such Asset covering the most recently completed calendar quarter,
subject to such adjustments as the Agent deems appropriate in its sole
and reasonable discretion to accurately reflect anticipated annual
operating results. In addition, the Agent may, in its sole discretion,
reduce the Net Operating Income for any Asset by the amount of rents
attributable to any leases (i) which are in default or which have
terminated or are otherwise no longer in effect, or (ii) which are
otherwise unacceptable to the Agent in its sole discretion.
"Note" means each of the amended and restated promissory notes,
substantially in the form of Exhibit "A" attached hereto and made a part
hereof, executed by the Company in favor of the Banks, each to the order
of the applicable Bank as payee to evidence such Bank's share of the
Loans, and each in the original principal amount of the applicable
Bank's Commitment such that the aggregate original principal amount of
all Notes is initially $200,000,000 (subject to increase as provided in
Section 11.22 below); as originally executed or as the same may from
time to time be supplemented, modified, amended, renewed, extended or
refinanced (and any promissory note that may be issued in substitution
or exchange therefor).
"Obligations" means all obligations of every nature of the
Company from time to time owed to the Banks under the Loan Documents.
"Opinion of Counsel" means the favorable written legal
opinion(s) of Hale, Lane, Peek, Xxxxxxxx, Xxxxxx, Xxxxxxxx & Pearl,
and/or other counsel acceptable to Agent, as counsel to the Company and
the Subsidiaries, to this Agreement, substantially in the form of
Exhibit "F" attached hereto, together with copies of all factual
certificates and legal opinions upon which such counsel has relied.
"Other Taxes" means any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies
which arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this
Agreement or any other Loan Documents.
"Participant" shall have the meaning set forth in Section 11.6.
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"PBGC" means the Pension Benefit Guaranty Corporation, or any
Governmental Authority succeeding to any of its principal functions
under ERISA.
"Pension Plan" means a pension plan (as defined in Section 3(2)
of ERISA) subject to Title IV of ERISA which the Company sponsors,
maintains, or to which it makes, is making, or is obligated to make
contributions, or in the case of a multiple employer plan (as described
in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five (5) plan years.
"Person" means any entity, whether an individual, trustee,
corporation, general partnership, limited partnership, limited liability
company, joint stock company, trust, unincorporated organization, bank,
business association, firm, joint venture, Governmental Authority or
otherwise.
"Plan" means an employee benefit plan (as defined in Section
3(3) of ERISA) which the Company sponsors or maintains or to which the
Company makes, is making, or is obligated to make contributions and
includes any Pension Plan.
"Pro Rata Share" means, as to any Bank at any time, the
percentage equivalent (expressed as a decimal, rounded to the ninth
decimal place as determined by the Agent) at such time of such Bank's
Commitment divided by the combined Commitments of all Banks.
"Rate Hedging Obligations" means, for any Person, the net
obligations of such Person pursuant to any interest rate hedging
agreement or any foreign exchange contract, currency swap agreement or
other similar agreement to which such Person is a party or a
beneficiary.
"Reference Rate" means the higher of:
(a) the rate of interest publicly announced from time to
time by Bank of America in Charlotte, North Carolina, as its
reference rate. It is a rate set by Bank of America based upon
various factors including Bank of America's costs and desired
return, general economic conditions, and other factors, and is
used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate; and
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(b) 0.50% per annum above the latest Federal Funds Rate.
Any change in the Reference Rate shall take effect on the day specified
in the public announcement of such change.
"Reference Rate Borrowing" means any portion of the Loan
Proceeds which is not designated or redesignated by the Company as a
LIBOR Borrowing pursuant to Sections 3.3 or 3.4.
"Reference Rate Spread" means the additional component of
interest, expressed as a percentage per annum, to be added to the
Reference Rate in determining the applicable rate of interest for
Reference Rate Borrowings. The applicable Reference Rate Spread shall be
determined in accordance with the pricing grid and guidelines set forth
in Schedule 1.1(C).
"Regulation D" means Regulation D of the Board of Governors of
the Federal Reserve System as now or from time to time hereafter in
effect and any other regulation issued in substitution therefor.
"Reportable Event" means, any of the events set forth in Section
4043(b) of ERISA or the regulations thereunder, other than any such
event for which the 30-day notice requirement under ERISA has been
waived in regulations issued by the PBGC.
"Request for Borrowing" means a written request for a Borrowing
substantially in the form of Exhibit "C-1" attached hereto, signed by a
Responsible Official of the Company and properly completed to provide
all information required to be included thereon.
"Request for Letter of Credit" means a written request for a
Letter of Credit substantially in the form of Exhibit "C-2" attached
hereto, signed by a Responsible Official of the Company and properly
completed to provide all information required to be included thereon.
"Request for Redesignation of Borrowing" means a written request
for redesignation of Borrowing substantially in the form of Exhibit "D"
attached hereto, signed by a Responsible Official of the Company and
properly completed to provide all information required to be included
thereon.
"Requirement of Law" means, as to any Person, any Law or
determination of an arbitrator or of a Governmental Authority, in each
case
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applicable to or binding upon the Person or any of its property or to
which the Person or any of its property is subject.
"Responsible Official" means: (a) when used with reference to a
Person other than an individual, any corporate officer of such Person,
general partner of such Person, corporate officer of a corporate general
partner of such Person, or corporate officer of a corporate general
partner of a partnership that is a general partner of such Person, or
any other responsible official thereof duly acting on behalf thereof,
and (b) when used with reference to a Person who is an individual, such
Person. Any document or certificate hereunder that is signed or executed
by a Responsible Official of another Person shall be conclusively
presumed to have been authorized by all necessary corporate, partnership
and/or other action on the part of such other Person.
"Secured Indebtedness" means all Indebtedness that is secured by
real property.
"Special Circumstance" means the adoption of any Law or
interpretation, or any change therein or thereof, or any change in the
interpretation, administration or application thereof by any
Governmental Authority, central bank or comparable authority, or
compliance by the Banks or their LIBOR Lending Offices with any request
or directive (whether or not having the force of Law) of any
Governmental Authority, central bank or comparable authority, or the
occurrence of circumstances affecting the applicable certificate of
deposit market or London interbank eurodollar market generally which are
beyond the reasonable control of the Banks.
"Subsidiary" means (i) any corporation of which at least 50% of
the outstanding securities of any class or classes (however designated)
having ordinary voting power to elect directors of the corporation is
owned by the Company and/or by one or more than one other Subsidiary,
and (ii) any partnership, joint venture or limited liability company in
which the Company and/or any Subsidiary owns at least a 50% interest, or
which is otherwise controlled by the Company and/or any Subsidiary.
"Surety Instruments" means all letters of credit (including
standby and commercial), banker's acceptances, bank guaranties, shipside
bonds, surety bonds and similar instruments.
"Taxes" means any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Bank and the Agent, such
taxes (including
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income taxes or franchise taxes) as are imposed on or measured by each
Bank's net income.
"Total Aggregate Commitment" means the total aggregate combined
Commitments of each of the Banks. The Total Aggregate Commitment
concurrently equals $200,000,000, and is subject to increase in
accordance with Section 11.22 below.
"Total Liabilities" means, at any time of determination thereof,
without duplication, (a) all Indebtedness of the Company and
consolidated Subsidiaries, that, in conformity with GAAP applied on a
consistent basis, should be included in determining total liabilities
shown on the liability side of a consolidated balance sheet of the
Company and consolidated Subsidiaries, plus (b) all Indebtedness of any
Affiliated Partnership, plus (c) all Contingent Obligations of the
Company and consolidated Subsidiaries.
"Treasury Rate" means, as of any date of determination, the
yield to maturity of the most recently issued 7-year U.S. Treasury
Security as quoted by the Telerate News Services on such date. If such
date is not a business day, then the quote shall be obtained on the
business day immediately preceding such date. If the Telerate News
Services (a) publishes more than one such 7-year U.S. Treasury Security,
the average of such yields shall apply, or (b) ceases to publish such
yield, the Treasury Rate shall be determined from such substitute
financial reporting service or source as the Agent in its sole
discretion deems appropriate.
"Total Unsecured Debt Service" means, for each period of four
consecutive calendar quarters, the Actual Debt Service for such period
that is attributable to Unsecured Indebtedness.
"Unencumbered Assets" means those Assets which are not subject
to or encumbered by any Liens (other than Liens of a type described in
Sections 8.18(a) or 8.18(b)).
"Unencumbered Assets NOI" means, for each period of four
consecutive calendar quarters, the aggregate Net Operating Income for
such period from all Unencumbered Assets of the Company. Unencumbered
Assets NOI shall be annualized as provided in the definition of Net
Operating Income set forth above, if applicable. In calculating
Unencumbered Assets NOI, if, with respect to Unencumbered Assets owned
by the Company less than one quarter, the Company cannot present
operating statements satisfactory to the Agent which would allow the
Agent to calculate an annualized Net Operating
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Income for such Assets (as contemplated within the definition of Net
Operating Income set forth in Section 1.1 hereof), the Agent shall
calculate an annualized Net Operating Income for such Assets based on
the Company's "proforma" reports submitted to Agent, and such additional
information and documentation as the Agent shall require, subject to
such adjustments as the Agent deems appropriate in its sole discretion
to accurately reflect actual annual operating results for the period.
"Unfunded Pension Liability" means the excess of a Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current
value of that Plan's assets, determined in accordance with the
assumptions used for funding the Pension Plan pursuant to Section 412 of
the Code for the applicable plan year.
"Unsecured Indebtedness" means all Indebtedness that is not
secured by real property.
1.2 Use of Defined Terms. Any defined term used in the plural
shall refer to all members of the relevant class, and any defined term used in
the singular shall refer to any of the members of the relevant class.
1.3 Accounting Terms. All accounting terms not specifically
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis.
1.4 Exhibits. All exhibits to this Agreement, either as now
existing or as the same may from time to time be supplemented, modified or
amended, are incorporated herein by this reference.
1.5 References. Any reference to any Loan Document or other
document shall include such document both as originally executed and as it may
from time to time be amended or modified. References herein to Articles,
Sections, Schedules and Exhibits shall be construed as references to this
Agreement unless a different document is named. References to subparagraphs
shall be construed as references to the same Section in which the reference
appears. The terms "including" and "include" mean "including (include) without
limitation". This Section 1.5 shall apply to all of the Loan Documents.
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ARTICLE 2: RECITALS.
This Agreement is made with reference to the following facts:
(a) The Company is primarily engaged in the business of
acquiring, owning and operating (and, to a lesser extent, developing)
retail shopping centers.
(b) The Company has applied to the Banks for the Loans (i) to
finance or refinance the acquisition (and, within the limits specified
herein, the development) of retail shopping centers, and (ii) for
general working capital purposes.
(c) The Banks are willing to make the Loans to the Company on
the terms and conditions set forth in this Agreement and in the other
Loan Documents.
ARTICLE 3: BORROWING PROCEDURES AND LETTER OF CREDIT SUBLIMIT.
3.1 Disbursement of Loan Proceeds.
(a) Subject to the terms and conditions set forth in this
Agreement, at any time and from time to time from the Closing Date
through the Banking Day immediately preceding the Maturity Date, each
Bank shall, according to its Pro Rata Share, make Loans to the Company
in such amounts as the Company may request that do not exceed in the
aggregate at any one time outstanding, the Commitment of such Bank (less
the Pro Rata Share of such Bank's L/C Obligations, if any). Subject to
the limitations set forth herein, the Company may (prior to the Maturity
Date) borrow, repay and reborrow under each Bank's Commitment without
premium or penalty. The Company may not request more than five new
Borrowings during any calendar month. In no event shall the Banks be
obligated to make Loans to the Company at any time if, after giving
effect to such Loans, the provisions of Section 3.6 would be violated.
(b) Unless the Agent otherwise consents, the aggregate amount of
each LIBOR Borrowing shall be not less than $1,500,000 and the aggregate
amount of each Reference Rate Borrowing shall be not less than $250,000.
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(c) The Loans made by the Banks pursuant to this Agreement shall
be evidenced by each Note.
(d) A Request for Borrowing shall be irrevocable upon receipt by
the Agent. The Agent shall not be bound by any preliminary information
that it may give the Company concerning a particular LIBOR Rate before
it delivers the binding rate quote in accordance with Section 3.3(c)
below.
(e) Unless the Agent otherwise consents, no more than seven (7)
LIBOR Borrowings in the aggregate shall be outstanding at any one time.
(f) The Agent will notify each Bank of its receipt of a Request
for Borrowing and of the amount of such Bank's Pro Rata Share of that
Borrowing on the date of timely receipt of a Request for Borrowing by
the Company.
(g) Each Bank will make the amount of its Pro Rata Share of each
Borrowing available to the Agent for the account of the Company at the
Agent's Payment Office by 11:00 a.m. (California time) on the date of
Borrowing requested by the Company in funds immediately available to the
Agent. The proceeds of all such Loans will then be made available to the
Company by the Agent by wire transfer in accordance with written
instructions provided to the Agent by the Company of like funds as
received by the Agent.
3.2 Reference Rate Borrowings. All Loans shall at all times
constitute Reference Rate Borrowings unless properly designated or redesignated
as LIBOR Borrowings pursuant to Sections 3.3. or 3.4. Each request by the
Company for a new Reference Rate Borrowing shall be made pursuant to a Request
for Borrowing, executed by a Designated Responsible Official, received by the
Agent, at the Agent's office, not later than 9:00 a.m., California time, at
least one (1) Banking Day prior to the date the Reference Rate Borrowing is to
be funded to the Company. The Agent will notify each Bank of its receipt of a
Request for Borrowing in accordance with Section 3.1(f).
3.3 LIBOR Borrowing.
(a) Each request by the Company for a LIBOR Borrowing shall be
made pursuant to a Request for Borrowing, executed by a Designated
Responsible Official, received by the Agent, at the Agent's office, not
later than 9:00 a.m., California time, at least three (3) LIBOR Banking
Days before the first day of the applicable LIBOR Period. The Agent will
notify each Bank of its receipt of a Request for Borrowing in accordance
with Section 3.1(f).
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(b) Each Request for Borrowing pertaining to a LIBOR Borrowing
shall designate the LIBOR Period applicable to such LIBOR Borrowing. If
any Request for Borrowing fails to specify the duration of the LIBOR
Period for the requested LIBOR Borrowing, the LIBOR Period shall be one
month.
(c) At or about 9:00 a.m., California time, one (1) LIBOR
Banking Day after the LIBOR Banking Day on which Agent receives the
Company's Request for Borrowing, the Agent shall determine the
applicable LIBOR Rate (which determination shall be conclusive in the
absence of manifest error) and shall promptly give notice of the same to
the Company and the Banks by telephone, telecopier or telex.
(d) Upon fulfillment of the applicable conditions set forth in
Article 6, a LIBOR Borrowing shall become effective on the first day of
the applicable LIBOR Period.
(e) The Agent in its sole discretion may require the Company to
request any LIBOR Borrowing of $100,000,000 or more, or any redesigna
tion of a Reference Rate Borrowing of $100,000,000 or more as a LIBOR
Borrowing, at a time or on a day which is earlier than the deadline
stated above (or for redesignations of Reference Rate Borrowings, stated
Section 3.4 below) for making such a request. The Company acknowledges
that if this happens, the LIBOR Period for that LIBOR Borrowing could
begin later than the Company had originally contemplated. The Company
consents to any and all such delays.
(f) Nothing contained herein shall require the Banks to fund any
LIBOR Borrowing in the London interbank eurodollar market.
3.4 Redesignation of Borrowings.
(a) Subject to Section 6.3, if any LIBOR Borrowing is not repaid
on the last day of the applicable LIBOR Period, such Borrowing
automatically shall be redesignated as a Reference Rate Borrowing on
such date.
(b) Subject to the terms and conditions set forth in this
Agreement, at any time and from time to time from the Closing Date until
one month preceding the Maturity Date, the Company may request that all
or a portion of outstanding Reference Rate Borrowings be redesignated as
a LIBOR
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Borrowing; provided that the LIBOR Period for such LIBOR Borrowing shall
end on or before the Maturity Date.
(c) Each redesignation of all or a portion of outstanding
Reference Rate Borrowings as a LIBOR Borrowing shall be made pursuant to
a written Request for Redesignation of Borrowing, executed by a
Designated Responsible Official. Not later than 9:00 a.m., California
time, at least three (3) LIBOR Banking Days prior to the first day of
the applicable LIBOR Period, the Agent shall have received, at the
Agent's office, a properly completed Request for Redesignation of
Borrowing specifying (1) the requested date of redesignation, (2) the
requested amount of Reference Rate Borrowings to be redesignated as a
LIBOR Borrowing, and (3) the requested LIBOR Period. The Agent may, in
its sole and absolute discretion, permit a Request for Redesignation of
Borrowing to be made by telecopier or by telephone (with confirmation
sent promptly by telecopier) by the Company, in which case the Company
shall confirm same by mailing a written Request for Redesignation of
Borrowing to the Agent within 24 hours following the date of
redesignation.
(d) The Agent will notify each Bank of its receipt of a Request
for Redesignation on the date of timely receipt of a Request for
Redesignation from the Company. All redesignations shall be made ratably
according to the respective outstanding principal amount of the Loans
with respect to which the Request for Redesignation was given is then
held by each Bank.
(e) Unless all of the Banks otherwise agree, during the
existence of an Event of Default, the Company may not elect to have a
Loan converted into a LIBOR Borrowing.
(f) Unless the Banks otherwise consent, the amount of Reference
Rate Borrowings to be redesignated as a LIBOR Borrowing shall be not
less than $1,500,000.
(g) With respect to any redesignation of Reference Rate
Borrowing as a LIBOR Borrowing, at or about 9:00 a.m., California time,
one (1) LIBOR Banking Day after the LIBOR Banking Day on which Agent
receives the Company's Request for Redesignation, the Agent shall
determine the applicable LIBOR Rate (which determination shall be
conclusive in the absence of manifest error) and shall promptly give
notice of the same to the Company and the Banks by telephone, telecopier
or telex.
(h) Upon fulfillment of the applicable conditions set forth in
this Agreement, the redesignation of all or a portion of outstanding
Reference
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Rate Borrowings as a LIBOR Borrowing shall become effective on the first
day of the applicable LIBOR Period.
(i) A Request for Redesignation of Borrowing shall be
irrevocable upon receipt by the Agent.
(j) Nothing contained herein shall require the Banks to fund any
LIBOR Borrowing resulting from redesignation of all or a portion of any
of the Reference Rate Borrowings, in the London interbank eurodollar
market.
3.5 Calculation of Borrowing Base.
(a) The Borrowing Base shall be calculated at the times and in
the manner set forth in this Section 3.5(a):
(i) Within thirty (30) days after the end of each
calendar quarter, and at such other times as the Majority Banks
may reasonably require (including without limitation at any time
following the removal of any property from the Borrowing Base
Properties Pool), the Company shall provide the Agent with a
Borrowing Base Certificate showing the Company's calculations of
the components of the Borrowing Base and such data supporting
such calculations as the Majority Banks may require. The
Majority Banks shall have a period of fifteen (15) days
following Agent's receipt of a Borrowing Base Certificate to
notify the Agent of the Majority Banks' approval or disapproval
thereof, and the Agent shall have five (5) Banking Days
thereafter to notify the Company of the decision of the Majority
Banks. Failure of the Majority Banks to so notify the Agent
within such fifteen (15) day period shall be deemed approval and
such Borrowing Base as set forth in such Borrowing Base
Certificate shall be effective as of the date approved (or
deemed approved) by the Majority Banks.
(ii) In the event that the Agent (as requested by the
Majority Banks) timely notifies the Company of disapproval of a
Borrowing Base Certificate, then the Agent shall, at the same
time, notify the Company in writing of the amount of the
Borrowing Base as determined by the Majority Banks and the basis
of such determination, and the effective date thereof (which
shall be the date of the giving of such notice by the Agent),
and such amount shall thereupon and thereafter constitute the
Borrowing Base which shall remain in effect until such time as
the Borrowing Base is redetermined in accordance
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with this Section 3.5(a). The Company shall cooperate in good
faith with the Banks in the calculation of the Borrowing Base.
(iii) Each determination of the Borrowing Base in
accordance with this Section 3.5(a) shall be binding and
conclusive upon the parties hereto (i) provided that the
Majority Banks are not bound to rely on information and figures
provided by the Company if the Majority Banks determine in good
faith that it would be inappropriate to do so. Nothing contained
herein shall be deemed to restrict the Company from submitting
additional Borrowing Base Certificates to the Agent (but not
more often than once per calendar month) for the Majority Banks'
approval at times other than those required hereunder
(including, without limitation, at any time following the
addition of a property to the Borrowing Base Properties Pool).
(b) Amount of Borrowing Base. As used herein, the term
"Borrowing Base" shall mean the lesser of:
(i) an amount equal to the sum of: (A) an amount which
would be fully amortized in 25 equal annual installments of
principal and interest by 50% of the cumulative Net Operating
Income from the Assets within the Borrowing Base Properties Pool
which have been owned and held by the Company for at least one
full calendar quarter, assuming interest at a per annum rate
equal to the greater of (1) 2% per annum plus the Treasury Rate
or (2) 8.5%, plus (B) an amount equal to 50% of the cumulative
net purchase prices paid by the Company for the Assets within
the Borrowing Base Properties Pool which have been owned and
held by the Company for less than one full calendar quarter (it
being understood that an Asset may not be counted under both
subparagraph (A) and subparagraph (B) immediately above); or
(ii) an amount equal to one-half of the aggregate
Adjusted Current Values of the Assets within the Borrowing Base
Properties Pool.
(c) Only those Assets which constitute part of the "Borrowing
Base Properties Pool" shall be included in the calculation of the
Borrowing Base as set forth above. As used herein, the "Borrowing Base
Properties Pool" means those Assets which the Majority Banks, in the
exercise of their sole and absolute discretion, designate in writing as
constituting part of the Borrowing Base Properties Pool. The Assets
which shall initially constitute the Borrowing Base Properties Pool are
as set forth on Schedule 3.5(c) hereto. From time to
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time after the Closing Date, the Company may submit written requests
(not more often than once each calendar month) to add additional Assets
to the Borrowing Base Properties Pool. In each instance, it shall be in
the sole and absolute discretion of the Majority Banks as to whether any
additional Assets are added to the Borrowing Base Properties Pool;
provided that the Majority Banks shall use reasonable efforts to respond
to any requests by the Company to add additional Assets to the Borrowing
Base Properties Pool within 30 days of the receipt by Agent of such
written request from the Company (together with such information
regarding each of such Assets as the Majority Banks and Agent shall
request). Provided further, however, that failure of the Majority Banks
to respond to any such request within such 30-day period shall be deemed
to be a disapproval of such request. Without limiting the Majority
Banks' discretion as to which Assets shall be designated as part of the
Borrowing Base Properties Pool, the Company acknowledges and understands
that the Agent shall not be required to even submit an Asset to the
Banks for their consideration unless such Asset is 100% owned by the
Company (in fee), is free of all Liens (other than Liens of a type
permitted under Section 8.18), is a well-located, stabilized retail
shopping center, is at least 90% leased (subject to subsection 3.5(d)
below) to reputable, third party tenants who are in occupancy and have
opened for business, and as to which a recent "Phase I" environmental
report has disclosed no material toxic or hazardous substances. In
connection with each request from the Company to add an Asset to the
Borrowing Base Properties Pool, the Company shall submit to the Agent
the following information and documentation, in addition to any other
information, documentation or other items required by the Agent or the
Majority Banks in their sole discretion: (1) a current Phase I
environmental report addressed to the Company, which is dated within the
guidelines of the Majority Banks, (2) a title insurance policy insuring
the Company's lien free fee ownership interest in the subject Asset, and
a current title report with respect to such Asset, and (3) a current
rent roll (and detailed analysis of the net operating income generated
from such Asset, including gross rental receipts, operating expenses,
capital expenditures and other relevant information for at least the
prior four quarters, if available). Assets may be removed from the
Borrowing Base Properties Pool as follows:
(i) The Company may remove Assets at any time from
the Borrowing Base Properties Pool, upon not less than ten (10)
days' written notice to the Agent, so long as (A) the Company
shall have submitted a Borrowing Base Certificate to the Agent in
accordance with Section 3.5(a)(i) at least thirty (30) days (but
not more than ninety (90) days) prior to the date of the proposed
release of the subject Asset from the Borrowing Base Properties
Pool, (B) the Company shall concurrently
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reduce the outstanding amount of Loans and/or L/C Obligations
(by repayment of outstanding Loans, termination of issued
Letters of Credit, or both) to the extent necessary to comply
with the availability limits set forth in Section 3.6 below, and
any other applicable provisions of this Agreement, (C) following
such removal, the Borrowing Base Properties Pool shall not have
less than three separate Assets as part of the Borrowing Base
Properties Pool, (D) following such removal, the aggregate
Adjusted Current Value of the properties in the Borrowing Base
Properties Pool shall not be less than $45,000,000, and (E) no
Event of Default or event that with the giving of notice and/or
the passage of time would constitute an Event of Default shall
have occurred and be continuing; and
(ii) The Majority Banks may, at any time, remove Assets
from the Borrowing Base Properties Pool, upon not less than ten
(10) days written notice from the Agent to the Company, if the
Majority Banks in their sole and absolute discretion have
determined that a material adverse change has occurred with
respect to any of such Assets (including without limitation a
noncompliance with any specific criteria set forth in the
introductory paragraph to subsection 3.5(c) above).
(d) Notwithstanding the foregoing, the Banks will not refuse to
consider an Asset for inclusion in the Borrowing Base Properties Pool,
nor remove an Asset from the Borrowing Base Properties Pool, solely due
to the fact that the "leasing rate" (hereby defined for purposes of this
subparagraph as the percentage of the leasable square feet in such Asset
that is leased to reputable, third party tenants who are in occupancy
and are open for business) for such Asset has dropped below 90%, so long
as (i) the leasing rate for such Asset is no less than 85%, (ii) the
decline in leasing rate is a direct result of a renovation or
re-tenanting of the Asset initiated by the Company, (iii) the leasing
rate of the Asset has been below 90% for no more than six months, and
(iv) no more than 15% of the Borrowing Base is attributable to Assets
whose leasing rates are below 90%.
3.6 Availability Limits. The sum of the aggregate principal
amount at any time outstanding under the Loans plus the L/C Obligations shall
not at any time exceed the lesser of (i) the Total Aggregate Commitment or (ii)
the Borrowing Base.
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3.7 Payments by the Banks to the Agent.
(a) Unless the Agent receives notice from a Bank on or prior to
the Closing Date or, with respect to any Borrowing after the Closing
Date, at least one Banking Day prior to the date of such Borrowing, that
such Bank will not make available as and when required hereunder to the
Agent for the account of the Company the amount of that Bank's Pro Rata
Share of the Borrowing, the Agent may assume that each Bank has made
such amount available to the Agent in immediately available funds on the
date of Borrowing and the Agent may (but shall not be so required), in
reliance upon such assumption, make available to the Company on such
date a corresponding amount. If and to the extent any Bank shall not
have made its full amount available to the Agent in immediately
available funds and the Agent in such circumstances has made available
to the Company such amount, that Bank shall on the Banking Day following
such date of Borrowing make such amount available to the Agent, together
with interest at the Reference Rate for each day during such period. A
notice of the Agent submitted to any Bank with respect to amounts owing
under this subsection (a) shall be conclusive, absent manifest error. If
such amount is so made available, such payment to the Agent shall
constitute such Bank's Loan on the date of Borrowing for all purposes of
this Agreement. If such amount is not made available to the Agent on the
Banking Day following the date of Borrowing, the Agent will notify the
Company of such failure to fund and, upon demand by the Agent, the
Company shall pay such amount to the Agent for the Agent's account,
together with interest thereon for each day elapsed since the date of
such Borrowing, at a rate per annum equal to the interest rate
applicable at the time to the Loans comprising such Borrowing.
(b) The failure of any Bank to make any Loan on any date of
Borrowing shall not relieve any other Bank of any obligation hereunder
to make a Loan on such date of Borrowing, but no Bank shall be
responsible for the failure of any other Bank to make the Loan to be
made by such other Bank on any date of Borrowing.
3.8 Sharing of Payments, Etc. If, other than as expressly
provided elsewhere herein, any Bank shall obtain on account of the Loans made by
it any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) in excess of its Pro Rata Share, such Bank shall
immediately (a) notify the Agent of such fact, and (b) purchase from the other
Banks such participations in the Loans made by them as shall be necessary to
cause such purchasing Bank to share the excess payment pro rata with each of
them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Bank,
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such purchase shall to that extent be rescinded and each other Bank shall repay
to the purchasing Bank the purchase price paid therefor, together with an amount
equal to such paying Bank's ratable share (according to the proportion of (i)
the amount of such paying Bank's required repayment to (ii) the total amount so
recovered from the purchasing Bank) of any interest or other amount paid or
payable by the purchasing Bank in respect of the total amount so recovered. The
Company agrees that any Bank so purchasing a participation from another Bank
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off, but subject to Section 11.7) with respect to
such participation as fully as if such Bank were the direct creditor of the
Company in the amount of such participation. The Agent will keep records (which
shall be conclusive and binding in the absence of manifest error) of
participations purchased under this Section and will in each case notify the
Banks following any such purchases or repayments.
3.9 Letter of Credit Sublimit.
3.9.1 Amount and Terms of the Credit. Subject to the
terms and upon the conditions of this Agreement, the Issuing Bank shall issue
standby letters of credit for the account of the Company from time to time up to
but not including the date which is one year prior to the Maturity Date (the
"L/C Commitment Termination Date"). The maximum aggregate principal amount which
remains undrawn under all outstanding Letters of Credit (the "L/C Obligations")
under this Agreement shall not exceed at any one time outstanding the aggregate
principal sum of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) (the "L/C
Commitment").
3.9.2 Standby Letters of Credit.
(a) Amounts and Terms of Standby Letters of Credit.
During the period from the Closing Date to but excluding the L/C
Commitment Termination Date, and subject to the terms and
conditions of this Agreement, upon Company's request pursuant to
Section 3.9.3, the Issuing Bank shall issue one or more standby
letter(s) of credit (each, a "Letter of Credit," and
collectively, the "Letters of Credit") for the account of
Company (subject to Section 3.9.4); provided that the Issuing
Bank shall not be obligated to issue any Letter of Credit if,
after giving effect thereto, (i) the L/C Obligations would
exceed the L/C Commitment, or (ii) the total aggregate
outstanding Loans plus the L/C Obligations would exceed the
lesser of (A) the Total Aggregate Commitment, or (B) the
Borrowing Base. All Letters of Credit shall be on Issuing Bank's
standard forms of letters of credit at the time of issuance. No
Letter of Credit shall have an expiration date (unless the Banks
otherwise consent in writing) later than the earlier of (i) 12
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months after the date of issuance, or (ii) the date which is 60
days prior to the Maturity Date. No "evergreen" provisions shall
be permitted. The Issuing Bank shall not be required to issue
any Letter of Credit hereunder unless such Letter of Credit is
for the benefit of a party to which the Company or its
Subsidiaries owe certain performance obligations incurred in the
ordinary course of their real estate business. Issuing Bank
shall not be required to issue any Letter of Credit for the
benefit of creditors to which the Company or its Subsidiaries
are obligated in respect of obligations for borrowed money,
other than to back a purchase money note generated in connection
with the acquisition of Assets. Notwithstanding the above, (i)
Issuing Bank shall have no duty to inquire as to or to approve
the particular use of a requested Letter of Credit, and (ii)
Issuing Bank may issue Letters of Credit for any other purposes
not stated above in its sole discretion.
(b) Letter of Credit Draws are Loans under this
Agreement. The Company and each Bank agree that any draws under
any Letters of Credit shall constitute Loans under this
Agreement for all purposes. Without limiting the foregoing, (i)
all draws under any Letter of Credit shall bear interest and be
repaid as Loans outstanding under this Agreement, and (ii) if,
at the time any draw is made under any Letter of Credit, an
Event of Default has occurred or the Maturity Date has passed or
the Loans have been accelerated or are otherwise due and
payable, such draw under such Letter of Credit shall be
immediately due and payable in full. Promptly upon being
notified by the Agent (after Agent has received notice from the
Issuing Bank) that a draw has occurred under any Letter of
Credit, each Bank shall reimburse the Agent, for the benefit of
the Issuing Bank, for that Bank's Pro Rata Share of such draw.
3.9.3 Request for Credit. The Company, on or after the
Closing Date, shall give the Issuing Bank notice of its request for the issuance
of a Letter of Credit by delivering to the Issuing Bank (with a copy to the
Agent) a duly executed and completed L/C Application on Issuing Bank's then
current form (herein, an "L/C Application"). Such request shall specify: (i) the
date on which the issuance of the Letter of Credit is requested to be made
(which day shall be a Banking Day), and (ii) the amount of the Letter of Credit.
Subject to the conditions herein, the Issuing Bank will issue the Letter of
Credit as soon as reasonably practicable after receiving the above described
notice.
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3.9.4 Conditions Precedent to Issuance of Letters of
Credit. The obligation of the Issuing Bank to issue any Letter of Credit
requested by the Company is subject to satisfaction of the following conditions
precedent:
(a) Conditions to Loans shall be Satisfied. Each of the
conditions specified in Sections 6.2 and 6.3 to Borrowings shall
also be applicable as conditions precedent to the issuance of
any Letter of Credit.
(b) L/C Application. The Issuing Bank shall have
received from the Company, in form and substance satisfactory to
the Issuing Bank, (i) a duly executed and completed L/C
Application which L/C Application shall set forth, among other
things, the beneficiary, the amount, and the term of the
proposed Letter of Credit, and (ii) a duly executed and
completed Request for Letter of Credit (in the form attached
hereto as Exhibit "C-2").
(c) Issuing Bank Approval. The Issuing Bank shall have
determined that the amount of any requested Letter of Credit,
the beneficiary thereof and the other terms contained in the
documents pertaining to such Letter of Credit are satisfactory
to the Issuing Bank in the exercise of its sole discretion.
(d) Payment of Fees. The Company shall pay the Issuing
Bank all required fees in accordance with the Fee Letter
Agreement and this Agreement for the issuance and renewal of
each Letter of Credit. In addition, the Company shall pay to the
Issuing Bank (for its own benefit) all reasonable and customary
processing fees and costs described in the documents pertaining
to such Letter of Credit.
(e) Telephone Confirmation. Prior to the issuance of any
Letter of Credit, the Issuing Bank shall confirm by telephone
with the Agent that, following the issuance of such Letter of
Credit, none of the limitations set forth in Section 3.9 would
be violated.
ARTICLE 4: PAYMENTS AND FEES.
4.1 Principal and Interest.
(a) Interest shall be payable on the outstanding daily unpaid
principal amount of each Borrowing from the date thereof until payment
in full
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is made and shall accrue and be payable at the rates set forth herein
both before and after default and before and after maturity and
judgment, with interest on overdue interest to bear interest at the rate
specified in Section 4.4. Upon any partial prepayment or redesignation
of outstanding Reference Rate Borrowings, interest accrued through the
date of such prepayment or redesignation shall be payable on the next
following Interest Payment Date and shall be deducted from the Account
on such date. Insufficient funds in the Account shall not excuse the
Company's obligation to pay accrued interest on the Interest Payment
Date. Upon any partial prepayment or payment in full or redesignation or
conversion of any LIBOR Borrowing, or upon any payment or redesignation
in full of all outstanding Reference Rate Borrowings, interest accrued
through the date of such prepayment, payment, redesignation or
conversion shall be payable on the next following Interest Payment Date.
(b) Interest on each Reference Rate Borrowing shall be computed
on the basis of a year of 360 days and the actual number of days elapsed
(which shall result in more interest being due than if a year of 365
days were used), at the Reference Rate times the total principal balance
outstanding under each Note. Interest accrued on each Reference Rate
Borrowing shall be payable on each Interest Payment Date, commencing
with the first such date to occur after the Closing Date, and shall be
deducted from the Account on each such Interest Payment Date.
Insufficient funds in the Account shall not excuse the Company's
obligation to pay accrued interest on the Interest Payment Date. The
Agent shall use its best efforts to notify the Company of the amount of
interest so payable prior to each Interest Payment Date, but failure of
the Agent to do so shall not excuse payment of such interest when
payable. Except as otherwise provided in Section 4.4, the unpaid
principal amount of any Reference Rate Borrowing shall bear interest at
a fluctuating rate per annum equal to the Reference Rate plus the
Reference Rate Spread. Each change in the interest rate shall take
effect simultaneously with the corresponding change in the Reference
Rate. Each change in the Reference Rate shall be effective as of 12:01
a.m. on the Banking Day on which the change in the Reference Rate is
announced, unless otherwise specified in such announcement, in which
case the change shall be effective as so specified.
(c) Interest on each LIBOR Borrowing shall be computed on the
basis of a year of 360 days and the actual number of days elapsed (which
shall result in more interest being due than if a year of 365 days were
used). Interest accrued on each LIBOR Borrowing which is for a term of
one month shall be payable on the next Interest Payment Date following
the maturity date of that LIBOR Borrowing. Interest accrued on each
other LIBOR Borrowing outstanding as of each Interest Payment Date,
commencing with the first such
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date to occur after the Closing Date: (i) shall be payable on each such
Interest Payment Date and shall be deducted from the Account on such
date, and (ii) shall be payable on the next Interest Payment Date
following the maturity date of that LIBOR Borrowing. Insufficient funds
in the Account shall not excuse the Company's obligation to pay accrued
interest on the Interest Payment Date. The Agent shall use its best
efforts to notify the Company of the amount of interest so payable prior
to each such date, but failure of the Agent to do so shall not excuse
payment of such interest when payable. The unpaid principal amount of
any LIBOR Borrowing shall bear interest at a rate per annum equal to the
LIBOR Rate for that LIBOR Borrowing plus the applicable LIBOR Rate
Spread.
(d) If not sooner paid, the principal indebtedness evidenced by
each Note shall be payable as follows:
(i) subject to the applicable provisions of this
Agreement providing for automatic redesignation of Borrowings
upon compliance with Section 3.4, the principal amount of each
LIBOR Borrowing shall be payable on the last day of the LIBOR
Period for such Borrowing;
(ii) the amount, if any, by which the principal indebted
ness evidenced by each Note at any time exceeds the applicable
Bank's Commitment shall be payable immediately;
(iii) the amount of each payment required pursuant to
Section 4.16 shall be payable immediately; and
(iv) all remaining outstanding Loans (together with any
and all other indebtedness not otherwise paid when due under the
Loan Documents) shall be payable in full on the Maturity Date.
(e) Each Note may, at any time and from time to time, be
paid or prepaid in whole or in part, provided that (i) any partial
prepayment shall be in an amount not less than $250,000, (ii) except as
required by subsection (d) above, no LIBOR Borrowing may be paid or
prepaid in whole or in part prior to the last day of the applicable
LIBOR Period without the prior consent of each Bank, and,
notwithstanding such required prepayment or such consent, any payment or
prepayment of all or any part of any LIBOR Borrowing on a day other than
the last day of the applicable LIBOR Period shall be made on a LIBOR
Banking Day, as applicable, and shall be preceded by at least five (5)
LIBOR Banking Days, as applicable, written notice to the Agent of the
date
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and amount of such payment or payments, and (iii) any prepayment of a
LIBOR Borrowing shall be accompanied by a prepayment fee calculated in
accordance with subsection (f) below and any other amounts required to
be paid pursuant to Section 4.8. In addition, if at any time the amount
of any LIBOR Borrowing is reduced (by payment, prepayment or conversion
of a part thereof) to an amount less than $1,500,000, such LIBOR
Borrowing shall automatically convert into a Reference Rate Borrowing,
and on and after such date the right of the Company to continue such
Borrowing as a LIBOR Borrowing shall terminate.
(f) Prepayment fees shall be calculated as follows:
(i) $250; plus
(ii) principal amount of the LIBOR Borrowing, times [the
number of days between the date of prepayment and the last day
in the applicable LIBOR Period] divided by 360, times the
applicable Interest Differential; plus
(iii) all reasonable out-of-pocket expenses (including
Attorney Costs) incurred by the Banks and reasonably
attributable to such prepayment; provided that no prepayment fee
shall be payable (and no credit or rebate shall be required) if
the product of the foregoing formula is not positive.
For purposes of calculating any prepayment fee under this subsection
(f), each LIBOR Borrowing (and each related reserve, special deposit or
similar requirement) shall be conclusively deemed to have been funded at
the LIBOR Base Rate used in determining the LIBOR Rate for such LIBOR
Borrowing by a matching deposit or other borrowing in the interbank
eurodollar market for a comparable amount and for a comparable period,
regardless of whether such LIBOR Borrowing is so funded. The Agent's
determination of the amount of any prepayment fee shall be conclusive in
the absence of manifest error.
Nothing contained in this Section 4.1 shall relieve the Company
from its obligation to make interest payments to the Banks on each Interest
Payment Date (in accordance with the terms and conditions contained herein) in
the event the funds held in the Account are insufficient to make such interest
payments on any such Interest Payment Date.
4.2 Facility Fee. For the period commencing on the date of this
Agreement and ending on the Maturity Date, the Company shall pay to the Agent
each
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quarter, for the account of each Bank in accordance with its Pro Rata
Share, a facility fee (the "Facility Fee"), computed on the basis of a year of
360 days and the actual number of days elapsed, at the rate per annum determined
in accordance with the pricing grid and guidelines set forth in Schedule 1.1(C),
times the Total Aggregate Commitment. The Facility Fee shall be measured
quarterly and shall be payable quarterly in arrears on October 1, January 1,
April 1 and July 1 of each year, with the first such payment due January 1, 2000
(such first Facility Fee payment under this Agreement shall be prorated with any
"unused fee" that accrued during the same quarterly period under Section 4.2 of
the Prior Credit Agreement, and the prorated unused fee so determined shall be
paid upon the effective date of this Agreement), except that upon payment of
each Note in full, the Facility Fee accrued to the date of payment shall be
payable on the date of payment.
4.3 Letter of Credit Annual Fees. For each Letter of Credit
issued pursuant to this Agreement, the Company shall pay to the Agent, for the
account of each Bank in accordance with its Pro Rata Share Bank, an annual fee
(computed on the basis of a year of 360 days and the actual number of days
elapsed) equal to the LIBOR Rate Spread in effect on the date of issuance of
such Letter of Credit multiplied by the face amount of such Letter of Credit.
Such annual fee shall be payable quarterly in advance, commencing with the date
of issuance, and continuing each three months thereafter so long as the Letter
of Credit is outstanding.
4.4 Late Payments. Should any installment of principal or
interest or any fee or cost or other amount payable under any Loan Document to
the Banks not be paid within 10 days of when due, it shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the sum
of the Reference Rate plus 3.00% per annum, to the fullest extent permitted by
applicable Law. Accrued and unpaid interest on past due amounts (including,
without limitation, interest on past due interest) shall be compounded monthly,
on the last day of each calendar month, to the fullest extent permitted by
applicable Law.
4.5 Taxes. All payments payable to the Banks hereunder or with
respect to the Loan Documents shall be made to the Banks without deductions for
any Taxes or Other Taxes except to the extent the Company is required by any Law
or Governmental Authority to withhold and except in accordance with Section
10.10 to the extent, if any, that such amounts are required to be withheld by
the Agent under the laws of the United States of America or any other applicable
taxing authority.
4.6 Illegality.
(a) If any Bank determines that the introduction of any
Requirement of Law, or any change in any Requirement of Law, or in the
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interpretation or administration of any Requirement of Law, has made it
unlawful, or that any central bank or other Governmental Authority has
asserted that it is unlawful, for any Bank or its applicable Lending
Office to make LIBOR Rate Loans, then, on notice thereof by the Bank to
the Company through the Agent, any obligation of that Bank to make LIBOR
Rate Loans shall be suspended until the Bank notifies the Agent and the
Company that the circumstances giving rise to such determination no
longer exist.
(b) If a Bank determines that it is unlawful to maintain any
LIBOR Rate Loan, the Company shall, upon its receipt of notice of such
fact and demand from such Bank (with a copy to the Agent), prepay in
full such LIBOR Borrowings of that Bank then outstanding, together with
interest accrued thereon and amounts required under Section 4.8, either
on the last day of the LIBOR Period thereof, if the Bank may lawfully
continue to maintain such LIBOR Rate Loans to such day, or immediately,
if the Bank may not lawfully continue to maintain such LIBOR Rate Loan.
If the Company is required to so prepay any LIBOR Rate Loan, then
concurrently with such prepayment, the Company shall borrow from the
affected Bank, in the amount of such repayment, a Reference Rate Loan.
(c) If the obligation of any Bank to make or maintain LIBOR Rate
Loans has been so terminated or suspended, all Loans which would
otherwise be made by the Bank as LIBOR Rate Loans shall be instead
Reference Rate Loans.
(d) Before giving any notice to the Agent under this Section,
the affected Bank shall designate a different Lending Office with
respect to its Reference Rate Loans if such designation will avoid the
need for giving such notice or making such demand and will not, in the
judgment of the Bank, be illegal or otherwise disadvantageous to the
Bank.
4.7 Increased Costs and Reduction of Return.
(a) If any Bank determines that, due to either (i) the
introduction of or any change (other than any change by way of
imposition of or increase in reserve requirements included in the
calculation of the LIBOR Rate or in respect of the assessment rate
payable by any Bank to the FDIC for insuring U.S. deposits) in or in the
interpretation of any law or regulation or (ii) the compliance by that
Bank with any guideline or request from any central bank or other
Governmental Authority (whether or not having the force of law), there
shall be any increase in the cost to such Bank or reduction of return of
agreeing to make or making, funding or maintaining any LIBOR Rate Loans,
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then the Company shall be liable for, and shall from time to time, upon
demand (with a copy of such demand to be sent to the Agent), pay to the
Agent for the account of such Bank, additional amounts as are sufficient
to compensate such Bank for such increased costs.
(b) If any Bank shall have determined that (i) the introduction
of any Capital Adequacy Regulation, (ii) any change in any Capital
Adequacy Regulation, (iii) any change in the interpretation or
administration of any Capital Adequacy Regulation by any central bank or
other Governmental Authority charged with the interpretation or
administration thereof, or (iv) compliance by the Bank (or its Lending
Office) or any corporation controlling the Bank with any Capital
Adequacy Regulation, affects or would affect the amount of capital
required or expected to be maintained by the Bank or any corporation
controlling the Bank and (taking into consideration such Bank's or such
corporation's policies with respect to capital adequacy and such Bank's
desired return on capital) determines that the amount of such capital is
increased as a consequence of its Commitment, loans, credits or
obligations under this Agreement, then, upon demand of such Bank to the
Company through the Agent, the Company shall pay to the Bank, from time
to time as specified by the Bank, additional amounts sufficient to
compensate the Bank for such increase.
4.8 Funding Losses. The Company shall reimburse each Bank and
hold each Bank harmless from any loss or expense which the Bank may sustain or
incur as a consequence of:
(a) the failure of the Company to borrow, continue or convert a
Loan after the Company has given (or is deemed to have given) a Request
for Borrowing or a Request for Redesignation of Borrowing; or
(b) the prepayment (including pursuant to Section 4.16) or other
payment (including after acceleration thereof) of a LIBOR Rate Loan on a
day that is not the last day of the relevant LIBOR Period; or
(c) the automatic conversion under Section 4.1(e) of any LIBOR
Borrowing to a Reference Rate Borrowing on a day that is not the last
day of the relevant LIBOR Period;
including any such loss or expense arising from the liquidation or reemployment
of funds obtained by it to maintain its LIBOR Rate Loans or from fees payable to
terminate the deposits from which such funds were obtained. Such loss or expense
shall be calculated as follows:
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(i) principal amount of the LIBOR Borrowing, times [the
number of days between the date of the event and the last day in
the applicable LIBOR Period] divided by 360, times the
applicable Interest Differential; plus
(ii) all out-of-pocket expenses (including Attorney
Costs) incurred by the Banks and reasonably attributable to such
event; provided that no prepayment fee shall be payable (and no
credit or rebate shall be required) if the product of the
foregoing formula is not positive.
For purposes of calculating amounts payable by the Company to the Banks under
this Section 4.8, each LIBOR Borrowing (and each related reserve, special
deposit or similar requirement) shall be conclusively deemed to have been funded
at the LIBOR Base Rate used in determining the LIBOR Rate for such LIBOR
Borrowing by a matching deposit or other borrowing in the interbank eurodollar
market for a comparable amount and for a comparable period, regardless of
whether such LIBOR Borrowing is so funded.
4.9 Inability to Determine Rates. If any Bank determines that for
any reason adequate and reasonable means do not exist for determining the LIBOR
Rate for any requested LIBOR Period with respect to a proposed LIBOR Rate Loan,
or that the LIBOR Rate applicable pursuant to subsection 4.1(c) for any
requested LIBOR Period with respect to a proposed LIBOR Rate Loan does not
adequately and fairly reflect the cost to such Banks of funding such Loan, the
Agent will promptly so notify the Company and each Bank. Thereafter, the
obligation of the Banks to make or maintain LIBOR Rate Loans, as the case may
be, hereunder shall be suspended until the Agent upon the instruction of such
Bank revokes such notice in writing. Upon receipt of such notice, the Company
may revoke any Request for Borrowing or Request for Redesignation of Borrowing
then submitted by it. If the Company does not revoke such Request, the Banks
shall make, convert or continue the Loans, as proposed by the Company, in the
amount specified in the applicable notice submitted by the Company, but such
Loans shall be made, converted or continued as Reference Rate Loans instead of
LIBOR Rate Loans.
4.10 Reserves on LIBOR Rate Loans. The Company shall pay to each
Bank, as long as such Bank shall be required under regulations of the FRB to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as "Eurocurrency
liabilities"), additional costs on the unpaid principal amount of each LIBOR
Rate Loan equal to the actual costs of such reserves allocated to such Loan by
the Bank (as determined by the Bank in good faith, which determination shall be
conclusive), payable on each date on which interest is payable on such Loan,
provided the Company shall have received at least 15 days'
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prior written notice (with a copy to the Agent) of such additional costs from
the Bank. If a Bank fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional costs shall be payable 15 days from receipt of
such notice.
4.11 Certificates of Banks. Any Bank claiming reimbursement or
compensation under this Article 4 shall deliver to the Company (with a copy to
the Agent) a certificate setting forth in reasonable detail the amount payable
to the Bank hereunder and such certificate shall be conclusive and binding on
the Company in the absence of manifest error.
4.12 Substitution of Banks. Upon the receipt by the Company from
any Bank (an "Affected Bank") of a claim for compensation under Section 4.7 or
Section 4.15, the Company may: (i) request the Affected Bank to use its best
efforts to obtain a replacement bank or financial institution satisfactory to
the Company to acquire and assume all or a ratable part of all of such Affected
Bank's Loans and Commitment (a "Replacement Bank"); or (ii) request one or more
of the other Banks to acquire and assume all or part of such Affected Bank's
Loans and Commitment; or (iii) designate a Replacement Bank. Any such
designation of a Replacement Bank under clause (i) or (iii) shall be subject to
the prior written consent of the Agent (which consent shall not be unreasonably
withheld).
4.13 Survival. The agreements and obligations of the Company in
this Article 4 shall survive for one year following the payment in full of all
Obligations.
4.14 Manner and Treatment of Payments. The amount of each payment
hereunder or on each Note shall be made to Agent for the account of each
applicable Bank in immediately available funds on the day of payment (which must
be a Banking Day). Any payment received after 11:00 a.m., California time, on
any Banking Day, shall be deemed received on the next succeeding Banking Day.
Whenever any payment to be made hereunder or on each Note is due on a day that
is not a Banking Day, payment shall be made on the next succeeding Banking Day;
provided that the extension shall be included in the computation of interest
owing on the next following Interest Payment Date. Any payment of the principal
of any LIBOR Borrowing shall be made on a LIBOR Banking Day as applicable.
4.15 Change in Capital Requirements; Additional Costs. If a Bank
at any time subsequent to the date of this Agreement determines that the amount
of capital required or expected to be maintained by the Bank or any corporation
controlling the Bank under any Law or any guideline, request or directive of any
Governmental Authority is based on or increased by advances and/or commitments
of the type contemplated by this Agreement, then Company shall pay to the Bank
on demand such additional amounts as the Bank may reasonably determine to be
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sufficient to compensate the Bank or such other corporation in light of such
circumstances to the extent that the Bank reasonably determines that the
maintenance of such capital is allocable to advances and/or commitments under
this Agreement. If the occurrence of any Special Circumstance or other
regulatory development, or the imposition of any Tax or Other Tax, or change in
applicable Law, shall result in an increase in the cost or reduction of return
to the Bank of making, funding, maintaining or continuing the funding of any
Borrowing, then Company shall pay to the Bank on demand such additional amounts
as the Bank determines to be necessary to compensate the Bank for such increased
cost.
4.16 Mandatory Prepayment. In addition to any other prepayments
required herein, the Company shall make the following mandatory prepayments: (i)
in the event that the aggregate principal amount of the outstanding Loans plus
the L/C Obligations at any time exceeds the limitations specified in Section
3.6, the Company shall immediately make a prepayment of the Loans in such amount
as is necessary to cause the amount of outstanding Loans plus L/C Obligations to
comply with the limitations of Section 3.6; (ii) in the event that the Company
offers or sells any equity or debt instruments or interests of any type or
nature, all cash proceeds to the Company derived from such offerings or sales
(net of actual and reasonable costs of the offerings or sales) shall be applied
as mandatory principal prepayments on the Notes; and (iii) in the event that the
Company merges or consolidates with or sells all or substantially all of its
assets to any Person, all Obligations shall immediately become due and payable
(the foregoing does not affect any other remedies available with respect to any
other provisions of this Agreement or the other Loan Documents which may
prohibit the foregoing events). All mandatory prepayments shall be applied first
to all outstanding Reference Rate Borrowings before being applied to outstanding
LIBOR Borrowings.
4.17 Other Fees and Consideration Payable to Bank of America. The
Banks have been informed that pursuant to an amended and restated fee letter
agreement of even date herewith between Bank of America and the Company (the
"Fee Letter Agreement"), the Company has agreed to pay Bank of America for its
sole benefit (i.e., not to be shared with the other Banks) other fees and
compensation as consideration for Bank of America's performance of its duties as
Agent under this Agreement, for its commitment to make the Loans and to issue
Letters of Credit, and for other reasons, as more fully set forth in the Fee
Letter Agreement. The Company covenants and agrees to pay such fees and
compensation to Bank of America in accordance with the Fee Letter Agreement.
4.18 Computation of Interest and Fees. Computation of all types
of interest and all fees payable hereunder (or under the Fee Letter Agreement)
shall be calculated on the basis of a year of 360 days and the actual number of
days elapsed,
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which results in a higher yield to Banks than a method based on a year of 365 or
366 days. Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid (or deemed paid pursuant to Section
4.14), provided that any Loan that is repaid on the same day on which it is made
shall bear interest for one day.
ARTICLE 5: SECURITY.
5.1 Unsecured Credit. The Obligations shall be unsecured (except
as specified in Section 9.2, or as may otherwise now or hereafter be
specifically provided for to the contrary).
ARTICLE 6: CONDITIONS.
6.1 Conditions to Disbursement of First Borrowings. The
obligation of the Banks to make the first new disbursement of the Loan Proceeds
is subject to the conditions precedent specified in Section 11.21.
6.2 Conditions for Subsequent Borrowings or for a Redesignation
of Borrowings. The obligation of the Banks to make any subsequent disbursement
of Loan Proceeds or redesignation of Borrowing is subject to the following
conditions precedent:
(a) the representations and warranties contained in Article 7,
as of the latest reporting required under this Agreement, shall be
correct in all Material respects on and as of the date of the Borrowing,
or redesignation thereof, as though made on and as of that date, and no
Event of Default or event that could become an Event of Default upon the
giving of notice and/or the passage of time shall have occurred and be
continuing; and
(b) the Company shall, at its sole expense, deliver or cause to
be delivered to the Agent, in form and substance satisfactory to the
Agent, a Request for Borrowing or a Request for Redesignation of
Borrowing, as applicable.
6.3 Any Borrowing. In addition to any applicable conditions
precedent set forth elsewhere in this Article 6, the obligation of the Banks to
make any Loan is subject to the conditions precedent that the representations
and warranties contained in Article 7 shall be true and correct in all Material
respects on and as of the date of such Loan as though made on and as of that
date, and that there shall not have
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occurred any default which would constitute an Event of Default or which would
upon notice or the passage of time constitute an Event of Default.
ARTICLE 7: REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to the Agent and each Bank
that:
7.1 Incorporation, Qualification, Powers and Capital Stock. The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the state of Maryland, is duly qualified to do
business as, and is in good standing as, a foreign corporation in each
jurisdiction in which the conduct of its business or the ownership, leasing or
operation of its properties makes such qualifica tion necessary, and has all
requisite power and authority to conduct its business and to own, lease and
operate its properties. Without limiting the foregoing, the Company qualifies
as, and has elected to be taxed as, a real estate investment trust under the
Code. All outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid, nonassessable, and issued in compliance
with all applicable state and federal securities and other Laws.
7.2 Execution, Delivery and Performance of Loan Documents.
(a) The Company has all requisite power and authority to execute
and deliver, and to perform all of its obligations under, the Loan
Documents.
(b) The execution and delivery by the Company of, and the
performance by the Company of each of its obligations under, each Loan
Document have been duly authorized by all necessary action and do not
and will not:
(i) require any consent or approval not heretofore
obtained of any stockholder, security holder or creditor of the
Company or any Subsidiary;
(ii) violate any provision of the articles of
incorporation or bylaws of the Company or any provision of the
articles or certificate of incorporation or organization,
bylaws, operating agreement or partnership agreement of any
Subsidiary;
(iii) result in or require the creation or imposition of
any Lien (except to the extent that any Lien is created under
this
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Agreement) upon or with respect to any property now owned or
leased or hereafter acquired by the Company or any Subsidiary;
(iv) violate any provision of any Law, order, writ,
judgment, injunction, decree, determination or award presently
in effect having applicability to the Company, any Subsidiary or
any property owned by the Company or any Subsidiary;
(v) result in a breach of or constitute a default under,
or cause or permit the acceleration of any Contractual
Obligation of the Company or any Subsidiaries.
(c) The Company and each Subsidiary is not in default under any
Law, order, writ, judgment, injunction, decree, determination, award,
indenture, agreement, lease or instrument described in Sections
7.2(b)(iv) or 7.2(b)(v) above, in any respect that (i) is Materially
adverse to the interests of the Banks, or that (ii) could Materially
impair the ability of the Company to perform its obligations under the
Loan Documents, or (iii) has a Material adverse effect on the business
or financial condition of the Company or any Subsidiary.
(d) No authorization, consent, approval, order, license, permit
or exemption from, or filing, registration or qualification with, or
other action by, or notice to any Governmental Authority not heretofore
obtained is or will be required under applicable Law to authorize or
permit the execution and delivery of, and performance by the Company of
all of its obligations under, the Loan Documents.
(e) Each of the Loan Documents, when executed and delivered,
will constitute the legal, valid and binding obligations of the Company
enforceable against it in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency or other similar
laws relating to or affecting creditors' rights generally or equitable
principles relating to the granting of specific performance or other
equitable remedies as a matter of judicial discretion.
7.3 Compliance with Laws and Other Requirements. The Company is
in compliance with all Requirements of Law and other requirements applicable to
its business and has obtained all authorizations, consents, approvals, orders,
licenses, permits and exemptions from, and has accomplished all filings,
registrations or qualifications with, any Governmental Authority that are
necessary for the transaction of its business.
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7.4 Subsidiaries.
(a) Exhibit "E" hereto correctly sets forth the names and
jurisdictions of incorporation or formation of all present Subsidiaries.
Except as described in Exhibit "E", the Company does not own any capital
stock, membership interest, equity interest or partnership interest in
any Person other than the Subsidiaries. All outstanding shares of
capital stock, membership interests or partnership interests, as the
case may be, of each Subsidiary that are owned by the Company or any
Subsidiary are (i) owned of record and beneficially by the Company
and/or by one or more Subsidiaries, free and clear of all liens, claims,
encumbrances and rights of others, and are (ii) duly authorized, validly
issued, fully paid, nonassessable, and issued in compliance with all
applicable state and federal securities and other Laws. The Company may
update Exhibit "E" from time to time by sending written notice to the
Agent.
(b) Each Subsidiary is a corporation, partnership or limited
liability company duly incorporated, formed or organized, validly
existing and in good standing under the laws of its jurisdiction of
incorporation, formation or organization (as applicable), is duly
qualified to do business as, and is in good standing as, a foreign
corporation, partnership or limited liability company in each
jurisdiction in which the conduct of its business or the ownership or
leasing of its properties makes such qualification necessary, and has
all requisite power and authority to conduct its business and to own and
lease its properties.
(c) Each Subsidiary is in compliance with all Requirements of
Law and other requirements applicable to its business and has obtained
all authorizations, consents, approvals, orders, licenses, permits and
exemptions from, and has accomplished all filings, registrations or
qualifications with, any Governmental Authority that are necessary for
the transaction of its business.
7.5 Affiliated Partnerships. There are no Affiliated Partnerships
presently in existence which are not Subsidiaries listed on Exhibit "E" hereto.
7.6 Financial Statements of the Company and the Subsidiaries. The
Company has furnished to the Banks a copy of the Pan Pacific Retail Properties,
Inc. annual audited financial statements dated as of December 31, 1998, and
quarterly unaudited financial statements through September 30, 1999, which
contain certain financial information of the Company and its Subsidiaries. Such
financial information fairly presents the consolidated financial position of the
Company and the Subsidiaries as at the dates specified therein and the
consolidated results of operations and cash
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flows for the periods then ended, all in conformity with GAAP applied on a
consistent basis.
7.7 No Material Adverse Change. There has been no Material
adverse change in the condition, financial or otherwise, of the Company and the
Subsidiaries, taken as a whole, from the financial condition of the Company and
the Subsidiaries, taken as a whole, as set forth in the financial statements
described in Section 7.6 above, and the Company and the Subsidiaries, taken as a
whole, do not have any Material liability or, to the best knowledge of the
Company, Material contingent liability, not reflected or disclosed in the
financial statements described in Section 7.6 above, except as may be disclosed
in Schedule 7.7 hereto.
7.8 Tax Liability. The Company and each Subsidiary have filed all
tax returns (federal, state and local) required to be filed by them and have
paid all taxes shown thereon to be due and all property taxes due, including
interest and penalties, if any. To the best knowledge of the Company, there does
not exist any substantial likelihood that any Governmental Authority will
successfully assert a tax deficiency against the Company or any Subsidiary that
is Material to the Company and the Subsidiaries, taken as a whole, that has not
been adequately reserved against in the financial statements described in
Section 7.6. The Company and each Subsidiary has established and is maintaining
adequate reserves for tax liabilities, if any, sufficient to comply with GAAP.
7.9 Litigation. There are no actions, suits, proceedings, claims
or disputes pending or, to the best knowledge of the Company, threatened, at
law, in equity, in arbitration or before any Governmental Authority against or
affecting the Company or any Subsidiary, or any property of the Company or any
Subsidiary, which, if determined adversely to the Company or the Subsidiary,
could have a material adverse effect on the interests of any Bank, or could
Materially impair the ability of the Company to perform its obligations under
the Loan Documents, or could have a Material adverse effect on the business or
financial condition of the Company and the Subsidiaries, taken as a whole,
except as may be disclosed in Schedule 7.9 hereto.
7.10 ERISA Compliance.
(a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law.
Each Plan which is intended to qualify under Section 401(a) of the Code
has received a favorable determination letter from the IRS and to the
best knowledge of the Company, nothing has occurred which would cause
the loss of such qualification. The Company and each ERISA Affiliate has
made all
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required contributions to any Plan subject to Section 412 of the Code,
and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made
with respect to any Plan.
(b) There are no pending or, to the best knowledge of Company,
threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan which has resulted or could
reasonably be expected to result in (i) a Material adverse change in, or
a Material adverse effect upon, the operations, business, properties,
condition (financial or otherwise) of the Company, or (ii) a Material
impairment of the ability of the Company to perform its obligations
under the Loan Documents or to avoid any Event of Default. There has
been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan which has resulted or
could reasonably be expected to result in (i) a Material adverse change
in, or a Material adverse effect upon, the operations, business,
properties, condition (financial or otherwise) of the Company, or (ii) a
Material impairment of the ability of the Company to perform its
obligations under the Loan Documents or to avoid any Event of Default.
(c) (i) No ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii)
neither the Company nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any liability under Title IV of ERISA with respect to
any Pension Plan (other than premiums due and not delinquent under
Section 4007 of ERISA); (iv) neither the Company nor any ERISA Affiliate
has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of
ERISA with respect to a Multiemployer Plan; and (v) neither the Company
nor any ERISA Affiliate has engaged in a transaction that could be
subject to Section 4069 or 4212(c) of ERISA.
7.11 Regulations U and X; Investment Company Act. Neither the
Company nor any Subsidiary is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of "purchasing"
or "carrying" any "margin stock" within the meanings of Regulation U of the FRB.
No part of the Loan Proceeds will be used to purchase or carry any margin stock,
or to extend credit to others for that purpose, or for any purpose that violates
the provisions of Regulations U or X of the Board of Governors. Neither the
Company nor any Subsidiary is or is required to be registered under the
Investment Company Act of 1940.
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7.12 No Default. No event has occurred and is continuing that is
an Event of Default or that could become an Event of Default upon the giving of
notice and/or the passage of time. As of the Closing Date, neither the Company
nor any Subsidiary is in default under or with respect to any Contractual
Obligation in any respect which, individually or together with all other such
defaults, could reasonably be expected to (a) have a Material adverse effect on
the business or financial condition of the Company or any Subsidiary, (b) be
Materially adverse to the interests of the Banks, or (c) Materially impair the
ability of the Company to perform its obligations under the Loan Documents.
7.13 Borrowing Base. The sum of the aggregate principal amount
outstanding under the Loans plus the L/C Obligations does not exceed the
Borrowing Base.
7.14 Environmental Matters.
(a) Except as specifically disclosed in Schedule 7.14, the
on-going operations of the Company and each of its Subsidiaries comply
in all respects with all Environmental Laws, except such non-compliance
which would not ( if enforced in accordance with applicable law) result
in liability in excess of $200,000 in the aggregate.
(b) Except as specifically disclosed in Schedule 7.14, the
Company and each of its Subsidiaries have obtained all licenses,
permits, authorizations and registrations required under any
Environmental Law ("Environmental Permits") and necessary for their
respective ordinary course operations, all such Environmental Permits
are in good standing, and the Company and each of its Subsidiaries are
in compliance with all material terms and conditions of such
Environmental Permits.
(c) Except as specifically disclosed in Schedule 7.14, none of
the Company, any of its Subsidiaries or any of their respective present
property or operations, is subject to any outstanding written order from
or agreement with any Governmental Authority, nor subject to any
judicial or docketed administrative proceeding, respecting any
Environmental Law, Environmental Claim or Hazardous Material.
(d) Except as specifically disclosed in Schedule 7.14, there are
no Hazardous Materials or other conditions or circumstances existing
with respect to any property of the Company or any Subsidiary, or
arising from operations of the Company or any Subsidiaries that would
reasonably be expected to give rise to Environmental Claims with a
potential liability of the
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Company and Subsidiaries in excess of $200,000 in the aggregate for any
such condition, circumstance or property. In addition, (i) no
underground storage tanks exist on any property owned or operated by the
Company or any Subsidiary (x) that are not properly registered or
permitted under applicable Environmental Laws, or (y) that are leaking
or disposing of Hazardous Materials off-site, and (ii) the Company and
Subsidiaries have notified all of their employees of the existence, if
any, of any health hazard arising from the conditions of their
employment and have met all notification requirements under Title III of
CERCLA and all other Environmental Laws.
7.15 Insurance. The properties of the Company and each Subsidiary
is insured with financially sound and reputable insurance companies not
Affiliates of the Company, in such amounts, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar businesses
and owning similar properties in localities where the Company or such Subsidiary
operates. All such insurance is in compliance with the insurance requirements
specified in this Agreement.
7.16 No Burdensome Restrictions. Neither the Company nor any
Subsidiary is a party to or bound by any Contractual Obligation, or subject to
any restriction in any formation documents or other organizational or charter
documents, or any Requirement of Law, which could reasonably be expected to (a)
have a Material adverse affect on the business or financial condition of the
Company or any Subsidiary, (b) be Materially adverse to the interests of the
Banks, or (c) Materially impair the ability of the Company to perform its
obligations under the Loan Documents.
7.17 Full Disclosure. None of the representations or warranties
made by the Company in the Loan Documents as of the date such representations
and warranties are made or deemed made, and none of the statements contained in
any exhibit, report, statement or certificate furnished by or on behalf of the
Company or any Subsidiary in connection with the Loan Documents (including the
offering and disclosure materials delivered by or on behalf of the Company to
the Banks prior to the Closing Date), contains any untrue statement of a
material fact or omits any material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they are made, not misleading as of the time when made or delivered.
7.18 Year 2000 Compliance. The Company has developed and budgeted
for a comprehensive program to address the "Year 2000" problem (that is, the
inability of computers, as well as embedded microchips in non-computing devices,
to perform properly date-sensitive functions with respect to certain dates prior
to and
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after December 31, 1999). The Company has implemented that program substantially
in accordance with its timetable and budget and reasonably anticipates that it
will substantially avoid the Year 2000 problem as to all computers, as well as
embedded microchips in non-computing devices, that are material to the Company's
business, properties or operations. The Company has developed feasible
contingency plans adequately to ensure uninterrupted and unimpaired business
operation in the event of failure of its own or a third party's systems or
equipment due to the Year 2000 problem, including those of vendors, customers,
and suppliers, as well as a general failure of or interruption in its
communications and delivery infrastructure.
ARTICLE 8: COVENANTS OF THE COMPANY.
As long as any Note remains unpaid or any other Obligation
remains outstanding or any Commitment remains in effect:
8.1 Consolidated Tangible Net Worth. The Company shall not permit
Consolidated Tangible Net Worth at any time to be less than the sum of (a)
$375,000,000 plus (b) 75% of the net proceeds from any equity offerings of the
Company. The foregoing covenant shall be tested quarterly as of the end of each
calendar quarter.
8.2 Debt Service Coverage Ratio. The Company shall not permit at
any time the ratio of (a) Adjusted EBITDA to (b) Actual Debt Service to be less
than 2.0 to 1.0. The foregoing covenant shall be tested quarterly as of the end
of each calendar quarter.
8.3 Leverage Ratio. The Company shall not permit at any time the
ratio (the "Leverage Ratio") of (a) Total Liabilities to (b) Aggregate Adjusted
Current Value, to exceed .50 to 1.0. Notwithstanding anything in the definitions
of "Total Liabilities" or "Aggregate Adjusted Current Value" to the contrary,
the Leverage Ratio shall be computed so that (i) "Total Liabilities" shall also
include the Company's direct or indirect proportionate interest in any
Indebtedness of such Affiliated Partnerships, and (ii) "Aggregate Adjusted
Current Value" shall also include the Company's direct or indirect proportionate
interest in the value of any assets owned by such Affiliated Partnerships,
determined in the same manner as for Assets. The foregoing covenant shall be
tested quarterly as of the end of each calendar quarter. Notwithstanding the
foregoing, the Company may request in writing of Agent (and Agent shall not
unreasonably withhold its consent) that the maximum Leverage Ratio be increased
to .55 to 1.0 for a period of no more than six (6) months, if and only if the
fact that the Company's Leverage Ratio exceeds .50 to 1.0 is a direct result of
the Company's acquisition of a company or a portfolio of properties having an
acquisition cost greater
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than or equal to 15% of the Company's total assets immediately prior to such
acquisition, determined in accordance with GAAP. In the event that Agent
consents to a temporary increase in the Leverage Ratio in accordance with the
immediately preceding sentence, then during the period of such temporary
increase, the Reference Rate Spread and the LIBOR Rate Spread each shall be
increased by 0.25% per annum.
8.4 Secured Debt Ratio. The Company shall not permit, at any
time, the ratio of (a) the aggregate amount of Total Liabilities then secured by
real property to (b) Aggregate Adjusted Current Value to exceed .35 to 1.0. The
foregoing covenant shall be tested quarterly as of the end of each calendar
quarter.
8.5 Unencumbered Asset Ratios.
(a) the Company shall not permit, at any time, the ratio of (i)
the aggregate amount of the Adjusted Current Values of all Unencumbered
Assets to (ii) the aggregate amount of Total Liabilities which are not
secured by real property to be less than 2.0 to 1.0. The foregoing
covenant shall be tested quarterly as of the end of each calendar
quarter.
(b) Company shall not permit, at any time, the ratio of (i) the
aggregate amount of the Adjusted Current Values of all Unencumbered
Assets to (ii) Aggregate Adjusted Current Value to be less than .50 to
1.0. The foregoing covenant shall be tested quarterly as of the end of
each calendar quarter.
8.6 Unencumbered Assets NOI to Total Unsecured Debt Service. The
Company shall not, at any time, permit the ratio of Unencumbered Assets NOI to
Total Unsecured Debt Service to be less than 2.0 to 1.0. This covenant shall be
tested quarterly as of the last day of each calendar quarter, for each period
consisting of four consecutive calendar quarters (i.e., it shall be tested on a
rolling four calendar quarter basis as of the last day of each such quarter).
8.7 Limitations on Subsidiary Unsecured Indebtedness and Secured
Indebtedness. No Subsidiary at any time: (i) shall have any Unsecured
Indebtedness other than ordinary trade payables in the ordinary course of its
business; nor (ii) shall have any Secured Indebtedness other than non-recourse
Secured Indebtedness (except for an existing $4,500,000 letter of credit and
guaranty with respect to the retail project in Chino, California, commonly known
as "Chino Town Square").
8.8 Payment of Taxes and Other Potential Liens. The Company shall
pay and discharge promptly, and cause each Subsidiary to pay and discharge
promptly, all taxes, assessments and governmental charges or levies imposed upon
it, upon its
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property or any part thereof, upon its income or profits or any part thereof, or
upon any right or interest of any Bank under or in respect of any Loan Document,
except that neither the Company nor any Subsidiary shall be required to pay or
cause to be paid (a) any income or gross receipts tax generally applicable to
banks and imposed on any Bank, or (b) any tax, assessment, charge or levy that
is not yet past due, or being actively contested in good faith by appropriate
proceedings, as long as the Company or Subsidiary, as the case may be, has
established and maintains adequate reserves for the payment of the same and, by
reason of nonpayment, no property of the Company or any Subsidiary is in danger
of being lost or forfeited.
8.9 Preservation of Existence. The Company shall preserve and
maintain, and cause each Subsidiary to preserve and maintain, its corporate or
partnership existence, as the case may be, and all licenses, rights, franchises
and privileges in the jurisdiction of its incorporation or formation and all
authorizations, consents, approvals, orders, licenses, permits or exemptions
from, or registrations or qualifications with, any Governmental Authority that
are necessary for the transaction of its business, and qualify and remain
qualified, and cause each Subsidiary to qualify and remain qualified, to do
business as a foreign corporation or partnership in each jurisdiction in which
such qualification is necessary in view of its business or the ownership or
leasing of its properties.
8.10 REIT Status; No Prohibited Transactions. The Company shall
at all times elect to be taxed as, and shall take any and all action necessary
to qualify as, a real estate investment trust under the Code. The Company shall
not suffer or incur in any fiscal year any "net income from prohibited
transactions" as defined in Sections 857 and 1221 of the Code, as those sections
may be amended from time to time.
8.11 Maintenance of Properties. The Company shall maintain,
preserve and protect, and cause each Subsidiary to maintain, preserve and
protect, all of its properties in good order and condition, subject to wear and
tear in the ordinary course of business and, in the case of unimproved
properties, damage caused by the natural elements, and not allow any Subsidiary
to suffer or permit any waste of its properties.
8.12 Maintenance of Insurance. The Company shall maintain, and
shall cause each of its Subsidiaries to maintain, with financially sound and
reputable independent insurers, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons; including workers' compensation insurance, public liability and
property and casualty insurance which amount shall not
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be reduced by the Company in the absence of 10 days' prior notice to the Agent.
All such insurance shall name the Agent as loss payee/mortgagee and as
additional insured, for the benefit of the Banks, as their interests may appear.
All casualty and key man insurance maintained by the Company shall name the
Agent as loss payee and all liability insurance shall name the Agent as
additional insured for the benefit of the Banks, as their interests may appear.
Upon request of the Agent or any Bank, the Company shall furnish the Agent, with
sufficient copies for each Bank, at reasonable intervals (but not more than once
per calendar year) a certificate of the chief financial officer of the Company
(and, if requested by the Agent, any insurance broker of the Company) setting
forth the nature and extent of all insurance maintained by the Company and its
Subsidiaries in accordance with this Section (and which, in the case of a
certificate of a broker, were placed through such broker).
8.13 Mergers. The Company shall not merge or consolidate, or
permit any Subsidiary to merge or consolidate, with or into any Person, except
that any Subsidiary existing on the date hereof may merge into the Company
(provided that the surviving entity is the Company) or into any other
Subsidiary; provided that if the transaction involves a merger of a Subsidiary
and wholly-owned Subsidiary, the wholly-owned Subsidiary shall be the continuing
or surviving corporation; and provided further that no Subsidiary who is a
Guarantor at the time of the proposed merger shall merge with or into a
non-guarantying Subsidiary.
8.14 Books and Records. The Company shall maintain, and cause
each Subsidiary to maintain, full and complete books of account and other
records reflecting the results of its operations in conformity with GAAP applied
on a consistent basis and all applicable requirements of any Governmental
Authority having jurisdiction over the Company or any Subsidiary or any business
or properties of the Company or any Subsidiary.
8.15 Inspection Rights. At any time during regular business hours
and at any other reasonable time, and as often as requested, the Company shall
permit, and cause each Subsidiary to permit, each Bank or any employee, agent or
representative thereof to inspect and make copies and abstracts from the records
and books of account of, and to visit and inspect the properties of, the Company
and any Subsidiary, and to discuss any affairs, finances and accounts of the
Company and any Subsidiary with any of their respective officers or directors.
8.16 Reporting Requirements. The Company shall cause to be
delivered to the Agent, in form and detail satisfactory to the Agent and the
Majority Banks, with sufficient copies for each Bank, the following (together
with any compliance certificates and supporting information requested by Agent):
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(a) As soon as available and in any event within 45 days after
the end of each calendar quarter, unaudited consolidated balance sheets,
statements of income, retained earnings and cash flows of the Company
and the Subsidiaries for such period, all in reasonable detail and duly
certified (subject to year-end audit adjustments) by the chief financial
officer or the treasurer of the Company. Additionally, the Company shall
deliver with the unaudited consolidated balance sheets a schedule which
shall reconcile the amounts used to calculate the covenants pursuant to
Sections 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.21(d), 8.25 and 8.29 to such
unaudited consolidated balance sheet.
(b) As soon as available and in any event within 90 days after
the end of each calendar year, a consolidated balance sheet of the
Company and the Subsidiaries as of the end of the calendar year most
recently ended and consolidated statements of income, retained earnings
and cash flows of the Company and the Subsidiaries for such year,
setting forth in each case in comparative form the corresponding figures
for the preceding fiscal year, audited by and with the unqualified
opinion of an independent certified public accountants of nationally
recognized standing selected by the Company and acceptable to the
Majority Banks.
(c) Within five (5) days of the sending or filing thereof,
copies of each annual report, proxy or financial statement or other
report or communication sent to the shareholders of the Company, and
copies of all annual, regular, periodic and special filings, reports and
registration statements which the Company or any of its Subsidiaries may
file or be required to file with the Securities Exchange Commission or
any similar or corresponding Governmental Agency, with any securities
exchange or other national market trading system, or with the National
Association of Securities Dealers, including Forms 8K, 10-K, 10-Q,
126-25 and NASD report no. 10b-17.
(d) At the time of the delivery of the financial statements
described in (a) and (b) above, a certificate of the chief financial
officer or the treasurer of the Company stating that no event exists
that is, or with the giving of notice and/or the passage of time would
be, an Event of Default, or if such an event exists, stating the nature
thereof and the action that the Company proposes to take with respect
thereto.
(e) As soon as practicable, and in any event within 45 days
after the end of each calendar quarter, a report (including rent rolls
and leasing activity summaries) covering each of the Assets and each of
the real estate assets owned by one or more Subsidiaries showing the
actual operating results
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of each Asset and each such other real estate asset for the calendar
quarter most recently ended, duly certified by the chief financial
office of the Company.
(f) Within 45 days after the end of each calendar quarter, a
certificate of the Company's chief financial officer or treasurer,
together with such backup information as the Agent may reasonably
require, demonstrating in reasonable detail that the Company was in
compliance during the applicable period with the covenants set forth in
Sections 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.21(d), 8.25 and 8.29.
(g) As soon as practicable, and in any event within 60 days
after the end of each fiscal year, financial projections (including a
balance sheet, income statement and statement of cash flows) for the
Company and the Subsidiaries for the next succeeding three-year period.
(h) Such other information about the business, assets, operation
or condition, financial or otherwise, of the Company or any Subsidiary,
as each Bank may reasonably request from time to time.
8.17 Notices. The Company shall promptly notify the Agent and
each Bank:
(a) of the occurrence of any Event of Default, and of the
occurrence or existence of any event or circumstance that foreseeably
will become an Event of Default (and in each case such notice shall
include the action that the Company proposes to take with respect
thereto);
(b) of (i) any breach or non-performance of, or any default
under, any Contractual Obligation of the Company or any Subsidiaries
that is Materially adverse to the interests of the Banks, or that could
Materially impair the ability of the Company to perform its obligations
under the Loan Documents, or that has a Material adverse effect on the
business or financial condition of the Company or any Subsidiary, and
(ii) any dispute, litigation, investigation, proceeding or suspension
which may exist at any time between the Company or any Subsidiaries and
any Governmental Authority;
(c) of the commencement of, or any Material development in, any
litigation or proceeding affecting the Company or any Subsidiary (i) in
which the amount of damages claimed is $1,000,000 or more, (ii) in which
injunctive or similar relief is sought and which, if adversely
determined, would reasonably be expected to be Materially adverse to the
interests of the Banks, to Materially impair the ability of the Company
to perform its obligations under
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the Loan Documents, or to have a Material adverse effect on the business
or financial condition of the Company or any Subsidiary, or (iii) in
which the relief sought is an injunction or other stay of the
performance of this Agreement or any Loan Document;
(d) upon, but in no event later than 10 days after, becoming
aware of (i) any and all enforcement, cleanup, removal or other
governmental or regulatory actions instituted, completed or threatened
against the Company or any Subsidiary or any of their respective
properties pursuant to any applicable Environmental Laws, (ii) all other
Environmental Claims, and (iii) any environmental or similar condition
on any real property adjoining or in the vicinity of the property of the
Company or any Subsidiary that could reasonably be anticipated to cause
such property or any part thereof to be subject to any restrictions on
the ownership, occupancy, transferability or use of such property under
any Environmental Laws;
(e) of any other litigation or proceeding affecting the Company
or any Subsidiaries which the Company would be required to report to the
Securities Exchange Commission pursuant to the Exchange Act, within four
days after reporting the same to the Securities Exchange Commission;
(f) of any of the following events affecting the Company,
together with a copy of any notice with respect to such event that may
be required to be filed with a Governmental Authority and any notice
delivered by a Governmental Authority to the Company with respect to
such event:
(i) an ERISA Event;
(ii) if any of the representations and warranties in
Section 7.10 ceases to be true and correct;
(iii) the adoption of any new Pension Plan or other Plan
subject to Section 412 of the Code;
(iv) the adoption of any amendment to a Pension Plan or
other Plan subject to Section 412 of the Code, if such amendment
results in a material increase in contributions or Unfunded
Pension Liability; or
(v) the commencement of contributions to any Pension
Plan or other Plan subject to Section 412 of the Code; and
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(g) of any material change in accounting policies or financial
reporting practices by the Company or any Subsidiaries.
Each notice under this Section shall be accompanied by a written
statement by the Company's chief financial officer setting forth details of the
occurrence referred to therein, and stating what action the Company or any
affected Subsidiary proposes to take with respect thereto and at what time. Each
notice under subsection (a) shall describe with particularity any and all
clauses or provisions of this Agreement or other Loan Document that have been
(or foreseeably will be) breached or violated.
8.18 Liens. The Company shall not create, incur, assume or allow
to exist any Lien of any nature upon or with respect to any Asset in the
Borrowing Base Properties Pool, except the following permissible Liens:
(a) Liens for taxes, assessments or governmental charges or
levies to the extent that neither the Company nor any Subsidiary is
required to pay the amount secured thereby under Section 8.8; and
(b) Liens imposed by law, such as carrier's, warehouseman's,
mechanic's, materialman's and other similar Liens, arising in the
ordinary course of business in respect of obligations that are not
overdue or are being actively contested in good faith by appropriate
proceedings, as long as the Company or Subsidiary, as the case may be,
has established and maintains adequate reserves for the payment of the
same and, by reason of nonpayment, no property of the Company or any
Subsidiary is in danger of being lost or forfeited.
8.19 No Other Negative Pledge. The Company shall not covenant or
otherwise agree with any Person (other than the Banks and Agent pursuant to this
Agreement), whether in connection with obtaining or modifying credit accommo
dations from such Person, or incurring other Indebtedness, or otherwise, to keep
its Unencumbered Assets free of any or all Liens.
8.20 Prepayment of Indebtedness. If an Event of Default has
occurred and is continuing or an acceleration of the Obligations has occurred,
the Company shall not prepay the principal amount, in whole or in part, of any
Indebtedness other than (a) Obligations owed to each Bank hereunder or under
some other agreement between the Company and such Bank, and (b) Indebtedness
which ranks pari passu with the Obligations and which is or becomes due and
owing whether by reason of acceleration or otherwise.
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8.21 Loans and Investments. The Company shall not purchase or
acquire, or suffer or permit any Subsidiary to purchase or acquire, or make any
commitment to purchase or acquire, any capital stock, equity interest or any
obligations or securities of, or any interest in, any Person, or make or commit
to make any advance, loan, extension of credit or capital contribution to or any
other investment in, any Person, including any Affiliate, except for:
(a) investments in cash equivalents;
(b) Extensions of credit by the Company, in the ordinary course
of business and at market terms, to any of its wholly-owned Subsidiaries
or by any of its wholly-owned Subsidiaries to another of its
wholly-owned Subsidiaries;
(c) Extensions of credit by the Company to tenants leasing space
within the Assets for the build out of tenant improvements within the
Assets, provided that the aggregate amount of all such extensions of
credit (outstanding plus committed) shall not at any time exceed
$1,000,000; or
(d) investments in Persons, provided that (i) any such
investment is undertaken in accordance with all Requirements of Law;
(ii) the Company's (or a Subsidiary's) percentage ownership interest in
such Person after such investment will not cause such Person to become a
Subsidiary; and (iii) the aggregate amount of all such Investments shall
not at any time exceed an amount equal to 15% of the Aggregate Adjusted
Current Value; or
(e) investments in existing partnerships which the Company, as
of the date hereof, is a partner (as reflected in Schedule 8.21(e)
hereof).
8.22 Compliance with Laws and Other Requirements.
(a) The Company shall comply, and cause each Subsidiary to
comply, with all Requirements of Law and orders of any Governmental
Authority.
(b) The Company shall comply, and cause each Subsidiary (to the
extent they are so engaged) to comply, with all Requirements of Law
relating to the development, management and operation of each of its
real estate assets, and shall obtain, and cause each Subsidiary (to the
extent they are so engaged) to obtain, all necessary authorizations,
consents, approvals, licenses and permits of any Governmental Authority
with respect thereto.
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8.23 Change in Nature of Business. The Company shall not make, or
permit any Subsidiary to make, any change in the nature of its or their
respective businesses as carried on at the date hereof that is Material to the
Company and Subsidiaries, taken as a whole, which has not been consented to by
the Majority Banks in writing.
8.24 Compliance with ERISA. The Company shall , and shall cause
each of its ERISA Affiliates to: (a) maintain each Plan in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
federal or state law; (b) cause each Plan which is qualified under Section
401(a) of the Code to maintain such qualification; and (c) make all required
contributions to any Plan subject to Section 412 of the Code. In addition, the
Company shall not, and shall not suffer or permit any of its ERISA Affiliates
to: (a) engage in a prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan which has resulted or could
reasonably expected to result in liability of the Company in an aggregate amount
in excess of $500,000; or (b) engage in a transaction that could be subject to
Section 4069 or 4212(c) of ERISA.
8.25 Dividends. The Company shall not declare or pay any dividend
on any of its capital stock now or hereafter outstanding which exceeds the
lesser of (a) 100% of the Funds From Operations for the calendar quarter in
which such dividend is paid, and (b) 95% of the average quarterly Funds From
Operations (calculated based upon the current calendar quarter and the
immediately preceding three calendar quarters. Notwithstanding the foregoing,
the Company may pay dividends that exceed the foregoing limitation to the extent
(but only to the extent) that the payment of such dividends is necessary to
maintain its status as a real estate investment trust under the Code.
8.26 Disposition of Properties. The Company shall not, and shall
not permit the Subsidiaries to, sell, assign, exchange, transfer, lease or
otherwise dispose of any of their respective properties (whether real or
personal), other than properties sold, assigned, exchanged, transferred, leased
or otherwise disposed of for fair value and in the ordinary course of business.
8.27 Management; Ownership. The Company shall at all times,
unless the Majority Banks otherwise agree, maintain Xxxxxx Xxxx as president and
chief executive officer of the Company.
8.28 Compliance with Availability Limits. The Company shall not
permit the aggregate outstanding principal amount of the Loans plus the L/C
Obligations to exceed the lesser of (a) the Total Aggregate Commitment, or (b)
the Borrowing Base.
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8.29 Development Limitation. The Company and its Subsidiaries
shall not commit to, commence or continue construction of any improvements
(excluding normal repair or rehabilitation work on currently owned properties)
on any undeveloped or partially developed property of the Company or any of its
Subsidiaries, if the cost to complete such construction, together with the
aggregate cost to complete construction of all other improvements to be
constructed on undeveloped or partially developed property of the Company or any
of its Subsidiaries, would exceed 10% of the Aggregate Adjusted Current Value.
8.30 Environmental Laws.
(a) The Company shall, and shall cause each Subsidiary to,
conduct its operations and keep and maintain its property in compliance
with all Environmental Laws.
(b) Upon the written request of the Agent or any Bank, the
Company shall submit and cause each of its Subsidiaries to submit, to
the Agent with sufficient copies for each Bank, at the Company's sole
cost and expense, at reasonable intervals, a report providing an update
of the status of any environmental, health or safety compliance, hazard
or liability issue identified in any notice or report required pursuant
to Section 8.17(d), that could, individually or in the aggregate, result
in liability in excess of $50,000.
8.31 Use of Proceeds. The Company shall use the proceeds of the
Loans for working capital purposes not in contravention of any Laws or of any
Loan Document. Without limiting the foregoing, the Company shall not, and shall
not suffer or permit any Subsidiary to, use any portion of the Loan proceeds,
directly or indirectly, (i) to purchase or carry "margin stock" as such term is
defined in Regulation G, T, U or X of the FRB, (ii) to repay or otherwise
refinance indebtedness of the Company or others incurred to purchase or carry
margin stock, (iii) to extend credit for the purpose of purchasing or carrying
any margin stock, or (iv) to acquire any security in any transaction that is
subject to Section 13 or 14 of the Exchange Act.
8.32 Transactions with Affiliates. The Company shall not, and
shall not suffer or permit any Subsidiary to, enter into any transaction with
any Affiliate of the Company, except upon fair and reasonable terms no less
favorable to the Company or such Subsidiary than would obtain in a comparable
arm's-length transaction with a Person not an Affiliate of the Company or such
Subsidiary.
8.33 Accounting Changes. The Company shall not, and shall not
suffer or permit any Subsidiary to, make any significant change in accounting
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treatment or reporting practices, except as required by GAAP, or change the
fiscal year of the Company or of any Subsidiary.
ARTICLE 9: EVENTS OF DEFAULT AND REMEDIES UPON DEFAULT.
9.1 Events of Default. The occurrence of any one or more of the
following events shall constitute an Event of Default hereunder:
(a) failure to pay within 5 days after the date when due the
principal of each Note or any portion thereof or any interest thereon;
or
(b) failure to pay any fee or any other amount payable by the
Company or any Subsidiary under the Loan Documents within 15 days after
the date when due; or
(c) failure to perform or observe any other term, covenant or
agreement contained in any Loan Document on the Company's or any
Subsidiary's part to be performed or observed, and such failure shall
continue uncured for a period of thirty (30) days following notice from
the Agent to the Company (provided, however, that the cure period
specified in this subparagraph (c) shall not be applicable to any of the
other Events of Default set forth in the other subparagraphs of this
Section 9.1, or with respect to the failure to perform any covenants set
forth in Sections 8.12 or 8.13, or with respect to any other provisions
of any of the other Loan Documents as to which a cure period is
specifically stated); or
(d) any representation or warranty in any Loan Document or in
any certificate, agreement, instrument or other document made or
delivered pursuant to or in connection with any Loan Document proves to
have been incorrect when made in any respect that is materially adverse
to the interests of any Bank under the Loan Documents; or
(e) the occurrence of any default under any other agreement
between the Company and any Bank, including without limitation, the
failure to pay when due (or within any stated grace period) the
principal or any principal installment of, or any interest, on any
present or future indebtedness for borrowed money owed by the Company to
any Bank; or
(f) the Company, any Subsidiary or any Guarantor is dissolved or
liquidated or all or substantially all of the assets of the Company
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are sold or otherwise transferred or encumbered without the prior
written consent of each Bank; or
(g) the Company, any Subsidiary or any Guarantor is the subject
of an order for relief by any bankruptcy court, or is unable or admits
in writing its inability to pay its debts as they mature or makes an
assignment for the benefit of creditors; or applies for or consents to
the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer for it or for all or any
part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the
application or consent of the Company, Subsidiary or Guarantor and the
appointment continues undischarged or unstayed for 60 days; or
institutes or consents to any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, dissolution, custodianship,
conservatorship, liquidation, rehabilitation or similar proceeding
relating to it or to all or any part of its property under the laws of
any jurisdiction; or any similar proceeding is instituted without the
consent of the Company, Subsidiary or Guarantor and continues
undismissed or unstayed for 45 days; or any judgment, writ, warrant of
attachment or execution or similar process is issued or levied against
all or any part of the property of the Company, any Subsidiary or any
Guarantor and is not released, vacated or fully bonded within 45 days
after its issue or levy; or
(h) the Majority Banks have reasonably determined that a
Material adverse change has occurred since the date hereof in the
operations, business or financial condition of the Company and the
Subsidiaries taken as a whole, and 30 calendar days have elapsed since
the date that notice of such determination is given to the Company; or
(i) the Company, any Subsidiary or any Guarantor shall (i) fail
to pay any indebtedness to any other Person or any interest or premium
thereon, when due (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise) and such failure shall continue after
the applicable grace period, if any, specified in the agreement or
instrument relating to such indebtedness, or (ii) fail to perform any
term, covenant or condition on its part to be performed under any
agreement or instrument relating to any such indebtedness, when required
to be performed, and such failure shall continue after the applicable
grace period, if any, specified in such agreement or instrument, if the
effect of such failure to perform is to accelerate, or to permit the
acceleration of, the maturity of such indebtedness; or any such
indebtedness shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment), prior
to the stated maturity thereof; or
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(j) any Guarantor shall reject or disaffirm its Guaranty, or
otherwise notify the Agent that it does not intend the Guaranty or its
liability thereunder to apply to any one or more future Borrowings or
other Obligations; or
(k) (i) An ERISA Event shall occur with respect to a Pension
Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Company under Title IV of ERISA
to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of $500,000; or (ii) the aggregate amount of Unfunded
Pension Liability among all Pension Plans at any time exceeds $500,000;
or (iii) the Company or any ERISA Affiliate shall fail to pay when due,
after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of
ERISA under a Multiemployer Plan in an aggregate amount in excess of
$500,000; or
(l) any Borrowing Base Certificate proves to have been incorrect
in any Material respect when delivered to the Agent.
9.2 Remedies. If any Event of Default occurs, the Agent shall, at
the request of, or may, with the consent of, the Majority Banks,
(a) declare the Commitment of each Bank to make Loans to be
terminated, whereupon such Commitments shall be terminated;
(b) declare the unpaid principal amount of all outstanding
Loans, all interest accrued and unpaid thereon, and all other amounts
owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby expressly waived by
the Company; and
(c) exercise on behalf of itself and the Banks all rights and
remedies available to it and the Banks under the Loan Documents or
applicable law;
provided, however, that upon the occurrence of any event specified in
subsection (g) of Section 9.1, the obligation of each Bank to make Loans
shall automatically terminate and the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable without further act of the Agent or
any Bank. Upon the occurrence of any Event of Default, the Company shall
immediately pay to Agent, for the benefit of the Banks, an amount (the
"L/C Obligations Amount")
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equal to the aggregate outstanding L/C Obligations; and upon written
receipt of the payment of the L/C Obligations Amount, the Agent shall
deposit such funds in an interest-bearing cash account (the "Cash
Account") in the name of the Company maintained with the Agent as to
which the Company shall have no right of withdrawal except as provided
below. The Company hereby irrevocably authorizes and directs the Agent
to apply amounts on deposit in the Cash Account against draws on the
outstanding Letters of Credit as such draws are made. The Agent shall
have, and is hereby granted, a security interest in the Cash Account and
all funds therein, to secure all Obligations owing to the Agent and the
Banks by the Company. Upon expiration of all Letters of Credit and
payment in full of all draws thereunder and all outstanding Loans and
other Obligations, the amounts then on deposit in the Cash Account and
any interest accrued thereon shall then be returned to the Company (to
the extent any funds remain in the Cash Account after application of
such funds as provided above.)
9.3 Rights Not Exclusive. The rights and remedies of the Agent
and Banks provided for in this Agreement and the other Loan Documents are
cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document
or agreement now existing or hereafter arising.
ARTICLE 10: THE AGENT.
10.1 Appointment and Authorization. Each Bank hereby irrevocably
appoints, designates and authorizes the Agent to take such action in its behalf
under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it by
the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Notwithstanding any provision to
the contrary contained elsewhere in this Agreement or in any other Loan
Document, the Agent shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Agent have or be deemed to have any
fiduciary relationship with any Bank, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agent.
10.2 Delegation of Duties. The Agent may execute any of its
duties under this Agreement or any other Loan Document by or through agents,
employees or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact
that it selects with reasonable care.
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10.3 Liability of Agent. None of the Agent-Related Persons shall:
(a) be liable for any action taken or omitted to be taken by any
of them under or in connection with this Agreement or any other Loan
Document or the transactions contemplated hereby (except for its own
gross negligence or willful misconduct), or
(b) be responsible in any manner to any of the Banks for any
recital, statement, representation or warranty made by the Company or
any Subsidiary or Affiliate of the Company, or any officer thereof,
contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided
for in, or received by the Agent under or in connection with, this
Agreement or any other Loan Document, or for the value of or title to
any collateral, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of the Company or any other party to any
Loan Document to perform its obligations hereunder or thereunder.
No Agent-Related Person shall be under any obligation to any Bank to ascertain
or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or to
inspect the properties, books or records of the Company or any of the Company's
Subsidiaries or Affiliates.
10.4 Reliance by Agent.
(a) The Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, statement or other document or conversation believed by it to
be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal
counsel (including counsel to the Company), independent accountants and
other experts selected by the Agent. The Agent shall be fully justified
in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or
concurrence of each Bank as it deems appropriate and, if it so requests,
it shall first be indemnified to its satisfaction by the Banks against
any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. The Agent shall in all
cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request
or consent of each Bank
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and such request and any action taken or failure to act pursuant thereto
shall be binding upon all of the Banks.
(b) For purposes of determining compliance with the conditions
specified in Section 6.1 and Section 11.21, each Bank that has executed
this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter either
sent by the Agent to such Bank for consent, approval, acceptance or
satisfaction, or required thereunder to be consented to or approved by
or acceptable or satisfactory to the Bank.
10.5 Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any default or Event of Default, except
with respect to defaults in the payment of principal, interest and fees required
to be paid to the Agent for the account of the Banks, unless the Agent shall
have received written notice from a Bank or the Company referring to this
Agreement, describing such default or Event of Default and stating that such
notice is a "notice of default". The Agent will notify the Banks of its receipt
of any such notice. The Agent shall take such action with respect to such
default or Event of Default as may be requested by the Majority Banks in
accordance with Article 9; provided, however, that unless and until the Agent
has received any such request, the Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
default or Event of Default as it shall deem advisable or in the best interest
of the Banks.
10.6 Credit Decision. Each Bank acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no
act by the Agent hereinafter taken, including any review of the affairs of the
Company and its Subsidiaries, shall be deemed to constitute any representation
or warranty by any Agent-Related Person to any Bank. Each Bank represents to the
Agent that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed appropriate,
made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of the
Company and its Subsidiaries, the value of and title to any collateral, and all
applicable bank regulatory laws relating to the transactions contemplated
hereby, and made its own decision to enter into this Agreement and to extend
credit to the Company hereunder. Each Bank also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigations as it deems necessary to inform itself as to the business,
prospects,
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operations, property, financial and other condition and creditworthiness of the
Company. Except for notices, reports and other documents expressly herein
required to be furnished to the Banks by the Agent, the Agent shall not have any
duty or responsibility to provide any Bank with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of the Company which may come into the possession
of any of the Agent-Related Persons.
10.7 Indemnification. Whether or not the transactions
contemplated hereby are consummated, the Banks shall indemnify upon demand the
Agent-Related Persons (to the extent not reimbursed by or on behalf of the
Company and without limiting the obligations of the Company to do so), pro rata,
from and against any and all liabilities covered by any indemnification
hereunder; provided, however, that no Bank shall be liable for the payment to
the Agent-Related Persons of any portion of such liabilities resulting from such
Person's gross negligence or willful misconduct. Without limitation of the
foregoing, each Bank shall reimburse the Agent upon demand for its ratable share
of any costs or out-of-pocket expenses (including attorney costs) incurred by
the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein, to the extent that the Agent
is not reimbursed for such expenses by or on behalf of the Company. The
undertaking in this Section shall survive the payment of all Obligations
hereunder and the resignation or replacement of the Agent.
10.8 Agent in Individual Capacity. Bank of America and its
Affiliates may make loans to, issue letters of credit for the account of, accept
deposits from, acquire equity interests in and generally engage in any kind of
banking, trust, financial advisory, underwriting or other business with the
Company and its Subsidiaries and Affiliates as though Bank of America were not
the Agent hereunder and without notice to or consent of the Banks. Each Bank
acknowledges that, pursuant to such activities, Bank of America or its
Affiliates may receive information regarding the Company or its Affiliates
(including information that may be subject to confidentiality obligations in
favor of the Company or such Subsidiary) and acknowledge that the Agent shall be
under no obligation to provide such information to it. With respect to its
Loans, Bank of America shall have the same rights and powers under this
Agreement as any other bank and may exercise the same as though it were not the
Agent, and the terms "Bank" and "Banks" include Bank of America in its
individual capacity.
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10.9 Successor Agent. The Agent may resign as Agent upon 30 days'
notice to the Banks. If the Agent resigns under this Agreement, the Majority
Banks shall appoint from among the Banks a successor agent for the Banks upon
the written consent of the Company and the Banks (which consents shall not be
unreasonably withheld). If no successor agent is appointed prior to the
effective date of the resignation of the Agent, the Agent may appoint a
successor agent from among the Banks upon the written consent of the Company and
the Banks (which consents shall not be unreasonably withheld). Upon the
acceptance of its appointment as successor agent hereunder, such successor agent
shall succeed to all the rights, powers and duties of the retiring Agent and the
term "Agent" shall mean such successor agent and the retiring Agent's
appointment, powers and duties as Agent shall be terminated. After any retiring
Agent's resignation hereunder as Agent, the provisions of this Article 10 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement. If no successor agent has accepted
appointment as Agent by the date which is 30 days following a retiring Agent's
notice of resignation, the retiring Agent's resignation shall nevertheless
thereupon become effective and the Banks shall perform all of the duties of the
Agent hereunder until such time, if any, as the Majority Banks appoint a
successor agent as provided for above. If Bank of America reduces its Commitment
to zero dollars hereunder (and a percentage obligation of zero), or Bank of
America dissolves, liquidates, or ceases doing business (it being understood
that a merger would not constitute dissolution, liquidation or cessation of
business), the Majority Banks may require Bank of America to discontinue acting
as Agent hereunder, and the Majority Banks may appoint a new Agent.
10.10 Withholding Tax.
(a) If any Bank is a "foreign corporation, partnership or trust"
within the meaning of the Code and such Bank claims exemption from, or a
reduction of, U.S. withholding tax under Sections 1441 or 1442 of the
Code, such Bank agrees with and in favor of the Agent, to deliver to the
Agent:
(i) if such Bank claims an exemption from, or a
reduction of, withholding tax under a United States tax treaty,
properly completed IRS Forms 1001 and W-8 before the payment of
any interest in the first calendar year and before the payment
of any interest in each third succeeding calendar year during
which interest may be paid under this Agreement;
(ii) if such Bank claims that interest paid under this
Agreement is exempt from United States withholding tax because
it is effectively connected with a United States trade or
business of such
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Bank, two properly completed and executed copies of IRS Form
4224 before the payment of any interest is due in the first
taxable year of such Bank and in each succeeding taxable year of
such Bank during which interest may be paid under this
Agreement, and IRS Form W-9; and
(iii) such other form or forms as may be required under
the Code or other laws of the United States as a condition to
exemption from, or reduction of, United States withholding tax.
Such Bank agrees to promptly notify the Agent of any change in
circumstances which would modify or render invalid any claimed exemption
or reduction.
(b) If any Bank claims exemption from, or reduction of,
withholding tax under a United States tax treaty by providing IRS Form
1001 and such Bank sells, assigns, grants a participation in, or
otherwise transfers all or part of the Obligations of the Company to
such Bank in accordance with Section 11.6, such Bank agrees to notify
the Agent of the percentage amount in which it is no longer the
beneficial owner of Obligations of the Company to such Bank. To the
extent of such percentage amount, the Agent will treat such Bank's IRS
Form 1001 as no longer valid.
(c) If any Bank claiming exemption from United States
withholding tax by filing IRS Form 4224 with the Agent sells, assigns,
grants a participation in, or otherwise transfers all or part of the
Obligations of the Company to such Bank in accordance with Section 11.6,
such Bank agrees to undertake sole responsibility for complying with the
withholding tax requirements imposed by Sections 1441 and 1442 of the
Code.
(d) If any Bank is entitled to a reduction in the applicable
withholding tax, the Agent may withhold from any interest payment to
such Bank an amount equivalent to the applicable withholding tax after
taking into account such reduction. If the forms or other documentation
required by subsection (a) of this Section are not delivered to the
Agent, then the Agent may withhold from any interest payment to such
Bank not providing such forms or other documentation an amount
equivalent to the applicable withholding tax.
(e) If the IRS or any other Governmental Authority of the United
States or other jurisdiction asserts a claim that the Agent did not
properly withhold tax from amounts paid to or for the account of any
Bank (because the appropriate form was not delivered, was not properly
executed, or
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because such Bank failed to notify the Agent of a change in
circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason) such Bank shall
indemnify the Agent fully for all amounts paid, directly or indirectly,
by the Agent as tax or otherwise, including penalties and interest, and
including any taxes imposed by any jurisdiction on the amounts payable
to the Agent under this Section, together with all costs and expenses
(including Attorney Costs). The obligation of the Banks under this
subsection shall survive the payment of all Obligations and the
resignation or replacement of the Agent.
10.11 Collateral Matters.
(a) [Intentionally Deleted.]
(b) The Banks irrevocably authorize the Agent, at its option and
in its discretion, to release any Lien granted to or held by the Agent
upon any collateral (i) upon termination of the Commitments and payment
in full of all Loans and all other Obligations known to the Agent and
payable under this Agreement or any other Loan Document; (ii)
constituting property sold or to be sold or disposed of as part of or in
connection with any disposition permitted hereunder; (iii) constituting
property in which the Company or any Subsidiary owned no interest at the
time the Lien was granted or at any time thereafter; (iv) constituting
property leased to the Company or any Subsidiary under a lease which has
expired or been terminated in a transaction permitted under this
Agreement or is about to expire and which has not been, and is not
intended by the Company or such Subsidiary to be, renewed or extended;
(v) consisting of an instrument evidencing Indebtedness or other debt
instrument, if the indebtedness evidenced thereby has been paid in full;
or (vi) if approved, authorized or ratified in writing by all the Banks.
Upon request by the Agent at any time, the Banks will confirm in writing
the Agent's authority to release particular types or items of
collateral.
(c) Each Bank agrees with and in favor of each other (which
agreement shall not be for the benefit of the Company or any Subsidiary)
that the Company's obligation to such Bank under this Agreement and the
other Loan Documents is not and shall not be secured by any real
property collateral now or hereafter acquired by such Bank.
10.12 Performance by the Agent. In the event that the Company
shall default in or fail to perform any of its obligations under the Loan
Documents, which default is not cured within any applicable cure period, the
Agent shall have the right, but not the duty, without limitation upon any of the
Agent's or the Banks' rights
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pursuant thereto, to perform the same, and the Company agrees to pay to the
Agent within five (5) Banking Days after demand, all reasonable costs and
expenses incurred by the Agent in connection therewith, including without
limitation reasonable Attorney Costs, together with interest thereon from the
date which is 5 Banking Days after demand until paid at a rate per annum equal
to the Reference Rate plus 3%.
10.13 Actions. The Agent shall have the right to commence, appear
in, and defend any action or proceeding purporting to affect the rights or
duties of the Banks hereunder or the payment of any funds, and in connection
therewith the Agent may pay necessary expenses, employ counsel, and pay Attorney
Costs. The Company agrees to pay to the Agent, within 5 Banking Days after
demand, all reasonable costs and expenses incurred by the Agent in connection
therewith, including without limitation reasonable Attorney Costs, together with
interest thereon from the date which is 5 Banking Days after demand until paid
at a rate per annum equal to the Reference Rate plus 3%.
10.14 Co-Agent. Notwithstanding anything contained herein which
may be construed to the contrary, the Co-Agent shall not exercise any of the
rights or have any of the responsibilities of the Agent hereunder, or any other
rights or responsibilities other than its rights and responsibilities as a Bank
hereunder.
ARTICLE 11: MISCELLANEOUS.
11.1 Amendments and Waivers. No amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent with
respect to any departure by the Company therefrom, shall be effective unless the
same shall be in writing and signed by the Majority Banks (or by the Agent at
the written request of the Majority Banks) and the Company and acknowledged by
the Agent, and then any such waiver of consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and
signed by all the Banks and the Company and acknowledged by the Agent, do any of
the following:
(a) increase or extend the Commitment of any Bank, unless such
Bank has consented thereto in writing;
(b) postpone or delay any date fixed by this Agreement or any
other Loan Document for any payment of principal, interest, fees or
other amounts due to the Banks (or any of them) hereunder or under any
other Loan Document;
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(c) reduce the principal of, or the rate of interest specified
herein on any Loan, or any fees or other amounts payable hereunder or
under any other Loan Document;
(d) change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Loans which is required for the Banks or
any of them to take any action hereunder;
(e) amend the definitions of Borrowing Base or Majority Banks,
or amend Sections 3.5 or 3.6;
(f) amend this Section or any provision herein providing for
consent or other action by all Banks;
(g) discharge any Guarantor, or release any Material portion of
any collateral except where the consent of the Majority Banks only is
specifically provided for; or
(h) amend, or perform any act pursuant to, any provision herein
expressly requiring the consent of each Bank;
and, provided further, that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Majority Banks or all the
Banks, as the case may be, affect the rights or duties of the Agent under this
Agreement or any other Loan Document. Each Bank shall bear its Pro Rata Share of
all costs and expenses incurred in any amendment, waiver or consent pursuant to
this Agreement.
11.2 Costs, Expenses and Taxes. The Company shall pay on demand
the reasonable costs and expenses of the Agent and the Banks in connection with
the negotiation, preparation, execution, delivery, administration, amendment,
waiver and enforcement of the Loan Documents and any matter related thereto and
any litigation or dispute with respect thereto (including any bankruptcy or
similar proceedings), including without limitation Attorney Costs; provided,
however, the Company shall not be liable for any expenses of any Bank other than
Bank of America (for itself and as Agent) in connection with the negotiation and
preparation of the Loan Documents (provided further, that the immediately
preceding proviso shall not be deemed to limit the right of each Bank to payment
from the Company of all reasonable costs and expenses incurred by each Bank as
aforesaid in connection with any and all future administration, amendments,
waivers, enforcement actions, litigation, negotiations and other actions or
matters other than assignments or participations with respect to which the only
amounts payable shall be the processing fee owing pursuant to Section 11.6(a)
relating to the Loans and Loan Documents). Any amount payable to
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the Agent and the Banks under this Section 11.2 shall, from the date of demand
for payment, and any other amount payable to the Agent under the Loan Documents
which is not paid when due or within any applicable grace period shall,
thereafter, bear interest at the rate in effect under each Note with respect to
Reference Rate Borrowings.
11.3 No Waiver; Cumulative Remedies. No failure to exercise and
no delay in exercising, on the part of the Agent or any Bank, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.
11.4 Payments Set Aside. To the extent that the Company makes a
payment to the Agent or the Banks, or the Agent or the Banks exercise their
right of set-off, and such payment or the proceeds of such set-off or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Agent or such Bank in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any bankruptcy, insolvency, reorganization,
arrangement, moratorium or other similar proceeding relating to or affecting
creditors' rights generally or otherwise, then (a) to the extent of such
recovery the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had
not been made or such set-off had not occurred, and (b) each Bank severally
agrees to pay to the Agent upon demand its Pro Rata Share of any amount so
recovered from or repaid by the Agent.
11.5 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Company may not assign or
transfer any of its rights or obligations under this Agreement without the prior
written consent of the Agent and each Bank, and no Bank may assign or transfer
any of its rights or obligations under this Agreement except in accordance with
Section 11.6.
11.6 Assignments, Participations, etc.
(a) Any Bank may, with the written consent of (i) the Company at
all times other than during the existence of an Event of Default (which
consent shall not be unreasonably withheld) and (ii) the Agent (which
consent shall not be unreasonably withheld), at any time assign and
delegate to one or more Eligible Assignees (provided that no written
consent of the Company or the Agent shall be required in connection with
any assignment and delegation by a Bank to an Eligible Assignee that is
an affiliate of such Bank)
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which have not been a party to any Material litigation with the Agent or
the Company (each an "Assignee") all, or any ratable part of all, of the
Loans, the Commitments and the other rights and obligations of such Bank
hereunder, in an initial minimum amount of $10,000,000 and in minimum
amounts of $1,000,000 after the first assignment; provided, however,
that (A) each Bank (including each Eligible Assignee) must retain a
Commitment of not less than $15,000,000 after giving effect to such
assignment (unless such assignor Bank transfers and assigns all of its
Commitment hereunder), and (B) the Company and the Agent may continue to
deal solely and directly with such Bank in connection with the interest
so assigned to an Assignee until (1) written notice of such assignment,
together with payment instructions, addresses and related information
with respect to the Assignee, shall have been given to the Company and
the Agent by such Bank and the Assignee; (2) such Bank and its Assignee
shall have delivered to the Company and the Agent an Assignment and
Acceptance in the form of Exhibit "G" ("Assignment and Acceptance")
together with any Note or Notes subject to such assignment and (3) the
assignor Bank has paid to the Agent a processing fee in the amount of
$3,000. All costs and expenses incurred by an assigning Bank in such
assignment shall be borne by such Bank.
(b) From and after the date that the Agent notifies the assignor
Bank that it has received (and provided its consent with respect to and
received the consent of the Company with respect to) an executed
Assignment and Acceptance and payment of the above-referenced processing
fee, (i) the Assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, shall have the rights and
obligations of a Bank under the Loan Documents, and (ii) the assignor
Bank shall, to the extent that rights and obligations hereunder and
under the other Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Loan Documents.
(c) Within five Banking Days after its receipt of notice by the
Agent that it has received an executed Assignment and Acceptance and
payment of the processing fee (and provided that it consents to such
assignment in accordance with Section 11.6(a)), the Company shall
execute and deliver to the Agent, new Notes evidencing such Assignee's
assigned Loans and Commitment and, if the assignor Bank has retained a
portion of its Loans and its Commitment, replacement Notes in the
principal amount of the Loans retained by the assignor Bank (such Notes
to be in exchange for, but not in payment of, the Notes held by such
Bank). Immediately upon each Assignee's making its processing fee
payment under the Assignment and Acceptance, this
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Agreement shall be deemed to be amended to the extent, but only to the
extent, necessary to reflect the addition of the Assignee and the
resulting adjustment of the Commitments arising therefrom. The
Commitment allocated to each Assignee shall reduce such Commitments of
the assigning Bank pro tanto.
(d) Any Bank may, with the written consent (which consent shall
not be required if the participation is to an affiliate of the Bank) of
(i) the Company at all times other than during the existence of an Event
of Default (which consent shall not be unreasonably withheld) and (ii)
the Agent (which consent shall not be unreasonably withheld), at any
time sell to one or more commercial banks or other Persons not
Affiliates of the Company (a "Participant") participating interests in
any Loans, the Commitment of that Bank and the other interests of that
Bank (the "originating Bank") hereunder and under the other Loan
Documents; provided, however, that (A) the originating Bank's
obligations under this Agreement shall remain unchanged, (B) the
originating Bank shall remain solely responsible for the performance of
such obligations, (C) the Company and the Agent shall continue to deal
solely and directly with the originating Bank in connection with the
originating Bank's rights and obligations under this Agreement and the
other Loan Documents, and (D) no Bank shall transfer or grant any
participating interest under which the Participant has rights to approve
any amendment to, or any consent or waiver with respect to, this
Agreement or any other Loan Document, except to the extent such
amendment, consent or waiver would require unanimous consent of the
Banks as described in the first proviso to Section 11.1. In the case of
any such participation, the Participant shall be entitled to the benefit
of Sections 4.5, 4.7, 4.8 and 11.12 as though it were also a Bank
hereunder, and, if amounts outstanding under this Agreement are due and
unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be
deemed to have the right of set-off in respect of its participating
interest in amounts owing under this Agreement to the same extent as if
the amount of its participating interest were owing directly to it as a
Bank under this Agreement.
(e) Each Bank agrees to take normal and reasonable precautions
and exercise due care to maintain the confidentiality of all information
identified as "confidential" or "secret" by the Company and provided to
it by the Company or any Subsidiary, or by the Agent on such Company's
or Subsidiary's behalf, under this Agreement or any other Loan Document,
and neither it nor any of its Affiliates shall use any such information
other than in connection with or in enforcement of this Agreement and
the other Loan Documents; except to the extent such information (i) was
or becomes generally available to the public other than as a result of
disclosure by
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the Bank, or (ii) was or becomes available on a non-confidential basis
from a source other than the Company, provided that such source is not
bound by a confidentiality agreement with the Company known to the Bank;
provided, however, that any Bank may disclose such information (A) at
the request or pursuant to any requirement of any Governmental Authority
to which the Bank is subject or in connection with an examination of
such Bank by any such authority; (B) pursuant to subpoena or other court
process; (C) when required to do so in accordance with the provisions of
any applicable Requirement of Law; (D) to the extent reasonably required
in connection with any litigation or proceeding to which the Agent, any
Bank or their respective Affiliates may be party; (E) to the extent
reasonably required in connection with the exercise of any remedy
hereunder or under any other Loan Document; (F) to such Bank's
independent auditors and other professional advisors; (G) to any
Participant or Assignee, actual or potential, provided that such Person
agrees in writing to keep such information confidential to the same
extent required of the Banks hereunder, and (H) as to any Bank, as
expressly permitted under the terms of any other document or agreement
regarding confidentiality to which the Company is party or is deemed
party with such Bank.
(f) Notwithstanding any other provision in this Agreement, the
parties to this Agreement acknowledge and agree that the provisions of
this Section concerning assignments of Loans and Notes relate only to
absolute assignments, and do not prohibit or restrict assignments by any
Bank creating security interests, including any pledge or assignment by
a Bank of any Loan or Note or other rights or interests in or to this
Agreement (or any portion thereof) in favor of any Federal Reserve Bank
in accordance with Regulation A of the FRB or U.S. Treasury Regulation
31 CFR ss.203.14 or any other applicable law, and such Federal Reserve
Bank may enforce such pledge or security interest in any manner
permitted under applicable Law. The Company, upon receipt of written
notice from the applicable Bank, agrees to issue Notes to any Bank
requiring Notes to facilitate transactions of the type described in this
paragraph.
11.7 Set-off. Subject to Section 3.8 and in addition to any
rights and remedies of the Banks provided by Law, if an Event of Default exists
or the Loans have been accelerated, each Bank is authorized at any time and from
time to time, without prior notice to the Company, any such notice being waived
by the Company to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final
excluding the Company's customer trust accounts) at any time held by, and other
indebtedness at any time owing by, such Bank to or for the credit or the account
of the Company against any and all Obligations owing to the Banks, now or
hereafter existing, irrespective of whether or not the
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Agent or such Bank shall have made demand under this Agreement or any Loan
Document and although such Obligations may be contingent or unmatured. Each Bank
agrees promptly to notify the Company and the Agent after any such set-off and
application made by such Bank; provided, however, that the failure to give such
notice shall not affect the validity of such set-off and application.
11.8 Automatic Debits. With respect to any principal or interest
payment, commitment fee or usage fee, or any other cost or expense (including
Attorney Costs), due and payable to the Agent or the Banks under the Loan
Documents, the Company hereby irrevocably authorizes and directs the Agent to
debit any deposit account of the Company with the Agent (as one of the Banks) in
an amount such that the aggregate amount debited from all such deposit accounts
does not exceed such payment, fee, or other cost or expense. If there are
insufficient funds in such deposit accounts to cover the amount of the payment,
fee, other cost or expense then due, such debits will be reversed (in whole or
in part, in the Agent's sole discretion) and such amount not debited shall be
deemed to be unpaid. No such debit under this Section shall be deemed a set-off.
11.9 Notification of Addresses, Lending Offices, Etc. Each Bank
shall notify the Agent in writing of any changes in the address to which notices
to the Bank should be directed, of addresses of any Lending Office, of payment
instructions in respect of all payments to be made to it hereunder and of such
other administrative information as the Agent shall reasonably request.
11.10 Survival of Representations, Warranties and
Indemnifications. All representations, warranties and indemnifications made by
the Company herein or in any certificate or other writing delivered by or on
behalf of the Company pursuant to any Loan Document will survive the making and
repayment of the Loan and the execution and delivery of each Note, and have been
or will be relied upon by each Bank, notwithstanding any investigation made by
such Bank or on its behalf.
11.11 Notices. Except as otherwise provided herein or in each
Note:
(a) all notices, requests, demands, directions and other
communications provided for hereunder and under each Note must be in
writing and must be mailed, telecopied, delivered or sent by telex or
cable to the appropriate party at the address set forth on the signature
pages of this Agreement or, as to any party, at any other address as may
be designated by it in a written notice sent to the other party in
accordance with this Section 11.11, and
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(b) if any notice, request, demand, direction or other
communication is given by mail it will be effective on the earlier of
receipt or the third calendar day after deposit in the United States
mails with first class or airmail postage prepaid; if given by
telecopier, when receipt is confirmed by the recipient; if given by
cable, when delivered to the telegraph company with charges prepaid; if
given by telex, when sent; or if given by personal delivery, when
delivered.
11.12 Indemnity by the Company. The Company agrees to indemnify,
save and hold harmless each Bank, the Agent and their directors, officers,
agents, attorneys and employees (collectively the "indemnitees") from and
against (a) any and all claims, demands, actions or causes of action that are
asserted against any indemnitee by any Person if the claim, demand, action or
cause of action directly or indirectly relates to a claim, demand, action or
cause of action that the Person has or asserts against the Company or any
officer, director or shareholder of the Company, and (b) any and all
liabilities, losses, costs or expenses (including Attorney Costs) that any
indemnitee suffers or incurs as a result of the assertion of any such claim,
demand, action or cause of action.
11.13 Integration and Severability. This Agreement and the other
Loan Documents comprise the complete and integrated agreement of the parties on
the subject matter hereof and supersede all prior agreements (including without
limitation all prior letter agreements), written or oral, on the subject matter
hereof. Any provision in any Loan Document that is held to be inoperative,
unenforceable or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable or invalid without affecting the remaining provisions
or the operation, enforceability or validity of that provision in any other
jurisdiction, and to this end the provisions of the Loan Documents are declared
to be severable.
11.14 Counterparts. This Agreement may be executed in any number
of separate counterparts, each of which, when so executed, shall be deemed an
original, and all of said counterparts taken together shall be deemed to
constitute but one and the same instrument.
11.15 No Third Parties Benefitted. This Agreement is made and
entered into for the sole protection and legal benefit of the Company, the
Banks, the Agent and the Agent-Related Persons, and their successors and
permitted assigns, and no other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement or any of the other Loan Documents.
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11.16 Section Headings. Section headings in this Agreement are
included for convenience of reference only and are not part of this Agreement
for any other purpose.
11.17 Further Acts by the Company. The Company agrees, at its own
expense, to do such acts and execute and deliver such documents as any Bank from
time to time reasonably requires for the purpose of carrying out the intention
or facilitating the performance of the terms hereof.
11.18 Time of the Essence. Time is of the essence of the Loan
Documents.
11.19 Governing Law. The Loan Documents shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of
California without regard to the conflict of law provisions thereof.
11.20 Reference and Arbitration.
(a) In any judicial action between or among the parties,
including any action or cause of action arising out of or relating to
this Agreement or the Loan Documents or based on or arising from an
alleged tort, all decisions of fact and law shall at the request of any
party be referred to a referee in accordance with California Code of
Civil Procedure Sections 638 et seq. The parties shall designate to the
court a referee or referees selected under the auspices of the American
Arbitration Association ("AAA") in the same manner as arbitrators are
selected in AAA-sponsored proceedings. The presiding referee of the
panel, or the referee if there is a single referee, shall be an active
attorney or retired judge. Judgment upon the award rendered by such
referee or referees shall be entered in the court in which such
proceeding was commenced in accordance with California Code of Civil
Procedure Sections 644 and 645.
(b) Any controversy or claim between or among the parties,
including those arising out of or relating to this Agreement or the Loan
Documents and any claim based on or arising from an alleged tort, shall
at the request of any party be determined by arbitration. The
arbitration shall be conducted in accordance with the United States
Arbitration Act (Title 9, U.S. Code), notwithstanding any choice of law
provision in this Agreement, and under the Commercial Rules of the AAA.
The arbitrator(s) shall give effect to statutes of limitation in
determining any claim. Any controversy concerning whether an issue is
arbitrable shall be determined by the arbitrator(s). Judgment upon the
arbitration award may be entered in any court having
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jurisdiction. The institution and maintenance of an action for judicial
relief or pursuit of a provisional or ancillary remedy shall not
constitute a waiver of the right of any party, including the plaintiff,
to submit the controversy or claim to arbitration if any other party
contests such action for judicial relief.
(c) No provision of this Section 11.20 shall limit the right of
any party to this Agreement to exercise self-help remedies such as
setoff, foreclosure against or sale of any real or personal property
collateral or security, or to obtain provisional or ancillary remedies
from a court of competent jurisdiction before, after, or during the
pendency of any arbitration or other proceeding. The exercise of a
remedy does not waive the right of either party to resort to arbitration
or reference.
11.21 Effectiveness of this Agreement. Notwithstanding anything
contained herein to the contrary, the effectiveness of the Banks' and the
Agent's obligations hereunder are expressly conditioned upon satisfaction of all
of the following conditions precedent (any one or more of which the Banks may
waive in their sole discretion):
(a) The Agent shall have received the following original
executed documents (in form and substance satisfactory to the Agent and
legal counsel for the Agent in sufficient number for the Agent and each
Bank):
(i) this Agreement;
(ii) each Note;
(iii) the Guaranty (if any);
(iv) the Opinion of Counsel (provided that the Opinion o
of Counsel with respect to the Subsidiaries may be deferred
until no later than 30 days following the effective date of this
Agreement) ;
(v) a certified copy of resolutions of the board of
directors of the Company authorizing the execution of the Loan
Documents, together with an incumbency certificate executed by
the corporate secretary of the Company;
(vi) a certified copy of resolutions of the board of
directors of each Guarantor (if any) authorizing the execution
of the Guaranty, together with an incumbency certificate
executed by the corporate secretary of each Guarantor (if any);
and
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(vii) such other agreements, instruments and documents
as any Bank shall reasonably request.
(b) The Agent shall have received evidence satisfactory to the
Agent and legal counsel to the Agent that the Company has been duly
incorporated, validly exists and is in good standing under the laws of
the State of Maryland, is duly qualified to do business as, and is in
good standing as, a foreign corporation in each jurisdiction in which
the conduct of its business or the ownership or leasing of its
properties makes such qualification necessary, and has all requisite
power and authority to conduct its business and to own and lease its
properties.
(c) The Agent shall have received and approved (i) updated legal
organizational charts of the Company and the Subsidiaries, (ii) updated
Schedules to be attached to this Agreement upon execution hereof, (i)
financial projections (including a balance sheet, income statement and
statement of cash flows) on an annual basis through the year ended
12/31/2002, and (ii) pro forma covenant compliance calculations for the
same period.
(d) The Agent shall have determined that no default exists under
the Prior Credit Agreement, and that no default shall exist under this
Agreement as of the execution hereof.
(e) The Agent shall have received all fees that are payable by
the Company upon the closing of this transaction as set forth in the Fee
Letter Agreement, and all of Agent's legal fees and costs payable to its
counsel Sheppard, Mullin, Xxxxxxx & Xxxxxxx LLC in connection with this
Agreement.
11.22 Possible Increase in the Total Aggregate Commitment As of
the Closing Date, the Total Aggregate Commitment will be $200,000,000. However,
the parties hereto acknowledge that, with the consent of the Agent and the
Company only, new banks may be added to the Agreement and/or existing Banks may
choose to increase their individual Commitment, so that the Total Aggregate
Commitment may be increased, subsequent to the Closing Date, up to a maximum of
$250,000,000. Each of the Banks acknowledges and agrees that their consent to
any such increase in the Total Aggregate Commitment shall not be required and
additional Banks may be added to this Agreement, and any existing Banks under
this Agreement may increase their Commitments without the consent or agreement
of the other Banks (provided, however, that no Bank's individual Commitment may
be increased without such Bank's consent); so long as the Agent and the Company
have consented in writing to such new Banks or the increase in the Commitment of
any of the existing Banks, as applicable. Agent shall not unreasonably withhold
its consent to the Company's
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request for an increase in the Total Aggregate Commitment under this Section,
except that (i) any proposed new Bank must be acceptable to Agent in its sole
discretion, (ii) the fees to be paid by Borrower for such increase must be
acceptable to Agent and the new Bank (or the existing Bank if its Commitment is
increased) in their sole discretion, and (iii) all requirements of this Section
must be satisfied.
The addition of any new Bank to this Agreement, or the increase
in the Commitment of any existing Bank, shall be effective upon the satisfaction
of the following:
(a) Agent shall have sent written notice of such new Bank or
increase in the Commitment of any existing Bank to the other Banks hereunder,
together with notice of such new Bank's Commitment or such existing Bank's
increase in its Commitment;
(b) The Company shall have executed and delivered to Agent a
new Note with respect to any new Bank in the amount of such new Bank's
Commitment; or with respect to an increase in the Commitment of an existing
Bank, the Company shall have executed a replacement Note for such existing Bank
in an amount equal to the increased Commitment amount;
(c) With respect to (i) new Banks under this Agreement, each
new Bank shall acknowledge in writing (in a form satisfactory to Agent) that it
is assuming the rights and obligations of a "Bank" under this Agreement, and
shall execute a copy of this Agreement with a notation on the signature page as
to the amount of such new Bank's Commitment; and (ii) existing Banks that
increase their Commitment, each such existing Bank shall execute a replacement
signature page for this Agreement, with the increased amount of such existing
Bank's increased Commitment noted thereon; and
(d) The Company, and each new Bank and each existing Bank
that wishes to increase its Commitment, shall execute and deliver to Agent such
additional documents as Agent and its legal counsel shall require to carry out
the intent of this Section.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the date first above written.
THE COMPANY:
PAN PACIFIC RETAIL PROPERTIES, INC., A
MARYLAND CORPORATION
By:____________________________________
Xxxxxx X. Xxxx, Director Chairman,
Chief Executive Officer and President
By:____________________________________
Xxxxxx X. Xxxxx, Executive Vice
President and Chief Financial Officer
Address for notices:
Pan Pacific Retail Properties, Inc.
0000-X Xxxxx Xxxxxxx Xxxxx
Xxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxxxx Xxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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THE BANKS:
BANK OF AMERICA, N.A., AS SUCCESSOR TO
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION,
A NATIONAL BANKING ASSOCIATION
By:____________________________________
Xxxxxx X. Xxxxx, Vice President
Address for Notices:
Bank of America, N.A.
Real Estate Structured Debt Group
CA9-706-06-02
000 Xxxxx Xxxxxx Xxxxxx, 0xx xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Xx. Xxxxxx Xxxxx
Telephone: 000-000-0000
Telecopier: 213-228-3421
LIBOR Lending Office:
Bank of America, N.A.
0 Xxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000-0000
Attention: Ms. Xxxxx Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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U.S. BANK NATIONAL ASSOCIATION, (FKA:
FIRST BANK NATIONAL ASSOCIATION)
By:____________________________________
____________________________________
[Printed Name and Title]
Address for Notices:
U.S. Bank National Association
Real Estate Banking Division
000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000-0000
Attention: Xx. Xxxxxxx Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
U.S. Bank National Association
Real Estate Banking Division
000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Attention: Xxxx Xxxxxx Xxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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KEYBANK NATIONAL ASSOCIATION
By:____________________________________
____________________________________
[Printed Name and Title]
Address for Notices:
KeyBank National Association
000 Xxxxxx Xxxxxx, 0xx xxxxx
XX-00-00-0000
Xxxxxxxxx, Xxxx 00000
Attention: Xx. Xxxxx X. Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
KeyBank National Association
000 Xxxxxx Xxxxxx
XX-00-00-0000
Xxxxxxxxx, Xxxx 00000
Attention: Ms. Xxxxx Xxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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00
XXX XXXX XX XXXX XXXXXX
By:____________________________________
____________________________________
[Printed Name and Title]
Address for Notices:
The Bank of Nova Scotia
000 Xxxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxx Xxxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
The Bank of Nova Scotia
000 Xxxxxxxxx Xxxxxx X.X., Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Attention: Mr. Xxxx Xxxxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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FIRST UNION NATIONAL BANK
(AS SUCCESSOR TO SIGNET BANK)
By:____________________________________
Xxxx Xxxxxxxx, Relationship Manager
Address for Notices:
First Union National Bank
One First Union Center, NC 0166
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000-0000
Attention: Xx. Xxxx Xxxxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
First Union National Bank
One First Union Center, NC 0166
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Xx. Xxxx Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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SANWA BANK CALIFORNIA, A CALIFORNIA
CORPORATION
By:____________________________________
____________________________________
[Printed Name and Title]
Address for Notices:
Sanwa Bank California
0000 XxxXxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxx Xxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
Sanwa Bank California
0000 XxxXxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxxx Xxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
-00-
00
XXXXXXXX XXXX, XX, XXX XXXX AND
GRAND CAYMAN BRANCHES
By:____________________________________
____________________________________
[Printed Name and Title]
Address for Notices:
Dresdner Bank AG, Los Angeles Agency
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxx X. Xxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
LIBOR Lending Office:
Dresdner Bank AG, Los Angeles Agency
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xx. Xxxxxxxxx Xxxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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THE AGENT:
BANK OF AMERICA, N.A., AS SUCCESSOR TO
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION,
A NATIONAL BANKING ASSOCIATION
By:____________________________________
Xxxxxx X. Xxxxx, Vice President
Address for Notices:
(Agent's Payment Office)
Bank of America, N.A.
0 Xxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000-0000
Attention: Ms. Xxxxx Xxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
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EXHIBIT "A"
AMENDED AND RESTATED NOTE
$_________________ December __, 0000
Xxxxxx, Xxxxxxxxxx
FOR VALUE RECEIVED, Pan Pacific Retail Properties, Inc., a Maryland
corporation (the "Company"), promises to pay to the order of
____________________ _______________________________________________ ("Bank")
the principal amount of _________________________________ AND NO/100 DOLLARS
($___________), or such lesser aggregate amount of Loans as may be made pursuant
to Bank's Commitment under the Credit Agreement hereinafter described, payable
as hereinafter set forth. Company promises to pay interest on the principal
amount hereof remaining unpaid from time to time from the date hereof until the
date of payment in full, payable as hereinafter set forth.
Reference is made to the Amended and Restated Credit Agreement of
even date herewith among Company and the Banks (the "Agreement"). Terms defined
in the Agreement and not otherwise defined herein are used herein with the
meanings defined for those terms in the Agreement. This is one of the Notes
referred to in the Agreement, and any holder hereof is entitled to all of the
rights, remedies, benefits and privileges provided for in the Agreement as
originally executed or as it may from time to time be supplemented, modified or
amended. The Agreement, among other things, contains provisions for acceleration
of the maturity hereof upon the happening of certain stated events upon the
terms and conditions therein specified. This Amended and Restated Note amends
and restates and supersedes in its entirety that certain Note dated August 13,
1997, in the face principal amount of $__________, executed by the Company in
favor of Bank pursuant to the Prior Credit Agreement.
The principal indebtedness evidenced by this Note shall be payable as
provided in the Agreement and in any event on the Maturity Date (which is
December 20, 2002, as provided in the Agreement).
Interest shall be payable on the outstanding daily unpaid principal
amount of each Loan hereunder from the date thereof until payment in full and
shall accrue and be payable at the rates and on the dates set forth in the
Agreement both before and after default and before and after maturity and
judgment, with interest on overdue
EXHIBIT "A" -- Page 1
100
interest to bear interest at the rate set forth in Section 4.4 of the Agreement,
to the fullest extent permitted by applicable Law.
The amount of each payment hereunder shall be made to Bank at Agent's
office located in [Irvine], California, for the account of Bank, in lawful money
of the United States of America and in immediately available funds not later
than 11:00 a.m., California time, on the day of payment (which must be a Banking
Day). All payments received after 11:00 a.m., California time, on any Banking
Day, shall be deemed received on the next succeeding Banking Day. Bank shall use
its best efforts to keep a record of Loans made by it and payments of principal
with respect to this Note, and such record shall be presumptive evidence of the
principal amount owing under this Note.
Company hereby promises to pay all costs and expenses of any holder
hereof incurred in collecting the undersigned's obligations hereunder or in
enforcing or attempting to enforce any of any holder's rights hereunder,
including Attorney Costs, whether or not an action is filed in connection
therewith.
Company hereby waives presentment, demand for payment, dishonor,
notice of dishonor, protest, notice of protest and any other notice or
formality, to the fullest extent permitted by applicable Laws.
Assignment of this Note is subject to the consent of certain parties
pursuant to Section 11.6 of the Agreement.
This Note shall be delivered to and accepted by Bank in the State of
California, and shall be governed by, and construed and enforced in accordance
with, the internal Laws thereof without regard to the choice of law provisions
thereof.
"Company"
PAN PACIFIC RETAIL PROPERTIES, INC., a
Maryland corporation
By:
--------------------------------------
--------------------------------------
[Printed Name and Title]
EXHIBIT "A" -- Page 2
101
By:
---------------------------------------
---------------------------------------
[Printed Name and Title]
EXHIBIT "A" -- Page 3
102
EXHIBIT "B"
BORROWING BASE CERTIFICATE
The undersigned, being the duly elected chief financial officer of
Pan Pacific Retail Properties, Inc., a Maryland corporation, hereby certifies
that the following is a true and correct calculation of the Borrowing Base as of
_____________, 199__:
[AGENT TO PROVIDE FORM OF CALCULATION AND
SCHEDULES IT WOULD DESIRE]
PAN PACIFIC RETAIL PROPERTIES, INC., a
Maryland corporation
By:
-------------------------------------
-------------------------------------
[Printed Name and Title]
By:
-------------------------------------
-------------------------------------
[Printed Name and Title]
EXHIBIT "B" -- Page 1
103
EXHIBIT "C-1"
REQUEST FOR BORROWING
1. This REQUEST FOR BORROWING is executed and delivered by the
Company to the Agent for the Banks pursuant to the Amended and Restated Credit
Agreement (the "Agreement") dated as of December 20, 1999, entered into by the
Company, the Banks and the Agent. Any terms used herein and not defined herein
shall have the meanings defined in the Agreement.
2. The Company hereby requests that the Banks make a Loan for the
account of the Company pursuant to the Agreement, as follows:
(a) Amount of Loan: $________________.
(b) Date of Loan: _______________, 19__.
(c) Type of Loan (check one box only):
[ ] Reference Rate Borrowing.
[ ] LIBOR Borrowing with a ____-month LIBOR Period
ending _______________, 19__.
3. In connection with the Loan requested herein, the Company hereby
represents, warrants and certifies to the Banks that, as of the date of the Loan
requested herein: Each representation and warranty made by the Company in
Article 7 of the Agreement will be true and correct, both immediately before and
after such Loan is made, as though such representation and warranty was made on
and as of the date of such Loan, provided, however, the representations and
warranties made by the Company in Section 7.13 of the Agreement are true and
correct as of the last reporting under the Agreement; no actions, suits or
proceedings will be pending against or affecting the Company or any of its
Subsidiaries or any property of any of them in any court of Law or before any
Governmental Authority which might reasonably be expected to Materially
adversely affect the business, operations or financial condition of the Company
and its Subsidiaries taken as a whole; no Material adverse change will have
occurred in the business, operations or financial condition of the Company and
its Subsidiaries taken as a whole since the Closing Date; and no Event of
Default or event that upon notice or passage of time would constitute an Event
of Default will have occurred and be continuing. (If any of the foregoing
statements is not true and
EXHIBIT "C-1" -- Page 1
104
correct, attach a statement specifying in detail the circumstances thereof and
the actions the Company is taking or proposes to take with respect thereto.)
4. This Request for Borrowing is executed on ____________, 19__, by a
Responsible Official of the Company on behalf of the Company. The undersigned,
in such capacity, hereby certifies each and every matter contained herein to be
true and correct.
Dated:
------------------
PAN PACIFIC RETAIL PROPERTIES, INC., a
Maryland corporation
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
EXHIBIT "C-1" -- Page 2
105
EXHIBIT "C-2"
REQUEST FOR LETTER OF CREDIT
1. This REQUEST FOR LETTER OF CREDIT is executed and delivered by the
Company to the Agent for the Banks pursuant to the Amended and Restated Credit
Agreement (the "Agreement") dated as of December 20, 1999, entered into by the
Company, the Banks and the Agent. Any terms used herein and not defined herein
shall have the meanings defined in the Agreement.
2. The Company hereby requests that the Issuing Bank issue a Letter
of Credit in accordance with the L/C Application accompanying this request.
3. In connection with the Letter of Credit requested herein, the
Company hereby represents, warrants and certifies to the Banks that, as of the
date of the Letter of Credit requested herein: Each representation and warranty
made by the Company in Article 7 of the Agreement will be true and correct, both
immediately before and after such Letter of Credit is issued, as though such
representation and warranty was made on and as of the date of such issuance,
provided, however, the representations and warranties made by the Company in
Section 7.13 of the Agreement are true and correct as of the last reporting
under the Agreement; no actions, suits or proceedings will be pending against or
affecting the Company or any of its Subsidiaries or any property of any of them
in any court of Law or before any Governmental Authority which might reasonably
be expected to Materially adversely affect the business, operations or financial
condition of the Company and its Subsidiaries taken as a whole; no Material
adverse change will have occurred in the business, operations or financial
condition of the Company and its Subsidiaries taken as a whole since the Closing
Date; and no Event of Default or event that upon notice or passage of time would
constitute an Event of Default will have occurred and be continuing. (If any of
the foregoing statements is not true and correct, attach a statement specifying
in detail the circumstances thereof and the actions the Company is taking or
proposes to take with respect thereto.)
4. This Request for Letter of Credit is executed on ____________,
19__, by a Responsible Official of the Company on behalf of the Company. The
EXHIBIT "C-2" -- Page 1
106
undersigned, in such capacity, hereby certifies each and every matter contained
herein to be true and correct.
Dated:
-------------------
PAN PACIFIC RETAIL PROPERTIES, INC., a
Maryland corporation
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
EXHIBIT "C-2" -- Page 2
107
EXHIBIT "D"
REQUEST FOR REDESIGNATION OF BORROWING
1. This REQUEST FOR REDESIGNATION OF BORROWING is executed and
delivered by the Company to the Agent for the Banks pursuant to the Amended and
Restated Credit Agreement (the "Agreement") dated as of December 20, 1999,
entered into by the Company, the Banks and the Agent. Any terms used herein and
not defined herein shall have the meanings defined in the Agreement.
2. The Company hereby requests that the Banks redesignate outstanding
Reference Rate Borrowings heretofore made or redesignated for the account of the
Company pursuant to the Agreement, as follows:
(a) Total Amount of Loans to be Redesignated: $---------------.
(b) Date of Redesignation: ________________, 19__.
(c) Type of Loan as so Redesignated: LIBOR Borrowing with a
____-month LIBOR Period ending _______________, 19__.
3. In connection with the redesignation of Borrowing requested
herein, the Company hereby represents, warrants and certifies to the Banks that,
as of the date of the Loan requested herein: Each representation and warranty
made by the Company in Article 7 of the Agreement will be true and correct, both
immediately before and after such redesignation of Borrowing is made, as though
such representation and warranty was made on and as of the date of such
redesignation of Borrowing, provided, however, the representations and
warranties made by the Company in Section 7.13 of the Agreement are true and
correct as of the last reporting under the Agreement; no actions, suits or
proceedings will be pending against or affecting the Company or any of its
Subsidiaries or any property of any of them in any court of Law or before any
Governmental Authority which might reasonably be expected to Materially
adversely affect the business, operations or financial condition of the Company
and its Subsidiaries taken as a whole; no Material adverse change will have
occurred in the business, operations or financial condition of the Company and
its Subsidiaries taken as a whole since the Closing Date; and no Event of
Default or event that upon notice or passage of time would constitute an Event
of Default will have occurred and be continuing. (If any of the foregoing
statements is not true and
EXHIBIT "D" -- Page 1
108
correct, attach a statement specifying in detail the circumstances thereof and
the actions the Company is taking or proposes to take with respect thereto.)
4. This Request for Redesignation of Borrowing is executed on
____________, 19__, by a Responsible Official on behalf of the Company. The
undersigned, in such capacity, hereby certifies each and every matter contained
herein to be true and correct.
Dated:
------------------
PAN PACIFIC RETAIL PROPERTIES, INC., a
Maryland corporation
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
By:
------------------------------------------
------------------------------------------
[Printed Name and Title]
EXHIBIT "D" -- Page 2
109
EXHIBIT "E"
SUBSIDIARIES
1. Pan Pacific Development (Tennessee) Acquisition, Inc., a Delaware
corporation
2. Pan Pacific Development (Rosewood), Inc., a California corporation
3. Pan Pacific Development (Olympia Square), Inc., a Washington corporation
4. Pan Pacific Development (Kentucky), Inc., a Kentucky corporation
5. Sahara Pavilion North - U.S., Inc., a Nevada corporation
6. Pan Pacific Development (New Mexico), Inc., a New Mexico corporation
7. Pan Pacific Development (Chino), Inc., a Delaware corporation
8. Melrose Village Plaza Partners, a California general partnership
9. Tanasbourne Village Limited Partnership, an Oregon limited partnership
10. North Coast Health Center Joint Venture, a California general
partnership
11. Pan Pacific U.S. Shopping Center I Limited Partnership, a Delaware
limited partnership
EXHIBIT "E" -- Page 1
110
EXHIBIT "F"
FORM OF LEGAL OPINION
_________________, 199___
Bank of America, N.A., as successor to
Bank of America National Trust and Savings
Association, as Agent and to
the Banks that are, or may become,
parties to the to the Agreement
c/o Bank of America, N.A.
Real Estate Structured Debt Group
CA9-706-06-02
000 Xxxxx Xxxxxx Xxxxxx, 0xx xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Xx. Xxxxxx Xxxxx
Re: PAN PACIFIC RETAIL PROPERTIES, INC.
Ladies and Gentlemen:
We have acted as special counsel to Pan Pacific Retail Properties,
Inc., a Maryland corporation (the "Company"), in connection with the execution
and delivery of an Amended and Restated Credit Agreement, dated as of even date
herewith (the "Agreement") by and among the Company and Bank of America, N.A.,
as successor to Bank of America National Trust and Savings Association, a
national banking association, and other Banks that are, or may become, parties
to the Agreement. Capitalized terms used herein and not otherwise defined shall
have the meanings set forth in the Agreement.
In our capacity as counsel for the Company, we have made such legal
and factual inquiries and examinations as we deemed advisable for purposes of
rendering this opinion, and, in the course thereof, we have examined originals,
or copies of originals certified to our satisfaction, of such agreements,
documents, certificates and other statements of government officials, officers
of the Company and
EXHIBIT "F" -- Page 1
111
others as we deemed relevant and necessary as a basis for this opinion. We have
relied upon such certificates and documents with respect to the accuracy of
factual matters contained therein, which factual matters were not independently
established or verified by us. In all such examinations, we have assumed the
genuineness of all signatures by each party and the authenticity of all
documents submitted to us as originals and the conformity to authentic original
documents of all documents submitted to us as conformed or photostatic copies.
For the purpose of the opinions hereinafter expressed, we have assumed the due
execution and delivery, pursuant to due authorization, of each document referred
to herein by each party thereto other than the Company and the Subsidiaries and
that each document constitutes the valid and binding obligation of each party
thereto other than the Company and the Subsidiaries, enforceable against such
party in accordance with its terms.
On the basis of our inquiries and examinations, and subject to the
qualifications, exceptions, assumptions and limitations contained herein, we are
of the opinion that:
1. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Maryland and is qualified to do
business in the jurisdictions in which the nature of the property owned or
leased by the Company or the nature of the business transacted by the Company
makes such qualification necessary, except where the failure to be so qualified
would not have a Material adverse effect on the business or financial condition
of the Company and the Subsidiaries taken as a whole.
2. The execution, delivery and performance by the Company of the
Agreement and each Note pursuant thereto are within the Company's corporate
powers, have been duly authorized by all necessary corporate action and do not
contravene (a) the Company's certificate of incorporation or bylaws, (b) any law
or (c) any agreement or instrument identified to us by the Company as being
Material to the business or financial condition of the Company and the
Subsidiaries taken as a whole.
3. The Agreement is, and the Notes when delivered thereunder will be,
valid and binding obligations of the Company enforceable against the Company in
accordance with their respective terms.
4. No action of, or filing with, or approval or other action by, any
governmental or public body or authority which has not been taken, made or
obtained is required to authorize, or is otherwise required in connection with,
the execution, delivery and performance of the Agreement and the Notes.
EXHIBIT "F" -- Page 2
112
5. Each Subsidiary is duly organized, existing and in good standing
under the laws of the jurisdiction of its incorporation. Each of the
Subsidiaries is duly qualified as a foreign corporation to transact business and
is in good standing in each jurisdiction in which the ownership of property or
the nature of the business transacted by such Subsidiary makes such
qualification necessary.
6. To the best of our knowledge, the Company owns all of the issued
and outstanding capital stock of each of the Subsidiaries.
Very truly yours,
-------------------------------------
EXHIBIT "F" -- Page 3
113
EXHIBIT "G"
FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
This ASSIGNMENT AND ACCEPTANCE AGREEMENT (this "Assignment and
Acceptance") dated as of __________, 199__ is made between
______________________________ (the "Assignor") and
______________________________ (the "Assignee").
RECITALS
WHEREAS, the Assignor is party to that certain Amended and Restated
Credit Agreement dated as of December 20, 1999 (as amended, amended and
restated, modified, supplemented or renewed, the "Credit Agreement") among Pan
Pacific Retail Properties, Inc., a Maryland corporation (the "Company"), the
several financial institutions from time to time party thereto (including the
Assignor, the "Banks"), and Bank of America, N.A., as successor to Bank of
America National Trust and Savings Association, as agent for the Banks (the
"Agent"). Any terms defined in the Credit Agreement and not defined in this
Assignment and Acceptance are used herein as defined in the Credit Agreement;
WHEREAS, as provided under the Credit Agreement, the Assignor has
committed to making Loans (the "Committed Loans") to the Company in an aggregate
amount not to exceed $__________ (the "Commitment");
WHEREAS, [the Assignor has made Committed Loans in the aggregate
principal amount of $__________ to the Company] [no Committed Loans are
outstanding under the Credit Agreement]; and
WHEREAS, the Assignor wishes to assign to the Assignee [part of the]
[all] rights and obligations of the Assignor under the Credit Agreement in
respect of its Commitment, [together with a corresponding portion of each of its
outstanding Loans, in an amount equal to $__________ (the "Assigned Amount") on
the terms and subject to the conditions set forth herein and the Assignee wishes
to accept assignment of such rights and to assume such obligations from the
Assignor on such terms and subject to such conditions;
EXHIBIT "G" -- Page 1
114
NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, the parties hereto agree as follows:
1. Assignment and Acceptance.
(a) Subject to the terms and conditions of this Assignment and
Acceptance, (i) the Assignor hereby sells, transfers and assigns to the
Assignee, and (ii) the Assignee hereby purchases, assumes and undertakes from
the Assignor, without recourse and without representation or warranty (except as
provided in this Assignment and Acceptance) __% (the "Assignee's Percentage
Share") of (A) the Commitment [and the Loans] of the Assignor and (B) all
related rights, benefits, obligations, liabilities and indemnities of the
Assignor under and in connection with the Credit Agreement and the Loan
Documents.
[If appropriate, add paragraph specifying payment to Assignor by
Assignee of outstanding principal of, accrued interest on, and fees with respect
to, Committed Loans and L/C Obligations assigned.]
(b) With effect on and after the Effective Date (as defined in
Section 5 hereof), the Assignee shall be a party to the Credit Agreement and
succeed to all of the rights and be obligated to perform all of the obligations
of a Bank under the Credit Agreement, including the requirements concerning
confidentiality and the payment of indemnification, with a Commitment in an
amount equal to the Assigned Amount. The Assignee agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Bank. It is the intent
of the parties hereto that the Commitment of the Assignor shall, as of the
Effective Date, be reduced by an amount equal to the Assigned Amount and the
Assignor shall relinquish its rights and be released from its obligations under
the Credit Agreement to the extent such obligations have been assumed by the
Assignee; provided, however, the Assignor shall not relinquish its rights under
Section ___ and ___ of the Credit Agreement to the extent such rights relate to
the time prior to the Effective Date.
(c) After giving effect to the assignment and assumption set
forth herein, on the Effective Date the Assignee's Commitment will be
$__________.
(d) After giving effect to the assignment and assumption set
forth herein, on the Effective Date the Assignor's Commitment will be
$__________.
EXHIBIT "G" -- Page 2
115
2. Payments.
(a) As consideration for the sale, assignment and transfer
contemplated in Section 1 hereof, the Assignee shall pay to the Assignor on the
Effective Date in immediately available funds an amount equal to $__________,
representing the Assignee's Pro Rata Share of the principal amount of all
Committed Loans.
(b) The [Assignor] [Assignee] further agrees to pay to the Agent
a processing fee in the amount specified in Section [ ](__) of the Credit
Agreement.
3. Reallocation of Payments.
Any interest, fees and other payments accrued to the Effective Date with
respect to the Commitment [and] Loans shall be for the account of the Assignor.
Any interest, fees and other payments accrued on and after the Effective Date
with respect to the Assigned Amount shall be for the account of the Assignee.
Each of the Assignor and the Assignee agrees that it will hold in trust for the
other party any interest, fees and other amounts which it may receive to which
the other party is entitled pursuant to the preceding sentence and pay to the
other party any such amounts which it may receive promptly upon receipt.
4. Independent Credit Decision.
The Assignee (a) acknowledges that it has received a copy of the Credit
Agreement and the Schedules and Exhibits thereto, together with copies of the
most recent financial statements referred to in Section [ ](__) of the Credit
Agreement, and such other documents and information as it has deemed appropriate
to make its own credit and legal analysis and decision to enter into this
Assignment and Acceptance; and (b) agrees that it will, independently and
without reliance upon the Assignor, the Agent or any other Bank and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit and legal decisions in taking or not taking
action under the Credit Agreement.
5. Effective Date; Notices.
(a) As between the Assignor and the Assignee, the effective date
for this Assignment and Acceptance shall be __________, 199__ (the "Effective
Date"); provided that the following conditions precedent have been satisfied on
or before the Effective Date:
EXHIBIT "G" -- Page 3
116
(i) this Assignment and Acceptance shall be executed and
delivered by the Assignor and the Assignee;
(ii) the consent of the Company and the Agent required for
an effective assignment of the Assigned Amount by the Assignor to the Assignee
under Section [ ](__) the Credit Agreement shall have been duly obtained and
shall be in full force and effect as of the Effective Date;
(iii) the Assignee shall pay to the Assignor all amounts
due to the Assignor under this Assignment and Acceptance;
[(iv) the Assignee shall have complied with Section [
](__) of the Credit Agreement (if applicable);
(v) the processing fee referred to in Section 2(b) hereof
and in Section [ ](__) of the Credit Agreement shall have been paid to the
Agent; and
(vi) the Assignor shall have assigned and the Assignee
shall have assumed a percentage equal to the Assignee's Percentage Share of the
rights and obligations of the Assignor under the Credit Agreement (if such
agreement exists).
(b) Promptly following the execution of this Assignment and
Acceptance, the Assignor shall deliver to the Company [, the Issuing Bank] and
the Agent for acknowledgment by the Agent, a Notice of Assignment
[substantially] in the form attached hereto as Schedule 1.
[6. Agent. [INCLUDE ONLY IF ASSIGNOR IS AGENT]
(a) The Assignee hereby appoints and authorizes the Assignor to
take such action as agent on its behalf and to exercise such powers under the
Credit Agreement as are delegated to the Agent by the Banks pursuant to the
terms of the Credit Agreement.
(b) The Assignee shall assume no duties or obligations held by
the Assignor in its capacity as Agent under the Credit Agreement.]
7. Withholding Tax.
The Assignee (a) represents and warrants to the Bank, the Agent and the
Company that under applicable law and treaties no tax will be required to be
withheld by the Bank with respect to any payments to be made to the Assignee
hereunder, (b) agrees to furnish (if it is organized under the laws of any
jurisdiction other than the
EXHIBIT "G" -- Page 4
000
Xxxxxx Xxxxxx or any State thereof) to the Agent and the Company prior to the
time that the Agent or Company is required to make any payment of principal,
interest or fees hereunder, duplicate executed originals of either U.S. Internal
Revenue Service Form 4224 or U.S. Internal Revenue Service Form 1001 (wherein
the Assignee claims entitlement to the benefits of a tax treaty that provides
for a complete exemption from U.S. federal income withholding tax on all
payments hereunder) and agrees to provide new Forms 4224 or 1001 upon the
expiration of any previously delivered form or comparable statements in
accordance with applicable U.S. law and regulations and amendments thereto, duly
executed and completed by the Assignee, and (c) agrees to comply with all
applicable U.S. laws and regulations with regard to such withholding tax
exemption.
8. Representations and Warranties.
(a) The Assignor represents and warrants that (i) it is the legal
and beneficial owner of the interest being assigned by it hereunder and that
such interest is free and clear of any Lien or other adverse claim; (ii) it is
duly organized and existing and it has the full power and authority to take, and
has taken, all action necessary to execute and deliver this Assignment and
Acceptance and any other documents required or permitted to be executed or
delivered by it in connection with this Assignment and Acceptance and to fulfill
its obligations hereunder; (iii) no notices to, or consents, authorizations or
approvals of, any Person are required (other than any already given or obtained)
for its due execution, delivery and performance of this Assignment and
Acceptance, and apart from any agreements or undertakings or filings required by
the Credit Agreement, no further action by, or notice to, or filing with, any
Person is required of it for such execution, delivery or performance; and (iv)
this Assignment and Acceptance has been duly executed and delivered by it and
constitutes the legal, valid and binding obligation of the Assignor, enforceable
against the Assignor in accordance with the terms hereof, subject, as to
enforcement, to bankruptcy, insolvency, moratorium, reorganization and other
laws of general application relating to or affecting creditors' rights and to
general equitable principles.
(b) The Assignor makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto. The
Assignor makes no representation or warranty in connection with, and assumes no
responsibility with respect to, the solvency, financial condition or statements
of the Company, or the performance or observance by the Company, of any of its
respective obligations under the Credit Agreement or any other instrument or
document furnished in connection therewith.
EXHIBIT "G" -- Page 5
118
(c) The Assignee represents and warrants that (i) it is duly
organized and existing and it has full power and authority to take, and has
taken, all action necessary to execute and deliver this Assignment and
Acceptance and any other documents required or permitted to be executed or
delivered by it in connection with this Assignment and Acceptance, and to
fulfill its obligations hereunder; (ii) no notices to, or consents,
authorizations or approvals of, any Person are required (other than any already
given or obtained) for its due execution, delivery and performance of this
Assignment and Acceptance; and apart from any agreements or undertakings or
filings required by the Credit Agreement, no further action by, or notice to, or
filing with, any Person is required of it for such execution, delivery or
performance; (iii) this Assignment and Acceptance has been duly executed and
delivered by it and constitutes the legal, valid and binding obligation of the
Assignee, enforceable against the Assignee in accordance with the terms hereof,
subject, as to enforcement, to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application relating to or affecting
creditors' rights and to general equitable principles; and (iv) it is an
Eligible Assignee.
9. Further Assurances.
The Assignor and the Assignee each hereby agree to execute and deliver
such other instruments, and take such other action, as either party may
reasonably request in connection with the transactions contemplated by this
Assignment and Acceptance, including the delivery of any notices or other
documents or instruments to the Company or the Agent, which may be required in
connection with the assignment and assumption contemplated hereby.
10. Miscellaneous.
(a) Any amendment or waiver of any provision of this Assignment
and Acceptance shall be in writing and signed by the parties hereto. No failure
or delay by either party hereto in exercising any right, power or privilege
hereunder shall operate as a waiver thereof and any waiver of any breach of the
provisions of this Assignment and Acceptance shall be without prejudice to any
rights with respect to any other or further breach thereof.
(b) All payments made hereunder shall be made without any set-off
or counterclaim.
(c) The Assignor and the Assignee shall each pay its own costs
and expenses incurred in connection with the negotiation, preparation, execution
and performance of this Assignment and Acceptance.
EXHIBIT "G" -- Page 6
119
(d) This Assignment and Acceptance may be executed in any number
of counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.
(e) THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF CALIFORNIA. The Assignor
and the Assignee each irrevocably submits to the non-exclusive jurisdiction of
any State or Federal court sitting in California over any suit, action or
proceeding arising out of or relating to this Assignment and Acceptance and
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such [California] State or Federal court. Each party
to this Assignment and Acceptance hereby irrevocably waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. [Reference]
(f) THE ASSIGNOR AND THE ASSIGNEE EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH THIS ASSIGNMENT AND ACCEPTANCE, THE CREDIT AGREEMENT, ANY
RELATED DOCUMENTS AND AGREEMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, OR
STATEMENTS (WHETHER ORAL OR WRITTEN).
[Other provisions to be added as may be negotiated between the
Assignor and the Assignee, provided that such provisions are not inconsistent
with the Credit Agreement.]
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this
Assignment and Acceptance to be executed and delivered by their duly authorized
officers as of the date first above written.
[ASSIGNOR]
By:
-------------------------------------
-------------------------------------
[Printed Name and Title]
EXHIBIT "G" -- Page 7
120
[ASSIGNEE]
By:
-------------------------------------
-------------------------------------
[Printed Name and Title]
EXHIBIT "G" -- Page 8
121
SCHEDULE 1
NOTICE OF ASSIGNMENT AND ACCEPTANCE
_________________, 19__
Bank of America, N.A., as Agent
_______________________________
_______________________________
Attn:__________________________
Pan Pacific Retail Properties, Inc.
_______________________________
_______________________________
Attn:__________________________
Ladies and Gentlemen:
We refer to the Amended and Restated Credit Agreement dated as of
December 20, 1999 (as amended, amended and restated, modified, supplemented or
renewed from time to time the "Credit Agreement") among Pan Pacific Retail
Properties, Inc., a Maryland corporation (the "Company"), the Banks referred to
therein and Bank of America, N.A., as successor to Bank of America National
Trust and Savings Association, as agent for the Banks (the "Agent"). Terms
defined in the Credit Agreement are used herein as therein defined.
1. We hereby give you notice of, and request your consent to, the
assignment by __________________ (the "Assignor") to _______________ (the
"Assignee") of _____% of the right, title and interest of the Assignor in and to
the Credit Agreement (including, without limitation, the right, title and
interest of the Assignor in and to the Commitments of the Assignor and all
outstanding Loans made by the Assignor) pursuant to the Assignment and
Acceptance Agreement attached hereto (the "Assignment and Acceptance"). Before
giving effect to such assignment, the Assignor's Commitment is $ ___________ and
the aggregate amount of its outstanding Loans is $_____________. After giving
effect to such assignment, the Assignor's Commitment shall be $______________
and the Assignee's Commitment shall be $______________.
SCHEDULE 1 -- Page 1
122
2. The Assignee agrees that, upon receiving the consent of the Agent
and, if applicable, the Company to such assignment, the Assignee will be bound
by the terms of the Credit Agreement as fully and to the same extent as if the
Assignee were the Bank originally holding such interest in the Credit Agreement.
3. The following administrative details apply to the Assignee:
(A) Notice Address:
Assignee name: __________________________
Address:_________________________________
_________________________________
_________________________________
Attention:_______________________________
Telephone: (___) _______________________
Telecopier: (___) ______________________
Telex (Answerback):______________________
(B) Payment Instructions:
Account No.:_____________________________
At:_____________________________
_____________________________
_____________________________
Reference:_______________________________
Attention:_______________________________
4. You are entitled to rely upon the representations, warranties and
covenants of each of the Assignor and Assignee contained in the Assignment and
Acceptance.
SCHEDULE 1 -- Page 2
123
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this
Notice of Assignment and Acceptance to be executed by their respective duly
authorized officials, officers or agents as of the date first above mentioned.
Very truly yours,
[NAME OF ASSIGNOR]
By:
-------------------------------------
Title:
----------------------------------
By:
-------------------------------------
Title:
----------------------------------
[NAME OF ASSIGNEE]
By:
-------------------------------------
Title:
----------------------------------
By:
-------------------------------------
Title:
----------------------------------
SCHEDULE 1 -- Page 3
124
ACKNOWLEDGED AND ASSIGNMENT
CONSENTED TO:
PAN PACIFIC RETAIL PROPERTIES, INC., a Maryland corporation
By:
------------------------------------
Title:
---------------------------------
By:
------------------------------------
Title:
---------------------------------
BANK OF AMERICA, N.A., as successor to Bank
of America National Trust and Savings Association,
as Agent
By:
------------------------------------
Title:
---------------------------------
By:
------------------------------------
Title:
---------------------------------
SCHEDULE 1 -- Page 4
125
SCHEDULE 1.1(A)
LIST OF ASSETS
1. Arlington Courtyard 30. Xxxxxxxx Xxxxx
0. Xxxxxx Xxxxx 00. Ocoee Plaza
3. Bear Creek Plaza 32. Olympia Square
4. Brookvale Shopping Center 33. Olympia West
5. Canyon Ridge 34. Oregon City
6. Canyon Square 35. Oregon Trail
7. Cheyenne Commons 36. Pacific Commons Shopping
8. Chico Crossroads Center
9. Chino Town Square 37. Palmdale Shopping Center
10. Claremont Village 38. Panther Lake Shopping Center
11. Country Club Center 39. Pioneer Plaza
12. Creekside Center 40. Xxxxxx Valley Junction
13. Fairmont Shopping Center 41. Rainbow Xxxxxxxxx
00. Fashion Faire Xxxxx 00. Xxxxxx Xxx Xxxxxx
00. Foothill Center 43. Rosewood Village
16. Xxxx Cove Shopping Center 44. Xxxxxx Xxxxxxxx Xxxxx
00. Xxxxx Xxxxxx Xxxx & Country 45. Xxxxxx Xxxxxxxx Xxxxx
00. Xxxxxxxxx Xxxxx 00. San Dimas Marketplace
19. Hood River Shopping Center 47. Xxxxx Marketplace
20. Xxxxxx Xxxxxxx 00. Xxxxx Xxxx Xxxxx
00. Lakewood Center 49. Southgate Shopping Center
22. Laurentian Center 50. Sunset Mall & Office
23. The Manteca Marketplace 51. Sunset Square
24. Marina Village 52. Tacoma Central
25. Maysville Marketsquare 53. Xxxxxxxxxxx
00. Xxxxxxx Xxxxxxx Xxxxx 00. Tustin Heights Shopping
27. Memphis Retail Center Center
28. Milwaukie Marketplace 55. Vineyard Village East
29. Mira Loma Center 56. Westwood Village Shopping
Center
57. Winterwood
SCHEDULE 1.1(A)
126
SCHEDULE 1.1(B)
DESIGNATED RESPONSIBLE OFFICIALS
1. Xxxxxx X. Xxxx, Director Chairman, Chief Executive Officer and President
2. Xxxx Xxxxxxxx, Executive Vice President and Chief Operating Officer
3. Xxxxxx X. Xxxxx, Executive Vice President and Chief Financial Officer
4. Xxxxxx X. Xxxxx, Vice President and Controller
SCHEDULE 1.1(B)
127
SCHEDULE 1.1(C)
PRICING GRID
LIBOR Rate Reference Facility Fee
Company's Credit Rating Spread Rate Spread (per annum)
----------------------- ---------- ----------- ------------
BBB+/Baa1 or better 1.05% 0.0% 0.15%
BBB/Baa2 1.10% 0.0% 0.175%
BBB-/Baa3 1.15% 0.0% 0.20%
Less than BBB-/Baa3 (or not rated) 1.45% 0.25% 0.25%
and Leverage Ratio
greater than or equal to .45 to 1
Less than BBB-/Baa3 (or not rated) 1.35% 0.25% 0.25%
and Leverage Ratio
greater than or equal to .35 to 1
but less than .45 to 1
Less than BBB-/Baa3 (or not rated) 1.25% 0.25% 0.25%
and Leverage Ratio
less than .35 to 1
The applicable Reference Rate Spread, LIBOR Rate Spread or Facility Fee shall be
determined in accordance with the foregoing pricing grid and the following
guidelines (and any other applicable provisions of the Agreement):
(i) The above credit ratings refer to the Company's current senior long term
debt ratings (or lack thereof) as published by Standard & Poors or Xxxxx'x
Investor Services. If a difference in rating between Standard & Poors and
Xxxxx'x Investor Services exists, the lower rating shall be deemed the Company's
credit rating for purposes of the foregoing pricing grid. If the Company has
received a rating from either of Standard & Poors and Xxxxx'x Investor Services,
but not both, the rating received by the Company shall be deemed the Company's
credit rating for purposes of the foregoing pricing grid.
(ii) For purposes of determining the Reference Rate Spread, LIBOR Rate Spread
and Facility Fee, the Leverage Ratio shall be determined quarterly as of the
last day of the last month of each calendar quarter. If such determination
discloses a change in
SCHEDULE 1.1(C)
128
the Leverage Ratio which results in a change in the applicable Reference Rate
Spread, LIBOR Rate Spread or Facility Fee, such change shall be effective on the
first day of the third month of the ensuing calendar quarter. For example, if
the Leverage Ratio tested as of September 30, 1999 was .35 to 1, and changed to
.28 to 1 as of December 31, 1999, the lower applicable LIBOR Rate Spread would
become effective as of March 1, 2000. In addition to the above, if Agent
redetermines the Reference Rate Spread, LIBOR Rate Spread or Facility Fee
pursuant to subparagraph (iii) below, Agent may also redetermine the Leverage
Ratio at that time.
(iii) The Company shall notify Agent immediately of any change in the Company's
credit rating as described above. If such change in the Company's credit rating
results in a decrease to the applicable Reference Rate Spread, LIBOR Rate Spread
or Facility Fee described above, such change to the applicable Reference Rate
Spread, LIBOR Rate Spread or Facility Fee shall become effective on the first
Banking Day following Agent's receipt of the Company's notice. If such change in
the Company's credit rating results in an increase to the applicable Reference
Rate Spread, LIBOR Rate Spread or Facility Fee described above, then such change
in the applicable Reference Rate Spread, LIBOR Rate Spread or Facility Fee shall
be effective on the next Banking Day following the date on which the change in
the Company's credit rating is first announced or published by the rating agency
(regardless of when the Company's notice is received by Agent, if at all).
(iv) The Reference Rate Spread and the LIBOR Rate Spread, as determined above,
are subject to further increase under Section 8.3 of the Agreement.
SCHEDULE 1.1(C)
129
SCHEDULE 3.5(c)
ASSETS INITIALLY CONSTITUTING THE
BORROWING BASE PROPERTIES POOL
Arlington Courtyard
Bear Creek Plaza
Brookvale
Canyon Ridge Plaza
Cheyenne Commons
Chico Crossroads
Claremont Village
Creekside
Fairmont
Fashion Faire
Xxxx Cove
Green Valley
Laguna Village
Lakewood Center
Manteca Marketplace
Memphis Retail Center (formerly known as Sports Unlimited)
Milwaukie Marketplace
Mira Loma
Ocoee Plaza
Pacific Commons
Palmdale
Panther Lake
Pioneer Plaza
Xxxxxx Valley
Sahara Pavilion South
Xxxxx Park Plaza
Sunset Square
Vineyard Village East
Winterwood Pavilion
SCHEDULE 3.5(c)
130
SCHEDULE 7.7
MATERIAL ADVERSE CHANGES AND MATERIAL LIABILITIES
None.
SCHEDULE 7.7
131
SCHEDULE 7.9
MATERIAL LITIGATION AND OTHER ACTIONS
None.
SCHEDULE 7.9
132
SCHEDULE 7.14
ENVIRONMENTAL MATTERS
1. Marina Village - This Asset has environmental contamination which was
remediated just prior to acquisition by the Company. This Asset is in a
monitoring only period at the end of which a "clean letter" is expected. No
further remediation work is required at this time.
SCHEDULE 7.14
133
SCHEDULE 8.21(e)
DESCRIPTION OF EXISTING PARTNERSHIPS
1. North Coast Health Center Joint Venture, a California general
partnership
2. Pan Pacific Development (Tennessee), Limited Partnership, a California
limited partnership
3. Pan Pacific U.S. Shopping Center I Limited Partnership, a Delaware
limited partnership
4. Maysville Marketsquare Associate Limited Partnership, a Kentucky limited
partnership
SCHEDULE 8.21(e)
